A lawsuit brought by

priceline.com

(PCLN)

against software giant

Microsoft

(MSFT) - Get Report

and its online travel and airline ticket unit,

Expedia

(EXPE) - Get Report

, has been settled, according to published reports.

Reuters

reported after the bell that Exepedia will pay a royalty fee to priceline.com for its "name your own price" service. Other details of the arrangement are confidential, the companies reportedly said.

Shares of the "name your own price" Web site surged 56 cents, or 36%, to $1.81 at Tuesday's close, and was lately up 32 cents to $2.13 in after-hours

Island

trading.