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Wednesday, October 05, 2005

Sprint Nextel Sues VoIP Firms

Sprint Nextel filed a patent infringement lawsuit Tuesday against Vonage Holdings and another VoIP provider after failed attempts by the telco to license its technology to the two companies.
In addition to Vonage, the No. 1 U.S. VoIP outfit, the suit also names TheGlobe.Com and its VoiceGlo Holdings unit.

Sprint Nextel alleges its patents protect a series of innovations that enable the processing and delivery of voice and data communications via packets, which is the way data is transmitted over the Internet. The company said that these methods also encompass VoIP.
Sprint filed the lawsuit in the U.S. District Court for the District of Kansas, and is seeking an injunction against the two firms from “further misappropriating” Sprint Nextel’s technology. The lawsuit also seeks unspecified monetary damages.

Debra Peterson, a spokeswoman for Sprint Nextel, said the company has a portfolio of patents covering technologies related to voice over packet communications.
While Sprint prefers to resolve disputes amicably, Sprint will take all necessary steps to protect the creativity and innovation of its employees,” she said.

Vonage representatives did not immediately return calls. The company is the leader in the North American VoIP market, with more than 1 million VoIP lines on the continent. Its closest cable rival, Time Warner, reported 614,000 lines at the close of its second quarter.
Vonage is also said to be preparing to go public, with multiple sources including The Wall Street Journal estimating the company is seeking between $400 million and $600 million.
Ed Cespedes, president of theglobe.com and its Voiceglo unit, both based in Ft. Lauderdale, Florida, said the lawsuit was without merit.
Products like ours that are low-cost or free, easy to acquire, and global are a natural threat to incumbent telecommunications companies,” added Mr. Cespedes.

VoiceGlo’s telephony product, GloPhone, has now reached about 5 million users around the world, according to a company release.

The seven patents held by Sprint Nextel relate to telecommunications controls and broadband telecommunications systems. The patents detail methods for how “packetized” communications get routed and verified in a network environment.

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