Judge bars Vonage from signing up customers

A U.S. district court judge on Friday barred VoIP provider Vonage Holdings from signing up new customers after the company lost a patent infringement lawsuit to Verizon Communications.

Judge Claude Hilton of the U.S. District Court for the Eastern District of Virginia denied Vonage's request to stay an injunction pending its appeal of a patent infringement ruling. (UPDATED: Vonage gets temporary stay in Verizon suit.) On March 8, a federal jury found that Vonage infringed three Verizon patents and must pay $58 million in damages plus royalties.

Verizon sued Vonage last June, alleging the VoIP provider had violated seven of its patents involving packet-based calling technology.

To continue reading, register here and become an Insider. You'll get free access to premium content from CIO, Computerworld, CSO, InfoWorld, and Network World. See more Insider content or sign in.

A U.S. district court judge on Friday barred VoIP provider Vonage Holdings from signing up new customers after the company lost a patent infringement lawsuit to Verizon Communications.

Judge Claude Hilton of the U.S. District Court for the Eastern District of Virginia denied Vonage's request to stay an injunction pending its appeal of a patent infringement ruling. (UPDATED: Vonage gets temporary stay in Verizon suit.) On March 8, a federal jury found that Vonage infringed three Verizon patents and must pay $58 million in damages plus royalties.

Verizon sued Vonage last June, alleging the VoIP provider had violated seven of its patents involving packet-based calling technology.

Hilton issued a permanent injunction against Vonage in late March, but delayed its implementation while considering Vonage's request for a stay. Vonage has said it would appeal the injunction to a higher court if it failed with Hilton.

Current customers won't be affected by the injunction, Vonage has said.

A Vonage spokeswoman said Friday that the company is still evaluating Hilton's ruling and that the company would release a statement later. A Verizon spokesman said that company also would release a statement later Friday.

Verizon praised Hilton's decision, saying it expected the judge's ruling to be upheld on appeal.

"Judge Hilton exercised the court's equitable discretion to craft a middle path that allows Vonage to continue serving its existing customers while protecting Verizon's patents from increased infringement during the appeal process," John Thorne, Verizon senior vice president and deputy general counsel, said in a statement.

The IDG News Service is a Network World affiliate.