It's an interesting story. Spain's Star made a small aluminum framed .380 called the DK, Colt decided to manufacture a steel framed version using proxies here, FIE I think. They were going to call it the "Pony". This was a totally different gun than the later DAO Pony. Anyway, they made about 50 of them and decided (After some quality control problems with FIE) that they would literally scrap the project, almost all of the 50 originals were scrapped. Meanwhile FIE had quite a few components made, so (Somehow) Iver Johnson acquired the selling rights. I'm not sure when FI (Firearms International) got involved, but they also sold some them.
After all of that, much later I believe, Colt took a lot of the DK's ideas and incorporated them into a new gun, the Colt Government model .380, the Mustang and Mustang plus II. I'm not sure what the order of those offerings was.
So really Iver Johnston didn't copy the Colt, Colt copied the Star.
I welcome any corrections to the history I just outlined. But it wasn't the first time Colt worked with Spanish gun steel, they also sold rebranded Astra cubs as the Colt Junior. I'm sure there is a lot more to the story.