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Apple and Cisco End Dispute, Agreeing to Share IPhone Brand

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companyone

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Two companies playing "nice -nice" with each other... I don't think either one owns iphone.com




Apple and Cisco End Dispute, Agreeing to Share IPhone Brand

By Ari Levy and Connie Guglielmo

Feb. 21 (Bloomberg) -- Cisco Systems Inc. and Apple Inc. agreed to share the iPhone brand, dismissing Cisco's lawsuit for trademark infringement.

The agreement allows both companies to use the iPhone name and calls for their products to work together in the future, the companies said today in a joint statement.

The settlement ends a six-week dispute between the Silicon Valley giants and puts Cupertino, California-based Apple on schedule to start selling its combination iPod music player and mobile phone under the iPhone brand in June. The decision comes two weeks after Apple ended decades of litigation with the Beatles over rights to use the Apple name and logo.

``IPhone is worth a hell of a lot more to Apple than to Cisco,'' John Daniel, a partner at Kramer Levin Naftalis & Frankel LLP in New York, said before the announcement. He isn't involved in this case. ``The `I' prefix is what Apple has been developing, and if it didn't have that, it would be unhappy. I don't think anybody associates iPhone with Cisco these days.''

Cisco, the world's largest maker of computer-networking equipment, claimed last month that Apple's iPhone violated a trademark owned by San Jose, California-based Cisco since 2000. Apple, which unveiled the device on Jan. 9 in San Francisco, called the suit ``silly'' because its iPhone differs from Cisco's Internet-based home phone.

Shares of Apple rose $3.30 to $89.20 today in Nasdaq Stock Market composite trading and have jumped 29 percent the past year. Cisco shares fell 28 cents to $27.38 and are up 40 percent the past 12 months.

Coattail Effect

Apple approached Cisco about using the name several times during the past year and announced the product before an agreement was reached, according to a Jan. 10 blog posting by Cisco general counsel Mark Chandler.

Apple still faces possible delays in Canada where closely held Comwave Telecom Inc. has used the iPhone brand since 2004 to sell Web-based phone service. Comwave said in January it filed documents opposing Apple's motion to take the name.

Cisco ``wants to ride Apple's brand recognition and get a little coattail effect,'' James M. McCarthy, a partner at McDonnell Boehnen Hulbert & Berghoff in Chicago, said before the announcement. He isn't involved in the case. ``Interoperability was important to Cisco.''

10 Million IPhones

Apple Chief Executive Officer Steve Jobs said last month he expects to sell 10 million iPhones, which cost as much as $599 apiece, in 2008. The move puts Apple in competition with Research In Motion Ltd.'s BlackBerry and Palm Inc.'s Treo.

The agreement with the Beatles' Apple Corps Ltd. on Feb. 5 gives Apple Inc. all trademarks related to ``Apple'' and may enable the company to add songs by the Beatles to the iTunes online store. Apple Inc. will license some rights back to Apple Corps, the companies said.

Cisco's iPhone is part of its Linksys home routing unit, which the company purchased in 2003 to tap the consumer market. The phones, which sell for less than $100, enable Web-based calls through EBay Inc.'s Skype service and Yahoo! Inc.'s Messenger.

The case is Cisco Systems Inc. v. Apple Inc., 07-198, U.S. District Court for the Northern District of California.
 
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MobileDesigner

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yea, what a great way to promote their name/company. Perhaps they planned this all along?
 

Gerry

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Just saw this on the news wire. Good news for both companies and both I am sure will benefit.

Most likely a big boost to the .mobi market also.
 

PRED

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Best solution for both of them tbh. Look forward to it coming out :yes:
 

crossfade

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That's a good decision which rarely happens.
 
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