Vonage on the Ropes

by Bruce Stewart

Well, it's hard to imagine that today's injunction that forbids Vonage from taking on any new customers isn't the death blow for the pure-play VoIP pioneer. Vonage was looking for some leeway on the earlier ruling that placed a permanent injunction against them using any of the infringing technologies that Verizon holds patents for (which would effectively shut down the company), but the results of the appeal can't be what Vonage was hoping for. Vonage lawyer Roger Warin makes a good analogy: “It’s the difference of cutting off oxygen as opposed to the bullet in the head.” In either case, it appears Vonage is going down for the count.

Update: Perhaps I spoke too soon, as Vonage was just given a reprieve in the form of a a temporary stay from the U.S. Court of Appeals for the Federal Circuit in Washington, DC., allowing them to continue to court new customers during their appeal process. I'd imagine Vonage's legal problems have been in the news enough to make new customer acquisition a very challenging task for them right now, but at least the life-support system has been left on.

1 Comments

OReilly Reader
2007-04-06 14:02:12
Just a quick comment about your statement, "[t]he results of the appeal can't be what Vonage was hoping for": The appeal hasn't been concluded; I don't even know that it's been filed, although it might have been. I think you're referring to the trial judge's modification of his order, which is different from the appeal. Just FYI.