Canadian frozen dessert maker CoolBrands International has said it has settled its case with Weight Watchers International and Wells' Dairy regarding the use of the Weight Watchers and Smart Ones trademarks.

CoolBrands announced at the end of July that its licence agreement with Weight Watchers was to end on 28 September 2004 after the two companies were unable to agree on an extension. CoolBrands said at the time that it had the right to continue to market Smart Ones frozen desserts using the Weight Watchers name on its packaging until 28 September 2005.

However, a few days later the company said it had been served with a complaint by Weight Watchers alleging an "anticipatory breach" of the licence agreement between the two companies. Weight Watchers' complaint claimed CoolBrands would have only a limited right to use the brand name to sell off remaining inventory for one year. Weight Watchers also said it had entered into a new agreement with Wells' Dairy.

CoolBrands then announced that it was suing Weight Watchers, claiming that the US company violated the terms of the licence agreement.

As part of a settlement agreement, CoolBrands said it will no longer manufacture, sell, market or distribute ice cream and frozen novelty products using the Weight Watchers and Smart Ones trademarks as of 1 May 2005.

"The settlement was reached between CoolBrands International, Weight Watchers International, and Wells' Dairy, thus concluding the pending litigation among the parties," CoolBrands said in a statement, adding that Wells' Dairy is the exclusive licensee for ice cream and frozen novelties sold under the Weight Watchers brand.