Sprint Nextel has settled its long running patent infringement dispute with VoIP provider Vonage.
Sprint has agreed to license its VoIP portfolio or more than 100 patents to Vonage. The settlement
payment to Sprint is estimated to be $80 million dollars.
Sprint Nextel and Vonage Settle Patent Dispute
Settlement Terms Include One-Time Payment to Sprint and Licensing Agreement that Provides Vonage with Use of Sprint Patents
Sprint Nextel (NYSE: S) and Vonage (NYSE: VG) today
announced that they have settled their ongoing patent dispute and
entered into a licensing arrangement under Sprint's Voice over Packet
("VOP") patent portfolio. On September 25, 2007, a jury in the U.S.
District Court in Kansas City, Kan., found that Vonage had infringed
six Sprint patents. The settlement agreement resolves all claims
related to this dispute.
In addition, Sprint has agreed to license Vonage
its VOP portfolio, which comprises more than 100 patents covering
different methods, components and systems that efficiently connect
telephone calls between a regular telephone network and a
packet-switched network such as the Internet.
"We are pleased to resolve our dispute with Sprint and enter into a
productive future relationship" said Sharon O'Leary, Vonage chief legal
officer.
"We view this settlement and licensing agreement as a validation of
the strength and breadth of our patent portfolio," said Harley Ball,
Sprint Nextel's vice president of intellectual property. "This is an
affirmation of Sprint's research and development and a testament to the
rich history of innovation at Sprint Nextel.
About Sprint Nextel
Sprint Nextel offers a comprehensive range of wireless and wireline
communications services bringing the freedom of mobility to consumers,
businesses and government users. Sprint Nextel is widely recognized for
developing, engineering and deploying innovative technologies,
including two robust wireless networks serving 54 million customers at
the end of the second quarter 2007; industry-leading mobile data
services; instant national and international walkie-talkie
capabilities; and a global Tier 1 Internet backbone. For more
information, visit www.sprint.com.
About Vonage
Vonage (NYSE: VG) is a leading provider of digital phone services with
2.45 million subscriber lines. Our award-winning technology enables
anyone to make and receive phone calls with a touch tone telephone
almost anywhere a broadband Internet connection is available. We offer
feature-rich and cost-effective communication services that offer users
an experience similar to traditional telephone services. Our
Residential Premium Unlimited and Small Business Unlimited calling
plans offer consumers unlimited local and long distance calling, and
popular features like call waiting, call forwarding and voicemail - for
one low, flat monthly rate. For more information about Vonage's
products and services, please visit www.vonage.com.