Bad News For Vonage

rockthecasbah · Apr 7, 2007

Courts have ruled in favor of Verizon that holds three patents they say is being infringed upon by Vonage's VOIP telephone services. The ruling is allowing Vonage to continue service for it's current customers but prevents the company from signing up any additional customers.

The article from CNN Money believes that this will not kill VOIP service, but with the biggest player neutralized and the need to re-engineer VOIP to not infringe on Verizon's intellectual property, i do not see any good outcome for VOIP in the short term..

Link.

localoid · Apr 7, 2007

rockthecasbah said:
...The article from CNN Money believes that this will not kill VOIP service, but with the biggest player neutralized and the need to re-engineer VOIP to not infringe on Verizon's intellectual property, i do not see any good outcome for VOIP in the short term..

There are over 2,000 VoIP patents (U.S.), most of which aren't owned Verizon. Payment of royalties may result from this (as more holders of patents rush to hire law firms), but VoIP certainly isn't going to die off.

todd2000 · Apr 7, 2007

They better settle this, I love my Vonage. Im sure it will be fine, how many times has someone sued Apple for Patent infringment, and thier still alive. Vonage will probably just end up settling. I hope anyway......

RBMaraman · Apr 7, 2007

todd2000 said:
They better settle this, I love my Vonage. Im sure it will be fine, how many times has someone sued Apple for Patent infringment, and thier still alive. Vonage will probably just end up settling. I hope anyway......

You might want to pick up a copy of today's Wall Street Journal. Basically, the court ruled yesterday that Vonage is not allowed to sign-up any new customers until they stop infringing on Verizon's patents. Vonage says they have developed ways to bypass the Verizon patents, but it is extremely costly for them. If they lose the appeal, the WSJ and analysts suspect that the court will order Vonage to shut down all services.

iMeowbot · Apr 7, 2007

todd2000 said:
Vonage will probably just end up settling. I hope anyway......

This one is a little bit different, because Verizon may not want to settle. VoIP is a direct threat to their core business. If any of the patents they hold are showstoppers, they're gonna be trying to stop some shows.

GoCubsGo · Apr 7, 2007

That is a bummer. I have vonage and I love them. I was worried when I signed up as I read tons of mixed reviews and their forums were probably just as bad as far as being iffy on their service. However, so far so good. I also love seeing my bill real time. When someone calls and hangs up I can go back and review who called usually. It's a very good service for $25 a month.

iJon · Apr 7, 2007

I feel sorry for all the shareholders. Although you'd probably have to be crazy to own Vonage stock in the first place.

jon

latergator116 · Apr 7, 2007

I have vonage. This sucks. Hopefully Verizon (along with all the other phone companies that have been fleecing the American public for years) will go out of business... damn greedy bastards.

EricNau · Apr 7, 2007

San Francisco Chronicle said:
Internet phone company Vonage dodged a bullet Friday when it won a late afternoon stay of an injunction that would have forced the company to stop taking new subscribers. [...]

A federal appeals court stepped in late Friday afternoon to grant Vonage a temporary reprieve. Verizon has until Friday to respond to Vonage's request to lift the injunction temporarily, at which time the court will rule on Vonage's request for a permanent stay.

Link

gothiquegirrl · Apr 7, 2007

EricNau said:
Link

I love my Vonage.. I've been a customer from the start. I don't know what i'd do without it! i'd have to just get an iphone and cry a lot! LOL

EricNau · Apr 7, 2007

Personally, I've always disliked Vonage since their emergency calling services encountered major problems 2 years ago. While it may have improved since then, their 911 calling system is still below par.

Besides, their commercials are annoying.

I wouldn't miss them.

gothiquegirrl · Apr 8, 2007

EricNau said:
Personally, I've always disliked Vonage since their emergency calling services encountered major problems 2 years ago. While it may have improved since then, their 911 calling system is still below par.

Besides, their commercials are annoying.

I wouldn't miss them.

yeah well.. then i wouldn't have a "home phone" I could use... and then i'd be "forced" to go back to only having a cingular cell phone... and only be able to really call others on cingular with my free mobile to mobile... so no more callin grandma except late nights and weekends...

Been there.. done that... and it blew...

Oh and not to mention... i'd have to kiss all international calls goodbye.

i'd never be able to afford to call anyone.

it would totally suck!

dominicansrul93 · Apr 9, 2007

Man my mom was very close to signing up. Good thing she didn't. It sucks to see new technologies go away because of people's greed.

Rodimus Prime · Apr 10, 2007

It is complete BS. Verizon never made those pattens. They got them when they bought MCI and they have had 3 years go after Vonage and never did. One of Verizon claims is they have been stealing customers from Verizon to go over the VOIP which is also complete and utter bull crap. Only 12% of the customers verizon lost with to vontages. the rest of them went to the cable companies and 75% of them split among 3 of them.
The real reason Verizon is going after Vontage is it is the smallest company and they want to set the president so they can go after the cable companies and the easiest way to do that is take on the company that has the weakest legal team. Hopefully the cable companies will join in the law suit and back vonage up with their legal teams. It would be smart idea for them to do it. That and go though verizon stuff piece by piece looking for ways to sue them big time.
Another reason why Verizon sucks and I am really glad I do not give them a penny of my money and I no longer has a cell contract with them.

question fear · Apr 10, 2007

I would like to see the battle between Cablevision/Time Warner/Comcast against Verizon. Verizon is treading on their turf with tv, and they are treading on phone with voip...it will make for a very very interesting legal battle of the titans.

Rodimus Prime · Apr 10, 2007

question fear said:
I would like to see the battle between Cablevision/Time Warner/Comcast against Verizon. Verizon is treading on their turf with tv, and they are treading on phone with voip...it will make for a very very interesting legal battle of the titans.

problem will be if Verizon wins the case with Vonage the Cable companies are pretty much just going to have to pay since the president has already been set. That is why I think the titans need to get involved now before it is set and while they have a chance in fighting it.

question fear · Apr 10, 2007

Rodimus Prime said:
problem will be if Verizon wins the case with Vonage the Cable companies are pretty much just going to have to pay since the president has already been set. That is why I think the titans need to get involved now before it is set and while they have a chance in fighting it.

That assumes Vonage and the cable giants use the exact same technology. If the cable companies licensed or bought their systems from Vonage then yes, the precedent is set. Otherwise the cable cos will either argue they are using different tech or that they are using it differently. Look at the Palm/RIM/etc battles over NTP's supposed patents. NTP sued RIM, and then sued Palm. Both companies fought bitterly in court. One company losing doesn't mean the others aren't going to fight it, and the combined power of all the cable outfits equals if not exceeds Verizon by a long shot.

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