Local retailer Iuiga will stop making references to Japanese consumer goods company Muji in its promotional and marketing materials after a trademark dispute was settled.

Iuiga has also stated on its website and mobile application that it will stop referring to the Muji trademark.

Muji told The Straits Times yesterday that it had come to an out-of-court settlement with Iuiga.

The Japanese firm - its official name is Ryohin Keikaku - said it had filed a suit in the Singapore High Court on Jan 25 after talks failed to resolve a dispute that arose when Iuiga displayed Muji's mark on its website.

Muji investigated further and found that Iuiga also used the phrases "Muji same Manufacturer" and "Direct from Muji Manufacturer" on its website and other promotional materials.

Some of Iuiga's product tags also contained identifiers used by Muji, including its subsidiary name, website address and customer service number in Japan.

Muji said in March that it was seeking court orders to stop Iuiga from using its mark. It also demanded compensation for damages and losses.

Iuiga told The Straits Times at the time that it had done nothing wrong and the information on its website was "factually accurate and (its) manufacturing processes are legal".

Muji said on its website last November that a third-party retailer was claiming it had items produced by the same manufacturer as the Japanese firm's. The items included an eyelash curler and a sofa.

Muji said then that the manufacturer of its eyelash curler confirmed that neither it nor its licensee had produced or supplied the third-party retailer's product.

Muji said in March that it was seeking court orders to stop Iuiga from using its mark. It also demanded compensation for damages and losses. Iuiga told The Straits Times then that it had done nothing wrong and the information on its website was "factually accurate and (its) manufacturing processes are legal".