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Vonage ALEXANDRIA, Va. (AP) - A judge issued an injunction Friday that would bar Internet



ALEXANDRIA, Va. (AP) - A judge issued an injunction Friday that would bar Internet phone carrier Vonage from signing up new customers as punishment for infringing on patents held by Verizon Communications Inc.

Vonage Holdings Corp. planned an immediate appeal.

The company's lawyers argued that the compromise injunction issued by U.S. District Court Judge Claude Hilton would be almost as devastating as ordering Vonage to cut off service to its 2.2 million existing customers.

"It's the difference of cutting off oxygen as opposed to the bullet in the head," Vonage lawyer Roger Warin said.

The judge had initially planned to issue a full injunction that would have barred Vonage from using the patented technology to serve its existing customers.

Verizon's lawyers proposed the compromise injunction earlier this week as a way to avoid shutting down Vonage's entire network.

Last month, a jury in Alexandria, Va., found that Vonage infringed on three patents held by Verizon. The jury awarded Verizon $58 million plus future royalties of 5.5 percent on revenue obtained through continued use of the infringed patents.

On March 23, Hilton went even further, issuing a permanent injunction barring Vonage from further use of the patented technology. But he delayed putting it into effect until Friday's hearing, at which he replaced it with the compromise suggested by Verizon.

Hilton said he would wait until Thursday to impose the new injunction, giving Vonage time to appeal.

The judge has said that awarding royalties to Verizon was insufficient, given a competitive climate in which Vonage continues to gain subscribers at Verizon's expense.

In court papers filed Wednesday, Verizon said that if a full injunction were to be implemented, it "would cause virtually all of (Vonage's) customers to leave for another provider."

Vonage officials have said that Verizon overstates the patents' importance and that they have a strong likelihood of getting the verdict overturned.

Rebecca Arbogast, an industry analyst with Stifel Nicolaus, said Verizon's compromise would be nearly as effective as a full injunction while being more likely to hold up on appeal.

"I think Verizon's legal strategy has been very aggressive and very effective," she said. "Vonage doesn't have very many attractive options except to hope for an emergency stay."

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Read The Full Thread:

Contingecy plans - what if vonage goes down bad?


I am worried about my service and keeping my number. So if they don't end this in
What happens to us? Personally I don't use Vonage for the price, though that certainly
The problem is that one of my main concerns is the reliablity of my phone service.
I can only tell you what I would do. If I were in youre shoes I would stay put as long
Vonage will NOT shut-down. jojojeep is correct. A company with more than 2 million
http://www.businessweek.com/ap/financialnews/D8OB69KO0.htm This
I know this does no good, but I just e-mailed verizon telling them I vowed to never
I used to work for an American owned cable company here in the UK, they were called
just read the article although it's based on the interview with the lawyers of

Bozicfg posted "ALEXANDRIA, Va. (AP) - A judge issued an injunction Friday that would bar Internet" on 04/06/2007

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†AK and HI residents pay $29.95 shipping. ††Limited time offer. Valid for residents of the United States (&DC), 18 years or older, who open new accounts. Offer good while supplies last and only on new account activations. One kit per account/household. Offer cannot be combined with any other discounts, promotions or plans and is not applicable to past purchases. Good while supplies last. Allow up to 2 weeks for shipping. Other restrictions may apply.

1Unlimited calling and other services for all residential plans are based on normal residential, personal, non-commercial use. A combination of factors is used to determine abnormal use, including but not limited to: the number of unique numbers called, calls forwarded, minutes used and other factors. Subject to our Reasonable Use Policy and Terms of Service.

2Shipping and activation fees waived with 1-year agreement. An Early Termination Fee (with periodic pro-rated reductions) applies if service is terminated before the end of the first 12 months. Additional restrictions may apply. See Terms of Service for details.

HIGH SPEED INTERNET REQUIRED. †VALID FOR NEW LINES ONLY. RATES EXCLUDE INTERNET SERVICE, SURCHARGES, FEES AND TAXES. DEVICE MAY BE REFURBISHED. If you subscribe to plans with monthly minutes allotments, all call minutes placed from both from your home and registered ExtensionsTM phones will count toward your monthly minutes allotment. ExtensionsTM calls made from mobiles use airtime and may incur surcharges, depending on your mobile plan. Alarms, TTY and other systems may not be compatible. Vonage 911 service operates differently than traditional 911. See www.vonage.com/911 for details.

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