Under the terms of a resolution filed in federal court in New York, Reebok International Ltd. will settle Nike Inc.'s suit against it by repurchasing the Tebow Jets merchandise from retailers, The Wall Street Journal reported.
Reebok also promised not to make any more such unauthorized merchandise, the newspaper said.
Nike Inc. claimed in a suit filed in U.S. District Court last month Reebok took advantage of a lapse in the rights to such apparel by jumping into the market with a Jets jersey bearing the signal-caller's name and number after his March 21 trade from the Denver Broncos to New York.
In the suit, Nike claims Reebok's license to market NFL products lapsed March 1, while its own $1.1 billion deal with the league didn't begin until April 1.
"We're pleased to have reached a mutually agreeable resolution," the two companies said in issued statements.
A federal judge last week extended a restraining order banning Reebok's sale of the Tebow merchandise.
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