Posted on 04/06/2007 12:15:49 PM PDT by mylife
Judge bars Vonage from signing up new customers
A U.S. district court ruling prohibits Vonage from adding new customers due to a jury's finding that the VoIP provider infringed on Verizon's patents
By Grant Gross, IDG News Service
April 06, 2007
A U.S. district court judge on Friday barred VoIP provider Vonage from signing up new customers after the company lost a patent infringement lawsuit to Verizon.
Judge Claude Hilton of the U.S. District Court for the Eastern District of Virginia denied Vonage's request to stay an injunction pending its appeal of a patent infringement ruling. On March 8, a federal jury found that Vonage infringed on three Verizon patents and must pay $58 million in damages plus royalties.
Verizon sued Vonage last June, alleging the VoIP provider had violated seven of its patents involving packet-based calling technology.
Hilton issued a permanent injunction against Vonage in late March but delayed its implementation while considering Vonage's request for a stay. Vonage has said it would appeal the injunction to a higher court if it failed with Hilton.
Current customers won't be affected by the injunction, Vonage has said.
A Vonage spokeswoman said Friday that the company is still evaluating Hilton's ruling and that the company would release a statement later. A Verizon spokesman said that company also would release a statement later Friday.
The ruling creates major questions for Vonage's future, VoIP analysts said.
"It just keeps getting worse and worse for them every week," said Will Stofega, research manager for VoIP services at IDC. "For the judge to rule they can't sign up new customers, that's the whole idea in terms of their strategy."
Vonage has said it has an alternative technology it can use that doesn't use the patents claimed by Verizon. "Now is the time to demonstrate they have it," Stofega said.
With no ability to grow, Vonage's future is in doubt, added Jeff Kagan, an independent telecom analyst. "Vonage was the poster child for the new VoIP technology, but now everyone is a competitor, and their importance is limited," he said. "The big question is about the company's survival, not the VoIP technology."
I loved their commercials and generally dispise most commercials L0L
I had my service hiccup once so far
We’ll see what the lawyers come up with
Most of the Vonage commercials have a “men are stupid” subplot (although there is one with a dumb blonde who thinks the sharks in the ocean are dolphins).
I never heard the dreaded echo and havent lost any calls that Im aware of
Agreed. I don’t see how this benefits Verizon. If Vonage goes under, Verizon may not get the 58 million and it certainly won’t get any continuing royalties on the patents.
Don’t you just love software and business method patents? They’re like a big club for the established players to beat down innovative start-ups with. In the end only we, the consumers, lose.
I have had Vonage for a couple of years. I used my SoftPhone on my laptop to make calls to family members in the US while I was in New Zealand. I might be taking a trip to Japan this summer and will use them there as well. The calls are considered “local”.
Lets face it. They hate competition
I love the idea!
I just signed up 5 minutes ago. Been meaning to switch and figured now was a good time. The lag between the judge’s order and the tech team is a little more than a few hours.
I hope it works out for you.
What kind of connection are you using for internet?
I just use Skype, less money and calls to other Skype customers anywhere in the world are free
The only real issue Ive had so far is talking to bangalore and that hasnt been too bad, I guess im used to it as I have family in India L0L
May be of interest.
does Skype use softphones exclusivly? or to they have a handset model?
Stand-alone handsets are growing in number. Belkin makes a WiFi Skype phone.
Cool!
I like the flash USB softphone idea for travel but prefer a cordless handset for in my home
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