Naked Law

iPhone off the hook

We recently reported that Cisco had launched a trade mark infringement claim against Apple over use of its registered `iphone` trade mark.

It now appears that Cisco and Apple have reached a settlement which will allow Apple to use the `iphone` name for its new product, which combines a mobile phone with an e-mail receiver and an MP3 player.  The parties have also announced that they will work together to make their `iphone` products compatible. 

Other terms of the settlement agreement remain confidential, although the parties have apparently agreed to drop all pending legal actions against each other.  Does this mark the end of the dispute, or is there more to come?  One thing is certain - as a result of this dispute both parties have received a lot of publicity for their respective products.

Wicks lights IP audit touchpaper

Intellect reported this week that Science and Innovation Minister Malcolm Wicks had announced a new initiative that will see 40 small businesses given IP audits to identify what IP they use and how best to maximise value from their IP.  This follows the recommendation in the Gowers review (see previous posts) that the Patent Office should "improve SME business IP support", and the Patent Office's Innovation Strategy, in which is states that it aims to:

"use the Office’s knowledge, resources and expertise in the most efficient and effective manner to support innovation and to avoid duplication of effort by working with government and private sector partners to present a simple interface for business".

It will be interesting to see which businesses are chosen for this pilot scheme and whether they do change their IP strategies following the review.

Jobs beats the DRM

Digital Rights Management ("DRM"), the software used to control the distribution of copyright protected music online, is a hot topic at the moment. Steve Jobs at Apple recently published an open statement on DRM and the future of downloading music online.

Mr Jobs' ultimate issue is that DRM doesn't really work, since consumers may purchase CDs to upload music without DRM protection, or they can spend their time cracking the DRM technology, allowing music piracy. The only reason DRM exists, is because the big four (EMI, Warner, Sony-BMG and Universal) won't distribute their music catalogues online without it. This reluctance to open the market by removing their requirement for DRM, has made it difficult for players in the DRM market, as recent decisions against them, in Norway for example, have shown.

The statement appears to attempt to encourage debate regarding the way in which the music industry deals with online distribution, on the back of something similar on the topic from Microsoft's Bill Gates. Whilst it is encouraging to see the debate on DRM and music distribution is finally, albeit forcibly, being taken seriously by the DRM companies, one cannot help but think that it is a self-interested measure in the light of increased competition in the DRM controlled music market. Also, until there is buy-in from the big four (somewhat unlikely) any such debate may be rendered null and void.

No Fairplay in Norway

The consumer ombudsman in Norway has ruled that the terms and conditions of Apple's iTunes service violate Norwegian consumer rights laws.

Forbrukerradet, the Norwegian Consumer Council, had complained that the Fairplay DRM system unreasonably restricted consumers by forcing them to buy an iPod if they wanted to be fully compatible with the iTunes music service. 

Apple may elect to licence Fairplay to other manufacturers, or to develop or use an alternative open standard which other companies can access.

Apple has until later this year to open access to the iTunes music store and its software or it will have to appear in court.  Groups in Denmark, Sweden, France and Germany have added their support to the campaign against Apple's proprietary system, with Finland expected to follow shortly.