Apple retains 'iPhone' name, settles patent dispute with Cisco

More than a month long battle over the use of “iPhone” trademark finally ended yesterday when Cisco Systems Inc. and Apple Inc. said Wednesday they have reached an agreement that allows both companies to use the "iPhone" name on their products throughout the world.

In a joint statement, the two companies said they have settled the trademark-infringement lawsuit that prohibited Apple from using the name "iPhone" on its eagerly awaited cell phone-iPod-Internet communications gadget.

Under the agreement, Network equipment maker Cisco Systems would allow Apple to use the name for its sleek new multimedia device, and in return, the iPod/Mac maker will work together with Cisco for exploring wide-ranging "interoperability" between the companies' products in the areas of security, and consumer and institutional communications.

Each side will dismiss any pending actions regarding the trademark, the joint statement said. However the companies did not disclose financial terms of the settlement.

The confrontation between the technology giants broke out last month when San Jose, California-based maker of routers and switches that link networks and power the Internet sued Apple in San Francisco federal court accusing the desktop and laptop computers manufacturer of copying and using its registered iPhone trademark intentionally for its new multimedia phone.

In exchange, Apple’s spokeswoman Natalie Kerris had called the lawsuit "silly," and had contended that a number of companies are already using the name iPhone for voice over internet protocol (VoIP) products. Cupertino, California-based Apple further argued that it is authorized to use the iPhone name because the phones operate over different networks.

But, Cisco said it succeeded to get possession of the iPhone trademark for itself after acquiring Infogear Technology Corp. in a stock deal worth US$301 million in 2000. Infogear, which specialized in Internet appliances and previously owned the trademark, originally had filed for the trademark on March 20, 1996, and has sold iPhone products for several years, which are now under Cisco's Linksys division.

Linksys division had been selling wireless products using the trademark since early last year.

Apple had unveiled its much-hyped cellular phone-music player, called the iPhone, at the Macworld conference and Expo in San Francisco on January 10.

After filing the suit in the court, both the companies had decided to settle the lawsuit out of the court. Cisco conferred Apple with two chances to respond to its trademark infringement lawsuit. Cisco first agreed to extend the deadline until February 15 and later it extended the deadline until February 21.