As part of the outcome, the punk band will now be known as Uncharted Shores while One Direction will keep their name. The name change was announced in a joint statement that also noted both groups were happy with the outcome.
Uncharted Shores initially sued One Direction for $1 million in damages and asked for a share of the group's royalties, claiming they had received hate mail and death threats from fans of the former X Factor stars.
Syco, the entertainment company run by Simon Cowell, countersued, suggesting the punk group was trying to make money from One Direction's success and that the boy band was the first to use the name in U.S. interstate commerce.
Earlier this year, One Direction became the first U.K. band to see their first U.S. album debut at No. 1 on the Billboard 200. They're also set to perform at tonight's MTV Video Music Awards.