According to a report by Forbes citing Brazilian news website Folha de Sao Paulo, both the companies have agreed to end their legal fight over iPhone’s trademark issue and have entered into a special “Pacific Agreement”. According to the agreement, any lawsuits between both the companies will temporarily come to a halt.
The Brazilian company IGB, which owns the Gradiente brand, was granted the exclusive iPhone trademark by the Brazilian Industrial Property Institute (INPI) in 2008 after the company applied for the same in the year 2000, which is way before Apple launched its iPhone in Germany.
Apple challenged iPhone trademark, claiming that the trademark was not used by IGB until its iPhone trademark was near to expiration. But in February, the Brazilian Industrial Property Institute rejected Apple’s appeal and ruled its decision in favor of IGB after the company launched a smartphone using the trademark last year.
Apple ultimately took the matter to court, but now as IGB is interested in selling the trademark license, Apple has now withdrawn the suit filed in the court.
The terms of the agreement between both companies are not yet known. Apple faced a similar trademark issue with Proview, a China based company over its iPad name. The matter came to an end with Apple paying a whopping $60 million to Proview to settle the dispute.