However, Vonage is to pay no damages to Nortel.
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.