Vonage Back in Business While Appeal Proceeds

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Despite allegedly infringing several voiceover patents held by Verizon Communications Inc., Internet upstart Vonage Holdings Corp. can continue in business as usual against the telephone giant while its appeal of an earlier damages ruling is pending.

Overturning a federal court injunction issued earlier this month which prevented Vonage from marketing to new customers while it allegedly continued to infringe, the 1st U.S. Circuit Court of Appeals issued a permanent stay, reports the Wall Street Journal (sub. req.).

A federal jury in Virginia decided in March that Vonage had infringed, awarding $58 million in damages plus a percentage of future company profits to Verizon. The federal judge overseeing the case then issued the injunction against signing up new customers earlier this month. For more details of the case, which was decided in U.S. District Court for the Eastern District of Virginia, see this Wall Street Journal story (sub. req.).

For additional details on today’s ruling, see this Forbes article (Vonage Dodges Guillotine).

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