Does the iPhone Settlement Mean Anything? (AAPL, CSCO)

Cisco Systems (CSCO) and Apple (AAPL) announced that they have resolved their dispute involving the "iPhone" trademark and now both companies are free to use the "iPhone" trademark on their products globally.

The trademark rights have been granted and each will dismiss any pending action or litigation.  Cisco and Apple will also explore opportunities for interoperability in the areas of security, and consumer and enterprise communications; but terms of the agreement are confidential.

This is one of the issues that was probably over before it started, although Cisco had to act like it was going to be tough and fight it out.  What is an iPhone?  Cisco could sell one and it would instantly be thought of as their cool web-IP phone with real-time video conferencing, and Apple could sell one and it would instantly be known as the cool iTunes phone with web functionality. Neither one really takes away from the other’s brand. In short, Apple could have ended up calling this the ap-Phone, the tunesphone, or whatever.  Each iPhone was going to be a success regardless of the name and the differences, and it still will be for both iPhones.  Next Issue, Please!

Jon C. Ogg
February 22, 2007