Vonage Sits for Stay

Shares of Vonage fell $0.27 (7.5%) to $3.35 today as the VOIP provider waits to see whether it will be banned from using certain technologies as part of its ongoing patent fight with Verizon. (See Vonage, Verizon Fight to Go Into Late Rounds and Vonage Ordered to Pay $58M to Verizon.)

Tomorrow, U.S. Dist. Judge Claude Hilton is scheduled to sign the injunction he ordered against Vonage, which is accused of violating three different patents held by Verizon Communications Inc. (NYSE: VZ). If he doesn't -- and decides to issue a stay instead -- Vonage won't have to fetch a way around Verizon's technology for at least 120 days, which is the length of the company's planned appeal.

If Vonage loses its appeal, it would have to find a way to work around the borrowed Verizon technology in order to avoid any service disruptions to its customers.

Vonage claims to have developed the workaround already, but there's no way of knowing for sure. Vonage doesn't offer much in the way of a description of the these technologies. The company would only say, "we're looking into technologies right now." (See Vonage 'Workarounds' May Ease Patent Pain.)

One thing is clear: The company's partnership with VoIP Inc. (OTC: VOII.OB) doesn't fulfill that need. "This has nothing at all to do with the Verizon case," a Vonage spokesman says. "Our deal with VoIP Inc. deals with the termination of calls. And it is no different to the call termination deals that we have with several other companies."

— Raymond McConville, Reporter, Light Reading

DCITDave 12/5/2012 | 3:10:48 PM
re: Vonage Sits for Stay The company delayed its annual report until after it finds out if it'll get the injunction stay.

Also, board member Betsy S. Atkins resigned.

Good times all around.

Sign In