Wednesday, January 10, 2007

iOops, Cisco Actually Want Money For The Rights To The Name iPhone

This sounds unbelievable, but :

Techdirt has posted on the above saying (Dated Wednesday January 10, 2007):

In the weeks leading up to yesterday's big announcement there was a lot of talk about how Apple couldn't even use the name iPhone because it was a registered trademark of Cisco. Thus, it was as big of a surprise as any that Apple's new converged cellphone/iPod was indeed called the iPhone. The word out of Cisco was that the night before the announcement, they sent Apple the final terms of a license that would allow Apple to use the name, and that they expected a signed agreement right away. Well, apparently Apple didn't get back to Cisco quickly enough, and now the networking giant is taking Apple to court, seeking to prevent Apple from using the name. It seems likely that this is a threat to make sure that Apple takes Cisco's demands seriously, and that things will get worked out before the lawsuit goes to trial. Still, it's really astounding that Apple would make such an important announcement without having this matter long squared away.




Yahoo has this written on the same subject this way (Dated Wednesday January 10, 2007):

Cisco Systems sued Apple Inc. in federal court Wednesday, saying the computer maker's new iPhone violates its trademark.

The lawsuit, filed in U.S. District Court for the Northern District of California, came just a day after Apple CEO Steve Jobs unveiled the Apple iPhone in dramatic fashion at a trade show in San Francisco.

But even while Jobs was trumpeting the product during his keynote address to Apple faithful, the matter of the product's naming had not been resolved behind the scenes between two of the biggest names in Silicon Valley.

San Jose-based Cisco, the world's largest network-equipment maker, has owned the trademark on the name "iPhone" since 2000, when it acquired InfoGear Technology Corp., which originally registered the name.

And three weeks ago, Cisco's Linksys division put the trademark to use, releasing an Internet phone called "iPhone" that uses the increasingly popular Voice over Internet Protocol, or VoIP.

But on Tuesday, Jobs unveiled Apple's own iPhone, a "game-changing" touch-screen-controlled cell phone device that plays music, surfs the Web and delivers voicemail and e-mail.

Apple spokeswoman Natalie Kerris said she could not immediately comment on the lawsuit.

Cisco said Tuesday it had been negotiating for several years with Apple over a licensing agreement, but that Apple lawyers had not signed and returned the final contract.

"Cisco entered into negotiations with Apple in good faith after Apple repeatedly asked permission to use Cisco's iPhone name," said Mark Chandler, Cisco senior vice president and general counsel, in a statement. "There is no doubt that Apple's new phone is very exciting, but they should not be using our trademark without our permission."

Cisco is seeking injunctive relief to prevent Apple from copying Cisco's iPhone trademark.

"Today's iPhone is not tomorrow's iPhone. The potential for convergence of the home phone, cell phone, work phone and PC is limitless, which is why it is so important for us to protect our brand," Chandler added.



And Gizmodo has the same story also this way (Dated Wednesday January 10, 2007):

Cisco, which holds the trademark on the iPhone name, just held a press conference here at CES to announce that they distributed an agreement to Apple last night, and that they expect it to be signed today. For those who aren't up-to-speed on this kerfluffle, we learned just before Christmas that Cisco owns the trademark for the iPhone, and is in fact going to sell a product under that name. Looks like that may change after today. Here is the full press release:

Given Apple's numerous requests for permission to use Cisco's iPhone trademark over the past several years and our extensive discussions with them recently, it is our belief that with their announcement today, Apple intends to agree to the final document and public statement that were distributed to them last night and that addressed a few remaining items. We expect to receive a signed agreement today.

To cut a long story short, Cisco wants compensation, and apparently a huge one, for the use of the name iPhone. Sound outrageous, but that is it.

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