Vonage loses appeal in Verizon patent case
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The Internet phone provider now faces paying out hefty damages and a possible shutdown of its service.
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Internet phone company Vonage loses a patent case that could threaten its business.
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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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A federal jury yesterday ordered Vonage Holdings to pay Sprint Nextel $69.5 million in damages for violating six of its patents, prompting analysts to question whether the troubled Internet phone company could survive.
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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 telephone company Vonage Holdings Corp. was ordered in federal court Tuesday to pay Sprint Nextel $69.5 million in damages for infringing on six telecommunications patents owned by Sprint Nextel Corp.
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'Sprint and Verizon got nothin' on us' Yet another big-name telco has sued Vonage for patent infringement.â¦
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The state of California is mounting a legal challenge to a recent Federal Communications Commission ruling that VOIP phone services sold by Vonage Holdings Corp.
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For the second time in two days, Internet phone company Vonage Holdings Corp. was hit with bad legal news Wednesday when a federal appeals court upheld a jury verdict and injunction against it for patent infringement.
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BREAKING NEWS - It may be extremely slim comfort for VoIP services provider Vonage in the wake of yesterday's total loss in the patent infringement suit brought against it by Sprint Nextel, but Vonage will take it nonetheless: A federal appeals court upheld today only two of the three patent infringement decisions in last March's case brought on by Verizon, remanding the third to a lower court for retrial.
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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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ALEXANDRIA, Virginia  - A federal jury on Wednesday began reviewing evidence in Verizon Communications Inc.'s $197 million patent infringement case against Internet phone service provider Vonage Holdings Corp..
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A federal appeals court handed Google Inc a setback in a patent fight on Wednesday, tossing out part of a summary judgment in the Web search engine's favor in a lawsuit filed by HyperphRase Technologies, LLC.
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A U.S. jury found that Vonage Holdings Corp had infringed patents owned by Sprint Nextel Corp and ordered the Internet phone company to pay $69.5 million in damages, triggering a 34 percent fall in its shares.
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Internet phone service provider Vonage  Holdings Corp.  on Monday said it has been served with a  patent infringement lawsuit filed by two units of Verizon  Communications Inc. .
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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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Internet-based calling company Vonage Holdings Corp.  said on Thursday that it settled a patent dispute with Verizon Communications Inc .