Apple zealously defends its trademarks, copyrights, and patents at the drop of a hat because by doing so Apple protects against infringement and brand dilution. In light of Apple?s seemingly unlimited monetary resources, any legal loss faced by the company constitutes a noteworthy moment. On November 1, 2012, the 18? Tribunal Colegiado de Distrito, a Mexican court, ruled in favor of iFone, a Mexican telecommunications company. The Court?s decision confirmed that iFone is the legitimate owner of the ?iFone? trademark for the commercialization of telecommunication services in Mexico.
For three long years, Apple battled against iFone over the ownership of a Class 38 Trademark ? a trademark class that covers telecommunication services.? The case arose in 2009, when Apple petitioned IMPI, the Mexican Institute of Industrial Property, to nullify iFone?s trademark on its trade name because of the mark?s phonetic similarity to Apple?s ?iPhone? mark. Amusingly, Apple miscalculated the importance of each party?s trademark filing date to the determination of the rightful owner of the mark. iFone trademarked its name with IMPI on April 30, 2003 ? when the iPhone was not even in its earliest development. Indeed, Apple didn?t even register the iPhone trademark until 2007; when it introduced the iPhone product to the Mexican market. ?Unsurprisingly, the Mexican Court cited the incongruence between Apple?s claims and the parties? trademark filing dates as its main reason for ruling in favor of iFone. Ultimately, the jury found that the Apple product ?iPhone? as being too phonetically similar to the iFone mark.
Having won the fight over the iFone trademark, iFone is ready to take its win to the bank. Mexican law provides that the infringed upon party can recoup damages set at a minimum of 40% of infringing service?s sale price. Eduardo Gall?stegui, iFone?s general counsel, was quoted as saying that the only thing iFone had left to do was to file a trademark infringement countersuit and reap the monetary rewards. In the face of possibly having to pay iFone 40% of the iPhone?s sales in Mexico, Apple?s legal team must regret not settling prior to the Court?s determination. Ironically, Apple was embroiled in a similar situation with Proview Shenzhen, a Chinese company that claimed rightful ownership over Apple?s ?iPad? trademark. In that case, Apple ended up agreeing to a $60 million settlement.
Nonetheless, despite Apple?s loss of the iFone trademark in Mexico, the ubiquitous iPhone 5 is currently available for purchase on Apple?s Mexico website. The question remains whether Apple will continue to offer its iPhone products in Mexico if iFone ends up winning its countersuit.
About the Author:
Author: Stephenie Reimer
Stephenie Reimer is a 2L at American University Washington College of Law with interests in intellectual property, e-commerce, and betting & gambling law. Stephenie is a Junior Blogger for the Intellectual Property Brief and a Junior Staffer for the American University Law Review. She holds a B.A. in Economics and Government from Claremont McKenna College.Stephenie Reimer has written 5 posts for the IPB.
Source: http://www.ipbrief.net/2012/11/23/ifone-v-iphone-apple-loses-trademark-dispute-in-mexico/
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