Verizon Granted Injunction Against Vonage Over Patent Infringement

by Glen Shapiro, LawAndTax-News.com, New York

27 March 2007

Ruling last week, a judge in the US District Court for the Eastern District of Virginia granted a permanent injunction against the use by internet telephony provider Vonage of patented technology owned by mobile telecommunications rival, Verizon.

Earlier this month, jurors at the Virginia District Court found that Vonage had infringed several US patents held by Verizon, covering areas such as wireless and call waiting technology, and conversion mechanisms from VoIP to standard telephony.

Vonage was ordered to pay $58m, and royalties of 5.5% of future sales.

In a statement issued on Friday, following the granting of the injunction, Vonage announced that:

"The US District Court in Alexandria, Va. today issued an order enjoining Vonage from using certain VoIP technology named in its patent litigation with Verizon. The order is not immediately effective, however, and Vonage is confident its customers will see no change in their phone service."

"The court announced its intent to hear stay argument in two weeks' time. At that time, the court intends to render a decision regarding the stay, as well as making the injunction effective. If the court denies the stay, Vonage will seek a stay through appeal from the Federal Court of Appeals. Vonage is confident it will be able to obtain a stay through appeal."

It continued:

"The company has drafted its notice of appeal of the March 8 jury verdict and will file that notice at the appropriate juncture in the court proceedings."

Vonage's chief executive officer, Mike Snyder added:

"Our fight is far from over. We remain confident that Vonage has not infringed on any of Verizon's patents - a position we will continue vigorously contending in federal appeals court - and that Vonage will ultimately prevail in this case."

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