By Andrew Goudsward

Outdoor clothing retailer Patagonia Inc has settled its lawsuit accusing Gap Inc of illegally copying the "iconic" snapped flap pocket that the company has long featured on its fleece outerwear.

The judge dismissed the case on Wednesday after the companies told the court that they had reached a settlement and agreed to drop their claims. The settlement terms were not disclosed.

Spokespeople for Gap and Patagonia did not immediately respond to requests for comment.

In a complaint filed in November 2022 in San Francisco federal court, Patagonia said Gap willfully and deliberately sold fleece jackets that mimic its flap pocket and rectangular "P-6" logo without permission.

The outfitter alleged the jackets were intended to confuse shoppers into believing they were Patagonia products or that Patagonia let the retailer use its trademarks.

Gap denied the claims and argued in court filings that Patagonia had waited too long to bring the lawsuit. Gap also filed a counterclaim asking a judge to rule that the design of Patagonia’s Snap-T pullover fleece is not legally protected.

Patagonia said it has featured the snap pocket on its Snap-T jacket for more than three decades.

(This story has been corrected to say "Patagonia products" not "Gap products" in paragraph 5

(Reporting by Andrew Goudsward)