Verizon's VoIP Patent Case Against Vonage
There's an interesting court case going on that I haven't seen a lot of talk about lately. This caught my eye on ars technica this morning.
Verizon: Infringing on our VOIP patents costs $5 per user, per monthVonage questions the validity of the patent. That doesn't sound like a strong winning argument. The claim is that Verizon is trying to kill off a major competitor. Well, duh.
During closing arguments in its patent infringement case against Vonage, Verizon attorneys asked the jury to award the telecom $197 million in damages along with royalties of $4.93 per customer, per month. Accusing the United States' largest VoIP provider of building its business on Verizon's patent portfolio, Verizon lawyer Dan Webb told the jury that "This company has done very well with our patents and our technology for a number of years," according to Reuters.Verizon's case hinges on seven patents awarded some time ago, covering voice mail, call forwarding, and WiFi calls. The seven patents turned into 48 patent infringement claims—all of which Verizon was allowed to raise during the trial. [Read full story]
Verizon says Vonage is infringing on 7 patents in 48 ways. That sounds sunstantive.
Bottom line is in the last paragraph -
Vonage has said that its operations would be unaffected by a Verizon triumph, but given the company's history of hemorrhaging money, absorbing a sizable judgment and paying royalties of almost $5 per customer, per month may prove very difficult.Hemmorrhaging indeed. No matter what their claims of success or revenue and cash flow, I've always had doubts about Vonage's long term viability.
Technorati Tags: Vonage, Verizon, patent lawsuit, VoIP
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