US judge issues injunction against Vonage

A US federal judge ordered a permanent injunction against Internet phone carrier Vonage for use of rival Verizon's patents, an Associated Press report said.

But the injunction, which could potentially cause major disruptions to the service provided by Vonage to its 2 million customers, will not take effect for at least two weeks, the Associated Press report said.

The Associated Press report said US District Judge Claude Hilton will wait two weeks to officially enter the injunction while he considers Vonage's request for an extended stay.

The injunction came after a jury verdict earlier this month that Vonage, a leader in the Internet phone marketplace for VoIP, infringed on three Verizon patents, the report said.

The jury awarded Verizon $58 million plus 5.5% of Vonage's future revenue garnered from continued infringement of the patents, but Hilton ruled that the additional measure of a permanent injunction was warranted, the report said.

Simply providing monetary damages 'does not prevent continued erosion of the client base of the plaintiff,' Hilton said in explaining his ruling.

In a statement, Vonage CEO Mike Snyder said, 'We are confident Vonage customers will not experience service interruptions or other changes as a result of this litigation.'

Even if Hilton refuses to stay the injunction, Vonage said it is confident it can obtain a stay from the federal appellate court, the Associated Press report said.