VoIP provider Vonage has settled a patent dispute with Sprint by agreeing to pay Sprint about $80 million, the two companies announced early this week.
As part of the agreement, Sprint has agreed to license Vonage its VoIP portfolio, which includes more than 100 patents covering methods and components to connect voice calls between a traditional telephone network and an IP network, Sprint said.
A jury in Kansas found on September 25 that Vonage infringed on six patents owned by Sprint. The jury awarded Sprint $69.5 million in damages, amounting to 5 percent of Vonage's revenue during the infringing period.
The agreement announced on Monday resolves the patent dispute, Sprint said in a press release. Vonage had originally said it planned to appeal the patent award.
Vonage and Sprint will enter into a business relationship as part of the agreement, Vonage said. The $80 million payment includes $35 million for past use of Sprint's licences, $40 million for a future licence, and $5 million in prepayment for services from Sprint, Vonage said.
"We are pleased to resolve our dispute with Sprint and enter into a productive future relationship," Sharon O'Leary, Vonage's general counsel, said in a statement. "We believe this deal is good news for Vonage, our customers and our shareholders."
Vonage, with nearly 2.5 million VoIP customers, has faced a similar patent challenge from Verizon.
Earlier this year, a US court found Vonage infringed on Verizon patents, and a judge ordered an injunction that would have prevented Vonage from signing up new customers. Vonage won a stay of that injunction and is appealing the original infringement ruling.
In August, Vonage said it had nearly completed rolling out workarounds for two of the three patents claimed by Verizon.