An injunction could have undermined the PNG Chiefs' recruitment before the NRL expansion club's planned 2028 debut, the court heard.
On Friday, a judge rejected New Zealand Rugby's request for urgent interim orders during a two-hour hearing in Wellington.
NZR had sought the ruling before the club reveals its logo and jersey in Port Moresby next week. Its separate bid for a final injunction remains before the court, while legal action in Australia is also being considered.
NZR lawyer Earl Gray argued that using "PNG Chiefs" and "Chiefs" interchangeably could confuse fans and weaken the New Zealand Super Rugby Pacific team's exclusive association with its name. He said NZR holds New Zealand trademarks that the NRL had not recognised.
For the ARLC, lawyer Clive Elliot said the urgent application was inappropriate because NZR had known about the name for about a year. An injunction could also cloud the new club's reputation before free agency opens in November.
NZR chief executive Steve Lancaster said, "Today's decision is not a judgement on the strength of the case, and the matter will still be heard in full," adding, "As the trademark holder, the responsibility to protect the Chiefs brand hasn't changed. We remain open to working with the ARLC on a solution."
ARLC executive chairman Peter V'landys had called NZR's action "mind-blowing hypocrisy", citing the Auckland Blues' arrival after the NSW Blues "had been the Blues".