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Vonage is hit a 2nd time in patent verdict

September 27, 2007|From Times Wire Services

Verizon Communications Inc., the No. 2 U.S. phone company, won an appeals court ruling upholding most of a patent verdict over rival Vonage Holdings Corp., the second legal setback for Vonage in two days.

The U.S. Court of Appeals for the Federal Circuit in Washington also upheld a court order barring Vonage's use of Verizon's inventions, including a way of connecting Internet calls to standard phone lines. The order blocking use of the inventions had been on hold pending the appeal.

The three-judge panel agreed that Holmdel, N.J.-based Vonage infringed two of three patents that were the subject of a March trial. It sent back a third patent that had been found to be infringed, as well as the jury's $58-million award. The patent that was remanded concerns a small part of Vonage's business.

Vonage shares fell 34 cents to 96 cents, a record low.

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