US based Apple is likely to pay a Brazilian firm for the right to use the iPhone brand name in the country.

Brazilian firm Gradiente has recently started selling Android smartphones with the iPhone brand after winning the legal battle to attain right to use the name in Brazil.

The first phone in the IPHONE range, known as the Geo One, will feature a 3.7in touch-screen display, Android Gingerbread 2.3 operating system, 700MHz processor, 5MP camera, dual-SIM capability, 3G, WiFi and Bluetooth.

The firm, which was established in 2012 following the restructuring of Gradiente Eletronica, claims that it had filed its request for the exclusive rights in Brazil to name its products as ‘iPhone’ in 2000.

The Brazilian firm also said that it would implement all the measures used by firms globally to preserve its intellectual property rights in Brazil.

However, the Cupertino-based Apple has been selling its iPhone devices in Brazil which is claimed to be an important market for the company.

Recently, the iPhone maker battled in China over the iPad trademark with Proview, while has also reached a settlement for $60m.