TechWeb

Vonage Ad Appeals To Consumers After Loss To Verizon

Apr 30, 2007 (11:04 AM EDT)

Read the Original Article at http://www.informationweek.com/news/showArticle.jhtml?articleID=199202710


Fighting for its business life in the wake of a loss of a patent infringement court case, Vonage Holdings has taken its appeal to what may be its court of last appeal -- the general public.

The voice over Internet Protocol (VoIP) services firm has begun a newspaper ad campaign that depicts its losing battle with Verizon Communications as an attempt by the telecommunications giant to damage competitors.

"If this case stands, it threatens not only Vonage, but potentially the entire competitive VoIP industry," Vonage stated in a Web site connected to the ads. The Vonage campaign plays on fears that Verizon's court victory over Vonage could enable Verizon to use its patent portfolio against other VoIP providers.

Verizon has said that it instituted the patent infringement case against Vonage to protect the intellectual property created by its inventors and developers.

Verizon won a jury trial in March against Vonage. In addition to ruling that Vonage must pay hefty monetary damages and royalty fees, the firm's long term capability to sign up subscribers was circumscribed. Vonage has never posted a profit and the loss of the litigation has caused the firm to state that it could be forced into bankruptcy.

However, the firm continues to serve its customers. In recent days, Vonage has laid off some 200 employees in an effort to cut costs.