Vonage Holdings barred from using Verizon patents

Vonage Holdings barred from using Verizon patents

A federal judge has said in a ruling that VoIP company Vonage cannot use patented technologies owned by Verizon Communications Inc.

U.S. District Judge Claude Hilton has issued a permanent injunction on this issue. The news led to Vonage’s shares going down 25 cents, to $3.80.

The courts have already confirmed that they have found that Vonage had infringed three patents owned by Verizon. The company was told to pay $58 million plus 5.5 percent royalties on future sales to the company.

The judge further said that if Vonage continues to use patented technologies, it would cause irreparable harm to Verizon. Vonage’s appeal has also been rejected that this ruling would harm consumer’s interest.