Vonage Vows to Return to Court

After losing Sprint’s patent infringement lawsuit today, Vonage announced that the VoIP pioneer intends to ask the U.S. District Court to set aside the $69.5 million in damages that jurors awarded Sprint. If the request isn’t granted, Vonage intends to appeal the decision. 

“We are disappointed that the jury did not recognize that our technology differs from that of Sprint’s patents,” said Sharon O’Leary, Vonage’s chief legal officer, in a press release today. “Our top priority is to provide high-quality, reliable digital phone service to our customers. Vonage has already demonstrated that it can keep its focus on customers and on its core business while managing ongoing litigation.” 

Sprint filed suit against Vonage two years ago in U.S. District Court in Kansas City, claiming that the Vonage infringed on seven Sprint Internet telephony patents. Vonage denied Sprint’s claims but jurors found that the VoIP provider had infringed deliberately on the Sprint patents — leaving the door open for the judge to triple the judement, which was based on five percent of Vonage’s revenues during the two years. 

If upheld, the judgement will add to Vonage’s financial woes. The company is currently appealing a $58 million judgement and ongoing royalties awarded to Verizon in a similar lawsuit last March. For Q2 of this year, Vonage reported about $34 million in net losses on nearly $206 million in revenues. Vonage also reported $144 million cash reserves.

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