Vonage Shares Soar 76% on Sprint Deal

$80M patent settlement licenses tech, curtails rising legal costs

By Kevin Spak, Newser Staff

Posted Oct 8, 2007 2:30 PM CDT

(Newser) – Vonage shares saw their biggest-ever bump today, after the company announced it has settled its patent lawsuit with Sprint for $80 million. In addition to cutting its legal losses, Vonage gains a license to use the disputed tech. “It's good in that things could have gotten worse,” one analyst told Bloomberg. “But it's not entirely positive because of the financial obligations.”

Before the agreement, Sprint could have sought an order demanding Vonage cease using the patented technologies. Shares of Vonage, which went public last year, jumped $0.87 or 76%, while Sprint shares fell $0.50. It was Vonage’s second crippling patent lawsuit—Verizon won the other, to the tune of $58 million. Vonage has not turned a profit since its 2000 launch.

In a file photo passers-by walk past a Sprint Store in Boston, Wednesday, Dec. 15, 2004 . Sprint Nextel Corp. sent letters to about 1,000 subscribers June 29, saying the company's records showed they... (Associated Press)

A Sprint phone store sign is enveloped by sunlight and shadows in this Feb. 28, 2007 file photo, in Murray, Utah. Sprint Nextel Corp., the nation's third-largest wireless carrier, said Wednesday, May... (Associated Press)

Attendees make free phone calls over VoiP at the Vonage booth at the 2007 International Consumer Electronics Show (CES) in Las Vegas, in this Jan. 10, 2007 file photo. Internet phone company Vonage Holdings... (Associated Press)

Micro Center computer store saleswoman Christine Canasa fixes up a display of Vonage products in Santa Clara, Calif., in this file photo from May 24, 2006.Vonage, the internet phone company, will be... (Associated Press)

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Vonage Shares Soar 76% on Sprint Deal

$80M patent settlement licenses tech, curtails rising legal costs

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OTHER STORIES ON OUR RADAR

Vonage • Verizon • telecom industry • lawsuit • telecommunications • Sprint • patent

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T-Mobile Launching Net Phone Price War

New plan follows hard on news of wireless price war

Vonage Settles Patent Dispute, Sees Shares Rise

Longer-term troubles still loom for vexed Internet phone provider

Vonage Guilty in Sprint Patent Suit

Net phone company faces second huge judgment against it this year

iPhone Kills Carrier Profits

AT&T, Verizon, Sprint lose out by subsidizing Apple's cell phone

iPhone 4S Pre-Orders Sell Out in 12 Hours

AT&T reports 200K orders, calls sales strong

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