Vonage and Nortel kiss and make up

Vonage and Nortel kiss and make up

Vonage to pay no damages to Nortel

VoIP service provider Vonage has finally cleared numerous legal challenges after agreeing in principle to settle a patent dispute with Nortel Networks, just weeks after it was launched.

However, Vonage is to pay no damages to Nortel.

Vonage has previously been sued by AT&T, Verizon Communications, and Sprint Nextel, and has had to pay over US$200 million in damages to the three telecom firms.

Nortel had alleged that Vonage had infringed on 12 of its patents, which broadly deal with click-to-call systems, with the management or architecture of VoIP system resources, and with call-tracing methods in packet-switched networks. All the patents involved in the suit related direct to technology designed for VoIP telephony systems.

"The contemplated settlement involves a limited cross licence to three Nortel and three Vonage patents," said Vonage in a statement. "Claims relating to past damages and the remaining patents will be dismissed without prejudice."

"We are pleased to resolve this issue and enter into a productive relationship with Nortel," said Vonage chief legal officer Sharon O'Leary.

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