Footwear firm Skechers USA has scored what it claims is a "major legal victory" in a five-year legal dispute over Cobra International's patent relating to lighted shoes.

In a lawsuit that began in 2007, Cobra alleged the circuit used in Skechers' lighted footwear infringed its patent on sequential lighting, including the lights used in popular children's shoes.

But following a re-examination, Cobra agreed to dismiss its lawsuit against Skechers. Under the royalty-free deal, Skechers can continue using its lighted footwear technology without modification and without any payment or obligations to Cobra.

"We believe this settlement is a total victory for Skechers," the company's general counsel Philip Paccione said.

"Our message is clear: if someone asserts an overbroad and questionable patent against Skechers, they will not only lose their case but possibly their patent as well."