LOUISVILLE, Ky. (WDRB) -- Kentucky Mist Moonshine has dropped a federal lawsuit against the University of Kentucky.

A lawyer for the eastern Kentucky distillery says the two sides are trying to work out an agreement over trademarks.

Kentucky Mist Moonshine filed suit because UK threatened legal action to stop the company's registration of its trademark. The trademark category included hats, jackets and shirts, and UK claimed it had ownership over the word "Kentucky" for merchandise.

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