Wednesday, October 3, 2007

Vonage Loses $69.5 million in patent lawsuit to Sprint Nextel

In October 2005, Sprint Nextel filed a suit against Vonage and two other VoIP providers claiming the companies violated seven patents on technology for processing and delivering packetized voice and data, including VoIP and was expected to go to trial this September. Its suit in U.S. District Court for the District of Kansas, in Kansas City, Kan., seeks an injunction against further infringement and unspecified monetary damages.

A jury verdict announced last Wednesday in the patent infringement dispute between Sprint Nextel and Vonage in the U.S. District Court in Kansas City, found that Vonage infringes all six of Sprint Nextel's voice-over-packet patents at issue in the case. The jury awarded Sprint Nextel $69.5 million in past damages and a five percent royalty on future revenue. Sprint's voice-over-packet portfolio comprises more than 100 patents covering different methods, components and systems that efficiently connect telephone calls between a regular telephone network and a packet-switched network such as the Internet.

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