Apple Sued By iCloud Communications for Trademark Infringement

Phoenix-based iCloud Communications is suing Apple for trademark infringement, arguing that Apple was aware of the existing trademark and nonetheless decided to use the name for its new cloud service that stores and shares music, email, photos and other data.

The suit filed by the VoIP and cloud services company states, "Due to the worldwide media coverage given to and generated by Apple's announcement of its 'iCloud' services and the ensuing saturation advertising campaign pursued by Apple, the media and the general public have quickly come to associate the mark 'iCloud' with Apple, rather than iCloud Communications. At the time Apple elected to adopt 'iCloud' for its cloud computing telecommunications and data services, Apple was aware of or was willfully blind to iCloud Communications' use of and rights in the iCloud Marks."

The court document alleges Apple's campaign has created confusion among customers: "iCloud Communications has received numerous inquiries from both existing and prospective customers regarding whether it is now owned or affiliated with Apple. The loss of and damage to the goodwill in the iCloud Marks, the damage to iCloud Communication's reputation and confusion among consumers is likely to continue -- and, in fact, intensify -- unless Apple is enjoined from its use of the mark 'iCloud.'"

iCloud Communications claims it has been using the term iCloud since 2005 and has customers throughout North America, South America, Europe and the Middle East. It estimates spending hundreds of thousands of dollars since 2005 to advertise and promote the "iCloud Mark." Apple, which has not commented on the suit, reportedly paid Sweden-based Xcerion $4.5 million for the iCloud.com domain, and filed for the iCloud trademark in Jamaica in December 2010 and in the European Union in late May.

The suit calls for Apple to "deliver for destruction all labels, signs, prints, insignia, letterhead, brochures, business cards, invoices and any other written or recorded material or advertisements in its possession or control containing the iCloud name." It also seeks unspecified payment for "all monetary damages sustained" and for "all profits, gains and advantages."

The company points out that this is far from Apple's first time being sued for trademark infringement: "Although Apple aggressively protects its trademark rights, Apple has a long and well known history of knowingly and willfully treading on the trademark rights of others -- a history which began as early as the 1970s when Apple was first sued for trademark infringement by the Beatles record label, Apple Corp." Previously, other companies have sued Apple for trademark infringement over the names Macintosh computer, Mighty Mouse, iAd, iPhone and iPad. Apple has either won or settled these suits -- for example, paying McIntosh labs a reported $2 million.