Vonage Settles with Sprint-Nextel
Vonage has settled a patent dispute with Sprint Nextel Corp. by agreeing to pay Sprint about $80 million, the two companies announced Monday. This will allow ailing/failing VoIP company to remain in the IP Telephony world a little longer.
According to Sprint-Nextel, as part of the agreement, Sprint will license Vonage its VoIP portfolio, which includes more than 100 patents covering methods and components to connect voice calls between a traditional telephone networks and an IP networks.
The agreement announced Monday resolves the patent dispute,which Vonage had originally said it planned to appeal, Sprint said in a press release.
The break down of the $80 Million, and the business agreement includes $35 million for past use of Sprint's licenses, $40 million for future licensing, and $5 million in prepayment for services from Sprint,
Just this news brought thr beaten-down shares of Vonage Holdings Corp. to more than double in value Monday after the Internet phone company said it had settled a patent suit filed by Sprint Nextel Corp.The shares gained $1.42 to close at $2.57.
The settlement does not put all of Vonage's legal troubles behind it. In March, another jury awarded Verizon Communications Inc. $58 million in damages, plus 5.5 percent royalties on future revenues after finding that Vonage violated three Verizon patents. Litigation continues in that suit. Vonage denies infringement and says it has deployed workarounds for two of the patented technologies.
Sprint News Release.
0 comments:
Post a Comment