Voice Over Patent

Albuquerque, NM: (Oct-08-07) Sprint Communications Co. brought charges against Vonage America Inc., alleging that Vonage infringed on its patents. The suit stemmed from Sprint's complaints in 2005 that Vonage had infringed on several of Sprint's patents. As part of a settlement reached, Vonage America and Sprint Communications agreed to resolve the dispute with an $80 million payout from Vonage. Officials stated that through the settlement, Vonage will be licensed to use Sprint's voice-over-packet patent portfolio, which includes more than 100 patents to connect calls between a telephone and other packets such as the Internet. As per the terms of the agreement, Vonage will pay Sprint $35 million for using the portfolio in the past, $40 million to use the portfolio in the future and an additional $5 million in prepayment for services. The agreement also nullified an earlier $69.5 million verdict issued on Sept. 25 in federal court against Vonage. [ALBUQUERQUE BUSINESS JOURNAL: VOICE OVER PATENT]

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Published on Oct-9-07