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Vonage, Nortel Settle Patent Claims

Vonage and Nortel Networks announced the settlement of patent litigation pending between them, a deal that involves cross-licensing Internet phone patents from each company but includes no monetary payments by either party.

The settlement comes at the end of a litigious year for Vonage. The Internet phone service provider recently settled patent disputes with AT&T for $39 million, Sprint Nextel for $80 million and Verizon for up to $120 million.

Nortel sued Vonage in December, alleging it violated as many as 13 patents related to Internet phone service, including such features as 911 calling and "click-to-call." Nortel said it filed the lawsuit in response to Vonage's claims that Nortel had violated three patents that Vonage acquired in 2006.

The cross-licensing deal, which is subject to final approval, includes three Nortel patents and three Vonage patents. The companies said claims relating to past damages and the remaining patents will be dismissed without prejudice.