Struggling VoIP operator Vonage has cleared a major hurdle in its efforts to stay in business, announcing that the two companies hav agreed to settle their long-running patent dispute. Although the exact amount Vonage will pay to Verizon under the settlement agreement depends on a pending appeals court ruling, the settlement effectively caps the amount Vonage will pay to Verizon at $120 million. Of that amount, $88 million in already held in escrow.
Tag Archive: Sharon O’Leary
Vonage Settles 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.”
Verizon Ruling Gives Vonage a Double Whammy
The legal eagles at VoIP operator Vonage may frantically be trying to push the “reset” button on this week. First, a jury in Kansas City finds the company is violating patents owned by Sprint and must may the company $69.5 million plus 5 percent of future revenues. Next, a federal appeals court upheld a jury verdict and injunction against Vonage for infringing on two patents owned by telecom operator Verizon.
Jury Rules Vonage Violated Sprint Patents
In another court defeat for VoIP provider Vonage, a federal jury has found Vonage in violation of six patents held by Sprint Nextel, and ordered the company to pay $69.5 million in damages, along with a five percent royalty rate on Vonage’s future revenue.
Sprint sued Vonage for patent violations in 2005, originally claiming 61 violations of seven telecommunications patents. The decision comes in the wake of a damaging patent battle between Vonage and Verizon last March, in which Vonage was ordered to pay $58 million and cease infringing on Verizon’s technology. The proceedings in that case have repeatedly threatened to shut down Vonage’s operations as the company struggled to have the injunction postponed during its appeal process, and attempted to implement workarounds to Verizon’s patents. Vonage was able to retain the ability to sign up new customers and continue operations while its case with Verizon moves forward.
Vonage Wins Reprieve
VoIP provider Vonage has won a permanent stay against an injunction which would have prevented the company from signing up new subscribers. The three judge panel heard 90 minutes of technical testimony from lawyers from both Vonage and Verizon, during which Vonage lawyer Roger Warin argued the judge in its patent infringement trial with Verizon had given the jury improper instructions on how to interpret key technical terminology, and misconstrued claims in three of the disputed patents.
Page 1 of 11
