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Vonage wins permanent stay of injunction

Briefs | 04/24/2007 6:54 pm EDT

Vonage Holdings Corp. can continue to sell its VoIP phone service throughout an upcoming legal-appeals process now that a federal court has issued a permanent stay of injunction. Vonage had been operating under a temporary stay after a court in Alexandria VA forbade the firm from adding customers – a penalty stemming from a guilty verdict for Vonage in its patent fight against Verizon Communications Inc. The permanent stay will remain in place while Vonage appeals the verdict. The firm plans to pay into escrow a quarterly royalty of 5.5% throughout the appeals process. Vonage is also investigating technological workarounds that would let it skirt Vonage's patents. Verizon sued Vonage for violating three patents relating to translating VoIP calls for the PSTN.

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