Jedi Mind, the maker of the Jedi Mouse, has agreed to change its name after Lucas's company Lucasfilm launched a $5m lawsuit against it. Lucasfilm had previously written to Jedi Mind asking it to cease and desist with the use of the term.
A spokesperson for Lucasfilm said: "The matter between Lucasfilm and Jedi Mind inc has been settled."
Jedi Mind said it was not able to comment at this time.
Although the term Jedi Mind has not been trademarked by Lucasfilm, the phrase "Jedi mind trick" is commonly used to describe a scene in the first 'Star Wars' film where the character Obi Wan Kenobi takes control of a Stormtrooper's mind to persuade him to let him past a check point.
Jedi Mind makes software that runs using a headset, allowing a user to interact with their computer using thoughts. It works by detecting conscious and non-conscious brainwaves.
Products it has made so far are: Master Mind, which can be used for gaming; Jedi Mouse, which allows users to navigate and click on the computer desktop; and Think Tac Toe, based on the game.
It hopes to develop applications that will allow people with limited or no motor skills to use technology.
In 2008, Lucasfilm won a case, heard in London, against Shepperton Design Studios over the sale of replica Stormtrooper costumes. The judge ruled that Lucasfilm was the sole owner of all rights to the costume designs.