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February 01, 2007 | Comments: (0)
Interoperability key in 'iPhone' talks
The Cisco-Apple iSaga took a conciliatory turn today as the companies returned to the negotiation table to hash out an agreement over the coveted iPhone moniker.
In a tersely worded joint statement, the companies stated "Apple and Cisco have agreed to extend the time for Apple to respond to the lawsuit to allow for discussions between the companies with the aim of reaching agreement on trademark rights and interoperability." (The emphasis is mine; more on that in a moment.)
As you may recall, the captain of the iPod Mothership (i.e. Steve Jobs) announced plans [Video] at MacWorld to beam down an iPod cellular phone called the iPhone.
Shortly after, Cisco cried foul and filed a lawsuit against Apple for copyright infringement, arguing that it has held the trademark for the name iPhone since 2000. The company released VOIP phones with that name through its Linksys brand last year.
Cisco argues that Apple was well aware that it owned the iPhone name and noted that prior to Apple announcing its own iPhone, it had approached Cisco on several occasions to discuss usage of the moniker.
In the lawsuit, Cisco asked for Apple to cover its legal fees and to surrender all profits eventually made from iPhone sales. The lawsuit also demanded that Apple eradicate all promotional materials associated with the iPhone.
However, since filing the lawsuit, Cisco CEO John Chambers has said the company is not looking for money; rather, it seeks "interoperability, or the ability of the Apple phone to work smoothly with Cisco product," according to bizjournals.com.
Interoperability, of course, is the operative word here; you may recall, it was part of Cisco and Apple's carefully worded press release. While all the hype about the iPhone has drawn attention to Cisco's Linksys-branded version (a product I'd wager few people had been aware of prior to the skirmish with Apple), the promise of having compatibility with Apple's oh-so-juicy end-user iBlank line is potentially more lucrative to Cisco than simply having Apple's iPhone disappear (or be renamed) all together.
Specifically, as noted by Stephen Lawson of the IDG News Service:
According to published reports, Cisco would have been willing to license the iPhone name in exchange for Apple making the handset interoperate smoothly with Cisco's products. Linksys is the biggest seller of consumer Wi-Fi access points and is expanding its home product line into the voice and entertainment realms. Apple's iPhone is equipped with Wi-Fi and includes audio, photo, and video player software.
Posted by Ted Samson on February 1, 2007 11:48 AM
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What does "interoperability" mean in this context? If it means that Apple's iPhone will make VOIP connections with the Cisco product over WiFi networks, then that probably violates at least the initial period of Apple's agreement with Cingular. I think Apple's just stalling until they can get their phone on the market.
Posted by: Paul Johnson at February 1, 2007 01:43 PMThat's an excellent question, Paul, and I should have cited the article written by Stephen Lawson of the IDG News Service: "... Cisco would have been willing to license the iPhone name in exchange for Apple making the handset interoperate smoothly with Cisco's products. Linksys is the biggest seller of consumer Wi-Fi access points and is expanding its home product line into the voice and entertainment realms. Apple's iPhone is equipped with Wi-Fi and includes audio, photo, and video player software."
Posted by: Ted Samson at February 1, 2007 02:03 PMTrue perhaps, but one has to wonder why all this fuss over an agreement that easily could be handled without the lawsuit or even public awareness. It would seem to be a mutually beneficial thing to have the most popular consumer phone run on the most popular network devices.
Why all the chest-pounding? Oh, that's right...money.
Posted by: D9 at February 1, 2007 02:23 PMIf Cisco really wants to increase interoperability, they'll be a hero of the iPhone buyers (and in the end be beneficial to Apple).
Bert
Posted by: Bert Altenburg at February 1, 2007 04:12 PMI have never read John Chambers say the interoperability was in terms of Apple's iPhone. I think people may be assuming that. Perhaps, Cisco is thinking about other Apple products. For instance, Apple TV.
It is possible, however, Cisco wants to have Wi-Fi networks available for phones, and the iPhone to run on those networks. I suspect Cingular would not want that.
Regardless, Apple made he smart move by using the name. It drew lots of press coverage, and the expense will be minimal even if it has to change the name.
Also, from my perspective and understanding of the facts, (one who has studied Trademark law) I think Apple has a decent case. Moreover, the Trademark Office is currently determining whether Cisco lost its trademark for lack of use. It went six years without using the name. In trademark law, less time can cause you to lose the right to the mark.
If what I read was true, Cisco's trademark of the name iPhone had expired because they did not produce a product using the name within a sufficient period. The phone they pretended to introduce last spring was already too late, and was just a sticker on an existing product. Apple is just being nice in negotiating with them until they have a product ready to sell.
Posted by: georgep at February 1, 2007 04:53 PMThank you for your thoughtful comments, Terrin.
The quote I attribute to Chambers is one I pulled directly from an article on bizjournals.com. Here's the link: http://biz.yahoo.com/bizj/070201/1411954.html?.v=1. I suppose it's possible the quote is entirely made-up, but I have no reason to believe so, especially given that the Cisco-Apple announcement today also refers to discussing interoperability.
As to whether or not Apple rightfully picked up the iPhone name because Cisco waited too long; well, I've read varying opinions. But Apple could certainly just let the court decide on the matter if it's so confident in its case.
Posted by: Ted Samson at February 1, 2007 05:03 PMWhat if apple renamed the iPhone; ePhone or Apple Phone just like the AppleTv product they are launching!!!
Posted by: allan dale at February 1, 2007 09:33 PMWhat if apple renamed the iPhone ...
In a previous entry on this subject, a reader suggested Apple call it the iPod Phone (along the lines of the iPod Shuffle and the iPod Nano). That would have been a sensible way for Apple to avoid legal battles, certainly, as well as not bring additional publicity to Cisco's iPhone.
Posted by: Ted Samson at February 2, 2007 09:50 AMTOP STORIES
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