British boy band One Direction are allowed to keep their name following a legal dispute with an American group of the same moniker.

The 'One Thing' hitmakers - made up of Harry Styles, Niall Horan, Liam Payne, Zayn Malik and Louis Tomlinson - had been sued by the California-based punk group earlier this year, who claimed they had they had the name first.

However, Simon Cowell head of the group's Syco record label - countersued the American group, accusing them of trying to "cash in" on the success of the 'What Makes You Beautiful' singers.

But now the two groups have reached an agreement that allows them both to continue using the name, a deal everyone is pleased with.

The US One Direction had claimed to have been using the name since 2009 and applied to trademark the name long before the British band, who were put together by Simon on the UK edition of 'The X Factor' in 2010.

Since forming on the reality TV show, the British One Direction have become worldwide superstars and their debut album, 'Up All Night' was the first by a UK act to debut at number one on the US Billboard 200 all-genre albums chart.

Their second album, 'Take Me Home', will be released in November.