Verdict’s In: Vonage Owes Verizon Big

A Virginia federal jury ruled today that Internet phone service Vonage must pay $58 million plus monthly royalties for infringing three patents owned by Verizon
Communications . The
decision from the U.S. District Court of Eastern Virginia could
permit Verizon to ask that Vonage stop using the disputed technology.

The damages were less than Verizon had asked. Both companies had no
immediate comment on the ruling.

The outcome comes just a day after the two companies wrapped up
closing arguments for a lawsuit the second-place wireless carrier
Verizon began in June. Verizon, which markets its own VoIP service called
VoiceWing, argued Vonage infringed on several key patents, including
technology connecting Internet-based phone calls with traditional
telephone networks.

In closing arguments Wednesday to the Virginia federal jury, Verizon
attorney Dan Webb reportedly said the Internet phone company should
pay a $4.93 monthly license for each line.

Last month, Vonage CEO David Snyder dismissed the
lawsuit as “frivolous” and blasted speculation subscribers will be
affected by Verizon’s court moves.

“Regardless of how this litigation is ultimately decided, Vonage’s
customers will see no change whatsoever to any aspect of their phone
service,” assured Snyder in a statement.

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