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Vonage, Verizon Settle Patent Suit

10/26/2007 01:33:00 PM Eastern

Holmdel, N.J. — Vonage and Verizon said today that they have agreed to resolve their patent lawsuit.

Depending on how the Court of Appeals decides Vonage's pending petition for rehearing regarding two of the Verizon patents, Vonage will either pay $80 million to Verizon if Vonage wins the rehearing or if the injunction is vacated, or Vonage will pay $117.5 million if it loses or if the stay is lifted on the injunction.

Vonage is already on the hook for $80 million for its settlement with Sprint. Early in the week, AT&T said it was bringing a suit against Vonage for patent infringement after the two firms could not come to an agreement.

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