LOS ANGELES • The Eagles have managed to prevent the efforts of another party to feather its own nest with the use of the name Hotel California, as the band alleged.

The American country-rockers have settled a lawsuit to stop a Mexico hotel from using the name of arguably their most famous song after the hotel's owners withdrew their application to trademark the name in the United States.

A joint dismissal of the band's lawsuit against Hotel California Baja, which runs the Todos Santos hotel in Baja California Sur, was filed on Wednesday with the US District Court in Los Angeles.

"This case has been settled by mutual agreement of the parties," said Mr Thomas Jirgal, a lawyer for the Eagles.

The dismissal came on the same day the US Patent and Trademark Office accepted Hotel California Baja's request to permanently abandon its trademark application.

Hotel California is the title track from the 1976 Eagles album of the same name and it won the Grammy award for Record of the Year.

It is known for abstract lyrics that depict "the dark underbelly of the American dream", lead singer Don Henley told CBS News in 2016.

Hotel California Baja was accused of encouraging guests to believe that the Eagles had authorised using the song's name, such as by playing their songs throughout its property.

The Eagles said this was done in part to spur sales of T-shirts, posters, refrigerator magnets and other merchandise among guests.

REUTERS