Featured Articles

5th Generation Broadwell 14nm family comes in three lines

5th Generation Broadwell 14nm family comes in three lines

Intel's 5th Core processor family, codenamed Broadwell, will launch in three lines for the mobile segment. We are talking about upcoming…

More...
Broadwell Chromebooks coming in late Q1 2015

Broadwell Chromebooks coming in late Q1 2015

Google's Chromebook OS should be updating automatically every six weeks, but Intel doesn't come close with its hardware refresh schedule.

More...
New round of Nexus phone rumour kicks off

New round of Nexus phone rumour kicks off

Rumours involving upcoming Nexus devices are nothing uncommon, but this year there is a fair bit of confusion, especially on the…

More...
Nvidia officially launches the 8-inch Shield Tablet

Nvidia officially launches the 8-inch Shield Tablet

As expected and reported earlier, Nvidia has now officially announced its newest Shield device, the new 8-inch Shield Tablet. While the…

More...
Aerocool Dead Silence reviewed

Aerocool Dead Silence reviewed

Aerocool is well known for its gamer cases with aggressive styling. However, the Dead Silence chassis offers consumers a new choice,…

More...
Frontpage Slideshow | Copyright © 2006-2010 orks, a business unit of Nuevvo Webware Ltd.
Wednesday, 26 September 2007 13:21

Vonage loses patent infringement case

Written by David Stellmack

Image

Ordered to pay Sprint Nextel $69.5 million


 

A jury in a patent infringement trial brought by Sprint Nextel Corporation against Vonage Holdings Corporation has delivered its verdict: Vonage infringed six patents owned by Sprint Nextel, and Vonage must pay $69.5 million in damages to Sprint Nextel as a result. 

Vonage is a provider of Voice over Internet Protocol (VoIP) telephone services to consumers and was an early champion of using VoIP to offer consumers savings on their telephone bills. Sprint sued Vonage in 2005, claiming that Vonage had violated seven of its telecommunications technology patents based on 61 patent infringement claims.

In addition to the ruling in Sprint Nextel’s favor and the damages awarded, the jury also ordered Vonage to pay Sprint Nextel a 5% royalty rate on Vonage future revenue.  Some analysts predicted that Sprint Nextel might also seek an injunction against Vonage to stop any ongoing infringement of Sprint Nextel patents.

The news caused Vonage stock to fall 34%, even after Vonage announced that it would appeal the decision.  Things have not been rosy for Vonage since it went public in 2006.  Vonage shares have fallen 92% since its IPO price of US$17.  Vonage also lost another patent infringement case to Verizon Communications, Inc. earlier in 2007 for infringement of 3 Verizon patents and was ordered to pay Verizon $58 million in damages plus 5.5% in royalties on Vonage future revenue; Vonage has already filed an appeal in the Verizon ruling.

Vonage issued a statement that the damages awarded in the Sprint Nextel case were unwarranted, but did indicate that it would try to modify its technology so that it was not infringing on any Sprint Nextel patents.

Last modified on Wednesday, 26 September 2007 13:37

David Stellmack

E-mail: This e-mail address is being protected from spambots. You need JavaScript enabled to view it
blog comments powered by Disqus

 

Facebook activity

Latest Commented Articles

Recent Comments