Any form of Newsstand that sells publications is not subject to exclusivity or able to be trademarked by one firm. That's like Dole trademarking the term "banana".
EDIT: Barnes & Noble doesn't have the term Newsstand trademarked in the physical form, so why should Apple be allowed exclusivity in the digital form?
Generic names won't win many trademark battles.
That reminds me.
Didn't Microsoft technically lose their case when it came to the Windows trademark? I think the idea was that they were willing to keep appealing again and again and run the other company out of money.
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It serves the same function. The medium is irrelevant when the function is identical.
I think he was joking.