TMCnews Featured Article

Vonage (News - Alert), the leading provider of VoIP Internet Phone service for Home, Business and International Calling, and AT&T (News - Alert), the number one communications holding company worldwide, announced that they have finalized their dispute over patent infringement.

 

Since it got listed on the bourses in May 2006, Vonage has been inundated with a volley of patent lawsuits. October saw the settlement of two major disputes, one with Sprint (News - Alert) Nextel and the one other with Verizon Communications, for $80 million and $120 million respectively. But the worst is not over yet, as the company might again be in for it, this time with telecommunications equipment provider Nortel (News - Alert) Networks.

 

In its patent infringement suit, AT&T indicted that the packet-based telephony products Vonage is using for carrying voice conversations are based on patented AT&T technology.

 

The terms of the settlement have not been disclosed. It is however, believed that Vonage will be required to pay AT&T $39 million over five years.

 

An established provider of broadband telephone services, Vonage boasts 2.45 million subscriber lines. Its comprehensive and low-cost services, with features like call waiting, call forwarding and voice mail — for one low flat monthly rate, offer an experience similar to traditional telephony. In addition to its national retailers including Best Buy, Circuit City, WalMart and Target, Vonage also sells its service through the Internet to customers in the U.S., Canada and the United Kingdom.