Designer Diane von Furstenberg is not only the head of Diane von Furstenberg Studio LP -- she's also president of the CFDA (Council of Fashion Designers of America) and a vocal supporter of the proposed federal Design Piracy Prohibition Act. So, it was a serious shocker when the designer herself was accused of copying a design.

And now, there's another surprising twist -- WWD reports that DVF has settled the case out of court!

Jennifer Halchuk and Richard Lyle of Mercy of Canada accused the designer of copying a floral print jacket of theirs for her Spring 2009 collection. In addition to offering a public apology, von Furstenberg will pay an undisclosed sum of money and stop using the design. Mercy never actually filed a lawsuit.

According to WWD, von Furstenberg said, "While this is an isolated incident for DVF, it is unfortunate that way too many others intentionally build businesses by stealing the work of other designers."

Halchuk also had something to say in the matter: "I greatly appreciate DVF coming forward to resolve this issue in such a forthright manner and for acknowledging our ownership of the jacket design."