Vonage, ATandT Agree On Patent Lawsuit Settlement


On November 7, Vonage agreed to settle with ATandT, announcing it might pay the company up to $39 million. The deal was agreed upon with relative expediency, as a finalized deal emerged less than three months after ATandT filed the suit on October 17.

Vonage has been no stranger to settlements in the past, agreeing in October 2007 to pay Sprint Nextel $80 million for infringement on voice over packet technology after a lawsuit filed in October 2005. The terms of that settlement also included Vonage's agreement to license Sprint's technology.

That same October, Vonage also agreed to settle with Verizon Communications after the company was sued for patent infringement, with the settlement costs falling between $80 million and $120 million, depending on appeal results regarding two patents.

Earlier this month, Vonage was hit with another patent infringement lawsuit, this time from Nortel Networks, a telecommunications equipment manufacturer. The company charges the beleaguered VoIP company violated nine patents related to Nortel's Internet phone service.

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ATandT declined to disclose the terms of the settlement and would not comment further. Vonage confirmed the settlement and declined to comment further on details.