Vonage, Nortel settle patent dispute for no cash

by Dan Nystedt

December 31, 2007 —

Vonage Holdings and Nortel Networks have preliminarily agreed to cross-license
several patents, ending a dispute between the companies without any monetary
payments, Vonage said Monday.

All claims relating to past damages as well as remaining payments will be dismissed,
the company said. Documents sealing the agreement have not yet been finalized.

The agreement is a minor victory for Vonage. The company has settled or reached
tentative agreements in three other patent disputes related to VoIP (voice over
Internet Protocol) and other telecommunications technology for what could ultimately
reach $239 million in payments.

Vonage tentatively agreed last month to settle a patent infringement lawsuit
filed by rival AT&T for $39 million. Prior to that deal, Vonage had reached
settlements with Sprint Nextel for $80 million and with Verizon Communications
for $80 million to $120 million, depending on the results of an appeal.

IDG News Service