A federal jury has found that Vonage Holdings Corp. infringed three Verizon Communications Inc. patents and must pay US$58 million in damages plus royalties to Verizon, according to published reports.
Vonage was accused of infringing five Verizon patents related to features such as call forwarding and fraud detection. Vonage said the giant carrier’s real aim was to eliminate competition from the VOIP (voice over IP) service provider, the reports said.
Vonage must pay a 5.5 percent royalty rate on future sales to use the Verizon technology. After the verdict, Verizon asked for a permanent injunction to stop Vonage from using the technology altogether, the reports said.
In a statement, Vonage said it expects the verdict to be reversed on appeal. The award was 70 percent lower than the $197 million that Verizon originally sought, Vonage said. There is no basis for an injunction and Vonage will seek a stay from the Federal Court of Appeals if it is imposed, the company said.
Vonage customers should not see any change to their service, Vonage said.