Vivid released the video last month on DVD and through download-to-DVD on AllAdultChannel.com, as well as an online stream at KimKSuperstar.com.
Vivid would not disclose terms of the deal; however, Us Weekly said that Vivid settled with Kardashian for close to $5 million.
Sources told Us that Vivid has agreed to cease distribution of the video by the end of May.
"Kim Kardashian Superstar" is a sex video Kardashian made three years ago with then-boyfriend and recording artist William Ray Norwood Jr., also known as Ray J.
Kardashian, daughter of O.J. Simpson lawyer Robert Kardashian and a close friend of Paris Hilton, claimed she had not authorized release of the video.
Vivid claims it paid an unidentified third party $1 million for the tape.
"We are pleased that Kim has dropped her legal action against us," said Steven Hirsch, co-chairman of Vivid Entertainment. "We met with her several times and finally reached a financial arrangement that we both feel is fair."
"We’ve always known we had the legal right to distribute this video which became an instant best-seller, and we’ve always want to work something out with Kim so she could share in the profits," he said.
