Hormel Foods Corp. has reached a settlement for a lawsuit alleging trademark infringement, according to a Hormel lawyer.

U.S. District Judge David Doty dismissed the suit Tuesday Hormel filed against competitor Zwanenberg Food Group Inc. in March in Minnesota after both sides agreed to dismiss it.

The terms of the settlement were not disclosed.

Hormel sued an Ohio firm, alleging it was producing a canned meat product with a logo that’s “confusingly similar” to Spam’s iconic yellow-on-blue design.

The target of Hormel’s federal lawsuit is “Prem,” a competing luncheon meat made in Cincinnati by Netherlands-based Zwanenberg.

The dispute started in October 2010 when, Hormel alleges, Zwanenberg started shipping Prem in the U.S. in packaging similar to Spam’s. In a letter to Zwanenberg last fall, Hormel called it trademark infringement.

Hormel asked the company to stop shipping those Prem products, recall all deliveries and provide an accounting of all its Prem sales. Hormel also asked Zwanenberg to take any offending “Prem” images off the Internet.

Zwanenberg responded that it disagreed with Hormel’s accusations. Regardless, it agreed to “amend” the Prem design “for the sake of maintaining good relations.”

Hormel and Zwanenberg have had a manufacturing agreement since 2008 that allows Zwanenberg to make luncheon meat on behalf of Hormel. But it agreed not to sell that meat to companies that use packaging that could be confused with Hormel’s, the lawsuit claims.

But a short time later, Hormel discovered Zwanenberg was selling Prem with a “modified yellow-on-blue design” in the Philippines. Prem also is sold in Okinawa, Japan, the lawsuit says.

In another round of letters attached to the lawsuit, Zwanenberg said the modified design on Prem sold overseas differed from the earlier design. “The design of this label was customer-driven,” said Frank Schmitt, Zwanenberg’s general manager, in a letter to Hormel in January.

Hormel notes in the lawsuit that it has produced 7 billion cans of Spam since 1937.