Apple Inc Unleashes iPhone - Apple iPhone versus Cisco iPhone: Which Way is Up?
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December 18, 2006. After months of Apple "iPhone" rumors, Cisco dropped the Linksys iPhone bombshell, much to industry watchers' consternation. Apple and Cisco had been in talks for two and a half years (30 months) over using the brand name. Right at the height of the frenzy of Apple rumors, Cisco released the "iPhone," which simply carries a big "L" (Loser) on its head.
After some head shaking, I decided that the Apple phone would not be called iPhone (I even wrote an article saying so) and then on January 5, 2007, Steve Jobs released the Apple phone and called it the "iPhone." Stupefied, I watched on. Predictably the next day, San Jose, California-based Cisco filed suit in the U.S. District Court for the northern district of California against Apple over the use of its registered trademark. And the mudslinging began.
According to Cisco general counsel Mark Chandler, "Cisco entered into negotiations with Apple in good faith after Apple repeatedly asked permission to use Cisco's iPhone name...There is no doubt that Apple's new phone is very exciting, but they should not be using our trademark without our permission." Cisco got the iPhone trademark in 2000 when it acquired Infogear.
Cisco is seeking an injunction against Apple Inc. Apple fearlessly retorted "We believe that Cisco's U.S. trademark is tenuous at best." Apple spokeswoman Katie Cotton told The New York Times that "We are the first company to use the iPhone name for a cell phone and we're confident we will prevail."
The situation is not as simple as it looks, and the decision can backfire against Cisco if the details of their trademark filing come to light. A situation could arise where both Cisco and Apple will both be able to use the trademarked name! Other possibilities could be very expensive for Apple, if they decide to pay for use of the name.
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