Vonage Loses VoIP Case With Verizon

cdrudge writes "A federal jury on Thursday said Vonage Holdings Corp. violated 3 of 5 patents of Verizon Communications Inc. and ordered the upstart Internet-phone company to pay $58m in damages as well as 5.5% in royalty fees per month per customer. Verizon said it would seek an injunction to block Vonage from using its patented technology. The jury did reject Verizon's claim of $200m in damages and that Vonage deliberately violated Verizon's patents. As you might expect, Vonage said it would appeal the decision and seek a stay if an injunction is granted. Judge Claude Hilton set a hearing for March 23 on whether to grant an injunction."

Comments

Re:The working system

[spun]

Well, you see, this one group of rich guys tried to screw over this other group of rich guys, but the second group of rich guys was like, "Oh no you didn't!" and the first group was like "What're you gonna do about it!" and then the jury said "We find in favor of the rich guys!"

So you see, EVERYTHING is different now. Duh.

Larger VOIP Implications

[QuebecNerd]

I read a few articles on that news this afternoon but they are mainly aimed at the financial aspect of the story. I'm still trying to find what exactly are those patents and what are the larger (if any) implications for VOIP in general. Open Source Software like Asterisk could eventually suffer if Verizon begins a patent war and Vonage was only this first victim.

Traditional carrier are having a hard time adjusting to new technology and they will try anything to keep their old ways to stay relevant. During the last few years this happened in many 'traditional' sectors, music and movies being two of them. In the long run, they will adjust or die but for now all of those dinosaurs are desperate to keep their heads above the water. The crippled patent system is their flotation device...

This quote is from CNN's article on the subject coming from a Verizon lawyer:

"Patents encourage and protect innovations that benefit consumers, create jobs, and keep the economy growing. Verizon's innovations are central to its strategy of building the best communications networks in the world,"

Enough said!

Re:What patents ?

[1310nm]

"The infringed patents cover a method for translating calls between an Internet network and the standard telephone network, call-waiting features and wireless fidelity, or Wi-Fi, handsets. Vonage was cleared of infringing two patents related to billing systems designed to prevent fraud."

http://www.bloomberg.com/apps/news?pid=20601087&si d=anDrCRkj4nn0&refer=home

Good example of the patent system

[cgenman]

Ideal:
Person A has a brilliant, rare idea. Person A invests years in refining and expanding said idea. Person A goes out and patents said idea. Person A opens a business with said idea, reaping customer praise and financial reward.

The patent has encouraged creativity and expanded the market.

Reality:
Person A has a somewhat obvious idea. Companys B, C, D, and E without investing in refining or developing the idea run out and patent said idea. Patent is granted to Company B (and sometimes C,D,and E too). Company B sits on patent, preventing anyone else from opening said business in order to protect the large profit margins on their current offering. 15 years later Company B sells the rights to said patent to Clearinghouse F. Clearinghouse F takes the broadest possible view of said patent, and sues everyone in the business. Years of fun in courthouse G ensues.

The patent has prevented the use of the idea or object patented, and has been used to bleed money from companies who do produce things.

Holy...crap...

[1310nm]

Look at these patents:

http://patft.uspto.gov/netacgi/nph-Parser?u=%2Fnet ahtml%2Fsrchnum.htm&Sect1=PTO1&Sect2=HITOFF&p=1&r= 1&l=50&f=G&d=PALL&s1=6137869.PN.&OS=PN/6137869&RS= PN/6137869

So basically any VOIP system utilizing a database to authenticate callers and bill them for usage is infringement. Amazing.

http://patft.uspto.gov/netacgi/nph-Parser?u=%2Fnet ahtml%2Fsrchnum.htm&Sect1=PTO1&Sect2=HITOFF&p=1&r= 1&l=50&f=G&d=PALL&s1=6104711.PN.&OS=PN/6104711&RS= PN/6104711

VOIP DNS.

http://patft.uspto.gov/netacgi/nph-Parser?u=%2Fnet ahtml%2Fsrchnum.htm&Sect1=PTO1&Sect2=HITOFF&p=1&r= 1&l=50&f=G&d=PALL&s1=6282574.PN.&OS=PN/6282574&RS= PN/6282574

Same.

http://patft.uspto.gov/netacgi/nph-Parser?u=%2Fnet ahtml%2Fsrchnum.htm&Sect1=PTO1&Sect2=HITOFF&p=1&r= 1&l=50&f=G&d=PALL&s1=6298062.PN.&OS=PN/6298062&RS= PN/6298062

Voice mail / call waiting / call forwarding I assume. Now this is proprietary because it's been ported to VOIP systems?

http://patft.uspto.gov/netacgi/nph-Parser?u=%2Fnet ahtml%2Fsrchnum.htm&Sect1=PTO1&Sect2=HITOFF&p=1&r= 1&l=50&f=G&d=PALL&s1=6359880.PN.&OS=PN/6359880&RS= PN/6359880

This looks more applicable to wireless networks; I wonder how it applied in this case.