Woody Allen reaches settlement deal with American Apparel

American Apparel has agreed to pay a $5 million settlement to Woody Allen in a copyright lawsuit.

Woody Allen has reached an out-of-court settlement with US clothing retailer American Apparel after suing the firm over copyright infringement.

The actor and director accused the company of using his image without consent in a billboard and online advertising campaign.

An image of Mr Allen from his 1977 film Annie Hall was used in the ads, which international lawyers acting on behalf of the 73-year-old claim was a breach of copyright.

"I sued American Apparel because they calculatingly took my name, likeness and image and used them publicly to promote their business," said the actor.

Mr Allen had demanded $10 million (£6.5 million) from the retailer and a jury trial was set to take place in Manhattan this week.

But the two sides have agreed to a settlement of $5 million (£3.2 million), with American Apparel arguing that the actor's public image was not worth the $10 million price tag he had placed on it.

According to reports, lawyers for American Apparel had intended to use Mr Allen's controversial private life as a defence in the trial.

Commenting on the outcome of the lawsuit, the actor said: "I hope this very large settlement will discourage American Apparel and others from doing this type of thing to myself or others in the future."

Earlier this month, the Associated Press reported that Mr Allen had asked a judge to prevent American Apparel from calling his former partner Mia Farrow and her adopted daughter, who is now the actor's wife, to the witness stand.