TELECOM Digest OnLine - Sorted: Vonage Wins Permanent Court Stay in Verizon Patent Fight

Vonage Wins Permanent Court Stay in Verizon Patent Fight

Reuters News Wire (reuters@telecom-digest.org)
Tue, 24 Apr 2007 16:41:21 -0500

Internet phone company Vonage Holdings Corp. said on Tuesday a federal
appeals court permanently stayed a lower court order that barred it
from signing up new customers.

A federal district court on April 6 said Vonage could not add new
customers because of a finding that it infringed patents held by
Verizon Communications Inc. for making phone calls over the Internet.

The latest ruling came about two hours after the U.S. Court of Appeals
for the Federal Circuit in Washington, D.C. heard arguments from
lawyers representing Vonage and Verizon.

Vonage shares jumped nearly 49 percent after the announcement of the
decision.

Each side answered questions for about 45 minutes. However, the judges
gave no indication at the hearing which way they would rule. A court
clerk later confirmed that the stay had been granted by the court.

"In layman's terms, it means business as usual," said Brooke Schulz, a
spokeswoman for Vonage.

Vonage said it will continue to serve existing customers and is
putting funds into a reserve as required by the court.

The stock soared to $4.42 on the New York Stock Exchange, after earlier
sliding to a 52-week low of $2.83.

(Additional reporting by Peter Kaplan in Washington, and Sinead Carew in
New York)

Copyright 2007 Reuters Limited.

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