Callaway, Spalding Settle Trademark Suit

Callaway Golf Co. and Spalding Sports Worldwide Inc. said Wednesday that they have settled a trademark lawsuit the Carlsbad golf club maker filed against Spalding last year in federal court in Santa Ana.

Financial terms were not disclosed, but Spalding said it has agreed to phase out a line of golf balls that it had advertised as being specially made to perform well with Callaway clubs. Callaway Golf had alleged that Spalding Sports misused its trademarks and misled customers into believing that Spalding Sports’ golf balls were endorsed by Callaway.

Spalding Sports did not admit any wrongdoing, but said it would do away with the disputed advertising and promotional materials.