2005_03_flinebagels.jpgF Line Bagels, the new Smith Street bagel shop (see the nice exterior shot from Curbed) that has raised the ire of the MTA for using various subway memorabilia in the store, say they will propose a settlement to end the issues. The MTA issued a cease-and-desist to the shop, claiming that the shop used its trademarked items improperly and is infringing on the MTA's intellectual property. Okay, Gothamist gets that, but is making stupid decisions and running an agency into the ground also the MTA's intellectual property, 'cause we were just wondering. Anyway, now the brothers who own the joint will apply for a license and hope to pay a nominal fee for using the subway swag. Their lawyer also could not avoid a pun, saying, "We will sit with [the MTA], break bread and hopefully come up with a deal."

Our readers made some really interesting points in our post about the incident yesterday. Clearly, there's a fine line between copyright infringement and public agencies.

Photo from ABC's Eyewitness News