Vonage Settles With Verizon, Will Pay At Least $80 Million
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The cost of Vonage's VoIP technology development policy - build now, ask questions later - hardened a bit more after the close of stock trading this afternoon. Vonage has agreed to settle with the first of its three aggrieved parties, Verizon, in an unusual deal that hinges upon a forthcoming ruling from an appeals court and a separate injunction ruling from a district court.
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Internet-based calling company Vonage Holdings Corp  said it has agreed to settle a patent dispute with Nortel Networks   with no payment of damages, sending its share up more than 8 percent.
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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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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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(InfoWorld) - Shares of Vonag plunged Friday in the wake ofÂ a patent-infringement ruling against the companyÂ that some analysts called a grim outcome for the VoIP service provider. Vonage stock fell $0.69 to $4.17 on the New York Stock Exchange, losing more than 14 percent of its value, after a jury decided on Thursday that the company infringed three Verizon patents on commercial VoIP services technology. Vonage was ordered to pay $58 million in damages and a 5.5 percent royalty rate on future sales. Verizon also is seeking a permanent injunction to keep Vonage from using the technologies. Vonage plans to appeal. The ruling comes after a string of setbacks for the scrappy service provider, which has yet to make a profit. Vonage was founded in 2001 and has built up its customer base to more than 2.2 million through heavy investments in marketing. Along the way, it has become the most visible independent provider of VoIP, which puts voice calls on data lines for lower cost and some extra features. TheÂ company has claimed Verizon sued in order to eliminate a competitor to the traditional circuit-switched phone service that is its bread and butter. Although the judgment is not very big compared to some, it could be devastating to Vonage if it stands, analysts said. "It's a drop in the bucket, but they need every cent they can get," said Will Stofega, a VoIP analyst at IDC. The company is already dealing with shareholder lawsuits over its disappointing IPO last year along with difficulty meeting regulatory requirements like E911 emergency service and the Communications Assistance for Law Enforcement Act, he said. The $58 million sum is about as much as the company is losing every quarter, Ovum analyst Jan Dawson pointed out in a research note on Friday. Vonage lost $65 million in the fourth quarter of 2006. "As this case gets more coverage, potential customers will be worried about signing up for new service with Vonage, and existing customers may churn in larger numbers than usual. Both of these effects would be disastrous for Vonage," Dawson wrote. Verizon might also go after other VoIP providers for infringing the patents, Stofega said. Big providers like the cable operators could absorb royalties, but smaller independent players would be even more vulnerable than Vonage. Already, regulatory requirements and "a race to the bottom" on pricing are threatening the stand-alone VoIP service business, he said. In a few years, many more people will be using the technology, but VoIP companies as such may become a thing of the past. Jeff Pulver, a longtime VoIP booster who co-founded Vonage before leaving the company, was more optimistic in an entry on The Jeff Pulver Blog, in which he called the ruling "the end of the seventh inning," a reference to baseball, which has nine innings. "This isn't the end of the battle," Pulver wrote. "I hope and trust this decision does not curb innovation and progress in VoIP and other Internet communications products, services, and applications."
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The founders of the money management firm Pilgrim Baxter &amp; Associates agreed yesterday to each pay $80 million in a settlement that resolves a longstanding complaint that they improperly profited
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The agreement settles a California civil suit over its pursuit of private phone records to trace a news leak.
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A jury dealt a blow to  loss-making Internet phone provider Vonage Holdings Corp.   on Thursday, ordering the company to pay $58 million  plus royalties on future sales for infringing three patents  owned by Verizon Communications Inc. .
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Blog: A deal with Obopay will allow Verizon's wireless subscribers to use their cell phones to send money to each other.
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(InfoWorld) - A federal jury has found that Vonage infringed three Verizon patents and must pay $58 million in damages plus royalties to Verizon, Vonage confirmed Thursday. Verizon sued Vonage last June, alleging the VoIP provider had violated seven of its patents involving the packet-based calling technology. In reality, the giant carrier sued to try to eliminate "a formidable competitor" to part of its traditional phone business, said Vonage spokeswoman Brooke Schulz. Vonage must pay a 5.5 percent royalty rate on future sales to use the Verizon technology. After the verdict, Verizon asked for a permanent injunction to stop Vonage from using the technology altogether, Vonage confirmed. In a statement, Vonage said it expects the verdict to be reversed on appeal. The award was 70 percent lower than the $197 million that Verizon originally sought, Vonage said. There is no basis for an injunction, and Vonage will seek a stay from the Federal Court of Appeals if it is imposed, the company said. Vonage customers should not see any change to their service, Vonage said. "We are proud of our inventors and pleased the jury stood up for the legal protections they deserve," Verizon said in a statement. Â
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Internet-based calling company Vonage Holdings  Corp  said it settled a patent dispute with Nortel.
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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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Asks if provisions for 'workaround' are appropriate The black clouds that for the last three months have been hanging over VOIP service provider Vonage parted ever so slightly today, allowing through the tiniest sliver of sunshine as a federal appeals judge raised the possibility of a compromise in its patent war with Verizon.â¦
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Vonage Holdings Corp., the beleaguered provider of Internet-based telephone service, said Thursday it has settled a patent lawsuit brought by Verizon Communications Inc. for a maximum of $120 million.
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VoIP provider Vonage and Nortel Networks are coming close to a settlement in their patent dispute.
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Internet phone service Vonage on Tuesday said it has struck a deal with Cisco Systems Inc. (CSCO.O: Quote, Profile, Research) to sell Vonage-ready equipment at hundreds of retail stores in a bid to boost new subscriptions.
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Digital phone service Vonage   said on Friday it has settled a patent dispute with AT&T .