Internet phone service provider Vonage settled a patent infringement lawsuit with Verizon Communications Oct. 26, agreeing to pay as much as $120 million for infringing two patents owned by Verizon.

The payment by Vonage, based in Holmdel, New Jersey could be cut to about $80 million if a U.S. appeals court agrees to reconsider its ruling last month that upheld most of a $66 million jury verdict for New York-based Verizon.

If the appeals court rejects the request, Vonage will have to pay Verizon $117.5 million. Vonage would also give $2.5 million to charity.

Vonage is requesting the original three-judge panel that heard the appeal or the entire 12-judge court review the decision.

The appeals court upheld most of a Virginia jury's verdict in March that Vonage infringed the two patents owned by Verizon. The appeals court sent back a finding of infringement against a third invention to be further reviewed by the trial court.

Before the settlement, Vonage faced a possible court order that it stop connecting Internet calls to standard phone lines and providing certain features like call waiting.

The settlement does not put all of Vonage's legal troubles in the past; AT&T Inc. sued Vonage last week for patent infringement.

Internet phone service provider Vonage settled a patent infringement lawsuit with Verizon Communications Oct. 26, agreeing to pay as much as $120 million for infringing two patents owned by Verizon.

The payment by Vonage, based in Holmdel, New Jersey could be cut to about $80 million if a U.S. appeals court agrees to reconsider its ruling last month that upheld most of a $66 million jury verdict for New York-based Verizon.

If the appeals court rejects the request, Vonage will have to pay Verizon $117.5 million. Vonage would also give $2.5 million to charity.

Vonage is requesting the original three-judge panel that heard the appeal or the entire 12-judge court review the decision.

The appeals court upheld most of a Virginia jury's verdict in March that Vonage infringed the two patents owned by Verizon. The appeals court sent back a finding of infringement against a third invention to be further reviewed by the trial court.

Before the settlement, Vonage faced a possible court order that it stop connecting Internet calls to standard phone lines and providing certain features like call waiting.

The settlement does not put all of Vonage's legal troubles in the past; AT&T Inc. sued Vonage last week for patent infringement.