Cisco, Apple extend iPhone negotiations again

Apple Inc. has another week to respond to Cisco Systems Inc.'s trademark infringement lawsuit that threatens to keep Apple from using the name "iPhone" on its much-hyped cell phone-music player.

After the companies had previously agreed to extend the deadline until Thursday night, the world's largest networking equipment maker said Apple now has until Wednesday to respond to the lawsuit filed last month in San Francisco federal court.

Both companies reiterated previous statements that they want to use the extra time to reach a settlement.

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Cisco, whose Linksys division began shipping a line of iPhones last spring, has said it would allow Apple to use the trademarked name but wants both companies' phones to be able to communicate with each other. It has not provided details of such interoperability.

Apple has called the lawsuit "silly" and argued that it's entitled to use the iPhone name because the phones operate over different networks. Apple's works using cellular technology, and Cisco's operates over the Internet using a technology called Voice over Internet Protocol, or VoIP.

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Cisco has owned the trademark since 2000, when it acquired InfoGear Technology Corp., which originally registered the name.

Shares of Apple fell 38 cents to close at $84.83 on the Nasdaq Stock Market. Shares of Cisco fell 4 cents to close at $27.52.