Apple and Cisco Settle iPhone Trademark Dispute

Telecom News Editorials Reports Glossary

12:59 pm on February 22, 2007 | Category: Business, Mobile Devices, Cell Phones, Multimedia, Law, Editorials

Cisco Systems and Apple have announced a settlement in their trademark dispute over the iPhone brand name, with Cisco agreeing to drop its lawsuit in exchange for certain concessions.

Apple will be allowed to use the Cisco-owned trademark for its iPod cell phone product, which is set to launch in the U.S. this June. In return, the computer manufacturer has agreed to explore “interoperability” with Cisco’s security, consumer, and business communication products. No details were given on the issue of royalties or financial compensation.

Cisco has managed to assert its own right to the trademark, claiming that Apple’s unauthorized use of the iPhone name was “willful and malicious,” while shrewdly positioning its own products to cash in on Apple iPhone hype.

As I noted in my previous editorial, Cisco has no desire to see Apple cancel its iPhone product, or even rename it. Instead, the networking giant sees the branding dispute as an opportunity for free advertising and possible co-promotion in the future.

Apple now owes Cisco a great debt, and that debt will be redeemed in full if and when the iPhone becomes a hit in the handset market.