The Swiss group will also receive up to $40,000 in legal fees  from eToys, company officials said.  

The settlement marks the conclusion of yet another controversy  over domain names as renegade Internet developers create  controversial Web sites offensive to corporations.  

On Jan. 14, Ford Motor Co. decided not to appeal a ruling that  allowed a local Mustang enthusiast to put some of the automaker's  internal documents on the Internet. Ford officials said they were  dropping the case _ after a federal judge refused to block the site  _ because Web site designer Robert Lane had stopped using their  logo.  

In the eToys case, company officials gave no reason for settling  the case.  

"We're pleased with the outcome," eToys spokesman Jonathan  Cutler said Wednesday.  

An attorney for the Swiss group said it will be allowed to  resume use of the etoy.com domain name.  

Toy retailer eToys sued the artists at etoy.com in September,  accusing them of trademark infringement and complaining that  customers were accidentally going to the wrong site and being  exposed to violent images and profanity.  

On Nov. 29, a Los Angeles Superior Court judge issued a  preliminary injunction, ordering the artists to stop using the  domain name www.etoy.com. The judge warned etoy that it would face  fines of up to $10,000 a day if it remained up.