» Verizon-Vonage Decision Could Trigger Flurry of VoIP Patent LawsuitsTelecommunications Industry News

Telecom News Editorials Reports Glossary

Verizon-Vonage Decision Could Trigger Flurry of VoIP Patent Lawsuits

7:00 am on March 22, 2007 | Category: Business, Law, VoIP

The American VoIP industry will see a rise in intellectual property lawsuits over the next couple of years, according to legal experts and industry insiders, triggered by Verizon’s successful patent infringement case against Vonage Holdings Corp.

The U.S. Patent and Trademark Office has granted a total of 2,273 patents dealing with Voice over IP hardware, software, and services, many of which belong to major telecom players like Verizon, AT&T, Cisco Systems, Motorola, and Broadcom. Known for their deep pockets and unwavering determination to nip new competitive threats in the bud, these dominant players are expected enforce their intellectual property rights whenever possible.

The big guys won’t be the only ones doing the suing, however, as small VoIP providers seek to stay in the game, and â€œpatent sharksâ€ file intellectual property complaints against cash-rich companies in hopes of quick settlement money.

As things stand now, the Verizon patent suit is going to cost Vonage dearly for years to come, but it will also trigger a much more profound, industry-wide effect, spurring a flurry of VoIP patent battles fought by plaintiffs and defendants large and small.

Telecommunications Industry News