I knew it was too good to be true. Turns out Apple did not manage to work out a deal with Cisco, who currently owns the “iPhone” trademark, and today they were sued by the network-equipment manufacturer:
Cisco filed the lawsuit Wednesday seeking injunctive relief to prevent Apple from copying Cisco’s iPhone trademark.
“We certainly expected that since they had gone ahead and announced a product without receiving permission to use the brand, that meant that the negotiation was concluded,” said Mark Chandler, Cisco senior vice president and general counsel.
Obviously I am not an expert on trademarks or anything, but I think it’s pretty amazing that Apple is “very confident” they will prevail. Too bad Apple is so tight-lipped, or we might be able to learn their side of the story.
Read: Yahoo News
MasterMaq's Blog 
I wouldn’t bet on the plantiff succeeding given the lack of confusion involved to the lay person.
What is the situation were confusion would arise to the general consumer (and loss to Cisco), who quite frankly has probably never heard of the Cisco iPhone and isn’t going to not buy one because apple sells their device? Anyone who knows about the Cisco/Linksys iPhone can quite easily distinguish the two – they aren’t the same kind of phone even and are sold in different contexts.
They could easily go for just Apple(r) phone but I think Apple(r) iPhone may still remain.
I think Jobs was directly challenging Cisco, almost daring them to do something after he’s already called the new device an iPhone.
I’m not a lawyer, but it seems like a no-brainer to me: "Mr. Jobs, can you provide a document stating that Cisco has given you the right to call this new device an iPhone when they own the copyright? No? Court finds for the plaintiff."
Seems like Cisco and Apple should have been working on joint projects before this.
I for one don’t care what Apple calls their phone. They could have named it “Pete” and it would have been
okay. Since the Superbowl ads, Apple could only upset me by naming their phone “Snickers.”
http://www.iphone-converter.org/dvd-to-iphone/