Vonage Loses Legal Dispute, Faces Huge Bill
Vonage lost the patent lawsuit with Verizon and now the top-management must be looking for ways to pay up the huge bill: over $120 million in damages.
November 19, 2007
The company already announced that it may not be able to meet its obligations over debt. Vonage already lost $80 million in a separate patent dispute with Sprint Communications.
The Vonage-Sprint deal was settled in early October. According to the agreement between the two companies, Vonage will pay $35 million for past use of license, $40 million for a fully paid future license, and $5 million in prepayment for services.
Previously, Vonage had been sued also by Sprint. The final verdict was reached in late September, when a jury in a Kansas City federal court ruled that Vonage had willfully infringed Sprint's patents in providing its VoIP telephony services. The VoIP provider was ordered to pay damages of $69.5 million.
What's worse, the legal trouble is far from over for Vonage. AT&T filed a lawsuit against the company on October 17, accusing it having sold products infringing on AT&T' patent on “packet-based telephony”. Do we hear “guilty” already?