In June 2006, C2 filed a patent infringement lawsuit against AT&T, Verizon Communications, Qwest Communications International, Bellsouth Corporation, Sprint Nextel, Global Crossing, and Level 3 Communications. The complaint was filed in the Marshall Division of the US District Court for the Eastern District of Texas and alleged that the defendants's services and systems utilizing VoIP protocol infringe C2's US Patent No. 6,243,373, (the '373 Patent') entitled 'Method and apparatus for implementing a computer network/internet telephone system'.
In February 2008, the complaints against AT&T, and Verizon Communications, were settled by entering into settlement and license agreements. A trial date of September 2, 2008 has been set for the lawsuit.
Allan Silber, chairman and CEO of C2, said: "We are extremely pleased with the success achieved in licensing our patents to companies with the stature of AT&T, Verizon and Sprint. This puts us in an excellent position to aggressively pursue licenses from other entities that are using our patented technology, which includes corresponding patents in Australia, Canada, China and Europe."
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