--Supreme Court rejected Apple appeal over technology firm's
Ifone name
--New setback for Apple in registering iPhone brand in Latin
America
--Ifone says it is seeking damages from Apple, mobile
operators
MEXICO CITY--A Mexican technology services company is hoping to
reap a lot of compensation from Apple Inc. (AAPL) and local mobile
operators for the use of its brand name--Ifone--after the Supreme
Court this week rejected an appeal against a ruling that the local
firm owns and makes proper use of the brand in Mexico.
The dispute with the maker of iPhones came about in 2009 when
Apple attempted to register its phone name in Mexico, only to be
told by the Mexican Industrial Property Institute that the name was
already taken.
Apple sued to have the Ifone brand revoked on grounds it had
expired for the Mexican company, but a federal court found that
Ifone SA, registered in 2003, was making proper use of it. The
Supreme Court this week rejected Apple's appeal against the
decision at the request of Ifone.
Ifone's corporate lawyer Eduardo Gallastegui said the decision
frees the company to continue with its claims, already submitted to
the Industrial Property Institute IMPI, for damages resulting form
the use of its name by Apple and by three Mexican mobile phone
service providers: America Movil (AMX, AMX.MX) unit Telcel, Spain's
Telefonica SA (TEF, TEF.MC) and Grupo Iusacell.
A spokeswoman for Apple declined to comment on the case.
Spokespeople for the three Mexican carriers that offer iPhones said
the case was between Ifone and Apple, but had no comment on
possible claims against them.
Ifone, based in Mexico City, specializes in server-based
telecommunications systems, such as software that controls IP
telephony, and is the local representative for software-based
communications solutions provider AltiGen Communications Inc.
(ATGN).
Mr. Gallastegui described Ifone as a small to medium sized
company with annual sales of "tens of millions of pesos, maybe
three-digits."
The ruling marks another setback for Apple in Latin America. A
month ago, Brazilian authorities rejected Apple's attempts to
register the iPhone name because Brazilian electronics maker IGB
Eletronica SA (IGBR3.BR), better known by its brand name Gradiente,
already owned rights to the name.
In the Brazilian case, Gradiente had five years to make use of
the brand name, and just before the deadline released a smartphone
called Iphone Neo One, which runs on Google Inc.'s (GOOG) Android
operating system.
The Mexican case is different, Mr. Gallastegui said, because it
doesn't involve a product, just the name for providing
telecommunications services. The lawyer didn't specify how much the
company is claiming over the use of its brand, but said the law
allows for at least 40% of sales made violating property
rights.
"Our main interest is to defend our brand," he said. "Apple
started the controversy, their first step was to file a lawsuit,
they didn't previously approach the company."
- Loretta Chao and Matthew Cowley contributed to this
article
Write to Anthony Harrup at anthony.harrup@dowjones.com
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