toggle

AAPL Stock: 101.63 ( -0.03 )

Printed from http://www.macnn.com

'iPhone' could cost $325m/yr, already lost?

updated 06:50 pm EST, Fri January 12, 2007

'iPhone' could cost $325m

Industry experts say Apple may be forced to pay hundreds of millions of dollars in royalties to Cisco for its iPhone trademark after launching the new device on Tuesday morning without first coming to a steadfast agreement with the networking giant. Cisco filed suit against Apple on Wednesday over the iPhone name, which Linksys -- a unit of Cisco -- just recently used for its new line of phones. Financial analysts predict that the iPhone could bring as much as $6.5 billion in revenue to Apple by 2008, but licensing fees could cost the Cupertino-based company from $130 million to $325 million per year. Those royalties could amount to more than a billion dollars over a five-year period, according to the Red Herring, representing more than 15 percent of Apple's net income for the fiscal year of 2006. Amidst speculation from financial experts and industry analysts, however, one blogger suggests after some investigation that Cisco may not own the trademark as it claims, and that the iPhone name appears to have been abandoned in late 2005/early 2006 because Cisco failed to use it.




by MacNN Staff

POST TOOLS:

TAGS :

toggle

Comments

  1. Gamoe

    Joined: Dec 1969

    0

    Uh-Uh...

    Royalties? Not gonna happen. What FUD!

  1. Faceplant

    Joined: Dec 1969

    0

    I have to admit...

    ...I am an Apple fan, though Apple does protect its interests vigerously. Jobs even stated as much in his address, and though I cannot quote him word for word, he said that iPhone had hundreds of patents that "we will defend", (do you remember that quick comment?) and so it makes sense that what goes around comes around. Cisco had a copyright in the name iPhone, and I would imagine that years ago when some guy did that in anticipation of what Apple would do years in the future, well, I bet Cisco will buy him lunch. A person with that much forethought is worth his weight in gold.

  1. dscottbuch

    Joined: Dec 1969

    0

    FUD FUD FUD

    1) There has been NO damage so far - no apple iphones have been sold 2) Apple would never agree to this royalty amount. They can always release the phone under Apple Phone. maybe not as nice but will be 99% as effective.

    This is all sensationalization to get eyeballs off of apples reputation. All of this is still in negotiation.

  1. jarod

    Joined: Dec 1969

    0

    A sign

    This is all a sign that Cisco is in deep s*** as a company. When you start resorting to low class tactics like this it can only mean you're desperate and that your bottom line is falling apart. Too bad. Cisco was a good company with good products.

  1. debohun

    Joined: Dec 1969

    0

    Red Fish...

    Red herring more precisely: there is no real reason for the entire system to be closed; any portion of it could be sandboxed to addressed real issues. Cingular simply doesn't want to risk the possibility of real innovation happening on their network without ensuring that the profit is exclusive to them. We've all seen how the telcom industry works, and doesn't work. It's amazing that Apple got one of them to play ball at all, and its almost a certainty that they insisted that Apple be as hostile to openness as they are. Well, if iPhone does crack them, then something else will. No industry can be as anti-customer oriented as the telcoms and survive for long. Just look at that overweight guy from Cingular on stage with Jobs at Macworld. What a visual for the industry. Too lazy to memorize a boring speech, bloated and out of touch with the audience. Why did he even bother coming? It was obvious he didn't really give a damn. I'll take lean, fit, proactive, interesting, and in -tune Apple anyday over the U.S. telcoms. Hopefully, Apple will just establish their credentials with this Cingular affiliation and then buy up some smaller carrier and do it right the second time.

  1. jmonty12

    Joined: Dec 1969

    0

    Apple Records

    Apple Inc. is one company that understands the trademark battle. They won twice against Apple Records. Does the world really think Apple Inc. is just stupid?

  1. tomodachi

    Joined: Dec 1969

    0

    That

    Has got to be the stupidest thing I've read so far on this issue. Apple will pay Cisco $1B over 5 years to use the iPhone name.

    OR, they'll just change the name of the phone and not pay them a single effin' penny.



    Hmmmmmmmmm, I wonder which path they'll take.

  1. iwasiphone

    Joined: Dec 1969

    0

    Im willing to part

    Im willing to donate my name to Apple if they want to use it.... Nobody on Earth has claimed it yet besides me. I am making an honest offer here Apple dudes, You can save billions!

  1. skyman

    Joined: Dec 1969

    0

    Hay Jarod you are a...

    moron. Cisco is the largest networking company in the world. In fact almost every piece of networking hardware that everyone uses is either made my Cisco or has some Cisco component! They are a financially strong company.

    Apple will have to change the name of the iPhone (my guess is Apple Phone) just like they did with iTV which is now Apple TV.

  1. cbr600f4

    Joined: Dec 1969

    0

    Apple Phone

    This one is a no brainier. You can already see it at the web page. If this is an issue, they will call it Apple Phone. They are not going to pay Cisco. Period

Login Here

Not a member of the MacNN forums? Register now for free.

toggle

Network Headlines

toggle

Most Popular

MacNN Sponsor

Recent Reviews

Autodesk Smoke 2015

Since May of this year, Autodesk has been shipping the highly anticipated update to its high-end post-production video editing suite, ...

Crucial MX100 256GB SATA-3 SSD

While the price to gigabyte ratio for magnetic platter-based hard drives can't be beat, the speed that a SSD brings to the table for ...

Narrative Clip

With the advent of social media technology, people have been searching for new ways to share the events of their daily lives -- be it ...

toggle

Most Commented