It's been a rough day for Google's Android phone, the Nexus One. First we learned this morning that initial sales have been far weaker than the iPhone saw when it first came out of the gate. Now it's being reported that the U.S. Patent and Trademark Office has rejected its application for a trademark on the name Nexus One.

The name "Nexus One" was ruled too close to Portland, Oregon based Integra Telecom's own registered trademark for its Nexus fixed bandwidth integrated voice and internet T1 product.

Mike Rogoway, of Portland's The Oregonian newspaper, got the following statement from Integra:

"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."

Does that mean Google will rename the Nexus One, or that it will end up paying the trademark holder for the privilege of using the name? Google just expanded the Nexus One onto the AT&T network today.

Either way, we wouldn't be surprised if the hunt for a new name is already on. What would you suggest, readers?

It's tempting to say this is another example of the Patent and Trademark Office moving too slow, but note that Integra was granted its trademark in December 2008. The Nexus One was just release January 5, 2010.

Meanwhile, the open Android operating system marches on. XML co-creator Tim Bray announced this weekend that he has joined Google to work on Android. He called the iPhone in a blog post "a sterile Disney-fied walled garden surrounded by sharp-toothed lawyers. The people who create the apps serve at the landlord's pleasure and fear his anger."