Vonage and Sprint Settle Patent Dispute
Monday October 8, 9:25 am ET
HOLMDEL, N.J., Oct. 8 /PRNewswire-FirstCall/ -- Vonage today announced that it has settled its pending patent dispute with Sprint Communications LP and entered into a licensing arrangement under Sprint's Voice over Packet ("VOP") patent portfolio. The parties have entered into an agreement to resolve this patent dispute as well as entered into a business relationship. In addition, Sprint has agreed to license Vonage its VOP portfolio.
The agreement is valued at $80 million, including $35 million for past use of license, $40 million for a fully paid future license, and $5 million in prepayment for services. On September 25, 2007, a Kansas jury handed down a verdict finding that Vonage had infringed six Sprint patents.
"We are pleased to resolve our dispute with Sprint and enter into a productive future relationship," said Sharon O'Leary, General Counsel for Vonage. "We believe this deal is good news for Vonage, our customers and our shareholders. It allows us to put this litigation behind us and continue to focus on our core business by removing the uncertainty of legal reviews and long term court action."
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