Cisco Calls Apple On Trademark Infringement

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 statements that were distributed to them last night and that address a few remaining items we expect to receive a signed agreement today.

We negotiated in good faith with every intention to reach a reasonable agreement with Apple by which we would share the iPhone brand.

So, I was surprised and disappointed when Apple decided to go ahead and announce their new product with our trademarked name without reaching an agreement. It was essentially the equivalent of "we're too busy." Despite being very close to an agreement, we had no substantive communication from Apple after 8pm Monday, including after their launch, when we made clear we expected closure. What were the issues at the table that kept us from an agreement? Was it money? No. Was it a royalty on every Apple phone? No. Was it an exchange for Cisco products or services? No.

If the tables were turned, do you think Apple would allow someone to blatantly infringe on their rights? How would Apple react if someone launched a product called iPod but claimed it was ok to use the name because it used a different video format? Would that be ok? We know the answer - Apple is a very aggressive enforcer of their trademark rights.

Apple spokesman Steve Dowling called the Cisco lawsuit "silly," adding there are several companies using the term iPhone for VOIP products, and Cisco's trademark is "tenuous at best." "We're the first company to ever use the iPhone name for a cellphone," he said. "If Cisco wants to challenge us on it, we're very confident we'll prevail."