Vonage ordered to pay Verizon $58 Million

Friday, March 09, 2007

A federal jury on Thursday found that Voice over Internet Protocol (VoIP) phone carrier Vonage Holdings Corp. had infringed on Verizon Communications Inc.'s patents and ordered Vonage to pay $58 million.

Verizon sued Vonage last year for infringing on five patents that it said Vonage uses to make its Internet telephone service network functional. The eight person jury found Vonage infringed on three of the five patents.

The judgment is far less than the $197 million that Verizon had sought, and it was closer to the figure that Vonage had suggested – if found liable.

The jury deemed that Vonage's infringement was not willful - meaning that Verizon cannot collect triple damages, which can be awarded in patent infringement cases.

It is still unclear at this time whether Vonage will be barred from using Verizon's technology. Following the verdict, attorneys for New York-based Verizon requested a permanent injunction barring Vonage from further use of the patented technology.

A hearing for this request is scheduled for March 23.