Vonage has settled its patent infringement lawsuit with Verizon for up to £60m.
According to Vonage, the figure could be reached if the company does not win an appeals court rehearing for two of Verizon's VoIP-related patents. If Vonage does win the rehearing, then the company will pay £40m to settle the case.
"We're pleased to put this dispute behind us and believe this settlement is in the best interests of Vonage and its customers," said Sharon O'Leary, Vonage chief legal officer. "This settlement removes the uncertainty of legal reviews and long-term court action and allows us to continue focusing on our core business and customers."
Earlier this year, a federal jury found Vonage guilty of infringing upon three of Verizon's patents and ordered the company to pay about £29m in damages, and to also pay a 5.5% royalty rate on any future sales using Verizon technology. An appeals court last month affirmed the federal jury's original verdict. An earlier request for a retrial was also rejected.
The settlement comes just two weeks after Vonage agreed to pay £40m to Sprint Nextel to settle a similar patent suit. AT&T said last week it is also suing for patent infringement.