Velvet Underground settled a lawsuit with the Andy Warhol Foundation for the Visual Arts over the use of a banana design that appeared on the band's album cover, Bloomberg News reports.
Velvet Underground sued the foundation last year when reports surfaced that the foundation planned to license the image to Apple for use on iPhone and iPad accessories.
The terms of the settlement, which came Wednesday in a New York federal court, were not disclosed.
In the lawsuit, the Velvet Underground claimed it held the trademark to the image and sought damages and an injunction to prevent the foundation from licensing the artwork, according to Reuters.
The foundation, which for decades has licensed the late artist's work, claimed it held the copyright to the design Warhol created for the band's album cover.
Founded by John Cale and Lou Reed, the avante-garde group started collaborating with Warhol in the 1960s. The banana image appeared on the Velvet Underground's best-known album, 1967's "The Velvet Underground & Nico."