Cisco and Apple have settled their dispute over the use of the iPhone name and agreed to share the trademark.

The agreement brings to an end a nearly two month dispute that began after Apple announced its much heralded entry into the mobile phone market.

The joint statement said: "Under the agreement, both companies are free to use the "iPhone" trademark on their products throughout the world. Both companies acknowledge the trademark ownership rights that have been granted, and each side will dismiss any pending actions regarding the trademark."

Interestingly, the companies also said they would "explore opportunities for interoperability in the areas of security, and consumer and enterprise communications."

Other terms of the deal were not disclosed.

The deal seems to be a concession on the part of Apple, which had for long suggested it had the right to use the iPhone brand.

Cisco filed a lawsuit seeking to block the computer maker from using the name , arguing it uses the brand for a range of VoIP phones it has been selling for over a year, and which the network equipment company claims to have owned since 2000.