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Verizon Threatens the Future of Vonage and its Commercials

Posted in News,Verizon,Vonage by Darrin Olson on April 17th, 2007

Vonage infringes on patents held by VerizonIn the grand scheme of things in the technology industry that can constitute a bad day, Vonage may take the cake, or at least for this month. Vonage is a company that provides VoIP phone service which uses your broadband internet connection as opposed to a traditional phone line or a mobile phone. They’ve racked up over 2 million subscribers so far and it looked as if that number would continue to climb, until now.

It appears that the company has infringed upon not only one but three patents owned by Verizon that relate to how Vonage provides it’s VoIP service. Due to this Verizon was granted a permanent injunction against Vonage, however the judge in the case did give Vonage a partial stay.

What does this mean? Well, what it comes down to is that Vonage will be allowed to continue operation but that’s about it. Existing Vonage customers are not going to be immediately left without service, but Vonage is also not allowed to sign up any new customers.

The company is faced with either finding a workaround which could easily take months, or trying to appeal which will take months. Both options would be quite a long time for the company to stay afloat without singing any new customers. This is what brings us to our original and real concern, which is that Vonage might stop making awesome commercials like this little gem here: