Vonage Guilty Of Patent Infringement Print E-mail
Written by Adam Gosling   
Tuesday, 13 March 2007
High profile Voice over IP provider Vonage has been successfully sued for patent infringment by Verizon Communications, being ordered to pay US$58 million in damages.
The case, which pertained to five core patents Vonage used to build its VOIP services networks in the United States and although the trial Jury found the copmany guilty of abusing three of the five patenets, Vonage has vowed to appeal the judgement.

Finding that the infringement was not willful cut the payout from the US$197 million that Verizon had hoped for and it is unclear whether it will also be able to stop Vonage from using the technology by getting the court to issue an injunction banning Vonage from using technologies covered by the patents. That request willbe dealt with before the end of the month.

Verizon was none-the-less pleased with the outcome.

"A jury today found that Vonage Holdings Corp. has infringed three United States patents awarded to Verizon covering methods of offering commercial-quality VoIP services, including wireless access to VoIP," said John Thorne, Verizon senior vice president and deputy general counsel.

"Patents encourage and protect innovations that benefit consumers, create jobs and keep the economy growing.  Verizon's innovations are central to its strategy of building the best communications networks in the world," he said.

For its part Vonage said it beleived the guilty verdicts for the thrre patents would be reversed on appeal. It also vowed to fight any attempt to gain an injunction banning them from using the technology. "If the trial court does impose an injunction, we will seek an immediate stay from the Federal Court of Appeals,'' it said.

Vonage last year had a disastrous public float, made a loss of US$286 million and slowed its customer acquisition growth, yet the pain is not over for shareholders. The stock fell more than 4 percent on announcement of the trail outcome.


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