PepsiCo, Electrolit Maker Settle Trademark Suit Over Gatorlyte

PepsiCo Inc. may sell and advertise its new Gatorlyte drink, a federal judge in Texas ruled, after it struck a confidential deal to settle and dismiss trademark infringement claims brought by Laboratorios Pisa SA, a Mexican company that makes Electrolit rehydration beverages.

Judge Micaela Alvarez dismissed the lawsuit and dissolved an emergency injunction that had prevented Pepsi from launching Gatorlyte.

PepsiCo had appealed the injunction to the U.S. Court of Appeals for the Fifth Circuit, which swiftly directed the district court to lift the injunction.

Pisa, which sold Electrolit for decades in Mexico before bringing it to the U.S. in ...