It’s been a while since Vonage had a good week but in light of the company’s recent legal troubles, this one should qualify.
The week saw the launch of Vonage’s grassroots communications campaign, of course. Loftily dubbed “Free to Compete,” the Vonagers hope to “educate and mobilize consumers about preserving the freedom to choose their phone service provider.” Especially a certain VoIP solution provider that starts with a “V,” eh?
Upon announcing the PR blitz, Vonage was able to take a swipe at their archrival, stating that “Verizon has pursued litigation against Vonage in an effort to achieve in court what it cannot achieve in the marketplace” while reminding that “Vonage today has 2.4 million subscriber lines, while Verizon has just 15,000 retail VoIP customers, according to court filings.”
Vonage has reason to show a little braggado, though, as the VoIP solution provider finally got a break in court; and o what a break it was…
The U.S. Court of Appeals for the Federal Circuit in Washington D.C. on Tuesday issued Vonage a permanent stay of a previous court’s injunction that would have barred it from signing up new customers.
Vonage sought the stay following an April 6th decision by the U.S. District Court in Alexandria, Va. enjoining the company from using certain VoIP technology to add new customers based on Verizon’s claim that said technology represented copyright infringement.
“We thank the appellate court for its thoughtful consideration of the merits of our case,” politely said Jeffrey Citron, Vonage chairman and interim chief executive officer. “It’s business as usual for us,” he continued and if you believe that, well, perhaps you’re the guy buying the company’s stock.
Vonage’s current plan calls for the company to pay into escrow a quarterly royalty of 5.5 percent throughout the appeals process and by posting a $66 million bond required by the court.
“We believe the original verdict was based on an erroneous claim construction, meaning the patents in this case were defined in an overly broad and legally unprecedented way,” said the oft-quoted Sharon O’Leary, Vonage’s executive vice president, chief legal officer and secretary. “We are confident this error will be rectified by the appeals court, which hears intellectual property cases exclusively. As a result, we remain highly confident Vonage will prevail on appeal.”
The “Free to Compete” campaign includes newspaper advertisements, letters to Vonage customers and the website FreeToCompete.com, at which you can follow the exciting legal action. (With slightly biased reporting, naturally.)
So Vonage had a good week. How was yours?
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