Thursday, April 19, 2007

More Dark Clouds for Vonage, May Have a Silver Lining

Hopefully you’re not tired of reading about Vonage, because the news continues to pour in about the struggling company, and I assume it will continue to. Plus, I’ve already got myself interested in the case so I think I’ll be continuing to cover it.

In a recent article, Engadget explained that things were looking worse for Vonage, when they requested a permanent stay on the Judges ruling about signing up new customers. The conclusions seem to say that they’re having trouble coming up with a workaround for the Verizon patents that they were found to be infringing upon.



They company was quoted as saying that if they “[were] somehow able to implement a design around, and was able to ultimately prevail on appeal, it would have no hope of regaining its lost customers, or its lost goodwill, and its loss of revenue would be permanent and…” Apparently they cut the rest of the statement, claiming that the material was confidential.

However, there is some potential light at the end of the tunnel. In an update to the same article, Engadget explains that there is a possibility that Verizon’s patents are unlawful. Word is that they patents contain some technology that was previously discussed by a number of communications companies to eventually become an open standard. If this is the case, it sounds like Vonage might be getting off the hook, although from the sound of what they’re saying some ill will because of these proceedings may permanently hurt their image.

There’s one more dark cloud looming, and that may be possible litigation from Sprint. According to another at Engadget, another suit is in the works to begin in September. However, this ominous cloud has its own potential silver lining. Rumors are spreading that Sprint may actually move to acquire Vonage, which would certainly serve any of their patent issues. If there were any truth to these rumors it would be interesting to see what a telecommunications giant would do with a company offering a competing technology. Only time will tell what becomes of this distressed VOIP company.

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