Monday, April 30, 2007

More on Verizon v. Vonage

Here are some updates on the Verizon v. Vonage saga:

  • On April 24th, the US Court of Appeals for the Federal Circuit ruled that Vonage can continue to sign up new customers while Vonage is appealing the patent infringement loss to Verizon.

  • While the appeal is pending, Vonage plans to continue paying a 5.5 percent royalty rate on all future sales to an escrow account, and it has posted a $66 million (USD) bond

Even with these findings, Vonage's operations are still in trouble. Vonage has admitted in an Security and Exchange commission filing that they began to lose customers before the ruling, and all the legal trouble could lead to bankruptcy.

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