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Article: Vonage Settles Verizon's Patent Suit
- Article from:
- AP Online
- Article date:
- October 25, 2007
CopyrightCopyright 2007 Associated Press/AP Online. This material is published under license from the publisher through YellowBrix, Alexandria, Virginia. All inquiries regarding rights should be directed to YellowBrix. (Hide copyright information)
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NEW YORK - Vonage Holdings Corp., the beleaguered provider of Internet-based telephone service, said Thursday it has settled a patent lawsuit brought by Verizon Communications Inc. for a maximum of $120 million.
The lawsuit, along with two filed by other phone companies, had cast a heavy shadow over Vonage's future. The company's service enables subscribers to connect their phones to their broadband connections for about $25 a month using a Vonage adapter.
After setbacks in the litigation with Verizon, which began in June 2006, Vonage put $88 million in escrow. The settlement caps any payouts Vonage will make on top of that amount at $32 million. If Vonage wins a rehearing on either of ...