The college and Cortez/Franklin & Marshall Clothing of Verona, Italy, signed a licensing agreement in June that allows the clothier to sell its F&M-brand clothing in Europe and the United States.

The college retains the rights to its name and still will market its own clothing, according to spokesman Ray Betzner.

"Franklin & Marshall College is known for its quality liberal arts education, and Franklin & Marshall Clothing is producing a high-quality line of goods," said Thomas Kingston, F&M's vice president for finance and administration, in a prepared statement announcing the agreement on Monday. "It's a great match."

Under the agreement, F&M College will receive an undisclosed percentage of the clothier's gross sales, Betzner said.

The college sued the company in January, claiming its use of F&M's name "is a use of false designation of origin, a false representation, and wrongfully and falsely designates" the clothing as coming from the college.

The suit demanded that the company cease using the name "Franklin & Marshall" or any similar words or trademark; reimburse the college for any damages, including gains and profits from the sale of the clothing, and legal expenses; and destroy all material "bearing the infringing designation."

The college claimed the company's use of the "Franklin & Marshall" name infringed on the trademark owned by the college.

The college first became aware of the Italian clothing in 2001 when country music star Tim McGraw was photographed for an album cover wearing a T-shirt emblazoned with "Franklin Marshall Wrestling."

Disc jockeys at country music radio stations began calling the college and asking when McGraw graduated and whether he was a member of the wrestling team. Widespread use of the photo in magazines and newspapers triggered a batch of communications from alumni wondering just when the country singer had been in Lancaster. McGraw, however, never attended the college and the shirt was made by the Italian company.

"It turns out, being able to find college attire of this quality in Europe is unusual," Betzner said. "When the company's founders, Giuseppe Albarelli and Andrew Pensiero, spotted one of our either current or former students wearing an F&M sweatshirt, they literally bought it off his back, and the rest, as they say, is history."

At least two hearing dates for the case to be heard in Lancaster County Court of Common Pleas were set, but each time postponed as both sides tried to resolve the lawsuit.

"As we proceeded through the discussion and came to know the Italian company, it was clear they were also interested in the best quality in their field," Kingston said. "... We realized this was a great opportunity to work together."

The company, which targets college-age people, mainly makes light jackets, jersey-style shirts and stretch pants. The line includes sweaters, sweatshirts, jackets, T-shirts, shorts, pants, skirts and bathing suits and is available at several Internet stores based in the United Kingdom and also in Pennsylvania.