Right, we see the trouble here, but you know things aren’t always as simple as they seem. From the Reuters release:
Brazilian consumer electronics maker IGB Eletronica SA said on Tuesday that it would begin selling its line of smartphones in Brazil under the brand “IPHONE,” a name to which it has exclusive rights in the local market.
The first model will be called “Neo One,” IGB said in a securities filing. The company was formed this year after the restructuring of Gradiente Eletronica SA, which had applied for exclusive rights in Brazil to register its products under the name IPHONE in 2000.
As MacRumors pointed out in their post, this is no different than Apple having to deal with who held the trademark in China for “iPad”, which it eventually had to $60 million for.
We’ll just have to see how it all turns out.