Vonage (VG) Wins Permanent Stay in Verizon (VZ) Patent Litigation; Company Allowed to Sign Up Customers
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The U.S. Court of Appeals for the Federal Circuit in Washington D.C. today issued Vonage (NYSE: VG) 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. The permanent stay enables Vonage to add new customers as we pursue our appeal. Existing customers remain unaffected by the company's ongoing patent litigation.
Vonage will continue to serve existing customers by paying into escrow a quarterly royalty of 5.5 percent throughout the appeals process and by posting a $66 million bond as required by the court. The company's current cash position allows it to pay these fees to secure the stay as it continues to make progress on and pursues its legal appeal over the coming months.
Jeffrey Citron, Vonage chairman and interim chief executive officer, says, "We continue to believe we have not infringed on any of Verizon's (NYSE: VZ) technology and remain optimistic that we will ultimately prevail in this litigation."
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. The permanent stay enables Vonage to add new customers as we pursue our appeal. Existing customers remain unaffected by the company's ongoing patent litigation.
Vonage will continue to serve existing customers by paying into escrow a quarterly royalty of 5.5 percent throughout the appeals process and by posting a $66 million bond as required by the court. The company's current cash position allows it to pay these fees to secure the stay as it continues to make progress on and pursues its legal appeal over the coming months.
Jeffrey Citron, Vonage chairman and interim chief executive officer, says, "We continue to believe we have not infringed on any of Verizon's (NYSE: VZ) technology and remain optimistic that we will ultimately prevail in this litigation."
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