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: EU Parliament votes to break up Google

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

EU Parliament votes to break up Google

Nov 27, 2014

The European Parliament voted overwhelmingly for the break-up of Google Thursday in a largely symbolic vote that nevertheless cast another blow in the four-year standoff between Brussels and the US Internet ...

Toyota finds new air bag issue, recalls more cars

Nov 27, 2014

Toyota Motor Corp. recalled more than 40,000 vehicles in Japan on Thursday as part of a worldwide scare over defective air bags and is investigating a new type of air bag problem that could lead to further recalls.

Netflix sues Yahoo CIO for alleged kickbacks

Nov 26, 2014

Netflix is suing a former company vice president who is now chief information officer at Yahoo, accusing him of receiving money from vendors he hired to work with the video streaming company.

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.