NEWS: Vonage Appeal Denied

Vonage Holdings was smacked with its second legal setback in two days when the U.S. Court of Appeals for the Federal Circuit on Wednesday upheld a lower-court ruling that the Internet-voice provider had infringed two patents held by Verizon Communications.

The decision came a day after a federal jury in U.S. District Court in Kansas City, Kan., found that Vonage infringed six Sprint Nextel patents and ordered the Internet-phone company to pay $69.5 million in damages. Vonage said it plans to appeal that ruling.

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In a note issued after the appeals court ruling, Stifel, Nicolaus & Co. research analyst Rebecca Arbogast wrote, "On balance, we view this as bad news for Vonage because the court upheld the judge's patent construction and the injunction [on the two patents], which cover the [voice-over-IP to public phone network] connection and calling features, and thus go the core of Vonage's current business."

The key question now, Arbogast added, is whether Vonage's workarounds "will survive scrutiny by Verizon."

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Reply to
John Navas
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Thanks for posting this. I am moving my office back home and was thinking about going with Vonage because of the ease of setting up 4 lines and the myriad of things they have as opposed to land lines.

Reply to
Don Harvey

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