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Vonage Receives Legal Colonoscopy

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The VoIP provider Vonage received the bad news yesterday. The jury returned a judgement against Vonage to the tune of $69.5 million plus royalties.

From the Globe and Mail:

A jury of five women and three men reached the verdict after two days of deliberations and three weeks of testimony in Kansas City, Kan., federal court.

Vonage said in a written statement that it would appeal the decision but would also begin developing technological workarounds that it said would skirt the disputed technology.

“We are disappointed that the jury did not recognize that our technology differs from that of Sprint’s patents,” said Sharon O’Leary, chief legal officer for Vonage. “Our top priority is to provide high-quality, reliable digital phone service to our customers.”

It was the second verdict against the Holmden, N.J.-based company this year. A jury in Virginia determined in March that Vonage had violated three Verizon patents in building its Internet phone system. The jury awarded Verizon $58-million in damages plus 5.5 per cent royalties on future revenues.

That decision also is under appeal.

Read on.

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