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October 8, 2007

Vonage & Sprint Settle

Vonage settled its patent flap with Sprint Nextel, agreeing to fork out $80 million for past damages and ongoing license.

A Kansas jury had awarded Sprint $69.5 million in damages, equivalent to 5% of Vonage revenue during the infringement duration.

The dispute with Verizon malingers. Vonage was ordered to pay $66 million and a 5.5% royalty for infringing Verizon patents. Vonage appealed, but not very successfully - the damages award was pitched, as one of Verizon's patents went rancid, but the jury hadn't bothered to separate out damages patent by patent; but the injunction stuck.

Vonage has been struggling to implement workarounds to Verizon patents, announcing September 26 that it was initiating deployment for two of the four Verizon patents found infringed.

Vonage's patent woes have hobbled it: up to last year numero uno in the nation, subscriber growth stalled at 2.3 million; overtaken by Comcast at 3.1 million subscribers, even though Comcast has rinky-dink features compared to Vonage.

Vonage has but a bit left in its till: $344 million as of June 30.

Posted by Patent Hawk at October 8, 2007 12:22 PM | Patents In Business


Shares of Vonage up +1.42 (123.48%) to $2.57 on the news.

Posted by: IP Investor at October 8, 2007 2:50 PM