Apple Computer has been sued in Arizona U. S. District Court by by ICloud Communications over Apple’s trademark applications for marks using the name “iCloud.” ICloud Communications never registered a mark for it’s asserted prior use of the term “iCloud.” Trademark rights arise from use, not registration; however, proving prior use is much more difficult without registration. Some other benefits of registration are the availability of monetary damages because a defendant could not raise a defense of innocent infringement, as well as the ability to obtain an award of attorneys fees which are available by statute for registered marks. This case will most likely settle. The settlement value for iCloud Communications would have been significantly greater if had taken the simple step of properly registering its mark. Oops. Live and Learn.