Feeds

Vonage trips $69.5m patent

Promises to side-step its way out, again

Secure remote control for conventional and virtual desktops

VoIP provider Vonage has lost another patent battle, this time with Sprint Nextel, which owns six infringed patents and stands to gain almost $70m in a court-ordered payout.

The case was lodged by Sprint back in 2005, but Vonage has been arguing that the patents should never have been approved, and that Vonage technololgy is completely different - arguments which failed to convince the Kansas jury.

Instead, Vonage has been ordered to pay five per cent of its revenue during the infringing period, calculated as $69.5m.

Vonage will appeal the case, adding to its considerable legal casebook. The firm's chief legal officer said: "Vonage has already demonstrated that it can keep its focus on customers and on its core business while managing ongoing litigation."

We hope its engineers are equally good at maintaining service while making changes, as the company has promised to find ways to work around the Sprint Nextel patents, while still implementing the changes necessary to side-step Verizon's patents.

Vonage shares dived 33 per cent on the news, and it's news the company could do without at a time of declining customer growth and increasing churn.

Vonage may have been the vanguard of consumer VoIP services, but with the incumbents cutting prices and even offering VoIP services, it has become more difficult for the company to differentiate its service. Vonage still has considerable cash reserves, enough to fund an appeal or two, but even they won't last forever. ®

Gartner critical capabilities for enterprise endpoint backup

More from The Register

next story
UK fuzz want PINCODES on ALL mobile phones
Met Police calls for mandatory passwords on all new mobes
Canadian ISP Shaw falls over with 'routing' sickness
How sure are you of cloud computing now?
Don't call it throttling: Ericsson 'priority' tech gives users their own slice of spectrum
Actually it's a nifty trick - at least you'll pay for what you get
Three floats Jolla in Hong Kong: Says Sailfish is '3rd option'
Network throws hat into ring with Linux-powered handsets
Fifteen zero days found in hacker router comp romp
Four routers rooted in SOHOpelessly Broken challenge
New Sprint CEO says he will lower axe on staff – but prices come first
'Very disruptive' new rates to be revealed next week
US TV stations bowl sueball directly at FCC's spectrum mega-sale
Broadcasters upset about coverage and cost as they shift up and down the dials
PwC says US biz lagging in Internet of Things
Grass is greener in Asia, say the sensors
Ofcom sees RISE OF THE MACHINE-to-machine cell comms
Study spots 9% growth in IoT m2m mobile data connections
O2 vs Vodafone: Mobe firms grab for GCHQ, gov.uk security badge
No, the spooks love US best, say rival firms
prev story

Whitepapers

5 things you didn’t know about cloud backup
IT departments are embracing cloud backup, but there’s a lot you need to know before choosing a service provider. Learn all the critical things you need to know.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.