Vonage, the perennially beleaguered Internet phone company, now has new woes. Yesterday, an eight-person jury found it guilty of infringing on three patents owned by Verizon, covering a range of
features from call-waiting to how Web calls are connected to traditional phone lines.
The jury found that Vonage must pay Verizon $58 million in damages and 5.5% in licensing fees per
subscriber each month. The awarded damages weren't as much as Verizon requested, as Vonage was absolved of two of the five patent charges. The jury also found that Vonage hadn't willfully infringed
upon Verizon's patents, which also helped soften the blow somewhat for the voiceover Internet protocol provider.
However, it's still bad news for Vonage, whose stock fell nearly 4%,
closing the day at an all-time low of $4.85. Most analysts feel Vonage will appeal, a process that could take nearly two years, though the injunction and licensing fees will likely kick in this year.
Failure to comply means Vonage could be forced to shut down. The company, whose stock has plunged since going public last year, could now seek a buyout.
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