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: Jury says Silicon Valley firm did not discriminate (Update)

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

Intel in talks with Altera on tie-up

Mar 27, 2015

US tech giant Intel is in talks with rival Altera on a tie-up to broaden the chipmaker's product line amid growth in Internet-connected devices, the Wall Street Journal reported Friday.

Apple chief Cook to give his wealth away: Fortune

Mar 27, 2015

Apple chief Tim Cook is joining Mark Zuckerberg, Bill Gates and other technology titans who have vowed to donate their wealth to charities, according to a report in Fortune magazine.

BlackBerry tops 4Q profit forecasts

Mar 27, 2015

BlackBerry posted a surprise profit in the fourth quarter, but saw a sharp drop-off in revenue as the once-iconic smartphone company said it reached the halfway mark of its turnaround effort.

User comments : 0

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.