Shares Rise as Vonage Settles Fight Over Patent
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Shares of Vonage, the Internet telephone provider, rose sharply after it announced it had settled a patent dispute with Verizon and would have to pay a maximum of $120 million.
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Vonage and AT&#38;T, still locked in a price war, are separately planning new features in a battle for VoIP customers.
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AT&T filed a lawsuit against VoIP provider Vonage Holdings, seeking damages for alleged patent infringement.
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(InfoWorld) - Vonage is downplaying an appeals court decision affirming an earlier verdict of patent infringement on two patents owned by Verizon Communications. The decision, made Wednesday, calls for the U.S. District Court in Virginia to retry the infringement judgment on a third patent. It also vacated the original $58 million in damages and 5.5 percent royalty imposed in the original judgment. The lower court will reconsider the size of the damage award and Vonage expects it to be reduced, said Charlie Sahner, a Vonage spokesman. In addition, Vonage expects a return soon of part of the cash it put up as bond after the ruling was made, he said. The decision comes a day after Vonage lost anotherÂ high-profile patent infringement case brought by Sprint-Nextel. The jury in that case awarded Sprint $69.5 million in damages. Vonage vowed to appeal that decision too. Vonage has already deployed technology so that it doesn't require the two patents upheld in theÂ Verizon case, it said. That means that if the lower court upholds the decision to require Vonage to pay royalties for using the patents, the company will only have to do so related to the period of time before the workaround was implemented, Sahner said. The company maintains that it did not infringe on the remaining Verizon patent in question and plans to defend itself against any new damages judgments. That technology applies to less than 10 percent of Vonage's network, and the company has already completed development of a workaround should the court decide that Vonage infringes on the patent, Sahner said. Vonage is the largest independent VoIP provider in the United States. While it continues to assure customers that the service remains reliable throughout the legal wranglings, the company has seen a decline in new customers. In its second quarter this year, Vonage added 57,000 customer lines, compared with 256,000 in the same quarter in the previous year. Still, Sahner emphasized that the future is bright for Vonage. The company has the cash to pay for the Sprint case, if it fails in appeal, Sahner said. "Vonage is here to stay," he said. "We want to be an alternative to the entrenched phone company and think it's important to have an alternative." This story was updated on September 26, 2007
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Battered and bruised from its patent fights with Sprint and Verizon over technologies used in its VoIP service, Vonage disclosed Friday that it has also been sued by AT&T.
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Internet phone company Vonage loses a patent case that could threaten its business.
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Vonage downplays an appeals court decision affirming an earlier verdict of patent infringement on two patents owned by Verizon.
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Verizon Communications Inc. has charged that Internet phone carrier Vonage Holdings Corp. violated patent rights that Verizon has on technology for making phone calls over the Internet.
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A federal court ruled that VoIP provider Vonage Holdings Corp. infringed on patents owned by Sprint Nextel Corp.
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Vonage is downplaying an appeals court decision affirming an earlier verdict of patent infringement on two patents owned by Verizon Communications.
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Vonage Holdings and Nortel Networks have preliminarily agreed to cross-license several patents, ending a dispute between the companies without any monetary payments, Vonage said Monday.All claims relating to past damages as well as remaining payments will be dismissed, the company said. Documents sealing the agreement have not yet been finalized.The agreement is a minor victory for Vonage. The company has settled or reached tentative agreements in three other patent disputes related to VoIP (voice over Internet Protocol) and other telecommunications technology for what could ultimately reach $239 million in payments.Vonage tentatively agreed last month to&#160;settle a patent infringement lawsuit filed by rival AT&amp;T&#160;for $39 million. Prior to that deal, Vonage had reached&#160;settlements with Sprint Nextel&#160;for $80 million and&#160;with Verizon Communications&#160;for $80 million to $120 million, depending on the results of an appeal.&#160;
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By JEFF ST. ONGE and AMY THOMSON, BLOOMBERG NEWS Vonage Holdings Corp. must pay $58 million plus monthly royalties to Verizon Communications Inc. for infringing three patents on Internet-telephone service, a federal jury ruled Thursday. Vonage shares fell to their lowest ever.
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Vonage, an Internet phone company, may receive a temporary lifeline as it struggles to survive a patent dispute with Verizon Communications.
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Companies say they have "resolved" dispute over three voice over Internet protocol patents. Precise amount of settlement depends on whether appeals court agrees to review case.
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AT&amp;T filed a lawsuit against VoIP provider Vonage on Friday seeking damages for alleged patent infringement.The lawsuit comes just days after Vonage settled a patent-infringement lawsuit with telecom provider Sprint Nextel.In a filing with the U.S. District Court for the Western District of Wisconsin, AT&amp;T alleged that Vonage wilfully infringed an AT&amp;T patent related to telephone systems that allow people to make VoIP calls using standard telephone devices.In the legal filing, AT&amp;T said it tried to reach an agreement with Vonage to license the patent, but failed, which forced the lawsuit.Vonage announced on Oct. 8 that it settled its suit with Sprint Nextel for $80 million. As part of that agreement, Vonage agreed to license VoIP patents from Sprint, including more than 100 patents covering technology for connecting calls from a traditional phone network to an IP network.Vonage is also in the process of resolving a patent infringement dispute with Verizon. Earlier this year, a court found&#160;Vonage infringed on Verizon patents&#160;and ordered an injunction that could have prevented Vonage from signing up new customers.&#160;Vonage won an injunction staying the order&#160;and is appealing the original infringement ruling. Vonage in August said it was close to rolling out workarounds for two of the three patents Verizon claimed.Vonage is one of the largest independent VoIP providers in the U.S. with nearly 2.5 million customers.
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Vonage tells customers to hold fast after patent court rules in favor of Verizon. Plus: Stocks tumble again. LG goes to Iran. And more.
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ALEXANDRIA, Va. -- Internet phone company Vonage infringed on three patents held by Verizon Communications and must pay $58 million plus possible future royalties to its competitor, a jury said yesterday.