Mumbai: Hindustan Unilever, India''s largest fast-moving consumer goods (FMCG) company, has reached an out of court settlement with arch rival Nirma over the latter using a trademark similar to the starburst in the packaging of HUL''s power brand, Surf.

Nirma had said it will not use a packaging device — known as a starburst — similar to HUL''s Surf, sources close to the development said.

In 1991 HUL, then Hindustan Lever, filed a case against Nirma for infringement and "passing off" of the registered trademark and copyright of Surf on its own detergent brand.

Sources said that the close resemblance to Surf''s packaging caused many consumers, especially rural and illiterate customers, to confuse the two brands and as Nirma products are cheaper than HUL''s fast-selling detergent Surf, the similarity in trademarks caused Nirma to eat into Surf''s sales.

The Bombay High Court had granted an injunction restraining Nirma from using the Super Nirma label with the "star device / flash of star" in 1991. Subsequently, this order was stayed because both parties filed appeals.

In 2006, both parties withdrew their appeals mainly on the basis of Nirma informing the court that it was not using the impugned label / carton.

Since then, Nirma has used a sea wave logo on its Super Nirma detergent powder packets and a girl with a blue circle in the background on its packets.

When the case came up for hearing this month, the court allowed HUL to withdraw the suit with leave to file a fresh one if Nirma uses the impugned label in future for its goods.