Verizon wins $58 million from Vonage, proceeds to seek injunction
 

It was definitely not as bad as it could have been, but Vonage just got slapped with a $58 million fine after being found guilty of violating three of Verzion's patents for connecting VoIP calls to the regular circuit-switched telephone network. The big question now is whether Verizon will be able to get an injunction barring Vonage subscribers from using Verizon's technology to make phone calls to regular phone lines. Vonage is already appealing the verdict, but if it stands they'd either have to develop a non-infringing workaround, pay a 5.5% royalty on any revenue derived from using Verizon's technology (assuming Verizon even allows it), or cut off service to all 2.2 million of its customers (they'd still be able to make VoIP calls to other Vonage subscribers, but who'd stick around for that?).

http://www.engadget.com/2007/03/08/v...on-58-million/

Depressing news. I'm close to a no-use 'phone person, so a while back I switched from DSL+traditional telephone to cable+VOIP to reduce my bills while getting better internet connectivity. I tried Skype first because they are cheapest of all and they were great for net2net and international, but hopeless (from my location) for US calls. Vonage costs more, but is functionally just like a "real" telephone service.

ouch that sucks, does this mean other VOIP providers are probably doing the same thing?

Vonage. What a dog. ::woof::

That's why patents are a bunch of BS.. It's one thing if yoy develop a concept and put it in use. However this whole BS about filing every patent you can think and waiting till someone put it to use then sue them is a load of crap.

You shouldn't be able to patent a non physical object, that kinda crap is what is ruining inovation in America and the world.

wow, thats a hit to Vonage.

I like their service a lot, not looking forward to having to switch to a toll carrier.