OK! magazine has won the latest round of its marathon court battle against arch rival Hello! over the publication of unofficial wedding pictures of Catherine Zeta-Jones and Michael Douglas.

The House of Lords today ruled in favour of OK!, which won an initial judgment against Hello! for using clandestine pictures of the ceremony in New York in November 2000.

OK! had signed an exclusive £1m contract with the couple and claimed the value of its deal was undermined when Hello! used unofficial images taken by an undercover photographer as a spoiler.

Initally, OK! sued successfully for more than £1m in damages and a similar amount in costs.

However, the court of appeal reversed the original ruling, ordering OK! to pay back damages, costs and interest amounting to nearly £2m.

Today's ruling has been eagerly awaited in the legal and media worlds because the case is seen as crucial to the evolution of privacy law in Britain.

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