IBM has agreed to shell out $100,000 to end the eight-month battle with San Francisco authorities over its 'Peace, Love and Linux' graffiti campaign.

Back in April, Big Blue paid a group of 'graffiti artists' to spray paint the slogan on walls and pavements from San Francisco's Haight Ashbury hippie hangout up to the South of Market business centre.

The stunt was supposed to use biodegradable chalk, but disaster struck, the paint didn't wash off and the images remained.

The guerrilla artists got 30 days community service and Big Blue was charged with "violation of a city ordinance" and slapped with an $18,000 fine.

Since then IBM has been dragged through the legal wringer and the company has agreed to pay the city $100,000 plus the costs of cleaning up the images, currently hitting the $10,000 mark, as well as the city's attorney fees of $9,000.

And while, eight months later, some streets still feature the peace symbol, along with the heart and penguin stencils, the guerrilla ad campaign has cost IBM well over $120,000.