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January 08, 2013

magicJack VocalTec and netTALK Bury the (Patent Infringement) Hatchet

SipTrunkingReport Contributor

The battle of the consumer voice over IP (VoIP) providers may be at a conclusion: magicJack VocalTec Ltd recently filed a motion for the dismissal of its patent infringement suit against netTALK and its DUO VoIP telephone services product line. A federal court dismissed the entire case with prejudice (meaning it cannot be refilled) including all claims, counterclaims, defenses and causes of action. The result is that is able to continue to sell and develop its VoIP products (as is magicJack).

netTALK hailed the dismissal of the suit, calling it a victory.

“The outcome speaks for itself, as the entire case was dismissed with prejudice,” said netTALK Chief Executive Officer, Anastasios “Takis” Kyriakides. “We will vigorously protect our current and future patents that we anticipate will be awarded in the near future. We plan to continue developing first to market, innovative state of the art products that consumers can utilize to save money to stay connected with family, friends and colleagues both domestic or internationally.”

The legal battle between the two VoIP providers began in April of last year, when magicJack VocalTec sued netTALK, alleging patent infringement. In September, netTALK counter-sued magicJack, claiming the latter’s magicJack Plus device was infringing on their patents.

magicJack Vocaltec Ltd., which is headquartered in Israel, has reaped more than $100 million in sales after years of “As Seen on TV”-style commercials. The company sells a device that plugs into a USB port on the user's computer (or in the case of magicJack Plus, plugs directly into a router). Users can then make unlimited phone calls to the U.S. and Canada thanks to magicJack partner and telephony service provider, YMAX Corporation., Inc. is a Miami-based telecom company whose flagship product is the netTALK DUO, a VoIP consumer electronic device that also enables users to make and receive phone calls over an Internet connection, enabling free calling throughout the U.S. and Canada.

The two companies have apparently agreed to let bygones be bygones (for now) and concentrate on selling their own products.

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Edited by Brooke Neuman
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