After the high-profile launch of the Apple iPhone on Monday, Cisco has stepped in with a legal suit for trademark infringement.
Cisco-owned company Linksys already owns the trademark on the iPhone, and has done since the purchase of Infogear in 2000.
Although talks between Apple and Cisco had taken place, and although it was believed a licencing arrangement was close, Steve Jobs announced the iPhone before the talks could reach agreement.
A potential sticking point is that Cisco is believed to have wanted the Apple iPhone to be compatible with Linksys VoIP products, to create interoperability and reduce consumer confusion over the products.
Now that Apple are claiming rights to the name without agreement, Cisco has filed a lawsuit for trademark violation.
According to a Cisco spokesman, Cisco had acted in good faith, and accused Apple of trying to repeatedly acquire the trademark directly and indirectly, not least via front company.
An Apple spokesman is reported as stating the Cisco claim is “silly”, because the trademark does not apply to cell phones.
It’s not the first time Apple - now renamed Apple Inc, from Apple Computers Inc - has run foul of trademark issues.
Previously they contested a trademark dispute with the Beatles’ Apple Records label - and the ensuing court case, heard in the UK, ruled in favour of Apple being able to use the name because of the clear disparity in products would not cause confusion.
While the difference between a VoIP phone and cell phone is enough to allow Apple to use the trademark will now be left to the US courts to decide.
However, this may only be the start of Apple’s battles.
Apple have claimed that the Apple iPhone is a revolutionary new touchscreen phone - but LG recently launched the LG KE850, a slimline touchscreen phone which has a remarkably similar design.
The LG KE850 has already won a Product Design Award for 2007 from the International Design Forum.
We’ve already seen RIM - the maker of the iconic Blackberry - take Samsung to court over similar design and potential brand confusion.
It remains to be seen if any legal action, justified or not, may follow over this issue, and leave Apple embroiled in legal cases around it’s biggest new product for years.