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Marks & Spencer and Aldi have reached a settlement in a copyright row over caterpillar cakes. Intellectual property cases are ideally suited to mediation.

M&S had accused Aldi of copying its Colin the Caterpillar cake.

The supermarkets confirmed they had reached a settlement, but declined to give details.

It is not clear if they mediated or managed to resolve the claim between lawyers.

M&S said it was “pleased” with the outcome, and Aldi said its Cuthbert the Caterpillar cake was “free” and “looking forward” to seeing his fans.

M&S and Aldi are also involved in a separate copyright dispute over allegations the discounter copied an M&S “light-up” gin liqueur product.

We recommend mediation in intellectual property cases.