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Vonage settles VoIP patent fight with Sprint [U]

updated 10:50 am EDT, Mon October 8, 2007

Vonage Settles Sprint Suit

(Updated with final terms) Vonage and Sprint together announced on Monday that they had settled their ongoing patent dispute for $80 million, including $35 million for infringement allegations, $40 million for future licenses, and $5 million for unknown services. The deal tentatively allows Vonage to avoid paying the $69.5 million it would have owed Sprint for patent costs alone after the latter successfully argued that Vonage's VoIP calling service infringed on more than 100 patents relating to switching between IP and analog phone networks. In return, Vonage will license the relevant Sprint patents and so escapes any future legal confrontations between the two companies.

The move represents a continued turnaround for Vonage's fortunes since it was first threatened with patent suits several months before. Verizon also sued Vonage over alleged patent conflicts and successfully won royalties plus $58 million in damages in the spring, but had its verdict partially overturned and its damages voided after a court found that the previous trial had overlooked important details when making its verdict.



By Electronista Staff
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  1. BobBob

    Fresh-Faced Recruit

    Joined: Oct 2007

    0

    VoIP Down for the Count?

    One might think that VoIP for consumers is down for the count – with the Sunrocket meltdown and now this legal mess with Vonage leaves one pining for a provider who has been around and won’t get knocked out the box. I asked my IT geek friend what they liked and they told me about Net2Phone. Unlike almost all the other guys – this company has been at this for about 10 years and they are well funded (big IDT owns them). He also said that now because of all the uncertainty – they are running a special try/ buy offer. Try them for 3 months free and then it is just $19.95/ month – plus you get to keep your phone number. It’s better than paying the big telco’s lots of $$$ every month.

    Also—I have a lot of family overseas and have been blown away by the options for international calling – not only really cheap international rates – but you can get a local phone number in a huge number of countries. Most of my family is based in Brazil – they dial a local call to my Brazil number from Net2Phone and it gets to me here.

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