Settlement Secures 'Apple iPhone,' 'Linksys iPhone' Uncertain

While an agreement reached between Apple and Cisco over the use of the iPhone trademark allows both companies to continue to use it, Cisco spokespersons have been non-specific this morning with regard to whether its Linksys division will continue to use "iPhone" with regard to its VoIP products.

Last December, just weeks ahead of Apple's iPhone announcement at Macworld -- which was easily the worst kept secret in consumer electronics -- Linksys re-christened some of its voice-over-IP products that had carried the CIT and WIP model numbers as "iPhone." Linksys claims ownership of the iPhone trademark, having gained those rights through an acquisition of original trademark older Infogear in 2000.

Very soon after Apple's announcement, Cisco made a public offer to Apple to license its rights to the name. But the following day, Cisco sued Apple, stating that the two companies had been in negotiations over trademark licensing, but that Apple had missed a Cisco deadline to provide a legal response. Since that time, while Apple acknowledged the two companies were in talks, it never stated for how long, or specifically whether Cisco and Apple were in license talks as far back as December.

While both companies either were or were not talking to one another, debate arose among analysts and legal scholars over whether Cisco actually retained the rights to the trademark at all, having acquired it almost seven years ago. Some experts believed Cisco may have allowed the trademark to lapse too soon, since Infogear never used it, and Cisco itself never used it until December 2006, when it started pasting "iPhone" stickers and starbursts over existing packaging.

BetaNews asked a Cisco spokesperson this morning whether Cisco intends to keep using the iPhone trademark. The spokesperson referred us back to the companies' joint statement, which only says they have the right to do so but does not acknowledge their willingness to do so.

"Other terms of the agreement are confidential," this morning's statement concludes, which may mean this is all that both sides will say on the matter. It's unknown whether any money changed hands, or whether Apple actually acknowledged Cisco's and/or Linksys' ownership of the trademark - just the fact that both sides won't challenge each other.

More may be revealed when both companies reveal the results of their joint effort, pledged today, to "explore opportunities for interoperability in the areas of security, and consumer and enterprise communications," though the date of such revelation seems unfathomable at present.