Skype settles patent suit for $2.3 million

Skype will pay off Mangosoft Intellectual Property, Inc. (OTC:MGOF) to drop a patent infringement suit. Mangosoft holds the assets of a defunct Internet software company. Settlement frees Mangosoft’s lawyers to hunt for other deep pockets. And eBay and Skype to start the new year without this litigation on the books.

Mangosoft CEO Dale Vincent filed this with the SEC:

On December 4, 2008, MangoSoft, Inc. (the “Company”) entered into an agreement to settle its patent litigation (the “Agreement”) with Skype Technologies SA, Skype Software SARL and eBay Inc. (“eBay”) titled Mangosoft Intellectual Property, Inc. v. Skype Technologies, S.A. et al., Civil Action No. 2:06CV-390 TJW, which was pending in the United States District Court for the Eastern District of Texas (the “Litigation”).

Under the terms of the Agreement, eBay and its affiliates and subsidiaries will receive a non-exclusive license to all of the patents or patent applications now owned by the Company, or in which the Company has a controlling interest, for a one time fee in the amount of $2,300,000. The Agreement also provides for general releases and dismisses the existing litigation between the parties.

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