Legit Reviews

Legit News

Vonage says patent fight could force bankruptcy filing

Vonage Holdings, the pioneer of Internet-based phone calls, said patent fights could lead to bankruptcy and the company's liquidation. I recently canceled my Vonage phone line that I had since 2005 as I wasn't using it enough to pay for the service. I had to wait on hold for over 10 minutes as that many people were closing accounts with billing!

Vonage lost a patent lawsuit with Verizon Communications last month that, if upheld on appeal, will force the company to pay $58 million in damages and 5.5 percent of revenue from phone lines. The company may also lose the use of technology that lets customers make calls to standard phones. In a filing Tuesday, Holmdel, N.J.-based Vonage listed bankruptcy and liquidation as risks of the litigation. Legal fights could affect business results and "the continued viability of our company," the company said.

SiliconValley.com

Posted by | Wed, Apr 18, 2007 - 08:49 AM