Vonage gets only partial stay

A federal judge this morning refused to delay enforcement of a patent judgment against Vonage, instead giving the company only partial relief. U.S. District Judge Claude Hilton said Vonage could continue to use a VoIP platform that violates Verizon patents to serve its current customers, but could not solicit new customers for that service.

Vonage attorney Roger Warin told the Associated Press that getting only a partial stay was “the difference of cutting off oxygen as opposed to the bullet in the head.”

Vonage had hoped to delay the enforcement order that came down two weeks ago, while it appealed the original ruling that it violated three Verizon patents in providing its VoIP service. Industry observers have given Vonage a fair shot at winning an appeal because Verizon’s patent claims were fairly broad, and thus open to interpretation.

The latest ruling is a major blow for Vonage because the company has focused on growing quickly, building up a customer base of more than two million lines in three years, even though it is not yet profitable.

Lou Holder, executive vice president of Vonage, said in an interview prior to today’s ruling, that he thought the company could continue to grow by adding new features such as mobility and small business services.

News reports earlier this week erroneously reported the Vonage had found a way around the patent problem by signing an agreement with another provider, VoIP Inc. According to statements from VoIP Inc., the agreement announced between the two companies last week is a standard termination deal and not an arrangement for VoIP Inc. to provide Vonage with network services.