Vonage gets to keep selling

Vonage can continue to recruit new voice over IP customers while it appeals the ruling that its VoIP service violates three patents held by Verizon. The U.S. Court of Appeals for the Federal Circuit in Washington issued a stay against an injunction a district court judge issued last month in the case.

That injunction stated that Vonage would no longer be allowed to operate its VoIP service using the technology patented by Verizon or market its service to new customers. But Vonage has won a stay against the injunction on both counts.

Jeffery Citron, chairman and interim CEO of Vonage, said in a statement, "We continue to believe we have not infringed on any of Verizon's technology and remain optimistic that we will ultimately prevail in this litigation."

Vonage will continue to serve existing customers by paying into escrow a quarterly royalty of 5.5% throughout the appeals process and by posting a $66 million bond as required by the court, the statement said, adding that the company's current cash position allows it to pay these fees to secure the stay as it pursues its legal appeal over the coming months.