BRUSSELS (Reuters) - Belgian biotech company Innogenetics (INNX.BR: Quote, Profile, Research) said on Monday it had reached a $9.5 million settlement with Abbott Laboratories (ABT.N: Quote, Profile, Research), ending a protracted patent dispute.

Innogenetics sued Abbott in 2005, claiming infringement of its patented hepatitis C genotyping technology. In January, a U.S. appeals court upheld an earlier ruling that Abbott had infringed an Innogenetics patent but dismissed the Belgian company's claim for higher damages than the $7 million awarded.

Innogenetics said the agreement gave Abbott a non-exclusive worldwide licence to sell certain hepatitis C virus genotyping products. Innogenetics will receive royalties for each hepatitis C test sold by Abbott during the patent term.

"We are pleased to have definitively resolved the ongoing patent litigation. This deal provides a significant licensing fee and strengthens our growth in infectious diseases," Innogenetics chief executive Christiaan De Wilde said in a statement.

(Reporting by Mark John)