12 April 2007

Vonage says it will keep operating as it appeals the court decision that said the company had violated patents held by Verizon.

Pressed against a wall by the loss of patent litigation with Verizon
Communications, a feisty Vonage said Monday it will continue providing
its VoIP service to existing customers and continue to sign up new
customers by paying into escrow a quarterly royalty of 5.5% while the
case is on appeal.

Vonage said it views Friday's Court of Appeals grant of a temporary
stay allowing it to sign up new customers "as the first step toward
resolving this matter in Vonage's favor. Vonage also continues to
believe that this case is an attempt to do in the courtroom what
Verizon could not succeed in doing in the marketplace -- which is to
put Vonage out of business."