Another day, another lawsuit. Online ad firm Innovate Media Group of Costa Mesa, California, has filed suit in the US District Court of the Central District of California, charging that Apple has knowingly usurped their rights to the term iAds, reports “The Register” (http://www.theregister.co.uk/2010/06/14/innovate_media_sues_apple/)

“It appears that Apple’s strategy with respect to Innovate Media and the ‘iAds’ mark is just another sequence in a pattern of conduct by Apple, of ignoring and trampling the intellectual property rights of others,” the suit reads.

“As a result of Apple’s refusal to acknowledge Innovate Media’s ‘iAds’ marks, and blatant and willful infringement of those marks,” the suit reads, “Innovate Media has been left with little choice but to file this lawsuit seeking injuntive relief, damages and other relief.”

Apple will debut its iAd mobile advertising network on July 1 on iPhone and iPod touch devices running its iOS 4 software platform. iAds combine the emotion of TV advertising with the interactivity of Internet advertising, according to Jobs.

iAd will kick off with mobile ad campaigns from leading global brands including AT&T, Best Buy, Campbell Soup Company, Chanel, Citi, DirecTV, GEICO, GE, JCPenney, Liberty Mutual Group, Nissan, Sears, State Farm, Target, Turner Broadcasting System, Unilever and The Walt Disney Studios. Apple has iAd commitments for 2010 totaling over US$60 million, which represents almost 50% of the total forecasted US mobile ad spending for the second half of 2010, says Jobs.


He adds that iAd, which is built into iOS 4, allows users to stay within their app while engaging with the ad, even while watching a video, playing a game or using in-ad purchase to download an app or buy iTunes content.

Developers who join the iAd Network can incorporate a variety of advertising formats into their apps. Apple will sell and serve the ads, and developers will receive 60% of the iAd Network revenue, which is paid via iTunes Connect.

iAds require iOS 4, which will be a free software update via iTunes 9.2 or later for iPhone and iPod touch customers. iOS 4 will work with iPhone 3G, iPhone 3GS, iPhone 4, and second and third generation iPod touch (late 2009 models with 32GB or 64GB).