Marks and Spencer and Aldi have reached a settlement in a copyright dispute over the design of their caterpillar cakes.

M&S launched legal action against the German discount store in April 2021, accusing its rival of copying the design of its Colin the Caterpillar cake in a bid to force Aldi to take its Cuthbert the Caterpillar cake off the shelves and agree not to sell anything resembling it in the future.

Both supermarket giants on Tuesday confirmed a deal has been struck.

Read more: Marks & Spencer sues Aldi for ‘copying’ Christmas gin – just months after caterpillar cake row

In May, Aldi started selling its caterpillar cake again after making changes to its design.

Deputy Master Timothy John Bowles signed off an agreement in a consent order filed at the High Court on Thursday.

The order, first reported by The Telegraph, allowed the claim to be withdrawn and said the retailers had reached a “confidential agreement” in November.

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An M&S spokesman said: “The objective of the claim was to protect the IP (intellectual property) in our Colin the Caterpillar cake and we are very pleased with the outcome.”

An Aldi spokesperson said: “Cuthbert is free and looking forward to seeing all his fans again very soon.”

Both companies are involved in a separate copyright dispute over allegations that Aldi copied M&S’s “light-up” gin liqueur.

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The M&S spokesman added: “Like many other UK businesses, large and small, we know the true value and cost of innovation and the enormous time, passion, creativity, energy and attention to detail, that goes into designing, developing and bringing a product to market and building its brand over many years.

“So it is understandable that we want to defend our intellectual property and protect our suppliers – many of them small businesses that have worked with us for decades.”