Aug 21 (Reuters) - Vans has agreed to settle its lawsuit

against art collective MSCHF over its distorted parody versions

of Vans' shoes, according to a filing in New York federal court.

The parties told the court on Tuesday that MSCHF will

permanently stop selling its "Wavy Baby" shoes and using Vans'

trademarks based on the terms of a confidential settlement

agreement.

Vans' parent company VF Corp ( VFC ) declined to comment.

Attorneys and spokespeople for MSCHF did not immediately respond

to requests for comment and more information on the settlement.

MSCHF is a Brooklyn-based conceptual art group that

specializes in satirizing consumer culture. It was separately

sued by Nike ( NKE ) in 2021 over its collaboration with rapper Lil Nas

X on "Satan Shoes" - customized Nike Air Max 97 sneakers that

purportedly contained a drop of human blood - in a case that

later settled.

Vans sued MSCHF in April 2022 over its "Wavy Baby" shoes,

which alter Vans' classic Old Skool shoe design with an

exaggerated "wavy" structure. MSCHF sold all 4,306 pairs of the

shoes within an hour of releasing them, four days after Vans

filed its lawsuit.

U.S. District Judge William Kuntz later that month

preliminarily blocked MSCHF from advertising or fulfilling

orders for the shoes, and said Vans was likely to prove that

they would cause confusion with the company's

trademark-protected design.

MSCHF challenged the decision at the 2nd U.S. Circuit Court

of Appeals. Its attorney David Bernstein of Debevoise & Plimpton

told the court that its cartoonish shoes are not intended "to be

worn at all, other than as a statement" on consumerism and

sneaker culture.

The 2nd Circuit upheld Kuntz's decision last year, agreeing

that MSCHF's shoes were likely to confuse consumers and

rejecting the collective's argument that it was entitled to

enhanced constitutional protections that can apply to works of

art in trademark cases.

The case is Vans Inc v. MSCHF Product Studio Inc, U.S.

District Court for the Eastern District of New York, No.

1:22-cv-02156.

For Vans: Lucy Wheatley, Philip Goldstein and Matthew

Cornelia of McGuireWoods

For MSCHF: David Bernstein and Megan Bannigan of Debevoise &

Plimpton, William Patterson of Swanson Martin & Bell

Read more:

Vans wins appeal in bid to ban art collective's 'Wavy Baby'

shoes

Nike ( NKE ) ends lawsuit over Lil Nas X 'Satan Shoes,' which will

be recalled

(Reporting by Blake Brittain in Washington)