Vonage: Verizon ruling partially upheld

Poor, poor Vonage. Just a day after getting a $69.5 million slap in the face from Sprint, a U.S. Court of Appeals has seen fit to "partially affirm" the earlier Verizon verdict. In case you’ve forgotten, that verdict saw Vonage paying $58 million in addition to royalties future revenue. Looks like Vonage is going to play the stay game on this one as well: the "injunction has been stayed pending resolution of Vonage’s appeal." Still, the ruling will go into effect in a month, unless Vonage is able to procure an emergency stay from the Supreme Court. Vonage users had better hope that the company has a huge war chest–otherwise, it looks like you might have to start shopping around for a new VoIP provider.

For more on the ruling:
– see this AP article

More stories about Sprint   Verizon Wireless   Vonage  

Comments

you obviously did not read the verdict. the $58mm award, as well as the royalties, was vacated until further review by the lower court. secondly, the appeals process is being utilized by circuit court to chip away at a unconstitutional application of patent law. this has already been recognized by the supreme court. Vonage attorney’s know this. They attempted to have the whole thing thrown out under this argument, but were not able to do so because the appeals court at a regional level cannot do so. the supreme court will.

thirdly, vonage is no longer using the patents in question. there has been an implementation of a workaround. therefore future royalties will not have to be paid. finally, vonage will eventually be sold, to a cable provider or sprint, which means you should buy as much of the stock as you can at a dollar, once the suspension is lifted.

The only winners here are the lawyers because VoIP is a great offer that delivers real value. Pity since it is likely that Vonage will hemorrhage due to the FUD factor (fear, uncertainty and doubt). And worse, it will give a black eye to all of the other good providers like Net2Phone and Lingo.

I have Net2Phone and I like them because they seem to have focused primarily on developing technology with a great set of features – rather than throw money at campaigns. After more than 10 years, they are not the Johnny come lately so at least I feel safe with them.

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