DYSON, which has just ended production of its vacuum cleaners at its Malmesbury factory, has accepted a £4 million offer for damages from rival Hoover.

The settlement follows a long-running legal dispute over copyright on its bagless vacuum cleaner technology.

A High Court ruling in October 2000 declared that Hoover's Triple Vortex cleaner infringed the patent belonging to Dyson for its Dual Cyclone vacuum.

Dyson said it believed the settlement was bigger than any previous court award in British patent case history.

The company said it offered Hoover the opportunity to settle the claim for just over £1 million before the case went to the High Court.

Hoover subsequently lost when the case later went to the Court of Appeal in October last year, and had a petition for a further right to appeal to the House of Lords rejected.

James Dyson, who has made a personal fortune out of his bagless cleaner technology, said: "Having developed new technology, it is important for Dyson to protect patented inventions and defend all patents."

Meanwhile, last Friday saw the last 120 of 590 staff leave the plant as the company shifted production of its award-winning vacuum cleaners to Malaysia.