Vonage Settles with Sprint for $80 Million

VoIP operator Vonage has removed one thorn from its site, settling its patent dispute with Sprint for $80 million.

Trouble VoIP operator Vonage has removed one patent-related thorn from its side, announcing today that it has settled its patent infringement dispute with Sprint for some $80 million. The settlement includes $35 million for past use of Sprinttechnology, $40 million for a fully paid license to that technology, and $5 million in prepayment for services.

“We are pleased to resolve our dispute with Sprint and enter into a productive future relationship,” said Vonage general counsel Sharon O’Leary, in a statement. “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.”

Late last month, a Kansas City jury ruled that Vonage was infringing on six Sprint patents; the jury ruled that Vonage would have to pay Sprint $69.5 million in damages, plus a five percent royalty on future revenue. Although more expensive at the outset, the settlement agreement with Sprint oes not include a royalty component on Vonage’s future earnings, and clears one cloud hanging over the future of the company.

However, Vonage is not out of the woods yet: a federal appeals court recently upheld a jury verdict and injunction against Vonage for infringing on two patents owned by telecom operator Verizon.