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February 20, 2007 4:18 PM PST
Vonage and Verizon head to court in patent dispute
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Verizon sues Vonage for VoIP patent infringement
June 19, 2006
Verizon filed suit against Vonage in June claiming the company violated several of its patents. The suit focused on the technology Vonage uses to connect calls from its Internet Protocol service to phones on the traditional network.
Vonage denies that it has violated any patents. It claims that most of the technology it uses is standards-based and widely available throughout the industry. For example, Vonage uses voice gateways from Cisco Systems to route voice traffic over the Internet, connecting IP phone calls to the regular phone network.
Verizon has asked for monetary damages and an injunction. This means that if Verizon wins, Vonage could be forced to shut down its service, unless it can develop a work-around that does not violate the patents.
A Vonage spokeswoman said it is highly unlikely that service would be interrupted for Vonage's roughly 2 million customers.
"First of all, we don't think we have violated any of Verizon's patents," company spokeswoman Brooke Schulz said. "But if the court finds that we do, we will come up with a solution. And we won't have to shut off service to our customers."
The trial comes at a time when Vonage does not need any more distractions. Just last week, it announced during an earnings conference call that it was losing momentum in the Internet calling market.
In the fourth quarter, Vonage added only 166,000 new subscribers for its voice over IP service. That was down from 204,591 subscribers in the third quarter, and from 256,000 in the second quarter, of 2006. Despite its heavy marketing spend, many of Vonage's advertisements, designed to create more brand awareness, had been a flop, company executives have acknowledged. The company is now focusing on producing infomercials, which will highlight customer testimonials.
Vonage's slowing subscriber growth is in stark contrast to subscriber growth among cable operators, which have been setting records.
In an effort to diversify its business, Vonage has started to offer new services. It struck a deal earlier this year with EarthLink to resell wireless broadband in cities where the Internet service provider is building citywide networks.
Executives also said that Vonage will begin selling dual-mode handsets that will enable people to make Internet calls alongside cell phone calls. Some analysts speculate that Vonage is preparing to launch its own mobile virtual network. With MVNOs, as they are called, companies lease cellular network access from a provider such as Sprint and then rebrand the service. Virgin Mobile and Helio are examples of MVNOs.
See more CNET content tagged:
Vonage Holdings Corp., Verizon Communications, patent, spokeswoman, IP
22 comments
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Do yourself and your employment outlook a favor-fav and drop Verizon ASAP. THere's a nice MVNO called "working assests" that might better reflect the kind of world you'd like to see.
Software patents, and patents generally, aren't a natural right, like the right to assemble. They're there in incentivize inventors to show the rest of the world there incredible feats of intellectual prowess. Obviously, when everyone comes up with the same technology, there is no increidble intellectual feat involved, and equally obviously, no patent was needed to spur the innovation. SO no patent should be awarded because it's BAD for society and technological progress.
All this does is put money in the hands of people who can afford lawyers and run off to the USPTO with every little twit and twiddle of a idea like Bezeos did. It's all about keeping money in the hands of a small number of people.
The thing is, the more they do this, the LESS people are going to have ANY respect for IP laws. The music industry thought it was going to shove it down people's s throat, and they arguably had a moral leg to stand on...that didn't work out so well for them. How do you think IP laws around software are going to sit with developers?
Stop giving money to Verizon. Find another carrier when your contract comes up.
Call your Senator and tell them that you do NOT want software patents.
Give money, even a very small amount, a few dollars, to groups that actively oppose software patents, Ravincher's group is a good one.
Get your friends to do the same.
That's the solution to this problem.
Do yourself and your employment outlook a favor-fav and drop Verizon ASAP. THere's a nice MVNO called "working assests" that might better reflect the kind of world you'd like to see.
Software patents, and patents generally, aren't a natural right, like the right to assemble. They're there in incentivize inventors to show the rest of the world there incredible feats of intellectual prowess. Obviously, when everyone comes up with the same technology, there is no increidble intellectual feat involved, and equally obviously, no patent was needed to spur the innovation. SO no patent should be awarded because it's BAD for society and technological progress.
All this does is put money in the hands of people who can afford lawyers and run off to the USPTO with every little twit and twiddle of a idea like Bezeos did. It's all about keeping money in the hands of a small number of people.
The thing is, the more they do this, the LESS people are going to have ANY respect for IP laws. The music industry thought it was going to shove it down people's s throat, and they arguably had a moral leg to stand on...that didn't work out so well for them. How do you think IP laws around software are going to sit with developers?
Stop giving money to Verizon. Find another carrier when your contract comes up.
Call your Senator and tell them that you do NOT want software patents.
Give money, even a very small amount, a few dollars, to groups that actively oppose software patents, Ravincher's group is a good one.
Get your friends to do the same.
That's the solution to this problem.
My Contract is over in March! I am Dumping the big V then for sure!
My Contract is over in March! I am Dumping the big V then for sure!
technology for completing phone calls between VoIP users and people using phones on the traditional public switched network = a voip gateway
authenticating VoIP callers, validating VoIP callers' accounts, fraud protection = a call accounting software package
providing enhanced features = an IP PBX
using Wi-Fi handsets with VoIP services = a wifi ip phone
Monitoring VoIP caller usage = historical CDR reporting
All of these "technologies" exist in Cisco's, Avaya's and Nortel's IP Telephony portfolios
So how come they are not the ones being sued? Oh yeah...cause they are not shredding your monopoly with cheap telephony service.
Why isn't everyone who runs a VoIP service provider jumping to Vonage's defense? If VZ wins this, they will set a precedent for use in future "sue you out of business cases cause we don't want to compete" cases. What's next go after Skype, google talk, anyone with an IP Phone...where will it end?
Its stuff like this and their ridiculous mobile phone bluetooth profile hobbling, their greedy anti-net neutrality stance, and their crappy customer service that made me leave them completely. I use my cable company for my home phone and internet now.
technology for completing phone calls between VoIP users and people using phones on the traditional public switched network = a voip gateway
authenticating VoIP callers, validating VoIP callers' accounts, fraud protection = a call accounting software package
providing enhanced features = an IP PBX
using Wi-Fi handsets with VoIP services = a wifi ip phone
Monitoring VoIP caller usage = historical CDR reporting
All of these "technologies" exist in Cisco's, Avaya's and Nortel's IP Telephony portfolios
So how come they are not the ones being sued? Oh yeah...cause they are not shredding your monopoly with cheap telephony service.
Why isn't everyone who runs a VoIP service provider jumping to Vonage's defense? If VZ wins this, they will set a precedent for use in future "sue you out of business cases cause we don't want to compete" cases. What's next go after Skype, google talk, anyone with an IP Phone...where will it end?
Its stuff like this and their ridiculous mobile phone bluetooth profile hobbling, their greedy anti-net neutrality stance, and their crappy customer service that made me leave them completely. I use my cable company for my home phone and internet now.
In cases where they are using proprietary solutions from companies like Cisco, so are several other VoIP carriers.
Verizon is just mad because people are defecting off their cash cow circuit switched networks by literally the hundreds of thousands over to VoIP providers.
If Vonage loses this case it would could set a dangerous precedent and deal a significant blow to VoIP.
I really hope some of the other companies with an invested interest in VoIP don't make Vonage go it alone.
Given what Verizon has riding on case it is highly unlikely they are sending in just any thrown together legal team.
Vonage's subscriber growth might be slowing from their 100%/year gains, but the VoIP companies as a whole are quickly eating Verizon's circuit switched lunch and this is their response.
In cases where they are using proprietary solutions from companies like Cisco, so are several other VoIP carriers.
Verizon is just mad because people are defecting off their cash cow circuit switched networks by literally the hundreds of thousands over to VoIP providers.
If Vonage loses this case it would could set a dangerous precedent and deal a significant blow to VoIP.
I really hope some of the other companies with an invested interest in VoIP don't make Vonage go it alone.
Given what Verizon has riding on case it is highly unlikely they are sending in just any thrown together legal team.
Vonage's subscriber growth might be slowing from their 100%/year gains, but the VoIP companies as a whole are quickly eating Verizon's circuit switched lunch and this is their response.
Patent rights on drugs should be shorten too.
Or as to software and prescription meds a cap on profits from such patents is imposed. It is one thing to get rich on your idea and another to get "filthy" rich. A better balance needs to be found between the legitimate rights of a patent owner and the needs of society as a whole.
Patent rights on drugs should be shorten too.
Or as to software and prescription meds a cap on profits from such patents is imposed. It is one thing to get rich on your idea and another to get "filthy" rich. A better balance needs to be found between the legitimate rights of a patent owner and the needs of society as a whole.
Hey Vonage Offer me cell phone service then I can have both my cell and landline from you!
Hey Vonage Offer me cell phone service then I can have both my cell and landline from you!