Few weeks earlier, we had reported that Apple was having trademark issues over their iPhone branding in Brazil. Now, new reports claim that the two companies in dispute are finally coming to a settlement.
Apple and IGB Electronica SA are reportedly working on a solution for the release of Apple branded iPhones in the Brazilian market. Currently, IGB Electronica manufacturer’s and markets an iPhone branded smart phone running on Google’s android OS in Brazil. This had resulted into a conflict between the two companies with Apple resorting to legal measures to fight for their rights to use iPhone brand in the country.
However, after proper investigation it was found that IGB Electronica had already registered the iPhone trademark back in 2000, when Apple iPhones were still not manufactured. IGB Electronica SA never restricted the sale of Apple iPhones in the Brazilian market and it was only in 2012, that they had released their own iPhone branded android smart phone. Apple lawyers tried to fight over the case by stating that the trademark was registered way back in 2000, almost 12 years before the actual launch of the device. But the efforts on the part of the company eventually failed and this granted IGB Electronica, exclusive rights to market their android smart phone under the brand name iPhone.
So far, the Brazilian company has been quite cooperative with Apple in this issue and they have even proposed to license the trademark to the company. And looks like, Apple is finally willing to do so as the reports claim that the company filed a document in court requesting the court to discontinue any enforcement efforts while the two of them were in the process of negotiation.
Some unnamed sources have reported to the Brazilian newspapers that both the companies are on the verge of formulating an agreement, which will benefit both the parties. According to the agreement, IGB Electronica will license their trademark to Apple, giving exclusive rights for the sale of Apple iPhones in the market. This would also mean that the company would have to remove their android powered iPhones from the market and hence we can expect the licensing to be quite pricey.
Brazil is one of the top developing countries in the world with a strong middle class population. Apple has been eying this population for marketing their products for quite some time. Also, it is reported that they have teamed up with Foxconn to open up iPhone, iPad production plants in the country which definitely proves that this deal was very important for securing their iPhone brand in the Brazilian market.