Vonage was found to have violated three
Verizon patents related to the process of making telephone services
work over the internet. Some of the patents related to the transfer
of calls between traditional telephone networks and internet phone
systems.
Verizon sought $197 million in damages for
wilful violation of seven patents. It won its case only on three of
those, and the court ruled that any violation was not wilful, which
meant that Verizon could not claim the triple damages allowed if
that had been the case.
Vonage, a relative newcomer to US telecoms,
has tried to build a mass market for the previously niche product
of VoIP telephony. The company said it will appeal the verdict,
which was handed down by the Federal District Court for the Eastern
District of Virginia.
"Of the seven patents Verizon originally sued
on, they prevailed on only three and we expect that verdict to be
reversed on appeal," said a Vonage statement.
The court said that in addition to the $58
million award, Vonage would have to pay 5.5% of its revenues to
Verizon while it continued to infringe the patents.
Verizon immediately filed for a court
injunction to prevent Vonage from using the patent-violating
technology at all, and a hearing on that injunction is set for
later this month.
Verizon claimed during the trial that it had
lost 600,000 customers to Vonage. Vonage is thought to have around
two million customers overall.
Vonage floated on the public markets in the US
last year but has not been able to establish itself as a profitable
enterprise, losing $286 million last year on revenues of $607
million.
During the case Vonage claimed that Verizon's
patents were invalid and that the technology it used was either
built by it or licensed from third parties.
