Vonage - "Bankruptcy is Possible."

Vonage tells SEC bankruptcy is possible

Full Story --> http://news.zdnet.com/2100-3513_22-6...ml?tag=nl.e550

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In a filing with the Securities and Exchange Commission Tuesday, the Internet phone service provider said the ongoing legal battles over patent disputes could eventually lead to liquidation of the company's assets under bankruptcy protection.

"We are, and may in the future be, subject to damaging and disruptive intellectual property litigation that could materially and adversely affect our business, results of operations and financial condition, as well as the continued viability of our company," Vonage said in the 10-K document.

In March, the company lost a patent infringement lawsuit to telecommunications giant Verizon. A Virginia jury ordered the company to pay $58 million in damages, and a judge granted an injunction that would force Vonage to stop marketing its service to new customers. A federal court of appeals granted a temporary stay to the injunction. Vonage will head to court again on April 24 to argue in favor of making the temporary stay permanent while it fights for an appeal.

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I've been watching this closely. It's not looking too hot for Vonage...

come to think of it, haven't seen a commercial in a long time.

Hopefully they release unlocked firmwares if they default.

I have a Cisco ATA-186... I've been with them long enough to have been on the other side of the change of the terms and get it unlocked for free.

Dunno though... Packet8 and some others are saying since they pay for their gateways, they're fine because the gateways pay the Verizon fees/licenses.

But the problem is... the patents might be in question because they are too reminiscent of talks a year prior in public VoIP forums and conferences.

Sorta like how Rambus pulled out those specs from the SD-RAM manufacturer conferences and then added those specs to their RIMM specs and then demanded payment/royalties.

This is a multi-headed beast... and perhaps 2 million subscribers is going to pull in Sprint as a buyer and they have the gateways to accomplish a workaround.

thank god, now maybe we won't see the annoying ads anymore?

"whoo hooo, hooo hooo hooo." Ugh.

Those were the absolute least creative ads ever. The formula: Rip a clip off youtube and tack on a solid orange background at the end.

prior art in Verizon's patents

Usenet post from '95 that supercedes discussions or Verizon's patents... thus supporting prior art.

So far, the trial has been if Vonage has infringed on patents... not if the Verizon patents are valid. That should be the next turn. And if Vonage cuts out advertising for this quarter alone, they'll free 110 or so million bucks.