Retailer TK Maxx has settled out of court after being sued by The Harris Tweed Authority over alleged breaches of the hand-woven cloth’s trademark.

The authority, based in Scotland’s Outer Hebrides, took action over two styles of jacket which contained some Harris Tweed on each garment, and which were being sold by the retailer in November 2012.

It said the unauthorised use of the Harris Tweed name “risks dilution of it and undermines the integrity of an iconic Scottish brand”.

The cloth is hand-woven by the islanders of Harris, Lewis, Uist and Barra, using pure virgin wool dyed and spun in the Outer Hebrides, and is protected by the Harris Tweed Act 1993.

The authority said recent sales had “never been so buoyant”, with output exceeding 1m metres in 2012 for the first time in 20 years and 250 men and women employed.

“Here in the Outer Hebrides of Scotland we are a long way away from the commercial markets in which Harris Tweed is sold,” said Lord Macaulay, chief executive of The Harris Tweed Authority.

“We do not however let that hinder our efforts to protect our various marks registered throughout the world.

“We use the best legal advisors in the country and will pursue any individual or business who attempts to undermine what is so important and valued, both by the people of the Outer Hebrides and by our customers.”