And Now Its AT&T’s Turn To Sue Vonage

Om Malik, Sunday, October 21, 2007 at 9:49 PM PT Comments (13)

Its like the Groundhog Day for Vonage (VG), the beleaguered VoIP services company. After being separately sued by Verizon (VZ) and Sprint (S), and losing its cases over patent infringements, the Holmdel, NJ-based company is now facing similar charges from AT&T (T).

Vonage was ordered to pay $66 million to Verizon, and it recently settled its case with Sprint for around $80 million. AT&T, apparently has been trying to reach a settlement for past two years, but couldn’t strike a deal. “We were forced to file a lawsuit,” AT&T spokesman told the Wall Street Journal.

13 comments so far

October 22nd, 2007
5:32 AM PT

I think the tattering management of AT&T has no option but to make money or justify their position by suing high risers — I wonder, what would they do , when eBay/Skype’s mobile will hit the market — bunch of loose-rs!

October 22nd, 2007
5:36 AM PT
monal said:

as a Vonage user this sucks that the floodgates have opened:(

October 22nd, 2007
7:18 AM PT
M.Abraham said:

I am not sure how the patent stuff works, but as a user/consumer, I was and is satisfied with the service provided by Vonage.(I have used its service both in US & Canada).I hope the behemoths won’t kill this company.

Just wondering if I will be forced to look out for a new telephone service soon.Its sad!!

October 22nd, 2007
7:27 AM PT
Profy.Com said:

Vonage Hit With Another Patent Infringement Lawsuit, This Time From AT&T

It’s the Neverending Story. Part Deux. Literally.
As we all well know, it’s never honorable to kick a horse (or, in this case, a feeble, stunted pony) while it’s down, but like a wreck on the side of the road, we can’t help but …

October 22nd, 2007
7:29 AM PT
Voip Caller said:

Oh, I’m so glad I didn’t buy their stock last week. LOL

The stock price doubled after the Sprint settlement was announced, and now they are going have to do the same thing all over again with AT&T. Do you think their stock will tank again today?

There have been a bunch of posts around the net wondering why Vonage didn’t keep going in the fight against Sprint. The settlement they signed was way worse than what the courts handed down. The only reason I can see is that Sprint had a piece of technology that Vonage thought they really needed.

Anybody have any thoughts on this?

October 22nd, 2007
9:12 AM PT
troy said:

If Vonage is so miniscule in what they are doing compared to the big telco’s, why are they being sued out of existence?!?!?!? The patent system is broken. And something is wrong when the little guy in our country can be sued literally to death. What motives could they have to sue Vonage? Do they feel threatened, if not now, then eventually? Or is it just 100% bully tactics? I really wish there was a safety mechanism in our country, when it is clear that the big guys are just suing the little guys to put them out of business.

October 22nd, 2007
9:20 AM PT
dhiren said:

C’mon vonage…get going with chapter 11

October 22nd, 2007
10:15 AM PT
techmine said:

I wonder how could simple telephony companies have so many patents when they exist in every corner of the world. Cannot trust these big guys like Verizon and AT&T when there sole aim is to suck blood out of customers. I am sure this has to do with the way Vonage is coming in their way and providing cheap and reliable enough phone service over internet.

October 22nd, 2007
10:51 AM PT

Vonage is starting to sound like a WWF Wrestling tag team match, except Vonage doesn’t have anyone in their corner.

Sprint was Hulk Hogan, Verizon was Andre The Giant and now The Undertaker coming in from AT&T.

I do have to admit, Vonage has hung in longer than I thought they would as I never thought much of their business plan, but looking at the recent suits, you just have to say “damm”

October 22nd, 2007
9:17 PM PT

[...] The beleaguered VoIP service provider, Vonage (VG) has been in a ton of trouble, getting sued left, right and center by any telco with a VoIP-related patents. The legal worries are causing potential customers to pause and [...]

October 26th, 2007
11:35 AM PT

[...] gigaom.comSource: gigaom.com Its like the Groundhog Day for Vonage (VG), the beleaguered VoIP services [...]

December 19th, 2007
1:25 PM PT

[...] certainly has had some tough times recently. Between their falling stock price, numerous patent lawsuits, or past complaints about woeful customer service it can’t be a lot of fun being a Vonage [...]

May 8th, 2008
7:49 AM PT

[...] Malik, Thursday, May 8, 2008 at 7:33 AM PT Comments (0) After a really rough 2007, Vonage (VG), the independent voice over IP service provider seems to be having a better 2008. This [...]

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