Katie Jane Taylor (nee Perry) has sold and designed her own line of clothing under her Katie Perry label since 2007 after being inspired by a trip to Italy.
While singer Katheryn Hudson, more popularly known as Katy Perry, initially fought the Australian registration of the Katie Perry brand, she later withdrew this opposition and the mark was registered.
Ms Taylor sued Ms Hudson for infringement in the Federal Court in October 2019, over 10 years after the Ur So Gay singer started selling her own brand of merchandise including clothing under her own name.
"This is a tale of two women, two teenage dreams and one name," Justice Brigitte Markovic wrote in a judgment published on Thursday.
The judge found Ms Hudson had infringed the mark on Twitter ahead of the 2014 Prism tour in Australia.
However, the judge found the singer did not owe any compensation to the designer because she had used the Katy Perry mark in "good faith".
Only her firm Kitty Purry is now liable for damages because of the sale of clothing during the tour, at pop-up stores and on the Bravado website.
Justice Markovic rejected further claims the mark was infringed through clothing sold at Target and Myer and websites such as Amazon and Ebay during the Prism tour or ahead of the Witness Tour which came to Australia in 2018.
A bid by the pop star and her companies to cancel the Katie Perry mark was also dismissed by the Federal Court.
Justice Markovic will determine the amount of damages owed by Kitty Purry at a later date.
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