Network Computing is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

VoIP Industry Measures The Impact Of Verizon's Patent Victory Over Vonage

In the wake of Verizon Communication's jury victory over Vonage, the booming VoIP industry collectively wondered on Friday whether Verizon's patents portfolio could now be selectively used to stymie the deployment of IP telephoning.

Investment banking analyst Rebecca Arbogast of Stifel Nicolaus said she doubts the jury decision would have much impact on other VoIP firms. An eight-person jury ruled Thursday that Vonage had infringed on three Verizon patents and awarded the New York-based telephone conglomerate $58 million.

More drastic, however, is Verizon's request for an injunction against Vonage that will be discussed March 23 in Federal Judge Claude Hilton's Virginia courtroom. Vonage has sought to assure its 2.2 million users that its service will continue uninterrupted, but an injunction and the jury's ruling that the Vonage should pay future royalties of 5.5% on certain Verizon intellectual property could cripple the VoIP provider in the future.

"I don't see the verdict as a good dynamic for the (VoIP) industry," said Ken Osowski, VP of marketing and product management at Pactolus Communications Software. "IP is the future because of its compelling cost points."

Osowski, whose company designs next-generation IP solutions for telecommunications carriers and service providers, indicated he will withhold final comment until after he has read the jury decision. He noted that the economics of telecommunications has changed for the better because of the spread of VoIP.

  • 1