In a purposely vague statement, both Apple and Cisco agreed to settle any disputes arising from the use of the name iPhone.
The Apple iPhone is supposed to ship in June but rumors have it that it may even ship earlier say in April. So it's in Apple's best interest to settle. As to Cisco, the iPhone name is best identified with the Apple's iPhone anyway and Cisco probably got some big money from Apple for using the name so why not settle.
If you are as big and as powerful as Apple, you can break the law and settle later.
More from the New York Times.
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