Poor Cisco Systems: Last minute discussions between Cisco, apparent owners of the iPhone trademark, and Apple Inc. were being held right up until 8pm the night before the launch of the Apple iPhone. However these discussions ultimately failed in an agreement over usage, and Apple went and launched with the name even as discussions were continuing. Now Cisco are suing Apple.

If you’re clued up on marketing and trademarks this raises two interesting facts:

1. The ownership of the iPhone trademark by Cisco is under dispute because they failed to actively use it in the designated period, following their purchase of InfoGear in 2000. However, Cisco were granted a six month extension which enabled them to sticker an existing product with an iPhone logo.
2. By using the iPhone name, Apple are doing three things: they’re actively comparing the two products – Cisco’s is a VoIP device, Apple’s is anything you need it to be. Furthermore, they’re creating more PR and publicity through the ensuing dispute. Finally, they’re institutionalising the name so that it will become as well known as the iPod.

It may well be that Apple and Cisco will eventually settle the dispute, either financially, or through Apple renaming it something like the Apple Phone. But everyone will still refer to it as the iPhone.