US olive oil company Corto Olive has reached a settlement with rival firm Gemsa Oils for allegedly infringing on its 51-49 brand and distinctive packaging of its blended olive oil.

In a lawsuit filed last year, Corto Olive alleged that Gemsa Oils used “virtually indistinguishable” packaging for its own product.

Gemsa Oils denied the claims but as part of the settlement, agreed to cease all use of the allegedly infringing packaging, recall unsold inventory in it, destroy it along with all marketing materials and create new packaging designs, which Corto Olive had approved.

Corto Olive had dismissed the lawsuit with prejudice, the company said in a statement on 12 August.

Corto Olive senior managing partner, Tom Cortopassi said: “Corto is committed to protecting its intellectual property and to protecting our customers who count on our products as the standard-bearer for premium olive oils”.

Founder and co-owner of Gemsa Oils, Emilio Viscomi said: “The company has taken steps to differentiate our packaging from that of Corto Olive’s”.

California-based Corto Olive supplies the restaurant industry with olive oils.