Cisco and Apple revealed this week that they have reached a type of cease fire in their trademark battle over the term iPhone, which Cisco owns.

Cisco launched a product called the iPhone in December and wants to come to terms with Apple on an agreement that would allow the Cisco iPhone to ‘ interoperate ‘ with the Apple iPhone in some form or fashion. Apparently the companies continued negotiations on the topic right up until the night before MacWorld at which point Apple walked out on the talks, launched their iPhone at MacWorld hoping that Cisco was bluffing only to learn that Cisco wasn’t bluffing when they filed a lawsuit against Apple.

Now they are back at the tables trying to work things out. Many companies would jump at a chance to avoid a Trademark lawsuit, but Apple is not a company to be troubled by someone else’s trademark. Plus, they are not normally known for opening up their proprietary systems to allow interoperability with other platforms.

Therefore, they may be talking but they may have a long way to go before a settlement is presented. Even then it looks likely that both companies will exact a pound of iPhone flesh from the other.

Technorati tags: Cisco, Apple, iPhone, Trademark litigation, ineroperable iPhones, proprietary systems