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Vonage, Sprint Settle Patent Dispute

Vendors cut a $80 million cross-licensing deal over disputed voice transmission technology.

Peter Cohen, Macworld

Digital phone service provider Vonage has announced that it has settled a patent dispute with Sprint Communications. The agreement will allow the two companies to enter into a business partnership, according to a statement released Monday.

On Sept. 25, 2007, a Kansas jury found in favor of Sprint, ruling that Vonage had infringed six Sprint patents involving "Voice Over Packet" (VOP) technology. Following that decision, Sprint agreed to license Vonage its VOP portfolio.

The announcement today clears the way for the two companies to enter into an $80 million deal - $35 million for the past use of the license, $40 million for a fully-paid future license, and $5 million in prepayment for services.

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