- Apr 14, 2001
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Jury Rules for Verizon in Vonage Patent Case
By Peter Kaplan
Reuters
ALEXANDRIA, Virginia (March 8) - A federal jury on Thursday found that Vonage Holdings Corp., an Internet phone service provider, infringed on three key patents owned by Verizon Communications Inc.
The eight-member jury assessed Vonage $58 million in past damages and ordered it to pay a 5.5 percent royalty rate on Vonage sales going forward.
Verizon had sought $197 million in damages from Vonage for infringing patents related to voice-over-Internet Protocol technology. VoIP services allow consumers to make calls over the Internet.
After a day of deliberations, jurors concluded that Vonage infringed two patents covering technology to connect Internet calls to the traditional phone system and for features such as call-waiting and voice-mail. The jury also said Vonage infringed on a third patent that involves wireless Internet phone calls.
Jurors rejected Vonage's contention that Verizon's Internet phone patents are invalid and they said that Vonage had not infringed on two other patents at issue in the case.
Among its findings, the jury said that Vonage was not "willful" in its infringement of the three patents, a legal determination that could have led to stiffer penalties.
U.S. Judge Claude Hilton set a hearing for March 23 to hear arguments on whether he should issue an injunction barring Vonage's use of the technologies covered by the patents.
Vonage has said it did not infringe on Verizon patents and that the outcome of the case would not disrupt its business.
Vonage shares edged down 20 cents, or nearly 4 percent, to $4.85 in late-afternoon trading.
By Peter Kaplan
Reuters
ALEXANDRIA, Virginia (March 8) - A federal jury on Thursday found that Vonage Holdings Corp., an Internet phone service provider, infringed on three key patents owned by Verizon Communications Inc.
The eight-member jury assessed Vonage $58 million in past damages and ordered it to pay a 5.5 percent royalty rate on Vonage sales going forward.
Verizon had sought $197 million in damages from Vonage for infringing patents related to voice-over-Internet Protocol technology. VoIP services allow consumers to make calls over the Internet.
After a day of deliberations, jurors concluded that Vonage infringed two patents covering technology to connect Internet calls to the traditional phone system and for features such as call-waiting and voice-mail. The jury also said Vonage infringed on a third patent that involves wireless Internet phone calls.
Jurors rejected Vonage's contention that Verizon's Internet phone patents are invalid and they said that Vonage had not infringed on two other patents at issue in the case.
Among its findings, the jury said that Vonage was not "willful" in its infringement of the three patents, a legal determination that could have led to stiffer penalties.
U.S. Judge Claude Hilton set a hearing for March 23 to hear arguments on whether he should issue an injunction barring Vonage's use of the technologies covered by the patents.
Vonage has said it did not infringe on Verizon patents and that the outcome of the case would not disrupt its business.
Vonage shares edged down 20 cents, or nearly 4 percent, to $4.85 in late-afternoon trading.
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