According to analysts, Google’s Nexus One phone isn’t selling too well. In fact, its 135,000 units sold is way off the 1 million iPhone’s sold during its launch.

Still, there’s good news for Google. It was just denied a trademark for Nexus One, because it’s too similar to one that’s already being used by Integra Telecom.

“Registration of the applied-for mark is refused because of a likelihood of confusion with the mark in U.S. Registration No. 3554195,” the trademark office wrote in its March 9 ruling.

OK, so that’s not good news, but if Google decided that entering the mobile hardware business was a bad move, it now has an excuse to pull out–hey it worked for China!

Meanwhile, back in Portland, Oregon, Integra is obviously delighted with the USPTO’s decision:

“We appreciate that the PTO is protecting our trademark rights. Integra has over $60 Million in annual revenue associated with our Nexus brand and it represents millions of new revenue for the company each year. Google hasn’t contacted us since the PTO issued its objection but we hope we can work together to achieve our respective business goals.”

Let me translate that last sentence for you:

Google hasn’t contacted us since the PTO issued its objection but we’re looking forward to either big fat licensing fee or being acquired by them for a ridiculous multiple!

So, what’s next for Google? It is likely too early to pull the plug on the Nexus One, but a rebranding or licensing deal is on the horizon with this decision.

(via)