On top of the slow sales for Google's Nexus One smartphone comes a bombshell from the U.S. Patent and Trademark Office (USPTO): Google's application for Nexus One as a trademark was refused because it's too similar to the Nexus trademark held by Integra Telecom. It's hard to believe that Google's trademark counsel didn't find and report this conflict.
Google can fight the ruling with the USPTO, which will take months, it can license the trademark from Integra Telecom, or it can find a new name for its smartphone. I'm betting that Integra Telecom is going to get a nice payday, whether Google does a friendly deal to license the Nexus trademark or Integra takes them to court for trademark infringement. Even with its slow sales, Google now has too much equity invested in the Nexus One trademark to drop it without a fight.