Wal-Mart Settles Trademark Fight Over Smiley Face Logo

By Abigail Rubenstein (June 16, 2011, 5:55 PM EDT) -- Wal-Mart Stores Inc. on Thursday agreed to resolve a lawsuit pending in Illinois over the retail giant's opposition to a French designer's bid to trademark a "Happy Face" design similar to its smiley face logo.

Designer Franklin Loufrani, who created the "Happy Face" design in the 1970s, and his licensing company, The Smiley Co. SPRL, launched the suit against Wal-Mart in May 2009 after the Trademark Trial and Appeal Board sustained Wal-Mart's opposition to Loufrani's trademark application.

The parties filed a stipulation Thursday asking an Illinois federal court to drop all pending claims and counterclaims in the suit. The stipulation did...

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