Vonage and Verizon headed back to court this week for a
judge decision on whether the Internet phone provider could be granted a second
reprieve while the lawsuit proceeded. According
to a press release, Vonage was granted the permanent stay of injunction by
the U.S. Court of Appeals for the Federal Circuit of Washington D.C. on Tuesday
of a previous court's injunction that would bar the company from signing up new
Following the April 6th decision by the U.S. District Court of Alexandria, Va
stating that Vonage was not allowed to sign up new customers using certain VoIP
technology, the company was granted an emergency stay, allowing it to sign up new customers as the
"We thank the appellate court for its thoughtful consideration of the
merits of our case," said Jeffrey Citron, Vonage chairman and interim
chief executive officer. "It's business as usual for us. We will continue
providing reliable, quality digital phone service at the best value in the
market and connecting thousands of phone calls every day. We remain focused on
growing and strengthening our business and driving toward profitability."
Vonage will continue its service by paying the quarterly royalty of 5.5 percent
to Verizon through the litigation, on top of posting a $66 million bond
required by the court. The company's current financial status allows it
to maintain these fees for the stay in order to make progress in the ongoing
Vonage executive vice president, chief legal officer, and secretary, Sharon
O'Leary, remain very confident in the strengths of the company's legal appeal.
"We believe the original verdict was based on an erroneous claim
construction -- meaning the patents in this case were defined in an overly
broad and legally unprecedented way," O'Leary stated, "We are
confident this error will be rectified by the appeals court, which hears
intellectual property cases exclusively. As a result, we remain highly confident
Vonage will prevail on appeal."
Existing Vonage customers will remain unaffected by the patent litigation,
and the company feels very optimistic about the outcome of the trial.