iPhone: Apple sued by Cisco for trademark infringement! (UPDATE)

According to a Reuters report, Cisco, the networking equipment maker sues Apple for trademark infringement over the use of the iPhone trademark.

Apple double-surprised the IT-industry yesterday with the announcement of it's own mobile phone and more importantly with the use of the "iPhone" trademark for it.

Why? Because the iPhone trademark is not owned by Apple, it's owned by Linksys, a subsidiary of Cisco.

Cisco even issued its own press release so as to briefly explain the reason why it is suing Apple:

"Cisco entered into negotiations with Apple in good faith after Apple repeatedly asked permission to use Cisco's iPhone name," said Mark Chandler, senior vice president and general counsel, Cisco. "There is no doubt that Apple's new phone is very exciting, but they should not be using our trademark without our permission.

"Today's iPhone is not tomorrow's iPhone. The potential for convergence of the home phone, cell phone, work phone and PC is limitless, which is why it is so important for us to protect our brand," Chandler concluded.

Hopes that the computer and iPod maker would use the "iPhone" trademark faded out two weeks ago when Linksys announced its own iPhone, a phone that features VoIP capabilities.

But the "iPhone" brand has benefited of years of buzz, as since Apple teamed with Motorola and introduced the ROKR - the first mobile that played iTunes songs - rumours spread by IT-centric sites and analysts, claiming that Apple will announce it's own phone always referred to the device as the "iPhone".

Yesterday, a few hours after Apple announced the iPhone, reports relating that Apple and Cisco were on the verge of signing an agreement started being spread over the Internet. However, the reports indicated that Cisco was still waiting for Apple to sign this agreement.

It looks like Apple has now rejected the agreement and Cisco has triggered its probably well prepared attack with its lawyers.

Now the question is what Apple can do. The product hasn't been launched yet, it is set to ship in June, so the company may still have the choice to change the name of the device, probably by dropping the "i" of it.

UPDATE: An Apple spokesman has reportedly answered to Cisco's law suit, saying that this is "ridiculus" and that Apple is sure to win in court.