Vonage: Patent Spat Won't Kill Us
VoIP Provider Denies Verizon Claims
By Todd Spangler -- Multichannel News, 2/26/2007 12:35:00 PM
Vonage issued a statement Monday complaining that “several media reports have inaccurately speculated on the outcome” of the patent-infringement lawsuit filed by Verizon Communications.
“It is wrong and irresponsible to presuppose either the outcome or the impact this litigation would have on our business," Vonage CEO Mike Snyder said in the prepared statement. "First and foremost, we are confident that we have not infringed on any of Verizon's patents and, in any case, we believe the Verizon patents are invalid."
He continued: "Nevertheless, our financial reserves would allow us to continue normal operations regardless of the outcome. In addition, we are confident that regardless of how this litigation is ultimately decided, Vonage's customers will see no change whatsoever to any aspect of their phone service."
Verizon’s lawsuit, currently being heard in U.S. District Court in Alexandria, Va., is seeking $197 million in damages, or about 25% of Vonage’s current market value. Verizon claimed that Vonage has been illegally using VoIP technologies patented by Verizon, including signaling interconnectivity, authorization, authentication, billing and fraud prevention.
Vonage, one of the biggest independent providers of voice-over-Internet-protocol services, did not specify which media reports it believed were inaccurate. The company reiterated its position that it plans to “vigorously fight this frivolous lawsuit.”
At the same time, Vonage said it has contingency plans for maintaining operations in the event that it loses the case.
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