Vonage, Verizon settle patent spat for up to $120 million

VONAGE, VERIZON SETTLE PATENT SPAT FOR UP TO $120 MILLION
[SOURCE: C-Net|News.com, AUTHOR: Anne Broache]
Vonage on Thursday said it had resolved an ongoing patent dispute with Verizon Communications at a price tag of up to $120 million, ending what has been a mostly gloomy saga for the struggling Internet phone company. The precise amount of Vonage's final payout to Verizon depends on whether the federal appeals court grants a rehearing Vonage has requested on the two central patents. If Vonage wins a rehearing or manages to secure relief from an injunction affecting one or both of the two core patents, it has agreed to pay Verizon $80 million. If Vonage is not granted a rehearing or if the injunction, which is currently on hold, is reinstated, Vonage said it will pay $120 million, of which $2.5 million will be "payable to certain charities." Vonage said it has already deposited $88 million into an escrow account.
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