"People do stupid things" used to be the tagline in Vonage's television ads. After losing three out of five patent infringement lawsuits, one might consider this a fine example of the pot calling the kettle black. Verizon has been the biggest thorn in Vonage's side, having recently been awarded $58 million in damages and rights to a 5.5% royalty on all future revenues.The Boston Herald reports that US District Judge Hilton has signed an injunction to prohibit Vonage from accepting any new customers. While it doesn't sign the death certificate of Vonage immediately, it certainly puts them on life support. Vonage's lawyer, Roger Warin, described it as the difference between "cutting off oxygen as opposed to the bullet in the head." However, Vonage's CEO Mike Snyder refuses to go quietly into the night."For the market to react the way it did to the recent rulings shows an unfortunate lack of understanding of the judicial/appellate system, a lack of appreciation of Vonage's resourcefulness, or, perhaps, both," Snyder said in reaction to subscriber abandonment and nose-diving stock price. "Anyone who's counting Vonage out is making a huge mistake." Vonage plans to appeal this ruling.
quote: The patents cover technology that allows calls made through the Internet to be connected to traditional phone numbers; that enable Internet phone service to use features such as call waiting and voicemail; to coordinate billing; and to connect through a wireless network.
quote: "cutting off oxygen as opposed to the bullet in the head."