Verizon, Vonage both claim patent-fight victory

Round 1 in the ongoing patent dispute between Verizon Communications and Vonage Holdings Corp ended quickly, with both companies claiming some measure of victory, but the battle will continue March 23 when a judge is set to rule on Verizon’s request for an injunction in the case.

A jury in the U.S. District Court for the Eastern District of Virginia that VoIP juggernaut Vonage had in infringed on three of the seven Verizon patents that were at the center of Verizon’s lawsuit against Vonage. The jury said Vonage will have to pay about $58 million in damages and a 5.5% ongoing royalty rate, but that’s far less than the $197 million in damages and $4.93 per customer per month that Verizon was seeking.

"We are proud of our inventors and pleased the jury stood up for the legal protections they deserve," said John Thome, senior vice president and deputy general counsel of Verizon, in a statement.

Meanwhile, a statement issued by Vonage read in part, “We are delighted that the jury rejected Verizon's meritless claim that we infringed their two billing patents. Of the seven patents Verizon originally sued on, they prevailed on only three and we expect that verdict to be reversed on appeal. The jury's damage award represents a 70% reduction from Verizon's [$197 million] claim. The jury also unanimously rejected Verizon's claim that Vonage willfully infringed its patents.”

In a separate statement issued today, Jeffrey Citron, Vonage's chairman and chief strategist, re-affirmed a positive financial outlook for Vonage and said that even in the “unlikely event” the damages ordered in the jury decision are upheld, "We are confident in Vonage's future health, growth prospects and longevity.”