Apple Inc. failed in its attempt to trademark the term "startup" in Australia as IP Australia lodged a thorough examination and adverse report against Apple. IP Australia, however, allowed Apple Inc. to postpone its acceptance of the report. Hence, Apple Inc. might have a turnaround soon.

"It's possible for any applicant to respond to the examiner's report. This isn't uncommon, it's typical of a lot of trademarks that are applied for. Sometimes we to and fro for a while, and sometimes they never overcome the objections and sometimes they may," spokesperson for IP Australia, Jennifer BowenSmith told StartupSmart.

"Trade Mark 1576935 was lodged by Apple Inc. on 27 August 2013. IP Australia issued an adverse examination report on 8 November 2013. The applicant has made a request to defer acceptance, which has been granted by the Registrar of Trade marks," as stated by an official statement from IP Australia obtained by StartupSmart.

On Aug 27, 2013, Apple Inc. filed the request to trademark the term "startup".

The request had infuriated the Australian startup community, especially businesses that had been using the term for many years already.

There is a possibility that Apple Inc. may successfully claim all the rights to the term "startup" said Brian Goldberg, an intellectual property lawyer at Premier IP ventures.

"With significant usage, there is a possibility it will pass the examination phase. From the date the trademark is registered (after the opposition period), then using the word 'start-up' as a prominent branding feature will be restricted and prevented by Apple," Mr Goldberg explained.

However, hopes are high for the Australian startup community - because, if Apple Inc. passes the examination phase, anyone has the legal right to oppose the application within a two-month period.

"Anyone that feels they don't want this mark to become registered in Australia for these services can oppose this. From a technical point of view, any one person can oppose, and there are criteria on which you oppose, and that can be enough. If it came from several different fronts, that would enhance the likelihood of the opposition being successful if they meet the terms," as advised by Mr Goldberg.

If Apple Inc. wins the trademark, Apple will likely employ the strictest observance of its right to the term.

"Based on Apple's past behaviour with trademarks, especially for any version of the 'i' mark, they will strongly enforce their position," Mr Goldberg warned.