The STV has finally decided to settle its two-year old legal dispute with ITV for £18million. STV will pay £7.2m to ITV this year and a further £10.8m will be due to be paid in December. The STV will either hand over ITV programme rights or cash to resolve the dispute. Discussions on the amount and payment methods are going on between the two parties. Both the companies confirmed that all court actions have been dropped.

The Scottish broadcaster, ITV had filed a lawsuit against STV for £38 million, claiming they have violated the network agreements and owed millions in production fees. STV fought back ITV with a legal weapon and claimed unpaid sponsorship and advertising cash.

After the settlement the top shows of STV will be back on air in Scotland. Major peak time shows of the channel including; Downton Abbey, Marple and Midsomer Murders have been discontinued since July 2009.

The shares of STV were up by 18% after ITV agreed to pay the amount to dissolve the legal matter. Analysts believe that the impact of settlement will be seen in the marker for a long period.