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Verizon and Comcast Agree to Intellectual Property Cease-Fire


08/10/2008

Verizon Communications and Comcast, two fierce competitors in the increasingly overlapping telecom and cable markets, have signed an agreement to refrain from suing one another over intellectual property for the next five years.

The deal, which covers thousands of telephone, data, and television patents held by the two companies, is not equivalent to a licensing agreement, according to executives familiar with the pact. Both parties reserve the right to seek historic damages from the other after the contract expires, dating back to the time at which the contract was signed.

Under the deal, Comcast has agreed to purchase Verizon Wireless services for its employees, spending at least $90 million (and possibly much more) over the next five years.



 

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