Verizon Wins Internet-Phone Case; Vonage Infringed on Patents, Must Pay $58M
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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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The Internet phone provider now faces paying out hefty damages and a possible shutdown of its service.
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Shortly after being ordered to pay $58 million to Verizon in a patent suit, voice-over-the-internet phone service Vonage has now been ordered to pay $69.5 million to Sprint Nextel.
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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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According to Vonage, rumors of its demise due to its ongoing patent litigation with Verizon have been greatly exaggerated. Vonage is accused by Verizon of violating seven even patents covering telephone features and the use of Wi-Fi to place telephone calls.
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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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AT&T Inc  has filed a patent  infringement lawsuit against Vonage Holdings Corp ,  according to a Vonage regulatory filing on Friday, the latest  legal trouble for the Internet phone service provider.
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'You might get $120m. You might get less' Vonage has settled its legal tete-a-tete with Verizon, agreeing to pay the telcom giant somewhere between $80m and $120m. Final terms of the deal depend on one last ruling from the US Court of Appeals.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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Verizon Communications won an appeals court ruling yesterday upholding most of a patent verdict over smaller rival Vonage Holdings, the second legal setback for the Internet phone company in as many days.
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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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(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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ALEXANDRIA, Virginia  - A jury on Thursday ordered Internet phone provider Vonage Holdings Corp. to pay $58 million for infringing on three patents owned by Verizon Communications Inc..
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Vonage is getting sued--again. This time telecommunications equipment maker Nortel Networks says the company has violated nine patents related to its Internet phone service.
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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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Verizon Communications Inc said on  Friday it has settled its lawsuit against Internet REIT, a  seller of Internet domain addresses.
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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. .