Could Apple lose its iPhone trademark in Brazil?
Finalcial Times, February 7, 2013
Who invented the airplane? Many argue it was actually Alberto Santos-Dumont, a pioneer aviator from the Brazilian state of Minas Gerais.
Now it is claimed that Brazil also invented the iPhone before the US.
Next Wednesday Brazilian copyright regulators may issue a ruling officially deny Apple the rights to sell phones under the iPhone brand in Brazil, according to a person close to the situation.
The reason? IGB Eletrônica, or Gradiente as the Brazilian company is known, requested exclusive rights to the name ‘Iphone’ back in 2000. (Whether it’s a capital ‘i’ or not doesn’t matter, apparently.)
Apple requested exclusive rights to the iPhone brand in Brazil for several categories of merchandise just before it launched the smartphone in 2007. And it will get some, but just not the one it needs: the right to sell phones under that brand.
After eight years of waiting, IGB was finally awarded those rights in 2008.
In practice, though, this is not as disastrous for Apple as it sounds – even if Tim Cook has said in the past that Brazil is the company’s next big target after China.
The ruling from Brazil’s National Institute of Intellectual Property does not force Apple to stop selling iPhones in Brazil. This would only happen if IGB files a lawsuit against Apple and a judge then rules in the Brazilian company’s favour, issuing a court order to ban sales.
Apple declined to comment. IGB would not comment on the decision but said it had not been contacted yet by Apple.
Once the decision is made public next week Apple will be able to file an appeal with the regulators themselves. If that fails, Apple can go to the courts to ask a judge to revoke the regulators’ decision.
Meanwhile, Apple may probably try to reach a settlement privately with IGB to resolve the situation – the most likely outcome. It will all come down to how much Apple is willing to pay.
Apple faced a very similar trademark dispute in China over its iPad, reaching a $60m settlement last year. And IGB told Bloomberg this week that it would consider selling the naming rights to US tech giant.
Although Apple could probably do without a Brazilian lawsuit right now, its top executives may not lose too much sleep over this just yet. After all, given that the iPhone still costs up to $1,000 in Brazil, many Brazilians just buy it in Miami anyway.
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