Vonage, Sprint Cool With Patent Settlement

    October 8, 2007
    WebProNews Staff

Vonage’s infringement on six Sprint patents has yielded a lucrative payday for Sprint.

A settlement of $80 million will keep Vonage in business with technology a Kansas jury found to be infringing on Sprint’s intellectual property.

Vonage announced $35 million of the settlement covers past usage of Sprint’s licenses, $5 million serves as a prepayment for future services, and the remaining $40 million applies to a fully paid future license.

Vonage, Sprint Cool With Patent Settlement

Sprint objected to the use of Voice over Packet (VOP) technology in Vonage’s VoIP product. The court’s agreement with Sprint as to its claims put Vonage in the position of needing to hammer out a settlement or risk a business stoppage.

Sprint VP of intellectual property Harvey Ball said the decision validated the "strength and breadth" of the wireless company’s patents.

For Vonage, it was another multi-million dollar loss in court. In March, Vonage was ordered to pay $58 million plus royalties for infringing on three Verizon patents.