San Francisco (CA) - Internet phone service Vonage and U.S. telephone mega-player AT&T have settled a patent dispute. The terms of the settlement indicate Vonage has agreed to pay AT&T $7.8 million per year. Vonage will pay an up-front $1.95 million pre-payment, and then $650,000 per month over the life of the five-year settlement deal. In exchange, AT&T has granted Vonage non-exclusive rights to AT&T patents related to Voice over Internet Protocol (VoIP) and dual-mode wireless services.

Read more ... Reuters.