Vonage may be weak due to huge loss in the aftermath of stunning debacle in the patent battle against Verizon Communication, but the VoIP pioneer is not dead as rumored in the blogsphere.
Vonage is now preparing a strong ground to face another pending patent war against Sprint Nextel. The company has stoutly said that its patent lawsuit with Sprint Nextel Corp is not so series like the case it lost to Verizon last month.
We have fresh memory on the consequences of Vonage-Verizon legal battle. Vonage was ordered to pay $58 million in damages and 5.5 percent of revenue for infringing three VoIP patents of Verizon.
Vonage shares tumbled in the stock market following the court order. In the New York Stock Exchange, Vonage shared dropped 7 cents to to $3.07. The stock has dropped 82 percent since it was first sold to the public for $17 a share last year.
In the backdrop of this, the impeding patent battle with Sprint Nextel is taken very seriously by Vonage customers. Sprint Nextel had filed lawsuit Vonage two years ago claiming the company has infringed its packetized voice and data communications technology and seeks an injuction. The case will be trialed in September.
Vonage’s Chief Financial Officer (CFO), John Rego sees amicable solution. He believes that the Sprint case will probably be resolved in some sort of business agreement somewhere down the pike.
