Vonage Wins Permanent Stay, Expresses Confidence In Appeal

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Washington — VoIP provider Vonage was afforded a measure of breathing room as a Court of Appeals judge granted the company a permanent stay of a previous court’s injunction that would have barred Vonage from signing up new customers.

The Federal Circuit court ruling allows Vonage to continue to sign up new customers while it continues its legal battles with Verizon.

In a statement addressing the verdict, Vonage chairman and interim CEO Jeffrey Citron thanked the court “for its thoughtful consideration of the merits of our case. It's business as usual for us.”

Vonage noted that it would pay into escrow a quarterly royalty of 5.5 percent throughout the appeals process and post a $66 million bond as 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 Sharon O'Leary, Vonage executive VP and chief legal officer in a statement. “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.”

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