OSAKA -- Suntory Ltd. and the Japanese unit of major German men's apparel maker Hugo Boss AG have reached an out-of-court settlement over a trademark dispute, sources said Monday.

The dispute revolved around a jumper offered by the beverage maker as a sales promotion gift for its Boss canned coffee and the the "Boss" trademark featured on Hugo Boss clothing and bedroom products.

The settlement between Suntory and Hugo Boss K.K. called on Suntory to attach during the current fiscal year a document to the "Boss Jum" jumper stating that its logo is not related to the Boss trademark of the German company. It also requires Suntory to advertise this in newspapers and on TV during sales promotion campaigns from 1998 to 2000.

The dispute dates back to August 1996, when Hugo Boss K.K. filed a petition with the Tokyo District Court demanding that Suntory pay 50 million yen in damages and halt distribution of the jumper. Suntory claimed the jacket uses only the logo of Boss canned coffee and that free gifts, such as the jumper, should not pose problems over trademark infringement.

Suntory has included the jacket in its sales campaign since 1993, and it has turned out to be so successful that copycat jumpers have gone on sale. Both Suntory and Hugo Boss reportedly welcomed the settlement.