The law firm of Christensen, Glaser, Fink, Jacobs, Weil & Shapiro announced Friday that the entertainer's widow, Joan, and his daughter, Melanie Roy-Friedman, had settled the dispute.
"All copyrights to Rodney Dangerfield's act are held by Joan Dangerfield who owns all of her late husband's intellectual property," Patricia Glaser, Joan Dangerfield's attorney, said in a statement.
"Joan is very committed to furthering my father's legacy. He said that he loved her deeply and thought that she was the nicest person in the world," added Roy-Friedman.
Joan Dangerfield filed a lawsuit in federal court in Los Angeles two years ago, accusing Roy-Friedman of videotaping the comedian's one-hour Vegas act for personal profit.
Roy-Friedman is Rodney Dangerfield's daughter from a previous relationship.
Rodney Dangerfield died at 82 in October 2004, after suffering a stroke and other complications following heart-valve replacement in August 2004.