Vonage shuts door on Verizon suit (almost)

Vonage has settled its legal tete-a-tete with Verizon, agreeing to pay the telcom giant somewhere between $80m and $120m. Final terms of the deal depend on one last ruling from the US Court of Appeals.

Verizon tossed a patent infringement suit at Vonage back in June last year. Nine months later, a jury awarded the telco $59m in damages, sure that the plucky VoIP provider was stepping on three separate Verizon patents. But Vonage soon bounced the case up to the Court of Appeals.

Though the court upheld the decision on two of the patents, confirming an injunction in each case, Vonage then asked for a rehearing, and this request for a do-over is still pending.

In settling the suit, Vonage has agreed to turn over $80m if it wins a rehearing on either of the two patents or if the injunction is reversed in either case. Otherwise, it will fork over $117.5m.

The company has already put $88m in escrow, so additional payments have been capped at $32m.

Earlier this week, Vonage all but told us a settlement was on the way. The company has already settled a similar suit from Sprint Nextel, and it hopes to settle a third suit from AT&T. ®