Vonage Settles Patent Suit with Nortel

In a move to start the New Year with a clean slate, Vonage took a major step toward settling another patent suit against it. Vonage and Nortel Networks said they have agreed to end the litigation amoung them.


Nortel had claimed that Vonage trespassed on Nortel’s patents that covered the use of 411 and emergency calls. The settlement involves cross-licensing three Nortel and three Vonage patents, and does not include any monetary payments. The companies are dismissing claims relating to past damages and other patents not covered by the suit.

“We are pleased to resolve that issue and enter into a productive relationship with Nortel,” said Vonage Chief Legal Officer Sharon O’Leary in a statement.

The settlement is subject to final documentation, but whether it is finalized, it could mark the last of the string of patent suits against Vonage.

Two Vonage Settlements in a Week

Just one week ago, the VoIP provider settled a patent dispute

with telecom giant AT&T. AT&T had sued Vonage in October for using packet-based telephony products based on its intellectual property.

Since the company went public in May 2006, Vonage has been the subject of several patent suits from telecoms and other service providers. Both Sprint Nextel and Verizon targeted Vonage for patent infringement, and both companies won judgments against the young VoIP provider.

Before the AT&T settlement, Sprint Nextel took its turn collecting from Vonage for patent infringement. Specifically, a federal court ordered Vonage to pay Sprint Nextel $69.5 million in damages for six counts of patent infringement. The ruling cost Vonage a third of its market value, although the stock has since seen gains.

Sprint Nextel claimed Vonage infringed on seven of its patents for connecting World Wide Web phone calls. Vonage argued that Sprint’s patents should not have been approved in the first place. However, in September, jurors in a…

Original post by Top Tech News

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