Apple may be ordered to discontinue iPhone sales in Mexico
Apple just lost a court battle to use the iPhone name in Mexico due to another company already owning the trademark to the name iFone, which they say is similar enough to argue a ban. This could mean that Apple will be ordered to cease sales of the iPhone in Mexico.
Back in 2009, Apple filed suit for the company to discontinue use of the iFone brand arguing that it was too simliar to their own brand. The problem lies in the fact that the company had owned the trademark as far back as 2003. The Mexican company then decided to countersue Apple for damages, and they won. The damages could end up totaling over 40% of Apple sales of the iPhone in Mexico.
The decision could have a considerable impact on the Mexican smartphone market. Telcel and Movistar, numbers one and two among Mexican carriers, are scheduled to begin selling the iPhone 5 on Friday. It is not certain how quickly the sales ban will go into effect or if the two companies will come to some sort of financial settlement.
Basically, if Apple and the Mexican company can't come up with an arrangement or agree on terms, Apple could be ordered to stop selling the iPhone in Mexico. Apple has long been known to use its financial influence to acquire patents, branding, and many other license types. Considering the firm's initial demands for damages amounted to almost 40% of iPhone sales in Mexico, the price to settle may be much more.
It's still unclear how soon Apple would be ordered to stop sales in Mexico and whether or not an agreement will be reached before that time comes.
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