Last week IT channel, Alexandria, VA-based company Vonage Holdings Corp. was told by a judge that it would not be permitted to add new customers while in the midst of a lawsuit that found the company guilty of infringement of Verizon Communications patents.  This infringement was based on systems used for phone calls made via the Internet.

IT channel company Vonage will appeal to U.S. District Judge Claude Hilton’s recent order allowing Vonage to only provide service to current customers.  Hilton stated this decision could potentially put the company out of business if it cannot use the Verizon technology.  However, Verizon could also suffer losses if the decision goes the other way and IT channel business can continue to use the patented technology.  

Vonage’s lawyer, Roger Warin stated that the court ruling for the IT channel company would be a way to slowly kill it.  Even just a partial limiting of the patent use will have the same effect as totally cutting off the company from using patented technology.   

Hilton will sign the order officially on Thursday, at which point Vonage will be able to take the case to the U.S. Court of Appeals.  On March 23, Hilton announced that he would be issuing an injunction that would completely prohibit use of all Verizon technology by IT channel company Vonage, which send the company’s shares down 26 percent in one day.

Blogged By:  Computer Consulting 101