THE landlady of the highest pub in Britain said yesterday that ''common sense had prevailed'' after fast food chain Kentucky Fried Chicken (KFC) backed down over a trademark row.

KFC last night said it would take no further action against the Tan Hill Inn, near Richmond, North Yorkshire.

Last week, landlady Tracy Daly received a letter from KFC's solicitors telling her to remove the term "family feast" from the pub's website. The pub had used the term to describe its Christmas Day menu.

KFC claimed the pub was breaking trademark law by using the phrase. The fast food company uses it to advertise a fried chicken meal.

But a KFC spokesperson said yesterday: ''KFC has to protect its trademarks against those who seek to trade off its brand.

"KFC has spoken to Ms Daly at the Tan Hill Inn and confirmed that it will not take this case any further.

"This means that Ms Daly can continue to use the phrase 'family feast' on the pub's Christmas menu.

"It's an unusual situation that has been blown out of all proportion."

Ms Daly yesterday called into her nearest KFC - 38 miles away in Darlington Retail Park - to take a look at the competition.

After hearing of the company's decision, she said: "It's a finger lickin' good result for us. I am glad they've seen sense.

"Why should someone steal the English language, which is so commonly used?

"I would understand if we were in the high street with similar businesses, but we are worlds and worlds apart."

Ms Daly said there were no hard feelings and even invited KFC's chief executive to visit her pub.

"He can bring me a KFC and I can give him a traditional Yorkshire dinner," she added.

The Tan Hill Inn is the highest pub in Britain at 1,732ft above sea level.