After an appeals court affirmed that Verizon violated ActiveVideo Networks’ patents, the two companies have negotiated a cross-licensing agreement to seal the result of the lawsuit.

“After the Federal Circuit’s decision affirming the validity of our patents and the jury verdict against Verizon, we are happy to announce that ActiveVideo has settled the dispute with Verizon,” said Jeff Miller, president and CEO of ActiveVideo. “While the terms of the agreement are confidential, we can confirm that the parties agreed to cross-license their patents, agreed not to sue each other for a period of years, and Verizon agreed to pay the $260 million previously ordered by the district court and an additional unspecified amount of money. In the end, our technology and its value have been recognized.”

ActiveVideo charged that Verizon’s FiOS VOD service infringed on four of its patents. Lower courts agreed, leading to a judgment that Verizon pay damages totaling about $260 million.

The United States Court of Appeals for the Federal Circuit affirmed lower court decisions that Verizon violated three of four ActiveVideo patents. The Court of Appeals reversed the lower courts’ decisions that there was infringement on the fourth patent but noted that even Verizon considered the violation of that patent a non-determinative issue.