AT&T Sues Vonage Over Patents

Legal World



Internet phone company Vonage Holdings Corp. suffered another blow, disclosing that a third major telecom company had filed a patent infringement lawsuit against it.

AT&T Inc. filed suit Wednesday in federal court in Wisconsin claiming Vonage is violating a single patent that lets users access an Internet phone system using a standard phone device, Vonage said in a regulatory filing.

Vonage's stock, which was down 13 cents to $1.54 in 4 p.m. New York Stock Exchange composite trading, was down another 24 cents to $1.30 in after-hours trading. Vonage went public in May of last year at $17.

One of the early players offering Internet telephone service, Holmdel, N.J.-based Vonage, has been reeling in the past year as it has lost two high-profile patent lawsuits. All the major phone companies have patents they claim cover aspects of voice over Internet phone technology.

Verizon opened the floodgates with the first suit months ago. A federal jury ruled that Vonage had illegally used Verizon patents, which concerned routing Internet calls through traditional phone switches. Vonage was ordered to pay $66 million and pay a 5.5% royalty fee. An appeals court recently upheld an injunction barring Vonage from using two of the Verizon patents but sent a decision on a third patent back for further review.

Earlier this month Vonage agreed to settle a lawsuit by Sprint Nextel Corp. and pay the carrier $80 million in a licensing deal that covers past and future use of patents related to connecting Internet phone calls. The deal came a couple of weeks after a jury in Kansas had found against Vonage and awarded Sprint $69.5 million in damages.

AT&T said it has been trying to arrange a settlement with Vonage for the past two years but was unable to negotiate a "reasonable licensing arrangement" with the company, an AT&T spokesman said.

"We were forced to file a lawsuit," the spokesman said.

In a statement, Vonage said the company had hoped to keep negotiating. "It's our preference to settle disputes through negotiation rather than litigation," said Vonage chief legal officer Sharon O'Leary in a statement. "We will continue to work toward an amicable solution."

Vonage, which has been losing customers since the legal disputes became known, said in the statement that its primary focus was to improve the quality of service to customers and maximize value for shareholders.

Related listings

  • Relief as EU leaders strike treaty deal

    Relief as EU leaders strike treaty deal

    Legal World 10/19/2007

    [##_1L|1268714669.gif|width="115" height="75" alt=""|_##]European Union leaders voiced relief at clinching a deal on Friday on a treaty to reform the 27-nation bloc's institutions, replacing a defunct constitution and ending a two-year crisis of conf...

  • Pakistan court rejects Musharraf martial law fears

    Pakistan court rejects Musharraf martial law fears

    Legal World 10/18/2007

    Pakistan's top court rejected concerns that President Pervez Musharraf would declare martial law if it rules his controversial election victory invalid.The Supreme Court is hearing challenges against his landslide victory in the October 6 presidentia...

  • China "furious" at Dalai Lama's U.S. award

    China "furious" at Dalai Lama's U.S. award

    Legal World 10/16/2007

    China expressed fury on Tuesday that the United States is to honor the Dalai Lama with an award and warned that the activities of his supporters were increasing in Chinese-controlled Tibet.The Dalai Lama, who has lived in exile in India since staging...

Illinois Work Injury Lawyers – Krol, Bongiorno & Given, LTD.

Accidents in the workplace are often caused by unsafe work conditions arising from ignoring safety rules, overlooking maintenance or other negligence of those in management. While we are one of the largest firms in Illinois dedicated solely to the representation of injured workers, we pride ourselves on the personal, one-on-one approach we deliver to each client.

Work accidents can cause serious injuries and sometimes permanent damage. Some extremely serious work injuries can permanently hinder a person’s ability to get around and continue their daily duties. Factors that affect one’s quality of life such as place of work, relationships with friends and family, and social standing can all be taken away quickly by a work injury. Although, you may not be able to recover all of your losses, you may be entitled to compensation as a result of your work injury. Krol, Bongiorno & Given, LTD. provides informed advocacy in all kinds of workers’ compensation claims, including:

• Injuries to the back and neck, including severe spinal cord injuries
• Serious head injuries
• Heart problems resulting from workplace activities
• Injuries to the knees, elbows, shoulders and other joints
• Injuries caused by repetitive movements

For Illinois Workers’ Compensation claims, you will ALWAYS cheat yourself if you do not hire an experienced attorney. When you hire Krol, Bongiorno & Given, Ltd, you will have someone to guide you through the process, and when it is time to settle, we will add value to your case IN EXCESS of our fee. In the last few years, employers and insurance carriers have sought to advance the argument that when you settle a case without an attorney, your already low settlement should be further reduced by 20% so that you do not get a “windfall.” Representing yourself in Illinois is a lose-lose proposition.

Business News

New York & New Jersey Family Law Matters We represent our clients in all types of proceedings that include termination of parental rights. >> read