UPDATE 2-Aruba to pay Motorola $19.8 mln to end patent dispute

* Settlement involves cross-licensing agreement

* Motorola exploring business opportunities with Aruba

* Aruba shares up 4 pct (Recasts; Adds analyst comments, updates share movement)

By Shrutika Verma

BANGALORE, Nov 6 (Reuters) - Wireless LAN vendor Aruba Networks Inc (ARUN.O) said it will pay Motorola Inc (MOT.N) $19.8 million to settle certain long-drawn patent disputes that were a drag on Aruba's earnings.

Shares of Aruba rose as much as 4 percent to $8.78 on the news.

The two-year-long disputes involved patents owned by both the parties and the out-of-court settlement includes a cross-licensing agreement, the companies said in a joint statement.

Aruba will account for the settlement payment as a one-time expense for the fiscal first quarter ended Oct. 31, the company said in a filing.

"Part of that is positive as it is a one-time charge for Aruba," Brigantine Advisors analyst Joanna Makris said.