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Vonage Guilty in Sprint Patent Suit

Net phone company faces second huge judgment against it this year

By Sean McManus,  Newser User

Posted Sep 26, 2007 12:10 AM CDT
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(Newser) – Vonage was found guilty of illegally using Sprint’s Internet phone patents, and now owes the carrier $69.5 million in damages, according to Dow Jones Newswires. More worrisome for Vonage is that an injunction could soon bar it from offering Net-based phone service altogether.

News of the Kansas City federal jury’s verdict sent an already floundering Vonage stock to a record low $1.30 close on Tuesday, down 34 percent. This is not the first of Vonage’s legal troubles: in March, another jury ruled that Vonage had illegally used Verizon patents, and ordered a payout of $66 million to that phone giant, plus a royalty based on future revenues. Vonage is appealing both cases.

Attendees make free phone calls over VoiP at the Vonage booth at the 2007 International Consumer Electronics Show (CES) in Las Vegas, in this Jan. 10, 2007 file photo. Internet telephone company Vonage Holdings Corp. on Thursday, Aug. 9, 2007 reported a much reduced loss for the second quarter as...
Attendees make free phone calls over VoiP at the Vonage booth at the 2007 International Consumer Electronics Show (CES) in Las Vegas, in this Jan. 10, 2007 file photo. Internet telephone company Vonage...   (Associated Press)
Internet-based phone companies engage in cyberbullying
Internet-based phone companies engage in cyberbullying   (KRT Photos)
Micro Center computer store saleswoman Christine Canasa fixes up a display of Vonage products in Santa Clara, Calif., in this file photo from May 24, 2006.Vonage, the internet phone company, will be barred from signing up new customers as punishment for infringing on patents held by Verizon Communications Inc....
Micro Center computer store saleswoman Christine Canasa fixes up a display of Vonage products in Santa Clara, Calif., in this file photo from May 24, 2006.Vonage, the internet phone company, will be...   (Associated Press)
Vonage Holdings Corp. Founder, Chairman and Chief Strategist Jeffrey Citron, center, gets a handshake from New York Stock Exchange CEO John Thain after he rang the opening bell, in this May 24, 2006 file photo. Joining the celebration of the company's initial public offering is Vonage CEO Michael Snyder, right....
Vonage Holdings Corp. Founder, Chairman and Chief Strategist Jeffrey Citron, center, gets a handshake from New York Stock Exchange CEO John Thain after he rang the opening bell, in this May 24, 2006 file...   (Associated Press)
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Complaints Against Vonage Mount
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Vonage • Sprint • patent

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