The Swedish retailer issued the Kuala Lumpur-based blogger with a cease-and-desist letter in March and demanded that the individual transfer over the URL to them.
After legal discussions, it has been agreed that the blogger can retain the name Ikeahackers.net, but must not use it for commercial purposes. A 23 June deadline has been set for removing all ads from the site.
Jules Yap, who set up the blog in 2006, wrote in a post that she gave in to Ikea’s demands due to her desire to retain the name "IKEAhackers" and the fact she does not have "deep enough pockets to fight a mammoth company in court".
She said: "I was a just crazy fan. In retrospect, a naive one too. It is not an excuse, but that was just how it was when I registered IKEAhackers. Over the last 8 years the site has grown so much that I could not juggle the demands of a full time job and managing IKEAhackers. It also costs quite a bit to run a site this large. Since Ikea does not pay me a cent, I turned to advertising to support myself and this site.
"Needless to say, I am crushed. I don’t have an issue with them protecting their trademark but I think they could have handled it better. I am a person, not a corporation. A blogger who obviously is on their side. Could they not have talked to me like normal people do without issuing a C&D?"
An Ikea spokesperson told the BBC: "We feel a great responsibility to our customers and that they always can trust Ikea. Many people want to know what really is connected to Ikea – and what isn´t. And we think that people should have that right.
"When other companies use the Ikea name for economic gain, it creates confusion and rights are lost."
Ikea has forced fan site Ikeahackers.net, which features ideas for customising its furniture, to remove all advertising from its website.