Telecom giant Verizon has struck a deal with VoIP-Pal.com Inc. to resolve a high-stakes patent infringement lawsuit targeting the company’s free Wi-Fi calling service—a case once shadowed by the threat of more than $5 billion in damages.
In a stipulation filed Friday, both parties told a Texas federal court the case could be dismissed, with notice also heading to the Federal Circuit, which had been reviewing VoIP-Pal’s appeal.
From Billions in Damages to Settlement
The lawsuit was part of VoIP-Pal’s 2021 blitz of litigation against major telecom and tech players, including Verizon and T-Mobile. VoIP-Pal had claimed billions in damages, pegging Verizon with a $5 billion tab.
But Verizon fired back in May 2024, blasting the damages estimate as a product of a “deeply flawed opinion” from VoIP-Pal’s expert, who delivered what Verizon called a “staggering and unsupportable” number.
Courtroom Turns in Verizon’s Favor
Momentum shifted last summer when U.S. District Judge Alan Albright granted summary judgment to Verizon and T-Mobile, ruling they had not infringed VoIP-Pal’s patents. When VoIP-Pal asked the judge to revisit that outcome, he refused in February 2025, noting the company was merely recycling arguments already rejected.
Appeals and Fee Battles
VoIP-Pal appealed both summary judgment wins in March 2025, pushing the fight to the Federal Circuit. Meanwhile, Judge Albright issued a sealed ruling in August on T-Mobile’s bid for attorney fees and costs, a decision that T-Mobile itself appealed earlier this month.
