The InterContinental Brands (ICB) drink will be able keep the name Vodkat provided it makes it clear the product is not vodka, although the judge said it had "a small mountain to climb" to find a way in which it could do this.
ICB director Paul Burton said the brand would now change its labelling and advertising to highlight that 22% abv Vodkat is not a vodka, which must legally contain 37.5% abv.
"ICB will be asking the trade and all its customers to position Vodkat away from vodka and alongside products such as liqueurs, other schnapps and light spirit products," said Burton. "This process has already started."
He added that "the fine-tuning" would not affect availability.
John Mills, MD at ICB, claimed that it was uncommon for Vodkat to be located with the vodkas.
"There are very few retailers who site Vodkat in the spirits fixture, and whenever we see it we always advise them to move to liqueurs, light spirits or speciality drinks depending on how they lay their shelves out. So no real change there," said Mills.
Smirnoff-owner Diageo described the case as a victory for the entire vodka category.
"Provided consumers are not being deceived and the vodka category is not being harmed, then we are satisfied," said a spokeswoman.