Internet phone company Vonage Inc. has sued AT&T Corp. over the long-distance company's new Internet-based phone service, saying AT&T's "CallVantage" name was too close to Vonage's brand name.
The move suggests the tough competition forming in the market for phone service over broadband Internet connections, as larger firms such as AT&T and Verizon Communications Inc. stake their claims in a business that smaller companies like Vonage have had mostly to themselves.
AT&T, the largest U.S. long-distance company, said Monday that it would launch its Internet-based service under the name CallVantage.
In a lawsuit filed last week in New Jersey, Vonage contends that AT&T is trying to confuse potential Vonage customers with the CallVantage name.
AT&T has not filed a reply with the court. An AT&T spokesman said the suit was "without merit, and we believe we'll prevail in court."