PRETORIA, South Africa (AP) -- Thirty-nine pharmaceutical companies suing South Africa over a drug patent law said Wednesday for the first time that they might settle the suit, which is considered a landmark case by AIDS activists.

International human rights groups and AIDS activists have fought the lawsuit, which they see as an obstacle to securing medication for the 26 million people in Africa infected with HIV. The law could give the government power to import or produce generic versions of patented drugs -- including those for AIDS.

The companies were in court Wednesday and requested a recess to allow the negotiations with the government to continue. They were expected back later in the day.

Lawyer Stephanus Cilliers asked for the postponement "in hopes that certain discussions that are going on will obviate the need for further ...proceedings."

The pharmaceutical companies that brought the suit argued that the South African law, which was never implemented, was too broad and unfairly targeted drug manufacturers.

The government, AIDS activists and human rights groups say the drug companies are trying to wring profits out of a public health nightmare that threatens to devastate South Africa and dozens of other poor countries.

Most of the world's HIV infected people live in Africa, one of the world's most impoverished regions. In 2000, 2.4 million people in the region died from the effects of AIDS.

The Treatment Action Campaign, a local AIDS activist group that has filed a brief in support of the government, demanded the companies pull out immediately.

"There's nothing to discuss. The companies must simply withdraw from the case,"said Zackie Achmat, head of the group.

The lawsuit has become a public relations liability for the companies, leaving the impression they care more about making money than about saving lives.

The case had been postponed for six weeks until Wednesday, to give the pharmaceutical companies time to respond to late filings.

Since then, several companies have offered to sell their AIDS drugs to poor countries at or below cost. They continued to argue, however, that the lawsuit was about patents and property rights and involved more than just AIDS drugs.

Some supporters of the government expressed shock at the drug companies efforts to talk.

"They've been so dug in, I've been surprised that they'd actually back down,"said James Love, director of the Consumer Project on Technology.