Vonage has settled its pending patent dispute with Sprint Communications.

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.