Vonage Holdings and Nortel Networks have preliminarily agreed to cross-license several patents, ending a dispute between the companies without any monetary payments.
All claims relating to past damages as well as remaining payments will be dismissed, the company said. Documents sealing the agreement have not yet been finalised.
The agreement is a minor victory for Vonage. The company has settled or reached tentative agreements in three other patent disputes related to VoIP and other telecommunications technology for what could ultimately reach $239m (£120m) in payments.
Vonage tentatively agreed late last year to settle a patent infringement lawsuit filed by rival AT&T for $39m (£20m). Prior to that deal, Vonage had reached settlements with Sprint Nextel for $80m (£40m) and with Verizon Communications for $80m to $120m (£40m to £60m), depending on the results of an appeal.
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