In a move to begin 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 between them.
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.
The settlement is subject to final documentation, but if it is finalized, it could mark the last of the string of patent suits against Vonage.
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.
Vonage’s Legal Difficulties
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 Internet phone calls. Vonage argued that Sprint’s patents should not have been approved in the first place. However, in September, jurors in a Kansas City court decided Vonage deliberately violated Sprint’s intellectual property.
U.S. District Judge John Lungstrum had the option to triple the damages because of the finding of willful infringement. In the final ruling, a federal court ordered the company to pay $69.5 million in damages, plus…