Networks
Vonage Ordered to Pay Verizon $120 Million
A recent lawsuit involving Verizon and Vonage has been settled, and Vonage has been ordered to pay Verizon $120 million due to patent infringements. The fine imposed on Vonage means they are edging closer to bankruptcy, with debts mounting to the sum of some $250 million prior to the court's decision, it looks like Vonage may have a tough time remaining in business.
With staff cuts already taking place to remain above board, this may be one cut too many for the firm to deal with. Having said that, as ever, anything could happen. We shall keep you posted on any developments. [Bloomberg via Gadgetell]
With staff cuts already taking place to remain above board, this may be one cut too many for the firm to deal with. Having said that, as ever, anything could happen. We shall keep you posted on any developments. [Bloomberg via Gadgetell]

Comments (AU Comments · US Comments)
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omg-ponies
Posted 11:54 AM 18/11/07
@Step666: Thanks for the link. "Resolved" is a better word in this case as the denial of rehearing appears to bring a final judgment to near-certainty. The Engadget article is far more nuanced and accurate in its terminology.
If anything, it's "settled" in the sense that many cases "settle" after trial to stave off future litigation costs in the form of post-trial motions.
omg-ponies
Step666
Posted 11:42 AM 18/11/07
Was the case actually settled (in the legal sense) though?
Engadget describes it as Vonage having lost their appeal (link).
Perhaps this was just an unfortunate use of the word 'settled', meaning 'over' rather than an out-of-court accord between the two parties?
Step666
digitalpoet
Posted 11:39 AM 18/11/07
The telcos are like the oil companies, working to shut down competition. We all know the future of voice communication is over the Internet. They're just stalling the inevitable.
digitalpoet
omg-ponies
Posted 11:35 AM 18/11/07
If the case was settled, then no one was ordered to pay anyone anything. Vonage appears to have agreed to pay which begs the question:
Can Vonage afford to pay?
omg-ponies
kjake
Posted 11:31 AM 18/11/07
@Monty: Settling a case doesn't mean that someone won the lawsuit, it just means that one side felt that the future of the case didn't look good and decided to pay out to the other side before getting too deep into the case and possibly costing themselves more money in the process.
kjake
bobbiac
Posted 11:25 AM 18/11/07
that's bullshit.... macrocorp lawers really piss me off.
bobbiac
dambo29
Posted 10:49 AM 18/11/07
I use Vonage and really hope the stay in business - love their service! I installed one in my mom's place in South America and we talk as if she was in my same town...
dambo29
stackybotrus
Posted 10:39 AM 18/11/07
I wonder if someone like att or verizon would BUY then, since the name vonage is associated with reliable cheap service that WORKS as an alterative to traditional crapphone.
stackybotrus
MINI Driver
Posted 10:23 AM 18/11/07
I hope they can survive - Vonage provide an awesome service at a great price
The 'old skool' telcos are just lining up to try and take Vonage down, as they challenge the old models of charging for time and call distance.
VoIP is the way of the future - it's just that the big boys like Verizon want it all to themselves - and at their price, not Vonage's.
MINI Driver
strider_mt2k
Posted 10:22 AM 18/11/07
That's a bummer for Vonage to be sure.
I know a bunch of people that used their service and liked it quite a bit.
Comcast's digital voice however is not as popular due to it sucking so bad.
I get at least one customer a day in my store complaining about the service.
strider_mt2k
Monty
Posted 10:19 AM 18/11/07
I assume since Verizon won the lawsuit that their case against Vonage was solid? Then again, there have been a number of technology cases where someone won based on a patent that should never have been approved to begin with. I wonder if this is one of those cases?
Monty
scrag
Posted 1:35 PM 18/11/07
I wonder if it'd be a good time for Verizon to make an offer on Vonage.
scrag
SomeAudioGuy
Posted 2:31 PM 18/11/07
@stackybotrus:
Gawd I hope not. I would really hope for a company like Google to wait until they hit rock bottom, buy them out of their debt and lawsuits, integrate them into Grand Central, then slap Android on it (all hosted on s substantial chunk of 700Mhz air of course).
SomeAudioGuy
DJJS
Posted 9:04 PM 18/11/07
How Many company's must Vonage have to pay by know..
it seams like every other month this company is getting sued..
DJJS
knave77
Posted 10:24 PM 18/11/07
@MINI Driver: Hear, hear. I'm an early Vonage adopter and I really hope they survive this, or that the company that buys/saves them doesn't raise prices.
knave77
superbad
Posted 11:21 PM 18/11/07
This sucks. I've had Vonage for years, and if they go under I'll buy a frickin telegraph machine before I give another dime to Qwest.
superbad
Aaron Martin-Colby
Posted 12:50 AM 19/11/07
You should check out techdirt.com. They've been ripping into the Vonage case, and patent lawsuits in general.
Aaron Martin-Colby
DSaddict
Posted 7:40 AM 19/11/07
@strider_mt2k: I'm confused. why would people come to McDonalds to complain about their phone service?
BURN!!!! (sorry, you left the door wide open for that one, i just couldn't resist.)
DSaddict
ninjamurf
Posted 12:41 PM 19/11/07
This sux. I use Vonage and although I've always been upset about how they handle the softphone issue it's still the best price ($15/month for my package) for what I get. Now I might have to start looking for another VOIP provider?
ninjamurf