Brazilian consumer electronics maker, registered the "iphone" name in 2000, seven years before Apple launched its now virally popular smartphone.

The Brazilian Institute of Intellectual Property will officially announce its decision on Feb 13, the source said.

Apple could then challenge the ruling in the Brazilian courts.

A spokesperson with Apple in Brazil declined to comment.

With a swelling middle class anxious to go online, Brazil is one of the fastest-growing markets for smartphones in the world.

IGB Eletronica SA, a company formed after the restructuring of Gradiente, launched its "iphone" line of smartphones last December.