Retail giant Target has settled a court case with a Melbourne artist who sued over a wall canvas which he claimed copied his work.

Jon Campbell is happy with the settlement, with his lawyer describing it as "a good outcome".

Final terms cannot be divulged due to the confidentiality of Federal Court mediation, but Campbell sued for $200,000 in royalties.

He claimed Target ripped off one of his "YEAH" series for a $14 wall hanging, sold online and in store as part of an "Affordable Art" homewares collection.

Campbell's original work, left, and the print sold at Target, right.

Responding at the conclusion of the case, Campbell said: "I'm very happy to have finally settled this matter and would take action again in the future if I have to."

Campbell, also a lecturer at the Victorian College of the Arts, attended court in person in February to make a stand.

He received 12 phone calls, emails and text messages alerting him to the chance he'd been copied.

He claimed distinctive parts of his work were lifted by the Target designer, such as the four panel design, the use of block letters and the use of negative space. Also part of his claim was compensation for damage the imitation would do to the marketability of his work among art connoisseurs.

Target was also accused of relying on the cost of litigation to discourage the artist from enforcing his legal rights.

Campbell's counsel sought details of amounts paid previously by Target for notable brand ambassadors or celebrity licence fee arrangements, in order to calculate what was owed.

His work, which centres on Australian slang set out in graphic type, sells for between $4,000 and $50,000.

Damages were also sought for the flagrancy of the infringement and the need for deterrence.

The case was due to do before a judge for hearing in September, but a day of mediation by a registrar of the Federal Court prevented that.

"It's really important that artists feel able to protect their work, even in a David and Goliath type of situation," said Campbell's lawyer, Georgina O'Farrell.

"Intellectual property laws are there to protect individual artists, just as much as they are there to protect the IP assets of large corporations. It's not as common for individuals to enforce their rights as there's a perception it's a difficult, involved process. This case was about access to justice."

Ms O'Farrell says the use of intellectual property without permission, whether accidental or on purpose, was a growing trend around the world.

Campbell's work was displayed on two websites, making it possible for a Target designer to access and lift the look.

Target said in February the canvas was the original work of a Target designer, adding it takes copyright issues very seriously.

A spokesperson for Wesfarmers, which owns the retailer, said: "Target denies the allegations, but in good faith has withdrawn the "Yeah Print Canvas" from sale. The parties are pleased to announce that they have settled the proceedings on mutually agreed terms."

Campbell added: "I was shocked when I saw the similarity and decided to take action. It's important for artists to stand up for their rights and hopefully my actions will encourage other artists to do the same."