Verizon wins $58 million from Vonage, proceeds to seek injunction

It was definitely not as bad as it could have been, but Vonage just got slapped with a $58 million fine after being found guilty of violating three of Verzion's patents for connecting VoIP calls to the regular circuit-switched telephone network. The big question now is whether Verizon will be able to get an injunction barring Vonage subscribers from using Verizon's technology to make phone calls to regular phone lines. Vonage is already appealing the verdict, but if it stands they'd either have to develop a non-infringing workaround, pay a 5.5% royalty on any revenue derived from using Verizon's technology (assuming Verizon even allows it), or cut off service to all 2.2 million of its customers (they'd still be able to make VoIP calls to other Vonage subscribers, but who'd stick around for that?).

[mike @ Mar 8th 2007 9:13PM]

you have this story a little wrong:...it wasn't just landline to voip, it was also call waiting and another verizon patent. Vonage also hasn't said they are working on another method because they "still think they haven't infringed on any patents"...after the ebay situation it has become much harder to show patent infringement and get an injunction.

verizon should just buy up Vonage.

[Mike @ Mar 8th 2007 9:25PM]

If Verizon can get Vonage with this one, Vonage is totally screwed. Rawr.

[Sandtigrr @ Mar 8th 2007 11:18PM]

Dont think for a second that Vonage will be the only company they go after. Next will be other VoIP companies and then I bet Time Warner/Comcast/Etc

[The Infamous @ Mar 9th 2007 9:22PM]

i hope they go after comcast...they are terrible. Not to mention their terrible customer service

[Mike @ Mar 9th 2007 1:59AM]

I dont see Vonage going anywhere anytime soon! The CEO (Citron) knows what he is doing, this is the same guy who started DiTech Technologies and the same guy who changed the Stock Market from fractions to decimals...

[Mrmean @ Mar 9th 2007 8:47AM]

lol @ vonage

[Chad @ Mar 9th 2007 9:02AM]

Man, I hope Vonage pulls out of this. I'm a very happy Vonage subscriber and I cringe when I think of my other alternatives.

[CowboyGA @ Mar 9th 2007 9:19AM]

"they'd still be able to make VoIP calls to other Vonage subscribers, but who'd stick around for that"

Vonage will not let go of this feature for that very reason. Without it, I see little point in Vonage having steady market growth.

[Z @ Mar 9th 2007 11:33AM]

After reading what Vonage is facing...


Ouch.