AT&T, Vonage Settle Patent Dispute

The latest in a series of legal attacks on Vonage has been settled, but not without a sizable chunk of money changing hands.

It would appear that AT&T’s most recent feud with Vonage over voice-over-IP technologies may be settled only two months after it began in October. The two companies released a statement on Friday declaring that the issue was settled on Nov. 7.

The suit concerned Vonage’s use of packet-based telephony systems, which allegedly infringed on AT&T’s existing patents on the technology. Financial details of the settlement weren’t disclosed, but Vonage’s third-quarter earnings release points to a figure of $39 million.

Vonage’s legal team has been busy bailing the company out of hot water since it went public in 2006. In the past, it has had to settle disputes with Verizon and Sprint Nextel, and is still facing yet another lawsuit from Nortel.