Sealegs alleged that Orion Marine and the other defendants infringed its copyright interests as the creator of original artistic works as expressed in three specified models of its craft, each of which are equipped with its amphibious retractable leg system.
The decision released today said the appeal had been allowed and that the High Court orders had been set aside.
In a statement, Smuggler Marine and Orion thanked boaties across the country for their support.
The directors of Smuggler Marine, David and Paulin Pringle, along with Orion manager Darren Leybourne, acknowledged the support of the NZ Marine Industry.
"The court's decision has supported our view that Orion's amphibious technology is different to anything else currently available, and this is what the case was all about," they said in a statement.
"With this now settled, we will be contacting the long list of people both in New Zealand and overseas who have been waiting for up to three years to put in their order for an amphibious Smuggler boat with an Orion system, and we will return to building amphibious boats immediately," they said.
NZX-listed Future Mobility Solutions (FMS), which owns Sealegs, said it was seeking leave to appeal to the Supreme Court.
FMS said it would make another announcement after taking legal advice.
The company's shares last traded on the NZX at 7.5c, having lost 5c or 40 per cent of their value over the last 12 months.