Brazilians Can Now Buy an "iPhone" Loaded With Android

Andy Prough writes "If you happen to be in Brazil and have 599 reals jingling in your pocket ($304 US dollars or £196), you can buy an iPhone — that runs Android. Gradiente Electronica, which registered the 'iPhone' name in Brazil in 2000, has won the right to sell its iPhone Neo One, an Android phone running version 2.3, Gingerbread. Gradiente won the ruling from the Institute of Industrial Property (INPI), despite Apple's argument that Gradiente should lose the right to 'iPhone' because it had not used the name between 2008-2012. Apple retains the right to appeal the case, and Gradiente now has the right to sue Apple for exclusivity in Brazil. If Gradiente wins, the only iPhones sold in Brazil would have a picture of a cute green robot on the box cover."

Re:This is what trademarks are for

[Anonymous Coward]

There's a simple solution. Apple created this problem. If a consumer buys a Brazilian iPhone expecting an Apple one, they ought to be able to sue Apple for a refund. Apart from fixing the immediate problem, this would also encourage multinationals not to steal trademarks in future.

A couple of points

[cseg]

First, why not sell the name to Apple?

Because Apple most likely isn't willing to pay what Gradiente wants. Apple has a track record for engaging in long and useless "negotiations" in Brazil. Years ago they wanted the right to set the pace within the App Store (defining age ratings for apps), and the Brazilian government didn't want that. Here the government decides that kind of stuff and Apple thought it wasn't an option, so the end result was that the App Store in Brazil was really shitty for years. Only a few games (those made by Brazilian developers) were available, many other apps were missing. Which even led to people coming up with ways to register their accounts in other countries' stores just to have access to apps they couldn't get here.

Apple also exploits the market here. Brazilians have this retarded idea that more expensive = better. An unlocked iPhone 5 starts at U$U$650 in the US (today that would be ~R$1300 in Brazil). The Brazilian government imposes the highest and most nonsensical volume of taxes in the world, but Apple starts the iPhone 4S (iPhone 5 isn't even selling here officially yet) at R$2000 [apple.com]. Carriers have been offering pre-orders for the iPhone 5 starting at around R$2600 with an expensive plan, or around R$3100 without one. It is believed that Apple itself will sell them in the R$2400-3000 range once it's officially released here.

With those things in mind, the result is very likely that Apple wouldn't settle for a value Gradiente wanted.

The second point is about the name.. They (Gradiente) very likely went with something slightly different for the case Apple eventually does decide on paying for the trademark. In that case, Gradiente's trouble with getting around "iPhone Neo One" should be slightly less complicated than simply "iPhone".

Re:A couple of points

[Sique]

Why being forced to sell a name anyway? Gradiente registered the name "iphone" (lower case p) in 2000. At this time, Apple had two iProducts (iMac and iBook), but there was no sight yet of a long chain of i-labelled consumer gadgets from Apple, and an Apple phone wasn't even on the drawing boards. The iPod came in 2001, so Gradiente's registration surely was without any intention to squat on a future, valuable trademark of Apple.
Within the legal framework of trademark law, the name "iphone" (and all modifications of it, which can be easily confused with the original trademark), is rightfully Gradiente's. It's solely Apple which has a problem here, they tried the courts to solve it, and they lost. So they can beg Gradiente to sell the name to them, or at least get a license to use it, but there is no incentive for Gradiente to agree to any negotiations.

Re:This is what trademarks are for

[Bogtha]

this ruling is just what the trademark is about. They were first to claim the name

What? No, that's not what trademarks are about. From Wikipedia: [wikipedia.org]

The essential function of a trademark is to exclusively identify the commercial source or origin of products or services, so a trademark, properly called, indicates source or serves as a badge of origin. In other words, trademarks serve to identify a particular business as the source of goods or services.

Trademarks are for identification purposes. When people buy an iPhone, the trademark is there so that they know when it says "iPhone" on the box, it's the iPhone they are thinking of and not some other product.

Trademarks have never been land grabs where the first person to claim the name wins. Consider examples like "Escalator". That was originally a trademark, but became generic. Now anybody can make an escalator and call it such.

Re:This is what trademarks are for

[terjeber]

Which is why companies name products differently in markets where they were not able to secure the trademark. Sorry, the only travesty here is that Apple can continue to sell products in Brasil under the name iPhone.

Would have been great in 2010!

[Lumpy]

Really Android 2.3? Epic fail.

The only thing newsworthy is the fact that he can use the name iPhone for what looks like is a completely mediocre china phone.

Re:Looks legit

[mabhatter654]

Apple was already working on acquiring rights before release... They were just being held up. Again, Cisco hadn't SOLD the product in several years... It's not up to Apple to know if somebody "maybe might wanna" still use something.

This Brazillian company had a trademark but NEVER released a product until well after Apple STARTED SELLING iPhones in 2008. If it was so important, they had 5 years to bring the matter up.

The iPhone is made where?

[tuppe666]

The only thing newsworthy is the fact that he can use the name iPhone for what looks like is a completely mediocre china phone.

The irony of this post hurts my brain.

Re:Apple lost in court

[famazza]

If Apple stops selling the iPhone in Brazil, there will be massive illegal import paying no taxes for government. Maybe this is the most intelligent movement for Apple at the moment. Brazilian government won't accept such a loss of tax income and will provide a "legal" solution for Apple.

Re:Looks legit

[morcego]

I'm not saying Brazil isn't an interesting market, but it probably isn't in the top 5.

As far as cell phone are considered, it is.

Re:Schadenfreude

[medcalf]

They are more likely angling for a settlement with Apple than trying to actually compete with other Android phone makers.