Although engadget reported on tuesday that they 2 companies were in “extensive discussions” and had planned to have “We expect to receive a signed agreement today(Tuesday).” It appears the two companies were unable to reach an amicable end to those discussions.

Today yahoo reports Cisco has suid Apple in federal court today over the user of the iPhone name. Cisco acquired the rights to the “iPhone” name when they purchased InfoGear Technology Corp. in 2000. Last month Cisco’s Linksys division put that name to use in branding their new VoIP phone. From the article:

“Cisco entered into negotiations with Apple in good faith after Apple repeatedly asked permission to use Cisco’s iPhone name,” said Mark Chandler, Cisco senior vice president and general counsel, 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.”

It appears to me that Cisco may have underestimated the value of the iPhone name. And after agreeing to sell the name to Apple and allowing them to use the name in their presentation, they may have wanted fair market value. Apple’s stock did go up over $5 a share yesterday in response to the announcement. However it is entirely possible, that in true Job’s style, apple just assumed that anything “i” is theirs and they can do with it what they like. I am sure that the truth lies somewhere in the middle of those 2 things. Having not received the contracts back and having witnessed the market value of the name I think cisco may have reconsidered. Apple thinking that everything was done and just dealing with details went ahead and made some thunder.

At any rate, as a devoted member of the I love apple fan club I just ran over my linksys router with my truck in preperation for spending another $200 to replace it with a new Airport Extreme :) Take that Cisco.