The parties have entered into an "agreement" to resolve the dispute as well as to develop a business relationship.
Under the terms of the agreement Vonage has entered into a licensing arrangement under Sprint's Voice over Packet patent portfolio.
The deal will see Vonage pay $80m to Sprint, including $35m for past use of licence, $40m for a fully paid future licence, and $5m in prepayment for services.
A Kansas jury handed down a verdict on 25 September 2007 finding that Vonage had infringed six Sprint patents.
"We are pleased to resolve our dispute with Sprint and enter into a productive future relationship," said Sharon O'Leary, general counsel for Vonage.
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