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The End for Vonage?
TheRealSCA writes "The latest in Verizon vs. Vonage is in. The judge has basically stopped Vonage from accepting new customers. From the article: 'A judge issued an injunction Friday that effectively bars Internet phone carrier Vonage from signing up new customers as punishment for infringing on patents held by Verizon. Vonage's lawyers said the compromise injunction posted by U.S District Judge Hilton is almost as devastating as an injunction that would have affected Vonage's 2.2 million existing customers. "It's the difference of cutting off oxygen as opposed to the bullet in the head," Vonage lawyer Roger Warin said.'"
So you think this wouldn't have happened if Vonage hadn't pursued patents?
Let me add a dose of reality to your delusion. They simply would have been sued out of business sooner.
That's the problem. Vonage, like most young companies, is only solvent as long as they start taking in new customers. You slam the brakes on new signups, the whole house of cards can collapse.
I give Vonage six weeks. Hell, if they can't get this injunction lifted, and the don't find a way to work around it and sign up new customers, they may have six hours. We'll see how Wall Street responds to this news.
Keep in mind that the Markman hearing (to decide what the claim actually covers) adoption of verizon's construction of all the claims means that all of the patents read so broad that things like BIND and SIP infringe -- Add to that court irregularities: no patent case expertise and instead of days, there was only a 30 minute per side argument per side for 48 claims over 7 patents -- and there's a pretty strong case for appeal.
IANAL.
FTA: "The judge has basically stopped Vonage from accepting new customers."
But I can still go to their website and sign-up
RIM was sideswiped by (arguably) a patent troll who had no tangible product, no customers, and nobody had ever heard of.
This is a lawsuit brought by a well-funded telephone company (the largest LEC in the United States, and one of the largest telecom companies on the planet). Wall Street will respond negatively to this news once it starts circulating.
The news is just now hitting the wire, and Vonage stock has already taken a 10% beating. Once the announcements are made by Vonage and Verizon later this afternoon, expect the stock to be in penny-stock territory range on Monday once trading ends.
That does not bode well for Vonage as a company.
Verizon fully intends, through the courts, to shut Vonage down. It appears, effectively, they have.
Next week's news story: Verizon acquires a majority stake in Vonage as a "settlement" to the lawsuit, and begins "transitioning Vonage customers to Verizon's VoIP offering". Six months down the road, Vonage will quietly cease operations, after Verizon uses the leverage of their stock position to shutter the company after all customers have been moved off Vonage's revenue column.
You've never known someone to avoid a company on principle? I do it all the time and ENJOY voting with my wallet....
...but then again I've been known to vote to throw elections, too...
Don't tell me to get a life. I'm a gamer; I have LOTS of lives!
No the parent poster was right - scratch them off the list. I could care less what they might be willing to give me in the way of say cellualr service - it's a poison pill that will bite back first chance it gets. Vonage, of which I'm a customer, competed and is being destroyed by what appears to be an overly broad patent and a judge out of control. If the folks who have started this think they will ever regain my business they can think again about it - won't happen no matter what's offered.
Build it, Drive it, Improve it! Hybridz.org
If you get Gizmo Project and Grand Central, and configure the latter to use the former, you can get unlimited inbound calls for free.
I've been very happy with my Vonage service, and I hope they'll win this one in court eventually. If they don't, I'll reconfigure my Vonage hardware to use another SIP provider (like Gizmo Project): I'll switch back to TPC when heck freezes over.
As a Canadian Vonage user, my interest in this case is going to be how it affects me -- but nobody seems to be talking about what might happen to the Canadian (or UK) subsidiaries should Vonage US go down.
It appears that Vonage Canada (and presumably UK) is a wholly-owned, seperate company, and isn't directly constrained by the patent suit (as Verizon has no Canadian presence or patents). However, it is my understanding that Vonage Canada relies pretty heavily on the Vonage US network for call routing (although it is also my understanding that it has been gaining a bit more independence in the past year).
So what happens if Vonage US goes into receivership? Presumably holdings like Vonage Canada and Vonage UK will go on sale. I suspect Vonage Canada's call quality might suffer if they don't put contingency plans in place now, but that if they can stave off the loss of customers due to the US network folding, it could potentially survive (in which case, the 4 Vonage lines I have in my home, and the Vonage lines family and friends have thanks to my recommendation could keep working). But then again, if Vonage Canada isn't all that profitable (I have no idea if they are or not), they could fold up as well.
For now I'm waiting it out, but if anyone has any better info on what could be expected for the Canadian and UK subsidiaries, I'd certainly be interested in learning more.
Yaz.