DOW JONES NEWSWIRES

Procter & Gamble Co. (PG) reached a settlement in its 17-month suit with Kraft Foods Inc. (KFT) over patents to plastic packaging for Folgers roast and ground coffee, though the details and financial terms weren't provided.

Consumer products giant P&G sued Kraft in federal court in August 2007, alleging new packaging for Kraft's Maxwell House coffee infringed patents on P&G's Folgers containers. The lawsuit alleged Kraft's four-pound plastic container infringed P&G's patent on a package Folgers introduced in 2003.

P&G, which was seeking undisclosed damages, said when the suit was filed that the package helped grow Folgers, as plastic containers are preferred by consumers. The lawsuit also sought to stop Kraft from selling the Maxwell House package.

P&G Chief Legal Officer Steve Jemison said Friday the company "was delighted with the terms of this settlement," adding P&G "will not hesitate to do what it takes to continue to protect our intellectual property."

Separately, Kraft General Counsel Marc Firestone said the company was "pleased to settle this matter with P&G in such an efficient and pragmatic way."

P&G in November completed the sale of its Folgers Coffee business to J.M. Smucker Co. (SJM).

Kraft shares rose 1.9% premarket to $28.60, while P&G edged up 0.6% to $57.80.

-By Shirleen Dorman, Dow Jones Newswires; 201-938-2310; shirleen.dorman@dowjones.com

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