09 March 2007

Vonage Holdings Corp. must pay $58 million plus monthly royalties to Verizon Communications Inc. for infringing three patents on Internet telephone service, a federal jury ruled Thursday.

Following the verdict in an Alexandria, Va., federal court, Verizon asked for an order banning Vonage's use of the technology. An injunction could cripple Vonage by allowing it to handle only calls between the company's customers, Verizon lawyer Peter McCabe said. A hearing was set for March 23.

Shares of Vonage, a pioneering but money-losing Internet telephony service, fell to a record low.