12 April 2007

THE legal trouble threatening Vonage
Holdings doesn't yet appear to be rippling across the internet phone
industry, a stark contrast to last year's BlackBerry patent dispute
that spooked existing and would-be users of the popular email device.

So far, rivals haven't been aggressively targeting Vonage customers who
may be unsettled by a jury's finding last month that the company's
service infringes on patents held by Verizon Communications. And other
internet telephone providers don't seem to be worried that Verizon
might be emboldened to turn its intellectual property guns on them.

The
worst case scenario, seemingly unlikely for now, could mean a
disruption in phone service if Vonage loses its court appeal and either
fails to reach a settlement with Verizon or deploy an effective
substitute technology.