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Vonage Found Guilty In Sprint Patent Suit

9/26/2007 11:27:00 AM Eastern

Holmdel, N.J. –Vonage suffered another legal blow yesterday when a Federal jury in Kansas ordered the VoIP provider to pay $69.5 million to Sprint for patent infringement.

Vonage also said today that the U.S. court of Appeals for the Federal Circuit had partially remanded a jury verdict in the Verizon patent infringement case.

The Appeals court remanded one patent verdict, which will be retried by the U.S. District Court, while affirming two others. The court also vacated the entire award of $58 million in damages and the 5.5 percent royalty Vonage was ordered to pay to Verizon.

Vonage said it would appeal the Sprint decision.

That suit, while not has high profile as Vonage’s court battles with Verizon, may nonetheless prove costly for the embattled VoIP provider. The jury verdict represents five percent of Vonage’s revenues over the period in which it was found to be infringing on six of Sprint’s patents.

Vonage said it would “seek to develop technological workarounds that don't infringe on Sprint's patents” as it has done with Verizon’s patents

"We are disappointed that the jury did not recognize that our technology differs from that of Sprint's patents," said Sharon O'Leary, Vonage chief legal officer in a statement. "Vonage has already demonstrated that it can keep its focus on customers and on its core business while managing ongoing litigation."

As for Verizon, Vonage said that its previously announced technology workarounds covered the two patents not remanded to the District Court.

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