On Wednesday, Cisco Systems Inc . and Apple Inc. agreed to drop any pending litigation against one another over the trademark “iPhone.” Cisco sued Apple last month, claiming Apple violated their “iPhone” trademark, which represented a line of “Linksys phones that make free long-distance calls over the Internet using VoIP technology.” Apple argued that it violated no trademark policy, because their product operates over the cellular network. Apple unveiled the iPhone in January.
Now analysts are thinking litigations were dropped because the two companies plan to collaborate with each other on Apple’s iPhone. Cisco could incorporate their Voice over Internet Protocol (VoIP) into Apple iPhones. VoIP is a technology that allows you to make voice calls using a broadband Internet connection instead of a regular (or analog) phone line.
The AP article quotes Charles Golvin, a principal analyst with Forrester Research Inc.:
"As far as concessions go, from Apple's point of view, is there a downside to making their products work better with Cisco's networking gear? I don't see a downside for them," he said. "If anything it makes their products that much more attractive."
"As far as concessions go, from Apple's point of view, is there a downside to making their products work better with Cisco's networking gear? I don't see a downside for them," he said. "If anything it makes their products that much more attractive."
To me, it seems like Cisco is making a smart business move by putting their foot in the door. If Apple wants the name, “iPhone,” than give them the name. Now mutually give Cisco input in the new Apple phone. Both parties will only benefit from the collaboration.
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