Last year Baili accused Apple of violating its design patent in 2014. It claimed that the iPhone 6 and iPhone 6 Plus look too similar to its 100C phone model.
The Beijing Intellectual Property Office ruled in its favour and banned Apple from selling the phones in the city last May, which saw the company’s sales drop by 23%.
However, sales were allowed to continue following Apple’s appeal.
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In the ruling on Monday, the court declared that Baili’s claims are unfounded and recognised that the iPhone 6 has features that “completely change the effect of the entire product”, adding that “both phones are easily distinguishable in the eyes of consumers.”
The Court said the patent body had not given enough evidence to prove that a patented design was being violated.