It's unclear how all of this will turn out. My initial hunch was Cisco and Apple would settle, but then News.com recapped the diplomacy between the two parties. Cisco says it's just defending its trademark. Here's Apple's stance as told to News.com:
"We think Cisco's trademark suit is silly...We believe (their) trademark registration is tenuous at best," said Natalie Kerris, an Apple spokeswoman.
"There are already several companies using the iPhone name for VoIP (voice over IP) products," Kerris said. "We're the first company ever to use iPhone for a cell phone. If Cisco wants to challenge us on it, we're confident we'll prevail."
Hmm. So much for a quiet settlement. The most interesting development in this battle: Public opinion--as judged via comments on News.com and ZDNet--seems to be aligned against Apple. Seems like a no brainer given Apple's actions, but when was the last time the company was actually dinged in the PR department?