Vonage Gets Another Patent Beating
by
Scott Martin
on
25 September 2007, 18:18
Categories:
General news
-
Communications
-
Internet
-
Finance
Topics:
voip
,
legal
,
Verizon
,
vonage
,
Sprint Nextel
A federal jury on Tuesday ordered beleaguered VoIP company Vonage to fork over $69.5 million for infringing six patents held by Sprint Nextel.
The Kansas City, Kansas, jury found that Vonage had illegally used patents held by Sprint in the connection of Internet phone calls. The amount awarded was calculated to be 5 percent of the revenue it made in the time it used the Sprint patents.
"We are disappointed that the jury did not recognize that our technology differs from that of Sprint's patents," said Sharon O'Leary, chief legal officer for Vonage, in a statement.
Vonage shares were down 23 percent to $1.39 in after-hours trading. Sprint Nextel shares gained nearly 2 percent to $18.78 in after hours.
Holmdel, New Jersey-based Vonage immediately issued a statement saying it intends to appeal the U.S. District Court ruling.
The Internet phone service provider also said it plans to develop technology workarounds that don’t infringe on Sprint patents.
In March, a federal jury in Virginia ordered Vonage to pay Verizon Communications $58 million for infringing the telecommunications company’s patents.