Smart Products

[April 24, 2007]

Vonage Injunction Stayed in Patent Case

(AP) Vonage (News - Alert) Injunction Stayed in Patent Case
By MATTHEW BARAKAT
AP Business Writer
WASHINGTON
Internet phone carrier Vonage Holdings Corp. won relief Tuesday from a potentially crippling court order that would have barred it from signing up new customers while it tries to overturn a verdict that it infringed on patents held by Verizon (News - Alert) Communications Inc.
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The U.S. Court of Appeals for the Federal Circuit granted the stay of a trial judge's injunction on Tuesday afternoon, just hours after hearing arguments from Vonage and Verizon.

The stay means that Vonage can continue to sign up new customers while using the disputed technology as it appeals a jury's finding that it infringed on three of Verizon's patents in constructing its Internet phone system.

Vonage had warned that an injunction barring it from signing up new customers could have forced it out of business.

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