The federal government's indigenous agency has reached out to the company that has the right to reproduce the Aboriginal flag on clothing, hoping to resolve concerns about its copyright enforcement.
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The copyright for the red, black and yellow flag is held by its designer Harold Thomas, who has commercial agreements with three different companies.
Under the agreements, Carroll and Richardson Flags can make and sell the flag, Gifts Mate can create products featuring the flag and WAM Clothing can reproduce the flag on apparel.
An indigenous charity was this year required to pay WAM Clothing $2200 to use the flag on t-shirts it gives to patients who visit its clinic.
Some other companies who have used the flag have received "cease-and-desist" notices.
The chief executive of the National Indigenous Australians Agency, Ray Griggs, says there has been "concern" around "the execution of the WAM Clothing agreement".
Although the company is enforcing its legitimate rights under its licence, Mr Griggs has written to WAM Clothing's boss Ben Wooster requesting a meeting to "explore the issue with him".
Mr Wooster's lawyers replied on Thursday, asking the agency to deal directly with them.
"I'm still very keen to meet and explore that," Mr Griggs told a Senate estimates hearing in Canberra on Friday.
The federal government believes Mr Thomas is entitled to his copyright and doesn't intend to override it, Mr Griggs said.
Mr Thomas told Indigenous Australians Minister Ken Wyatt at a meeting in June that he wants to maintain the copyright.
"What I'm trying to do in terms of WAM Clothing is to explore what the art of the possible is here," Mr Griggs said.
"I don't want to make this any more divisive than it already is.
"I think that's a really important position, from our perspective, to try and resolve this in a way that doesn't destroy the unifying nature of this flag."
The National Indigenous Australians Agency was founded on July 1, taking the reins of indigenous policymaking from the Department of Prime Minister and Cabinet.
Australian Associated Press
