Children's wear maker Narumiya International has agreed to compensate designer Takashi Murakami for copying his designs, Mainichi reported.

Narumiya will pay Murakami an unspecified amount, believed to be millions of yen, and will apologise for infringing the designer's copyright.

The deal was settled in Tokyo District Court, the report said. The court decreed that four Narumiya characters bore a close resemblance to Murakami's Mickey Mouse-like character.

Murakami was quoted as saying: "I signed the settlement because Narumiya pledged to respect intellectual property rights and create a system to make sure that it will comply with relevant laws."

A lawyer for Narumiya said: "It's been shown that our current characters don't necessarily infringe the plaintiff's copyright, so we decided to settle the suit from the standpoint of our sales activities."