Vaune Dillmann brews his beer in the town of Weed, California, near Mount Shasta.
He prints his bottle caps with the slogan "Try Legal Weed."
Dillmann threatened a legal battle, after federal regulators ordered him to stop using the Legal Weed caps.
Now, Dillmann says the feds have dropped their objection.
He showed the AP a copy of a registered letter from the Alcohol and Tobacco Tax and Trade Bureau saying he can continue using the bottle caps.
The feds originally said the slogan referred to illegal drugs.
