Amazon.com has settled two patent lawsuits with Soverain Software, agreeing to pay the e-commerce company $40 million.

The settlement covers "dismissal of all claims and counterclaims, mutual releases, and a non-exclusive licence to Soverain's patent portfolio". The details came from a filing to the US Securities and Exchange Commission (SEC).

"We are pleased to have reached an agreement with Amazon, and to have them as one of our patent licensees," said Katharine Wolanyk, Soverain president, in a statement. "Soverain's intellectual property is essential to the ongoing development of our software product Transact and the future of our company."

Soverain first filed against Amazon in January 2004 alleging infringement of three patents covering Internet server access control and monitoring systems as well as network sales systems. It sought "injunctive relief, monetary damages in an amount no less than a reasonable royalty, treble damages for alleged willful infringement, prejudgment interest, and attorneys' fees."

The e-commerce company amended its complaint on October 2004 adding infringement of two additional patents in the areas of digital active advertising and open network payment system.

According to Soverain, the trial phase of the first lawsuit was due to begin on Monday.