Tuesday was a banner day for Vnus since its shares jumped dramatically on the news that their patent dispute with two rival companies had been settled, resulting in payments to Vnus totalling $9.9 million dollars.

The two companies named in the dispute, AngioDynamics Inc. and Vascular Solutions Inc., agreed they will pay Vnus, respectively, $6.8 million and $3.1 million. In return, the two companies were granted a license to use Vnus products in the treatment of varicose veins.

For both health and cosmetic reasons, the treatment of varicose veins is growing year after year with no signs of slowing down; so the potential for continued damages to Vnus was high.

The dispute originally encompassed a larger scope of companies including AngioDynamics, Vascular Solutions and Diomed when it was originally filed in 2005 and the trial was scheduled to begin June 23, 2008. However, Diomed filed for Chapter 11 bankruptcy protection in March, resulting in a stay of the patent litigation against it. However, Vnus said it plans to file suit against Diomed’s estate to retrieve damages.

The shares of Vnus rose from $1.92 to $19.44 in Tuesday afternoon’s trading, reflecting the positivity of the outcome of this technology patent dispute.