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Judge mandates that Vonage cannot sign up any new customers.
ALEXANDRIA, Va. - A judge issued an injunction Friday that would bar Internet phone carrier Vonage from signing up new customers as punishment for infringing on patents held by Verizon Communications Inc.
Last month, a jury in Alexandria, Va., found that Vonage infringed on three patents held by Verizon. The jury awarded Verizon $58 million plus future royalties of 5.5 percent on revenue obtained through continued use of the infringed patents.
On March 23, judge Hilton went even further, issuing a permanent injunction barring Vonage from further use of the patented technology. He said royalties were insufficient given a competitive climate in which Vonage continues to gain subscribers at Verizon's expense.
Originally posted by makeitso
It would be a pain to change.
But it would be worse if you have your 401K tied to their stock. It has taken a serious nose dive.
Vonage chief executive Michael Snyder has resigned
Snyder joined the company shortly before it went public in May. Since then, Vonage's stock price has tumbled by more than 80 percent
industry analysts said, Vonage would have trouble surviving if it is banned from using the disputed technology.
Citron said the company is trying to design alternative techniques to continue serving its customers. "It is important to remember that such workarounds will take time," he said.
Vonage Holdings Corp. was ordered in federal court Tuesday to pay Sprint Nextel $69.5 million in damages for infringing on six telecommunications patents owned by competitor Sprint Nextel Corp. In addition to the damages, jurors awarded Sprint Nextel a 5 percent royalty from Vonage on future revenues. It was the second verdict against Vonage this year.
the decision 'feels like a death knell' for Vonage.
A Settlement by Vonage Over Patents
...The news buoyed the price of Vonage’s stock amid optimism that the settlement would eliminate one of several clouds hanging over the company. Its shares jumped 123 percent to close at $2.57. The price is still down 63 percent for the year.
Last month Vonage was ordered to pay $69.5 million in damages to Sprint after a jury found that the company had infringed on six of its patents. The settlement with Sprint includes a $35 million payment for the past use of patents, $40 million for future use and $5 million in “prepayment for services.” ...