Vonage Asks for Retrial of Verizon Patent Lawsuit

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6:30 am on May 3, 2007 | Category: Business, VoIP, Law

Independent VoIP provider, Vonage Holdings Corp., has filed for a retrial in its ongoing patent dispute with Verizon Communications, arguing that a landmark patent ruling by the Supreme Court changes the fundamentals of the case.

Vonage is asking a federal appeals court to vacate a crippling lower court decision that could ultimately lead to the company’s bankruptcy, and begin the proceedings again from square one. The request hinges on the U.S. Supreme Court’s ruling in another case, which called for “a more expansive and flexible approach that allows for consideration of common sense when assessing whether an invention is ordinary or obvious, and thus ineligible for patent protection.”

“Vonage is confident this ruling should have a positive impact on its case,” the broadband telephone provider said in a statement.

In the original verdict, Verizon was granted $58 million in damages, as well as a 5.5% royalty on future Vonage profits. The telecom giant also asked for a permanent injunction preventing Vonage from advertising its services or signing up new customers, but this drastic step was stayed, pending an appeal.