Verizon wins permanent injunction against Vonage

Ruh roh, bad news for Vonage today. In one of the nearly ten million patent infringement suits that we're closely following, a U.S. District judge has issued a permanent injunction against leading VoIP provider Vonage, barring the upstart telecom from using any technology protected by the three Verizon patents it has been convicted of infringing. In response to the ruling, company execs issued a statement attempting to reassure customers and reiterate its intent to appeal, although that didn't stop panicked investors from pushing shares down 6.2% before trading was halted. Specifically, Vonage wants you to know that you "will not experience service interruptions or other changes as a result of this litigation," claiming that it expects to prevail in an appeals process which starts in two weeks. If District Judge Claude Hilton decides at that time to make the injunction effective, Vonage can still plead its case in front of the Federal Court of Appeals -- however, Hilton's analysis of the injunction's potential effects on both parties seems to squarely Verizon, which doesn't bode well for Vonage even in a higher court. In other words, there's no reason for Vonage users to start freaking out just yet, but if we were in your shoes, well, we might at least start window shopping for a new landline network.

Read - Reuters
Read - Vonage PR

[andy @ Mar 23rd 2007 2:49PM]

Considering Verizon's lack of intent to pursue (develop or license) the patented inventions (comprehensive VOIP service generally), I wonder when the anti-trust investigations/lawsuits will begin.

[xxx @ Mar 23rd 2007 3:51PM]

Verizon does offer VOIP http://www.verizon.com/voip

Do some research next time before you comment off the cuff.

[andy @ Mar 23rd 2007 3:59PM]

How do you comment off the cuff if you research it first?


And no thanks, I'll let you do my 'research' for me.

[Philster @ Mar 23rd 2007 4:01PM]

Woo Hoo, Woo hoo--Oh crap.

[LikesGadgetsWillTravel @ Mar 23rd 2007 4:17PM]

This is going to be fun to see. Looks like the two billing patents have already been rejected by the jury. If Verizon really sues them for a patent on connecting VOIP equipment to a phone-line (packet switched to circuit switched interconnect) and wins... then Verizon would own the entire VOIP market -- including digital office PBX etc.

If Vonage has a decent legal time, they should be quick to point out that such an interconnect is not worthy of a patent, as it's (a) an obvious, possibly a trivial idea, and (b) it's already in such widespread use that reveals Verizon never had intent to pursue -- they just started now for business reasons. Ya snooze ya lose, even if the patent was trite.

[john] commenter @ Mar 23rd 2007 4:48PM]

Patent enforcement by one party (absent anti-competitive agreements) is completely immune from antitrust, absent one of sham litigation (PRE, Handgards) or truly obnoxious deception of the patent office (Walker Process) . Verizon can do this until the cows come home. No antitrust. Ever.

Why else do you think Microsoft has shifted to patents?

[Thomas Trautman @ Mar 23rd 2007 5:22PM]

All bow down to our Telecommunication overlords!!

Really nice to see big government lay the smack down to a first mover into a new market.

Patent infringement or not. The suit is designed to cripple Vonage. Perhaps they will throw them a bone and buy them out once the appeals sap their cash reserves.

I'm waiting to see how long before the FCC steps really screws this up. They ruled weeks ago that VoIP provider are to regulated as other telecom providers.

This could really open up a can of worms for Verizon. They are already obligated to provide competitors access to hardlines at a discount. Perhaps they(FCC) will rule in the same manner on using other technologies.

Are cable companies with digital phone services next on the list?

http://vequalsir.com

[SH @ Mar 23rd 2007 9:06PM]

Convicted of infringing patents?

This is not possible in our current legal world. Patent issues are civil matter where there is no such thing as a conviction.

[Iridium @ Mar 23rd 2007 11:39PM]

Well if Verizon forces Vonage to cut my service then I am suing Verizon for forcibly disconecting me from my phone service without leavign me an equal option to replace it. Sorry but an AT&T landline is not a direct replacement. I don't think I should be forced to pay double for my phone service just because of some BS patent. Verizon does not offer VOIP in my area. It's basic restriction of trade and fair business practice.

Besides Verizon's cell phone service is horrible. It's better than some but better than the 7th layer of hell is still the 6th layer of hell. On your plan text messages sent to your phone cost $.10 per message. Yes but I didn't read them or open them. Yes but they were sent to your number. Uh, they were spam messages sent from unknown sources. Well then you need to block the sender. Uh, they keep coming from different sources. Well then you can disable text messaging or you can upgrade to our unlimited text messaging service for $15 per month. How about I find where you and the Verizon executives live and run you over 100 times with your brand new Maseratis.

[arrhhgg i be a pirate @ Mar 24th 2007 6:11PM]

When my house was built verizon come out to put in a line.... i let them run the cable and then cut it right at the ground


then i called and told them that federal law requires them to provide a dmarc ....


they had to come out and rerun the cable and dmarc


I still don't have verzion service


... AND NEVER WILL

[Moshe @ Mar 29th 2007 6:46PM]

There is an offer on the table for $3.22 http://flatplanetphone.com/wordpress/?p=99