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Appeals court affirms injunctions ordered against Vonage in suit brought against it by Verizon

Verizon and Vonage have been duking it out in court for months now in a lawsuit that alleges that Vonage used five Verizon patents in the technology Vonage uses to connect VOIP calls. Vonage fervently denied that it used technology covered in Verizon patents.

Specifically, Vonage maintained that it used third party technology that was already a standard in the industry, yet that didn’t keep Vonage still lost the initial volley of litigation. A court found Vonage used Verizon technology in three of the five patents at the heart of the case in March of 2007.

Shortly after the original loss to Verizon, Vonage issued a statement saying it would appeal the decision if a stay of the injunction handed down against it was not given. The injunction that Vonage feared came true with a judge banning Vonage from signing up new customers, awarding Verizon the sum of $58 million dollars in damages and rights to a 5.5% royalty on future Vonage revenues.

After the initial injunction, Vonage received an emergency stay of the injunction from the U.S. Court of Appeals for the Federal Circuit. Today the saga of Vonage versus Verizon continues after the U.S. Court of Appeals in Washington upheld the injunction against Vonage.

CNN Money reports that a third judge issued a dissenting opinion stating the entire ruling and award should have been affirmed. Vonage still maintains that the ruling won’t affect its business because the company stopped using Verizon technology even before the original patent case.

Even with the work arounds in place Vonage will still pay approximately $40 million in damages to Verizon.




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