Apple and Cisco move on by settling iPhone Lawsuit

Late yesterday, Apple and Cisco jointly announced that they have resolved their dispute involving the "iPhone" trademark. The dispute arose when Cisco filed suit following Steve Jobs' keynote address at Macworld that announced and described Apple's new cell phone named "iPhone" that is scheduled to ship in June.

Cisco claimed to own the trademark "iPhone" and that negotiations with Apple over use of the trademark had not been completed as expected before Apple's announcement. Apple retorted that the lawsuit was "silly" and that Cisco's trademark claim was not valid for two main reasons. First, the products using the name "iPhone" are inherently different (cell phone vs VoIP handset) and will not confuse the public. And second, Cisco had not adequately defended its trademark and, therefore, gave it up even if it applied to Apple's iPhone.

Under the agreement, both companies are free to use the "iPhone" trademark on their products throughout the world. Both companies acknowledge the trademark ownership rights that have been granted, and each side will dismiss any pending actions regarding the trademark. In addition, Apple and Cisco will explore opportunities for interoperability in the areas of security, and consumer and enterprise communications.

Other terms of the agreement are confidential. [Bill Fox]