Verizon takes Vonage to Court over VoIP services

Verizon, the second largest phone company in the USA has taken Vonage to court over several patent infringements related to the VoIP services offered by Vonage.

Verizon has a VoIP service called Voice Wing which uses software that turns voice communication into packets and transmits them over an internet connection. Verizon have developed this VoIP system using their own propriety technology and license this technology to third parties. Verizon claim that the similar system that Vonage uses for their VoIP services infringes on their own propriety technology.

The list of VoIP services that Verizon say infringe their patent rights iunclude the systems used for validating VoIP caller accounts, fraud protection, the technology used for completing phone calls between VoIP users and traditional phone services, the technology used to monitor VoIP caller usage and the use of WiFi handsets with VoIP services.

Vonage is a company that is already struggling to keep its share price from falling and this latest lawsuit from Verizon has caused their shares to drop further with an initial drop of 30%.