Analyst estimates Apple paid Cisco between $25-50 million for ‘iPhone’ name

With the iPhone trademark settlement behind them, Apple and Cisco “could partner in the near-term on lower-profile projects that leverage the respective strengths of the world’s largest networking equipment company and the new darling of digital entertainment,” Jordan Robertson reports for The Associated Press.

“Some of those efforts, they said, could include integrating Cisco’s Voice over Internet Protocol, or VoIP, technology into Apple’s iPhones, which are currently designed to operate only over the cellular network; improving the ability of Apple computers to work securely with wireless home routers from Cisco’s Linksys division; or generally developing ways for both companies’ products to work seamlessly with each other,” Robertson reports.

Robertson reports, “Analysts cautioned against expecting any type of major concessions from Apple concerning its proprietary technology, citing the vague joint settlement statement from the companies that raised more questions than it answered. ‘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,’ said Charles Golvin, principal analyst with Forrester Research Inc. ‘If anything it makes their products that much more attractive.'”

Robertson reports, “Gene Munster, senior research analyst with investment bank Piper Jaffray & Co., said talk of collaboration is ‘noble language’ but he is not expecting any blockbuster joint products to emerge from the partnership. ‘Apple wanted that to be the impression because they get a lot of pressure for being closed,’ he said, adding that he suspects money played a more crucial role in the negotiations than either company let on. He estimated that Apple paid Cisco between $25 million and $50 million for rights to the name.”

Full article here.
If you really want to work with Apple, we can think of several better ways than by attempting to blackmail them for chump change, but we can’t think of a worse way. Jobs, if he does anything at all, will probably allow Cisco to collaborate on choosing floor wax for employee restrooms or something equally important.

MacDailyNews Note: Officially: “Under the agreement, both companies are free to use the ‘iPhone’ trademark on their products throughout the world. Both companies acknowledge the trademark ownership rights that have been granted, and each side will dismiss any pending actions regarding the trademark. In addition, Cisco and Apple will explore opportunities for interoperability in the areas of security, and consumer and enterprise communications. Other terms of the agreement are confidential.”

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Apple, Cisco close in on deal over ‘iPhone’ name – February 01, 2007
Cisco could be on brink of losing iPhone name in Europe – January 13, 2007
Experts: Cisco lost rights to ‘iPhone’ trademark last year – January 12, 2007
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Cisco General Counsel explains ‘iPhone’ lawsuit; Cicso wanted interoperability with Apple iPhone – January 11, 2007
Apple calls Cisco’s ‘iPhone’ trademark lawsuit ‘silly,’ says ‘very confident we’ll prevail’ – January 11, 2007
Cisco sues Apple for ‘iPhone’ trademark infringement – January 10, 2007
The only thing really wrong with Apple’s iPhone is its name – January 09, 2007
Briefly: Apple changes corporate name; Cisco expects agreement on ‘iPhone’ trademark today – January 09, 2007
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23 Comments

  1. The Steve did not pay Cisco a dime. Once again these so called analyst prove their dumber than a sack of rocks. Why would The Steve announce a product, then negotiate to use the marks? Besides, Cisco’s case was weak. If you’ve been following the fiasco and researched the issue, you know why.

    Rock on Steve!
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  2. $50 million isn’t a whole lot of money compared to what Apple will rake in the profits off the REAL
    iPhone. If that’s all they paid then Apple got a really great deal and now life can go on and we can stop talking
    about this anymore.

  3. Analysts appear to be people who couldn’t pass the fortune-teller’s board exams. To wit, the guy has no evidence that money changes hands, yet he thinks that it must have been $25-50 million (which is still a broad range), and this gets reported as news. I guess the media’s gullibility knows no bounds — only gullible know-nothings would present such wild conjecture as fact. *slaps forehead* What am I thinking? Conjecture is the new truth! Just take a look at “global warming”.

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