logo
Published on FierceCIO (http://www.fiercecio.com)

Judge orders Vonage to pay $69.5 million

By
Created Sep 26 2007 - 6:59am

[1]There hasn't been too much news on the Vonage Deathwatch front [2] lately but when it comes to the ailing VoIP service, no news is usually good news. Last we heard, the VoIP provider had bought itself a little more time with a temporary stay [3], though we all knew that that band-aid wouldn't keep the company from falling apart in the long term. Despite that fact, rumors swirled that Sprint--the next in line to sue Vonage--would simply scoop up the company for a song [4], in lieu of legal action. Well, so much for that rumor. In what might prove to be the killing blow, a Federal jury has ordered Vonage to "pay $69.5 million in damages for infringing on six telecommunications patents owned by competitor Sprint-Nextel." Additionally, Vonage must "pay a five-percent royalty on future revenues." Much like the Black Knight from that Monty Python movie, Vonage has vowed to fight on but let's be honest here: they're not fooling anyone. My advice? Do like old Kenny Rogers and know when to fold 'em.

For more on Vonage's plight:
- see this AP article [5]


Source URL:
http://www.fiercecio.com/techwatch/story/judge-orders-vonage-pay-69-5-million/2007-09-26