Vonage and Nortel Settle Patent Lawsuit

Internet phone company Vonage has settled patent lawsuit with Canadian equipment maker Nortel Networks, the companies announced on Monday.  Vonage avoided paying any monetary damages following the agreement by the two companies to cross license certain patents.

Vonage has suffered a 71% loss in share price over the last 12 months due to legal problems involving patent issues with AT&T, Sprint and Verizon.  Nortel filed the lawsuit early last month citing nine patent violations related to Internet phone service.  The reached settlement reportedly involves “limited cross licensing” of 3 Vonage and 3 Nortel patents which support directory and emergency calling services.

Analysts see this final settlement as an opportunity for Vonage to emerge from recent lawsuit struggles and potentially have a great year and become profitable.  Stock shares rose 15% Monday to close at $2.30.

---Randy Swisher, Editor