Bayer HealthCare LLC said Cipla's DA Double Advantage pet treatment violated the trademark rights of its flea preventative, Advantage. Bayer had sought to block future sales of the product in the United States.
Under the settlement, Cipla will surrender all profits it made from the sale of its DA Double Advantage, amounting in excess of $100,000, and discontinue all use of the trademark.
Bayer received an additional $100,000 as reimbursement for attorneys' fees, and Cipla agreed to recall any product remaining in the sales pipeline.
Cipla will also stop use of the trademark 'Advance' for a companion animal product and not make any product with the same formula as Bayer's Advantix, another patented flea preventative, during the remaining term of those patents.
Website operator Archipelago agreed to a consent decree, under which it is prohibited from selling DA Double Advantage and Advantix in the United States, Bayer Health Care said.
Cipla was not immediately available for comment.