BBC News reports that Apple and Cisco have agreed to put back the court date for the battle over the name iPhone so that they can try to reach an amicable agreement out of court.
Cisco is keen to point out that they are not droppnig the lawsuit, especially as it's Net phone network is largely underpinned using their Iphone brand following their purchase of Infogear.
As soon as Apple mentioned the launch of the iPhone Cisco got on to its lawyers and started legal proceedings in the USA.
Mark Chandler is the senior vice president of Cisco along with being their general counsel and he said: "There is no doubt that Apple's new phone is very exciting, but they should not be using our trademark without our permission."
Apple replied by calling the legal action "silly" and that Cisco's trademark registration was "tenuous at best".
"There are already several companies using the name iPhone for VOIP products," said Apple spokesman Alan Hely.
"We are the first company to ever use the iPhone name for a cell phone, and if Cisco wants to challenge us on it we are very confident we will prevail."
Under US federal law, two companies are allowed to share the same name providing their uses are not similar.