Vonage Has “No Workarounds” to Avoid VoIP Patent Injunction

6:30 am on April 17, 2007 | Category: Business, VoIP, Telecom Services, Telephone, Law

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Internet phone provider, Vonage, admitted late last week what many shareholders had feared; the company has not yet been able to develop “workaround” technology to sidestep an injunction brought against its service after a lengthy patent dispute with Verizon.

Furthermore, Vonage says that a workaround solution may not even be possible, due to the broad-reaching nature of Verizon’s VoIP patents. This marks the first time Vonage has admitted that Verizon’s injunction will, if not overturned by the courts, mean almost certain death for its popular broadband telephony service.

“Vonage currently has no workarounds that moot the need for a stay,” the company revealed in a court filing last Friday. “While Vonage has studied methods for designing around the patents, removal of the allegedly infringing technology, if even feasible, could take many months to fully study and implement.”

The struggling VoIP provider, whose shares have dropped more than 80% since a much hyped IPO in May 2006, is seeking mercy from the appeal courts in the form of a permanent stay on Verizon’s injunction.

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    1. looks like the countdown to Vonage’s demise is clicking down faster. At least it made a huge impact in the VoIP world and set the tone for all the current and upstarting VoIP companies.

      Nationwide Long Distance

      Comment by vic — April 17, 2007 #

    2. It sucks what happened to vonage. They are just about done in the high speed industry. I mean i hope they turn things around! http://t1stopshop.com

      Comment by john — November 25, 2007 #

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