Patent dispute settled

VOP found to be infringed

Digital phone service provider Vonage has announced that it has settled a patent dispute with Sprint Communications. The agreement will allow the two companies to enter into a business partnership, according to a Vonage.

On September 25 a US jury found in favour of Sprint, ruling that Vonage had infringed six Sprint patents involving "Voice Over Packet" (VOP) technology. Following that decision, Sprint agreed to license its VOP portfolio to Vonage.

The announcement clears the way for the two companies to enter into an US$80 million (NZ$104 million) deal, comprising $35 million for the past use of the licence and $40 million for a fully-paid future licence.

Also included in the settlement deal is $5 million in prepayment for services.

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Tags managementsprintvonagepatent dispute

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