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DSW, Zappos Settle Suit

The off-price retailer originally filed the lawsuit, related to affiliated marketing over the Internet, against Zappos, last May.

DSW Inc. and Zappos.com said Monday they had reached a settlement in a lawsuit filed by DSW last May.

In the suit, DSW alleged that the footwear e-tailer had infringed on DSW's service marks online. The suit said Zappos misused DSW's marks in multiple URLs, along with DSW store photographs. In its response, filed last July, Zappos asked an Ohio district court to dismiss the action because DSW's “complaint does not allege direct infringement because it does not allege that Zappos owned or had any control over the domain names at issue.”

The terms of Monday's settlement were not disclosed, but execs from both companies said they were satisfied with the outcome.

"We are pleased to have reached an agreement with DSW on this issue," said Millie Lauren Chou, associate general counsel of Zappos, in a statement.

Bill Jordan, general counsel of DSW Inc., said, "We respect Zappos as a competitor, and this case provides a framework for discussing intellectual property and brand equity issues in the affiliate advertising context."