HOLMDEL, N.J., Oct. 8 /PRNewswire-FirstCall/ -- Vonage today announced that it has settled its pending patent dispute with Sprint Communications LP and entered into a licensing arrangement under Sprint's Voice over Packet ("VOP") patent portfolio. The parties have entered into an agreement to resolve this patent dispute as well as entered into a business relationship. In addition, Sprint has agreed to license Vonage its VOP portfolio.
The agreement is valued at $80 million, including $35 million for past use of license, $40 million for a fully paid future license, and $5 million in prepayment for services. On September 25, 2007, a Kansas jury handed down a verdict finding that Vonage had infringed six Sprint patents.
"We are pleased to resolve our dispute with Sprint and enter into a productive future relationship," said Sharon O'Leary, General Counsel for Vonage. "We believe this deal is good news for Vonage, our customers and our shareholders. It allows us to put this litigation behind us and continue to focus on our core business by removing the uncertainty of legal reviews and long term court action."
About Vonage
Vonage VG is a leading provider of digital phone services with 2.45 million subscriber lines. Our award-winning technology enables anyone to make and receive phone calls with a touch tone telephone almost anywhere a broadband Internet connection is available. We offer feature-rich and cost- effective communication services that offer users an experience similar to traditional telephone services.
Our Residential Premium Unlimited and Small Business Unlimited calling plans offer consumers unlimited local and long distance calling, and popular features like call waiting, call forwarding and voicemail -- for one low, flat monthly rate. For more information about Vonage's products and services, please visit http://www.vonage.com.
Vonage Holdings Corp. is headquartered in Holmdel, New Jersey. Vonage(R) is a registered trademark of Vonage Marketing Inc., a subsidiary of Vonage Holdings Corp.
run should continue tomorrow? that is one hell of a reaction for a big board stock
Posted by Doctoall on :
I bought in last week when the news about the violations broke, it was down at 0.0098. Oh what a sweet day it has been
But they still have to deal with Verizons judgement. This still has plenty of room for upward movement.
Posted by Free Muney on :
here is something i still dont understand about these arrangements. vonage and sprint make a deal. great for both companies. vonage over doubles. sprint goes down. wtf? why? is making deals with companies for millions bad for large companies like sprint? does anyone understand this? I realize sprints CEO just got the boot. but that was after hours today. anyone have insight?
Posted by Doctoall on :
This really pulled back today, it was a great time to dump some while ahead and now play the freebies Posted by Free Muney on :
I took a small position on todays pullback. I think it will run for the rest of the week. Natural to have some big profit taking on a 100+ jump on the big boards. But congrats on some risk free shares
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