It looks as though Apple is getting a dose of its own medicine with all the products starting with a lowercase "i". I remember many cases where Apple sued companies because they came out with products that started with "i" because of their use of it in their own products.

I think this is a severe case of "we don't want to pay you for it". Apple is actually arguing that since this is the first time the term "iPhone" has been used for a cellphone that they can use it. A trademark like this doesn't cover its use on a specific device, it protects the name.

This whole thing would be like me going out and starting a company that built and sold a computer called the "iPod". I would get sued so fast from Apple it wouldn't be funny. This is what is going on now. Cisco owns the trademark on the term "iPhone" and they use it for their line of VOIP phones. Apple is coming in and saying we are the first cellphone to use the name, so we have the right to use it.

Who is to say also that the other companies that are currently using "iPhone" are not paying Cisco for rights or that Cisco hasn't caught on to them using it in the marketplace.

From Engadget:
"He called Cisco's trademark "tenuous at best" and noted his company was the first to ever use the name for a cellphone. He goes on to boast that Cisco is gonna totally get served: 'if Cisco wants to challenge us on it, we're very confident we'll prevail.'"

http://www.engadget.com/2007/01/11/apple-says-cisco-lawsuit-is-silly/