Court Stays Patent Injunction Against Vonage

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3:25 pm on April 24, 2007 | Category: Business, VoIP, Telecom Services, Telephone, Law

A U.S. Appeals Court has agreed stay a crippling injunction against Vonage Holdings Corp., which would have prevented the independent VoIP provider from singing up new customers, due to a successful patent lawsuit by larger rival, Verizon Communications.

A panel of judges asked questions to each of the two companies for approximately 45 minutes, before ruling that the injunction would be stayed while Vonage seeks to appeal the lower court’s patent decision.

“We thank the appellate court for its thoughtful consideration of the merits of our case,” said Vonage CEO, Jeffrey Citron, in a written statement. He added, “We remain focused on growing and strengthening our business and driving toward profitability.”

Vonage will continue to contribute 5.5% of its revenue into a special royalties fund, which will be turned over to Verizon if the appeal fails.