Wednesday, December 19, 2007

Now it's Nortel's turn to sue Vonage

Earlier this year, telecom industry observers anticipated the demise of Internet phone service provider Vonage, as it got sued by Verizon, AT&T and Sprint Nextel.

In October, Vonage surprised everyone by settling the last of the lawsuits and it seemed to gain a second life. There was more bad news last Friday, however, as Canadian phone equipment maker Nortel Networks sued Vonage, claiming that it violated nine patents.

A Nortel spokesman said the lawsuit countered claims made by Vonage that Nortel had violated three of its patents.

Vonage was dragged into a legal battle after it acquired three patents from Digital Packet Licensing last year, according to Vonage spokesman Charles Sahner. DPL had filed a suit against Nortel in 2004 alleging violation of those three patents, so Vonage continued with the lawsuit. "Litigation is ongoing, and both parties have filed - and will continue to file - papers supporting their case," Sahner said. On the possibility of a settlement, he said: "We always prefer to settle disputes amicably whenever possible."

In this particular case, Vonage is pursuing the legal action, rather than getting sued. Sahner said Nortel's countersuit was a defensive move. (info from The Associated Press)

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