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I think the answer to this is to use the Company Name, or Holding Company as the domain. So instead of Brand1 or Brand2, use Company name instead, as long as the company name isn't brand 1. :)
Thanks for the reply Adam.
Brand 1 was first on to Marketo about 8-9 months ago and is now already established as the domain.
Is there an alternative solution?
You can create a CNAME record for pages.brand2.com that points to brand1.com (your users won't see brand1.com though). I think your cookie domain would need to be brand1.com to ensure the cookie can be read.