The undisclosed settlement, confirmed by Warrington County Court late last month, ends a dispute that had run for six months.
It centred on Meerkat's claim that Vimto was planning to use promotional works and ideas based on those it presented last year.
Last December, Meerkat said it was invited by Vimto to participate in a competitive pitch for on-pack marketing activity for Vimto carbonates.
Meerkat had negotiated with Nintendo to develop a joint promotion, the details of which it presented to Vimto at the pitch. However, the agency was told that it had not won the account and that Vimto was using Geoff Howe Marketing Communications, which worked on the company's cordial product.
Meerkat claimed Vimto went on to use its concepts and refused to pay the agency for the work, though it made an offer of £1,000 as a goodwill gesture. Meerkat declined the money and commenced legal proceedings.
Graham Green, Meerkat chairman and partner, said: "Meerkat's experience demonstrates just how easily any agency can fall victim to this type of client behaviour. If Meerkat had not pursued Vimto, we'd have been guilty of letting down our whole industry. I see our victory as an important one of principle."
A Vimto spokesman said: "We can confirm that legal proceedings were commenced by Meerkat and an out-of-court settlement was agreed in June. Accordingly we believe the matter closed."
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