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Apple To Pay Brazil's Gradiente SA For iPhone Trademark

|Includes: Apple Inc. (AAPL)

In an effort to avoid major confusion, Apple will be forced into buying the iPhone trademark rights from Gradiente SA - a Brazilian company that started selling smartphones last week under the iPhone name.

Users of this latest Brazilian iPhone release are being misled as Gradiente SA has installed Google's Android OS onto their trademarked iPhones.

It is very doubtful that Apple will tolerate Brazilian's population (the world's sixth largest mobile market and fourth when ranked by smartphones) from getting the wrong idea about what an iPhone truly is.

It is imperative that Apple intervenes immediately with monetary compensation for Gradiente in an effort to keep the global iPhone brand image untarnished.

The question here isn't about whether or not Apple (NASDAQ:AAPL) with buy out the Brazilian iPhone trademark, it's a matter of when. The potential for future Brazilian Apple iPhone customers is undeniably huge.

Disclosure: I am long AAPL.