Cisco Systems is suing Apple to prevent it from using the name iPhone for the new smart phone Apple introduced Tuesday at the Macworld Conference & Expo in San Francisco.
Cisco has filed a lawsuit in US federal court seeking an injunction against Apple using the name, which is a registered trademark of Linksys, a division of Cisco. Linksys picked up the iPhone name when it bought a company called Infogear Technology in 2000. Cisco's iPhones are telephone handsets designed for use on a voice over internet protocol (VoIP) network.
The iPhone has proved to be the most talked-about product at this year's Macworld, and its positive reception has sent Apple's stock surging over the past two days. The company's stock closed at $97 (£50) Wednesday, up nearly 5% for the day.
Apple and Cisco have been in negotiations for about two years over Apple's desire to license the iPhone trademark, said Cisco spokesman John Noh. When Apple chief Steve Jobs introduced the iPhone Tuesday at Macworld, Cisco had not yet received a signed trademark licensing agreement from Apple, even though the two companies had been negotiating terms as recently as Monday night.
"Because they have been negotiating with us on licensing the trademark all this time, Apple is acknowledging that we own the name," said Noh.
"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 for Cisco.
"Today's iPhone is not tomorrow's iPhone. The potential for convergence of the home phone, mobile, work phone and PC is limitless, which is why it is so important for us to protect our brand," Chandler said.