Cisco and Apple Settle iPhone Dispute

By NewsFactor Network | February 22, 2007

After weeks of heated discussion, legal action, and deadline extensions, Cisco and Apple finally resolved their dispute over the iPhone trademark on Wednesday.

The battle between the two tech titans began brewing in January. Cisco filed suit against the Mac-maker the day after Apple CEO Steve Jobs unveiled his interpretation of the mobile phone, which he called an iPhone — in line with the company’s string of popular products that begin with the dotted letter.

Under the agreement, both companies are free to use the iPhone name on their products. “Both companies acknowledge the trademark ownership rights that have been granted, and each side will dismiss any pending actions regarding the trademark,” the companies said in a joint statement.

In addition, Cisco and Apple will explore opportunities for interoperability in the areas of security and communications. Other terms of the agreement, which legal analysts said likely include licensing fees payable to Cisco, were not disclosed.

Cisco’s Confidence

Cisco demonstrated a confident stance in the just-settled trademark dispute, having acquired legal rights to the iPhone name when it purchased InfoGear in 2000. The networking giant’s suit claimed that Apple’s use of the iPhone trademark would cause confusion among customers.

Apple disagreed and, as the outcome illustrates, was able to convince Cisco that consumers would know the difference between its mobile phone and Linksys’ line of VoIP phones. Linksys has been selling its rendition of iPhones since last year. The company added new models to its lineup as recently as December.

“Cisco viewed Apple’s decision to announce the iPhone before coming to a licensing agreement as a slap in the face,” said Cheryl Clarkin, a trademark attorney with Wolf Greenfield & Sacks P.C. “Cisco moved to protect its trademark with a lawsuit.”

After some early media wrangling between the companies — Cisco called Apple’s use of the trademark…

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