In a statement released today, Seiko Epson Corporation said it had reached an out-of-court settlement with DCI.

As part of the deal Epson said DCI ‘has ceased to manufacture new cartridges which are compatible with Epson printers’.

Epson Europe vice president Robert Clark added: ‘We invest heavily in research and development to ensure that our customers receive the best possible imaging results from our products.

‘As a business we are committed to protecting our investments, assets and our resulting products and technologies, the world over.’

A spokesman for DCI, which is based in Boston, Lincolnshire could not be reached for comment.

On its website, DCI describes itself as ‘Europe’s leading manufacturer of compatible and remanufactured inkjets and toners’.

The agreement was reached ahead of a trial due to begin in the High Court, said Epson.

Other terms of the settlement have not been released.