Vonage, Sprint settle patent dispute
Source: voipcentral.org
In a significant development, Vonage has settled down the two years old patent dispute with Sprint Nextel and agreed to pay nearly $80 million. They have now reached out a new agreement under which Vonage would use Sprint patents for its VoIP services.
Off $80 million, $35 million is for the past use of the license, $40 million for a fully-paid future license and $5 million in prepayment for services.
Vonage will now access to Sprint VoIP portfolio that includes more than 100 patents covering different methods, components and systems required for residential VoIP services.
Vonage said,
We are pleased to resolve our dispute with Sprint and enter into a productive future relationship. We believe this deal is good news for Vonage, our customers and our shareholders.
Earlier, Vonage was ordered to pay Sprint $69.5 million in damages for infringing six patents. A jury in the U.S. District Court in Kansas City, issued the order on September 25th, 2007.
The US-based residential VoIP player is yet to resolve its patent dispute with Verizon Communications.























