"Cisco entered into negotiations with Apple in good faith after Apple repeatedly asked permission to use Cisco's iPhone name," Mark Chandler, senior vice president and general counsel at Cisco, said in a statement. "There is no doubt that Apple's new phone is very exciting, but they should not be using our trademark without our permission."

Cisco is seeking injunctive relief to prevent Apple from copying Cisco's iPhone trademark, the company said.

I don't know... i read this as "We strung them along until Macworld and tried to extort them, which they didn't like, and now we're suing them."

To be sure, Apple should have handled this a long time ago, but I do not trust Cisco's motives in this case. I think they pulled some shit.

Cisco sues Apple over iPhone name | News.blog | CNET News.com