A trademark lawsuit filed against Apple by a Web advertising firm over the term "iAds" was quietly settled in July. No one has disclosed exactly how the case was resolved but Apple now owns the "iAds" trademark, and last week a company peripherally involved in the suit posted a note to the web that said Apple paid a "seven-figure settlement," reports "CNET" (http://news.cnet.com/8301-13579_3-20021361-37.html?part=rss&tag=feed&sub...).

Innovate Media, an online ad agency, filed a trademark suit against Apple in April, saying it has used the term "iAd" since 2006 and was granted two trademarks for the term in October 2008. "CNET" says that on Thursday, Consor, a company that helps evaluate intellectual property, posted a release to the Web titled "Consor Intellectual Asset Management Secures Success for Four Clients."

However, Consor is now backpedaling from that release, says "CNET." Not long after posting the note to the web, Consor tried to take it down. Doug Bania, who oversees Consor's business development and licensing units, at first told "CNET" that the announcement was never posted. When he was informed that the note was on the web, he said some of the information "wasn't accurate" and declined to say anything more, notes "CNET."

iAds combine the emotion of TV advertising with the interactivity of Internet advertising, according to Apple CEO Steve Jobs. Apple has iAd commitments for 2010 totaling over US$60 million, which represents almost 50 percent 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.x.