Vonage sued by Nortel for patent violations

By Justin Mann on December 17, 2007, 2:10 PM
Is it possible for Vonage to have even more bad news? Absolutely. Despite the firm forking out scads of cash over to Sprint, a huge chunk of change over to Verizon as well, security concerns and even more, they still have more trouble to face.

This time. Vonage has earned the ire of Nortel who has filed a lawsuit against the company over, you guessed it, patent violations. Whether that is now the hip thing to do or Nortel really does feel violated, they are asking for compensation due to infringements in the areas of 911 and 411 calling, click to call and more. It isn't clear how much Nortel wants out of Vonage, but there's only so much blood you can get from a stone. Even though Vonage is managing to stay afloat, they are just barely doing so. One more blow might be all it takes to send them crashing down.

User Comments: 5

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canadian said:
Seriously, why isn't skype getting hit also? Is it so different?
buttus said:
Nortel is trying to land the knockout blow. Sprint and Verizon were like thieves in the night stealing cash from a real industry innovator. Now it appears that Nortel smells the blood in the water and hope to knock out a competitor in the same industry. Frankly I find it more then unfair and entirely discriminating that Vonnage was chosen to be the whipping boy by these telco firms. Canadian is also right in that SKYPE should also be involved in these suits as well...but SKYPE has some deep pockets as (unless I am wrong) SKYPE is owned by eBay. Given the connections between eBay, Sprint and Verizon (online services), it would appear that all are in bed togethor and hence the "get out of litigation free" card they possess. This will be the end of Vonnage as they have no more cash, no more investors and frankly a failing business model where most of the incoming money went on marketing campaigns to generate new business. I think Nortel might be doing the lawsuit in order to force Vonnage into bankruptcy and perhaps even then take over the company at a dramtically reduced cost should the courts decide in their favour.
canadian said:
Is it even legal to force them bankrupt then buy them for nothing?
ColdFusion1990 said:
Is that why my phone isn't working?
buttus said:
It's legal to force them into bankruptcy and then claim their assets in lieu of monetary funds they would still be owed by the court ruling. In short, Vonnage would have to liquify it's assetts to settle outstanding bills.
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