super cool!!!
Hardware The iPhone, First Mac OS based phones
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 Jan 10 2007, 12:20 PM
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Jan 11 2007, 05:25 PM
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 no more iphoneApple Is Sued By Cisco Over IPhone Name After Negotiations Fail By Ari Levy and Susan Decker Jan. 11 (Bloomberg) -- Apple Inc. was sued by Cisco Systems Inc. over its new iPhone a day after Chief Executive Officer Steve Jobs introduced the device to fanfare in San Francisco. Cisco sued Apple yesterday in U.S. District Court in San Francisco, alleging use of the name violates its trademark. The lawsuit was filed after talks to share the iPhone name ended, San Jose, California-based Cisco said in a statement. Apple, maker of the iPod music player, failed to reach an agreement with Cisco on use of the name after five years of talks and chose to go ahead with the iPhone announcement this week. The move surprised trademark lawyers who said it's rare for a company to introduce a product without rights to the name. ``This is a gutsy move by Apple,'' said William Heller of McCarter & English in Newark, New Jersey. ``I wouldn't handicap this race just yet. There are lots of arguments on both sides.'' Apple took steps to register iPhone under a fake company name even as it continued talks with Cisco, court papers said. Cisco, the world's largest maker of networking equipment, asked the court to block Apple from using the iPhone name. Cisco said a company called Ocean Telecom Services LLC filed an application with the U.S. Patent and Trademark Office for the name in September. Apple filed an application for the iPhone name in Australia. Both applications cite a third filing in Trinidad and Tobago as being connected, Cisco said. The U.S. application ``is being held up'' because of the Cisco trademark, Cisco said. Plan B Ocean Telecom appears to be ``either Apple directly or a company that is doing it for Apple,'' said Allonn E. Levy, a trademark lawyer at Hopkins & Carley in San Jose, California. ``I can see where Apple says, `Negotiations aren't going so well; we'd better have a Plan B.''' Shares of Cupertino, California-based Apple rose $4.43 to $97 yesterday in Nasdaq Stock Market composite trading. Cisco gained 21 cents to $28.68. The suit was filed after the close of regular trading in the U.S. Apple spokesman Steve Dowling said yesterday there's a difference between cordless phones marketed by Cisco's Linksys division and the cell phone Apple introduced two days ago. ``We are the first company to use the name iPhone for a cell phone, and if Cisco wants to challenge us on it we are very confident we will prevail,'' Dowling said in an interview. That position is ``not consistent with the discussions we've had for several years,'' Cisco General Counsel Mark Chandler said yesterday in an interview. ``Apple approached us numerous times starting in 2001 regarding use of the iPhone name.'' Negotiations As recently as Jan. 9, Cisco said it expected Apple to sign an agreement under which the two would share the iPhone name. Cisco said it was unwilling to cede full rights to the name and couldn't agree on terms that would let Apple proceed. Cisco has owned the iPhone trademark for six years. It bought the name as part of a 2000 purchase of InfoGear Technology Corp. and in January began selling a line of Internet-based cordless phones called iPhones. Other companies have tried to trademark the iPhone name. The Trademark Office has issued a non-final rejection to Teledex LLC, a San Jose company that makes telephones for hotels, on the ``likelihood of confusion'' with the Cisco name, according to the trademark office's Web site. Apple contends Cisco's right to the name is tenuous, and that other companies use the iPhone name for cordless phones. The company also is likely to argue the mark is ``weak'' because it hasn't been used continuously since registered in 1999, trademark lawyers said. Apple also may claim its iPod, iBook computer and iTunes Web site have popularized the use of products starting with ``I.'' The case is Cisco Systems Inc. v. Apple Inc., 07-198, U.S. District Court for the Northern District of California. To contact the reporters on this story: Ari Levy in Las Vegas at alevy5@bloomberg.net ; Susan Decker in Washington at sdecker1@bloomberg.net . Last Updated: January 11, 2007 00:10 EST source |
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