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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