The runway beauty launched a collection of designs for Mouawad five years ago and the range was a success, selling out within moments of going on sale on TV shopping channels like QVC.
But Klum reveals a lack of business experience, coupled with a lawsuit by Van Cleef & Arpels over one particular design, put an end to her jewellery dreams once and for all.
She tells the Los Angeles Times, "I don't do the jewellery anymore, which I loved doing.
"Unfortunately, I did have a partner who... maybe wasn't as knowledgeable in terms of setting up a business. I worked five years very hard on that. But we stopped because we had a lawsuit with Van Cleef & Arpels - they wanted to have the clover, even though our designs had never matched, I don't know how may designs I had done in five years, maybe 800 different designs - but they just wanted to own the clover motif.
"So they went after everyone who does that (and) they said, 'We own the clover.' I think when you're a small company, which we are, we're not a Van Cleef - they have a thousand lawyers. I'm a small fry next to that. That’s a sad lesson to learn.
"That’s how life is. You have to set yourself up from the very beginning properly.".