Business news for Mon, 31 Dec 2007 & with words agreed+settle. 2 news.

Vonage and Nortel agreed to settle their patent litigation in a deal that allows for cross-licensing of technology and does not require any cash payments.

NEW YORK (MarketWatch) -- Vonage Holdings Corp. said Monday that it has agreed in principle with Nortel Networks Corp. to end the pending litigation between them. According to a release from Holmdel, N.J.-based Vonage, the contemplated settlement involves a limited cross license to three Nortel and three Vonage patents and does not call for monetary payments by any party. Earlier this month, The Wall Street Journal reported that Nortel filed a lawsuit against Vonage, alleging that Vonage violated nine patents related to Internet phone services, countering Vonage's claims that Nortel had violated three of its patents. Shares of Vonage, which closed Friday at $2, were up about 9% in premarket trading Monday.