A judge today prohibited Vonage from signing up any new customers until it has ceased violating 5 patents owned by Verizon. Given that 2.5 per cent of Vonage customers run away from the service each month, the latest order is essentially a death sentence.
Vonage got a stay of execution within hours of the first ruling, as the company convinced an appeals court to temporarily lift the earlier ban. But put the emphasis on temporarily.
The VoIP provider already has to pay $58m in damages because of the case, has to spend increasingly more on marketing to lure in new customers and has yet another patent suit that will hit the courts this September, it would be safe to say that the desperation level must be rising.
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