In a lawsuit filed last year (14), the rocker claimed Duluth Trading Co. bosses infringed on his trademark in an email advert for its Henley T-shirts with the line 'Don a Henley and Take It Easy' - a reference to the classic Eagles song, written by Glenn Frey and Jackson Browne.
Henley has now settled with bosses at Duluth Trading Co. and they have issued an apology to the rocker as part of an agreement.
A statement on the company website reads: "We appreciate and respect what Mr. Henley has meant to music and we now see that our use of his name and an Eagles' song title in our advertisement was inappropriate.
"For that we are deeply regretful and we apologize, not just to Mr. Henley, but to anyone else who took offense. We have learned a valuable lesson and thank Mr. Henley for helping us appreciate the importance that he and other artists place in their publicity rights."
Executives at the company have also made an undisclosed donation to the Walden Woods Project, the nonprofit organisation Henley founded in 1990, and agreed to never again "use the words Don and Henley in proximity to one another in any of its advertisements".