Combs -- known as Puff Daddy, Puffy and P Diddy during his career -- lost his ability to use Diddy in Britain to London-based music producer Richard "Diddy" Dearlove, who's been trading under the name since 1992, The Guardian said Saturday.
As part of the sealed agreement reached earlier this week, Combs will pay about $187,000 in damages and legal costs, as well as rebrand his commercial activities in Britain, the newspaper said. The matter was scheduled to be heard in October.
Dearlove, 40, sued Combs, 36, under a law designed to deal with unfair competition after learning the rapper dropped the "P" from his name and relaunched himself as "Diddy," The Guardian said.
"It doesn't matter how big people become. This is my name. I've been successful, too," Dearlove said in the newspaper. "I'm not a global megastar, but what I do is valid."
Celebrity Families of 2014 [PHOTOS]