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Vonage settles judgment with Verizon

by on26 October 2007


Patent dispute with Verizon pending

over Internet Protocol (VoIP) provider Vonage Holdings Corporation announced that it has reached a settlement in a patent infringement dispute with Verizon Communications, Inc.

As background on this matter, we previously reported that Vonage lost a trial with Verizon Communications and had a judgment entered against it in federal court for $58 million for 3 patent infringement findings. Vonage appealed the verdict and the Appellate Court sent the case back to the lower court for a new trial on one of the patent infringement findings and a redetermination of the damages award, since it was unclear in the lower court’s ruling how the damages were to be divided.

The trial court threw out the $58 million judgment. Vonage then again asked the Appeals Court to revisit its ruling that upheld the other two of the three patent infringement findings in the case; Vonage claimed that the two Verizon patents that were determined to be infringing could be made non-infringing by a workaround, thus enabling Vonage to lessen its potential damages and to continue to conduct its business by using the workaround process.

Vonage said the final terms of the settlement depend on the Court of Appeals decision on Vonage's petition for a rehearing on its patents, but Verizon has agreed to a cap on the judgment amount of $32 million, in addition to another $88 million that is already held in an escrow account.

Vonage recently settled another patent infringement judgment with Sprint Nextel and has another patent infringement suit pending after being sued by AT&T, Inc.

Last modified on 26 October 2007
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