Adobe Systems is reportedly preparing to sue Apple over the latter’s decision to ban Flash-converted (and Silverlight) apps on the iPhone 4 SDK.

“It was bad enough when Apple said, in effect, that Adobe Flash wasn’t good enough to be allowed on the iPad. But the final straw was when Apple changed its iPhone SDK so that developers may not submit programs to Apple that use cross-platform compilers,” wrote IT World’s Steven J. Vaughan-Nichols.

“In other words, Adobe, Microsoft, not only can you not have Adobe Flash or Microsoft Silverlight running natively on an iPod Touch, iPhone, or iPad, you can also forget about creating an iWhatever program that can get around that requirement.”

According to Vaughan-Nichols, Adobe, the “king” of Internet video with 95% Web browser market dominance, is “not one bit happy” about being excluded from Apple’s lucrative mobile device market.

“So, unless things change drastically between Apple and Adobe in the next few weeks, from what I’m hearing you can expect to see Adobe taking Apple to court over the issue. It’s not going to be pretty,” he added.