Apple co-founder and chief executive Steve
Jobs announced the iPhone earlier this year despite the fact that
his company had no right to use the name. The trade mark belongs to
networking equipment maker Cisco, which instantly launched a law
suit to protect its name.
Cisco has owned the trade mark since it bought
phone equipment maker Infogear in 2000. It has since launched
several products under the iPhone name. Apple was in discussion
with Cisco about licensing the name up to within 24 hours of its
product announcement, but just announced the device as iPhone
without there being a deal in place.
"Both companies acknowledge the trademark
ownership rights that have been granted, and each side will dismiss
any pending actions regarding the trademark," Cisco said in a
statement.
"In addition, Cisco and Apple will
explore opportunities for interoperability in the areas of
security, and consumer and enterprise communications. Other terms
of the agreement are confidential."
Apple had at first said that it did not need
Cisco's permission to use the name. It dismissed the suit as
"silly" and argued that because Cisco's phones were voice over
internet protocol machines and its were mobile phones there was no
likelihood of trade mark infringement.
Cisco's suit alleged that Apple had
perpetrated a "wilful and malicious" trade mark violation, and that
the result of two iPhones would have been "confusion, mistake and
deception among consumers".
Cisco also owns a European trade mark for
iPhone dating from slightly later than the original 1996 Infogear
filing.
