Infrastructure // Networking
News
4/10/2007
08:38 AM
Connect Directly
RSS
E-Mail
50%
50%
Repost This

Trying To Stay In Business, Vonage Posts Royalty Payments And A $66 Million Bond

Vonage says it will keep operating as it appeals the court decision that said the company had violated patents held by Verizon.

Pressed against a wall by the loss of patent litigation with Verizon Communications, a feisty Vonage said Monday it will continue providing its VoIP service to existing customers and continue to sign up new customers by paying into escrow a quarterly royalty of 5.5% while the case is on appeal.

Vonage said it views Friday's Court of Appeals grant of a temporary stay allowing it to sign up new customers "as the first step toward resolving this matter in Vonage's favor. Vonage also continues to believe that this case is an attempt to do in the courtroom what Verizon could not succeed in doing in the marketplace -- which is to put Vonage out of business."

Last month, Vonage lost a patent infringement decision in a Virginia federal court. Then, last Friday, it appeared that Vonage would be halted from signing up new customers, but the company has since devised a way to keep operating as near normal as possible.

Vonage has said it is developing "workarounds" to the Verizon patents that have been cited in the ongoing litigation.

"Vonage will continue to provide digital telephone service to existing customers indefinitely by paying into escrow a quarterly royalty of 5.5% throughout the appeals process," Vonage said. It also is posting a $66 million bond as required by the court.

Comment  | 
Print  | 
More Insights
2014 Private Cloud Survey
2014 Private Cloud Survey
Respondents are on a roll: 53% brought their private clouds from concept to production in less than one year, and 60% ­extend their clouds across multiple datacenters. But expertise is scarce, with 51% saying acquiring skilled employees is a roadblock.
Register for InformationWeek Newsletters
White Papers
Current Issue
InformationWeek Elite 100 - 2014
Our InformationWeek Elite 100 issue -- our 26th ranking of technology innovators -- shines a spotlight on businesses that are succeeding because of their digital strategies. We take a close at look at the top five companies in this year's ranking and the eight winners of our Business Innovation awards, and offer 20 great ideas that you can use in your company. We also provide a ranked list of our Elite 100 innovators.
Video
Slideshows
Twitter Feed
Audio Interviews
Archived Audio Interviews
GE is a leader in combining connected devices and advanced analytics in pursuit of practical goals like less downtime, lower operating costs, and higher throughput. At GIO Power & Water, CIO Jim Fowler is part of the team exploring how to apply these techniques to some of the world's essential infrastructure, from power plants to water treatment systems. Join us, and bring your questions, as we talk about what's ahead.