Vonage Barred from Using Verizon Patents

Mar 25, 2007

The company has said that its customers will not be affected, and in public statements, attorneys for the company have said that they anticipate getting a stay on the injunction while they appeal.

A federal judge has ruled that Vonage Holdings Corp. may not use patents held by Verizon Communications in operating its VOIP phone service.

The ruling follows a decision on March 8 in which a federal jury found Vonage was infringing on Verizon's patents. Judge Claude Hilton said that he would delay the injunction for two weeks so that Vonage would have a chance to try for a stay while it appeals the decision.

In theory, this means that Vonage might have to stop operating its public VOIP service until it can find a way around the use of Verizon's patents, or it can convince Verizon to license those patents. However, the company has said that its customers will not be affected, and in public statements attorneys for the company have said that they anticipate getting a stay on the injunction while they appeal. Considering the speed of the federal appeals process, that could take months.

The judge, in his decision, agreed with Verizon that the company would suffer harm that could not be overcome simply by making royalty payments. Verizon operates a public VOIP service that competes with Vonage.

CNN is reporting that Vonage stock dropped after the decision was announced, dropping immediately by $0.72. The Alexandria, Va., District Court will hear arguments for the stay in two weeks. The judge has said he will render his decision then.

Copyright 2007 by Ziff Davis Media, Distributed by United Press International

Explore further: IBM posts lower 1Q earnings amid hardware slump

add to favorites email to friend print save as pdf

Related Stories

Hurdles remain as FCC ponders Internet data rules

Oct 18, 2009

(AP) -- With Democrats in charge in Washington, supporters of so-called "net neutrality" rules seem poised to finally push through requirements that high-speed Internet providers give equal treatment to all ...

Net-neutrality debate reaching tempest

Jun 15, 2006

Internet users could soon feel the aftershock of a decision the Federal Communications Commission made last August. The FCC placed phone companies in a class with cable services, freeing them from decades-old nondiscrimination ...

Recommended for you

'Chief Yahoo' David Filo returns to board

35 minutes ago

Yahoo announced the nomination of three new board members, including company co-founder David Filo, who earned the nickname and formal job title of "Chief Yahoo."

Fired Yahoo exec gets $58M for 15 months of work

45 minutes ago

Yahoo's recently fired chief operating officer, Henrique de Castro, left the Internet company with a severance package of $58 million even though he lasted just 15 months on the job.

IBM posts lower 1Q earnings amid hardware slump (Update)

10 hours ago

IBM's first-quarter earnings fell and revenue came in below Wall Street's expectations amid an ongoing decline in its hardware business, one that was exacerbated by weaker demand in China and emerging markets.

New US-Spanish firm says targets rich mobile ad market

17 hours ago

Spanish telecoms firm Telefonica and US investment giant Blackstone launched a mobile telephone advertising venture on Wednesday, challenging internet giants such as Google and Facebook in a multi-billion-dollar ...

User comments : 0

More news stories

'Chief Yahoo' David Filo returns to board

Yahoo announced the nomination of three new board members, including company co-founder David Filo, who earned the nickname and formal job title of "Chief Yahoo."

Simplicity is key to co-operative robots

A way of making hundreds—or even thousands—of tiny robots cluster to carry out tasks without using any memory or processing power has been developed by engineers at the University of Sheffield, UK.

Floating nuclear plants could ride out tsunamis

When an earthquake and tsunami struck the Fukushima Daiichi nuclear plant complex in 2011, neither the quake nor the inundation caused the ensuing contamination. Rather, it was the aftereffects—specifically, ...

New clinical trial launched for advance lung cancer

Cancer Research UK is partnering with pharmaceutical companies AstraZeneca and Pfizer to create a pioneering clinical trial for patients with advanced lung cancer – marking a new era of research into personalised medicines ...

More vets turn to prosthetics to help legless pets

A 9-month-old boxer pup named Duncan barreled down a beach in Oregon, running full tilt on soft sand into YouTube history and showing more than 4 million viewers that he can revel in a good romp despite lacking ...