Judge Judy's beef with the ex-wife of her producer has settled ... and Judy won't have to pay a penny ... TMZ has learned.

We broke the story ... Patric Jones sued Judy, complaining the judge and her ex conspired to screw her out of uber-expensive china and flatware with an estimated replacement value of more than $500,000. The divorce judge said the stuff Judy has is worth around $125,000.

Judge bought the dishes from producer Randy Douthit for the bargain basement price of $50,000.

Patric's lawyer, Perry Wander, tells TMZ ... the case is over. Patric will pay Randy $12,500 and she gets the dishes and stuff.

Stick a fork in it ... it's done.