Cisco Systems Inc and Apple Inc have finally agreed to settle their trademark dispute over the use of the name "iPhone" for Apple's eagerly awaited cellular phone and digital-media device.

The two Silicon Valley giants said Wednesday that both companies could now use the "iPhone" trademark on their respective products throughout the world. They further agreed to explore opportunities for making their products work better together.

The agreement ended a nasty legal spat that had threatened to overshadow the launch of Apple's latest must-have device.

Cisco sued Apple on January 10, a day after Apple chief executive Steve Jobs unveiled the iPhone. Cisco has held a trademark on the name since 2000 and launched a line of internet-phone products last year under the iPhone label