(Photo by Mike Mozart - CC BY 2.0)

A federal judge says the Navajo Nation can seek damages from Free People, LLC, a subsidiary of Urban Outfitters Inc. It’s the latest development in the tribe’s lawsuit against the company for what they say is the illegal use of the word "Navajo" to describe their merchandise.

The lawsuit was filed in 2012. Urban Outfitters claimed the tribe knew or should have known the "Navajo" name had been used in clothing, jewelry and other merchandise for years and delayed legal action.

U.S. District Judge Bruce Black sided against Urban Outfitters and Anthropologie in March. He applied the same decision to Free People this week.

Navajo Nation Attorney General Ethel Branch said the tribe is pleased with the ruling.

"We feel that’s the equitable approach and we’re looking forward to actually getting into the substance in a litigation format," she said.

Officials with Urban Outfitters didn’t comment specifically on the decision. In an email they say the company “takes trademark issues very seriously” and “maintain rigorous oversight” to ensure products meet the highest standards of integrity and originality.

The lawsuit is expected to go to trial later this summer.

Associated Press contributed to this report.