In November SodaStream was forced to pull the TV ad from its £11m "SodaStream effect" global campaign, hours before it was due to air, after the TV ad vetting body slammed it for its denigration of the bottled drinks market."
The ad was banned in the UK as it was deemed a "denigration of the soft drinks industry". But it was cleared to run in other countries such as the US and Australia.
SodaStream's appeal against the ban was turned down, prompting the challenger drinks maker to consider legal against Clearcast.
At the time Fiona Hope, SodaStream's managing director, said she was "extremely concerned" about the final decision and the brand was considering legal advice, though she was hoping to come to an amicable agreement with Clearcast.
SodaSteam has now had an about-face and decided against taking further action.
Hope said: "It is with deep regret that we have decided to close the door on further challenge to this ridiculous assessment by Clearcast. Despite having specialist legal advice that we have extremely strong grounds for progressing with this dispute via judicial review, we simply do not have the deep pockets enjoyed by other soda giants.
"We stand by our statement that there is absolutely nothing disparaging in our original campaign a we do not mention or show competitor brands in this spot.
"With Climate Week upon us, it is sad that we are unable to use TV to deliver our powerful message about reducing waste and creating a more sustainable future. We will look for alternative mediums and continue to create truly innovative products and 'better for you' beverage alternatives to allow families and households to live in a healthier, more environmentally friendly way."