Vonage Holdings barred from adding new customers

Vonage Holdings barred from adding new customers

Vonage Holdings has now been barred from adding any new customer till the time they are appealing a finding that it infringed Verizon’s patents for making phone calls over the Internet.

The company is planning to appeal the orders passed by Judge Claude Hilton which allows them to just serve their existing customer base.

Vonage has also been ordered by the court to post a $66 million bond.

Hilton said in the ruling that the company would be irreparably injured if he completely barred its use of Verizon technology. He added that Vonage could possibly get injured if they are allowed to continue infringing on the patents owned by Verizon.

Market analysts have said that the latest ruling is going to be very hard on Vonage as they are already struggling to survive in the competitive VoIP market.