Diana fund defeated in US appeal

An American court has snubbed a bid by Princess Diana's charity to stop a firm exploiting her name and has said it must pay nearly £2 million in costs.

The federal appeals court sitting in San Francisco decided that the Franklin Mint could use her name and picture on jewellery, plates and dolls because a law prohibiting such sales was not applicable.

The memorial fund was established after Diana was killed in a Paris car crash in 1997. It authorised 20 companies - but not the Franklin Mint - to use the Princess's name and likeness for products in the United States, with profits going to charity.

Franklin Mint argued that in the 16 years before her death, Diana did not object to any items the company produced relating to her.

The memorial fund has yet to comment.