German social network for students StudiVZ has announced on is blog that it has reached an agreement with Facebook to settle their legal dispute. As a result, both parties have agreed to drop their legal cases in the US and Germany. Under the terms of the agreement, both parties will continue to operate their networks without changes, with StudiVZ agreeing to pay undisclosed damages to Facebook. The dispute centred around claims of plagiarism by Facebook, which claimed that StudiVZ had copied its basic design using Facebook's source code.