DaimlerChrysler sued, charging that the seven-slotted grille was a Jeep trademark and that the grille on the Hummer H2 produced by AM General for GM was too similar to its design.
A federal court judge in South Bend, Ind., rejected DaimlerChrysler's argument.
"We're disappointed, but the court's decision basically ended the case, and the fight is over," said Chrysler Group spokeswoman Ann Smith.
"We're really glad this is behind us and we can move ahead with growing the Hummer brand," said Hummer General Manager Mike DiGiovanni.
Chrysler will continue to use the seven-slotted grille on its Jeep products, Smith said.