Vonage acquired patents from its acquisition of Digital Packet Licensing in 2006. DPL had sued Nortel for patent infringement in 2004. Vonage let the suit continue. Earlier this month Nortel filed counter-suit.

The settlement cross-licenses three Nortel and three Vonage patents involving 911, 411 and click-to-call features. Neither company pays the other. "Unlike some other settlements for patent litigation we've been involved with we don't pay Nortel a dime," smiled Charles Sahner, Vonage spokesman. Vonage had paid $80 million apiece to Verizon and Sprint, and $39 million to AT&T.