Vonage could be forced to shut down if it loses patent dispute with Verizon

[mandy]

Internet phone company Vonage could be forced to shut down, at least temporarily, if it loses a patent fight with Verizon Communications. Verizon claims the VoIP provider relies on Verizon's intellectual property to deliver services, while Vonage denies infringing on any patents. If the courts take Verizon's side, however, Vonage said it does not have a workaround plan...

"This is about Verizon trying to stifle competition," spokesperson Brooke Schulz told USA Today. "We have not infringed on their patents, period."...

full article: http://www.ecommercetimes.com/story/J1rJ...nage.xhtml

[BellisimaJ.]

Great.   I switched to Vonage a month ago.

[eclectica]

Yikes! I love my Vonage!

[mandy]

Update: Vonage found guilty of violating Verizon's patents

A federal jury on Thursday said Vonage Holdings Corp. violated several patents of Verizon Communications Inc. and ordered the upstart Internet-phone company to pay $58 million in damages as well sizable royalty fees...

The court victory over Vonage could allow the company to go after other providers of Net-based phone services and seek damages...

Verizon, the nation's second-largest phone company, said it would seek an injunction to block Vonage from using its patented technology...

full article: http://www.marketwatch.com/news/story/vo...FAD343A%7D

[BellisimaJ.]

said it would seek an injunction to block Vonage from using its patented technology...

  Damn. I hope this doesn't mean that I need to find a new service provider (phone only).......

[eclectica]

Hey Bell, same boat here lol. If you hear of any good alternatives, let me know!

[BellisimaJ.]

[quote author=eclectica link=topic=7741.msg46258#msg46258 date=1173453981]
Hey Bell, same boat here lol. If you hear of any good alternatives, let me know!
[/quote]

I will----you do the same, please! :turkey1:

[rose]

The court victory over Vonage could allow the company to go after other providers of Net-based phone services and seek damages

It's a repeat of what the Baby Bells did to independent DSL providers earlier this decade.

[mandy]

Analysis of Vonage's loss;

The jury's decision and expected injunction barring Vonage from using Verizon technology without paying the royalty fee are likely to take a big financial toll on Vonage and push back profitability targets. They could also undermine customer confidence and make Vonage and other Web-calling providers vulnerable to other lawsuits...

With an injunction in place, Vonage either will have to pay Verizon royalties or rebuild its network so that it doesn't use the technology in question -- or face a service shutdown. Both options are fraught with risks. Verizon's patents cover a range of features, from call-waiting to how Web calls are connected to traditional phone lines. So coming up with a so-called workaround won't be easy, say Stifel, Nicolaus analysts...

full article: http://www.ecommercetimes.com/story/nUhT...nage.xhtml

[BellisimaJ.]

Bolding is mine.

Even if a workaround is found, putting it in place could be disruptive. Witness Research In Motion (Nasdaq: RIMM) Latest News about Research In Motion, whose customers temporarily lost service after a network upgrade originally designed to combat patent-infringement claims.

In a statement, Vonage didn't address the prospect of technology alternatives but said, "Vonage's customers should see no change to any aspect of their phone service."

After reading the rest of the article, I am now looking for a new provider.

Thanks for the update, Mandy!