Cisco hits Apple with lawsuit over iPhone

Ben Charny,
MarketWatch

Cisco Systems Inc. on Wednesday sued Apple Inc., claiming that the maker of computers and media players doesn't have permission to name its newest device the iPhone.
Cisco has owned the trademark for "iPhone" since 2000, the result of its purchase of InfoGear, which owned the trademark previously. Since December, Cisco's wireless division, Linksys, has been shipping a family of cordless and wireless phones under the iPhone brand.
"We think Cisco's trademark lawsuit is silly," said Natalie Kerris, an Apple spokeswoman.
Several companies already use the name "iPhone" for Voice-over-Internet products, Kerris said.
"Apple is the first company to ever use the 'iPhone' name for a cell phone," she said. "We believe that Cisco's trademark registration is tenuous at best."
Kerris added: "If Cisco wants to challenge us on it, we are very confident we would prevail."
Late Wednesday, Cisco asked a U.S. district judge for Northern California to order Apple not to use the name for a device that it introduced on Tuesday during an annual trade show.
Apple intends to begin selling its iPhone sometime in June, which provides a five-month cushion for both sides to reach some kind of settlement. Should that not happen, the suit could impact sales of the device.
The lawsuit follows years of negotiations between the two companies, which continued even as Apple Chief Executive Steve Jobs was introducing the iPhone Tuesday during the Macworld show in San Francisco. See full story.
Cisco took the iPhone's introduction as a sign that Apple had agreed to Cisco's terms for use of the trademark. In a statement issued Tuesday, Cisco said that it suspected Apple had agreed to terms, and was expecting to hear from the company later that day.
But the paperwork never arrived, a Cisco spokesman said Wednesday.
"Cisco entered into negotiations with Apple in good faith after Apple repeatedly asked permission to use Cisco's iPhone name," Mark Chandler, Cisco's senior vice president and general counsel, said in a statement. "There is no doubt that Apple's new phone is very exciting, but they should not be using our trademark without permission."

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