Vonage Can’t Get Around Verizon Patent - What Now?

So, it looks like things are going from bad to worse for VOIP phone company Vonage. Last week, a judge ruled in favor of Verizon citing that Vonage was infringing upon Verizon’s patented Internet phone technology, which lays out methods for getting calls to go between the Internet and conventional phone networks. The ruling was that Vonage was banned from signing up new customers, while existing customers were unaffected. Vonage asked for, and received, an emergency stay which allows them to conduct business as usual for the time being. They went so far as to tell investors not to worry, because a “workaround” was currently under development.

Unfortunately, today Vonage has changed their tune, and they are now saying that they have no workaround that would moot the need for a stay. Uh oh. We don’t know how much longer Vonage will be around in it’s current form, but for a company that loses 2.5% of it’s customers per month, if they can’t bring in new customers to replace lost ones, it’s fairly obvious what will happen.

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