Mexico’s Supreme Court has ruled that iFone, a local telecoms services company, is making proper use of its brand and that Apple has no grounds for complaint.
According to a Dow Jones report, the ruling could pave the way for iFone to claim damages against the Cupertino giant for brand infringement and perhaps local mobile operators as well.
The dispute between Apple and the Mexican firm dates back to 2009. That’s when Apple tried to register the iPhone brand in Mexico only to be rebuffed by the country’s Industrial Property Institute, saying the name had already been snapped up by iFone.
Apple, claiming that iFone’s right to the brand should be revoked because it was not in proper use, previously tried to sue the Mexican outfit. However, a federal court found that the local firm – registered as Ifone SA in 2003 – had legitimate claims on the brand.
This week’s Supreme Court ruling, reports Dow Jones, was a rejection of Apple’s appeal against the federal court’s decision.
iFone’s case against Apple is not entirely clear-cut, since the iFone brand covers telecoms services and not devices. Apple, says the report, is still believed to hold a valid trademark for the iPhone when applied to a device (rather than a service).
Nevertheless, the latest court ruling might increase the chances of a successful damages claim by iFone against Apple. Eduardo Gallastegui, iFone’s lawyer, reports Dow Jones, says compensation could be as much as 40 per cent of iPhone profits in Mexico.
The lawyer reportedly has Mexico’s three mobile operators – Telcel (owned by America Movil), Telefonica and Grupo Iusacell – also in his sights for compensation. For their part, Mexico’s operators maintain that the dispute is between iFone and Apple.
