TIML Radio Limited, owners of the Absolute Radio brand, and V&S Vin&Spirit, the owner of Absolut, have now reached an agreement on the issue.
The terms of the settlement are confidential but allow Absolute Radio and Absolut vodka to continue to trade using their existing names.
Clive Dickens, chief operating officer of Absolute Radio, said: "Absolute Radio is pleased with this settlement which will see us continue to build our music radio brand and advance our position as one of the leading commercial radio networks in a digital age."
V&S Vin&Spirit, the owner of Absolut, issued a write against Absolute Radio for trademark infringement in October 2008, following the rebrand of Virgin Radio as Absolute in September that year.
V&S Vin&Spirit claimed that consumers could be confused over the similar names and that Absolute Radio could be detrimental to the Absolut vodka brand.
Paula Eriksson, vice-president of corporate communications at V&S, said: "I am pleased with the outcome of this matter which will enable us to continue to develop the iconic Absolut brand without risk of confusion to the public."
This article was first published on marketingmagazine.co.uk