[Ip-health] Vonage Wins 5.5% royalty compulsory license on Verizon Patents Today  U.S. Court of Appeals for the Federal Circuit in Washington
D.C. issued a permanent stay of an injunction involving the
infringement of patents owned by Verizon, the phone company.   The
Court allowed Vonage, a company that competes directly with Verizon
to offer Internet based telephone services, to use the Verizon
patents, in return for placing a 5.5 percent royalty into an escrow
fund, while Vonage contests the validity and scope of the Verizon
patents.   Jamie

http://pr.vonage.com/releasedetail.cfm?ReleaseID=239259

Vonage Wins Permanent Stay in Verizon Patent Litigation

Company Will Conduct Business As Usual; Continues Adding New
Customers and Serving Existing Ones

HOLMDEL, N.J., April 24, 2007 /PRNewswire-FirstCall via COMTEX News
Network/ -- The U.S. Court of Appeals for the Federal Circuit in
Washington D.C. today issued Vonage a permanent stay of a previous
court's injunction that would have barred it from signing up new
customers. Vonage sought the stay following an April 6th decision by
the U.S. District Court in Alexandria, Va. enjoining the company from
using certain VoIP technology to add new customers. The permanent
stay enables Vonage to add new customers as we pursue our appeal.
Existing customers remain unaffected by the company's ongoing patent
litigation.

"We thank the appellate court for its thoughtful consideration of the
merits of our case," said Jeffrey Citron, Vonage chairman and interim
chief executive officer. "It's business as usual for us. We will
continue providing reliable, quality digital phone service at the
best value in the market and connecting thousands of phone calls
every day. We remain focused on growing and strengthening our
business and driving toward profitability."

Citron added, "We continue to believe we have not infringed on any of
Verizon's technology and remain optimistic that we will ultimately
prevail in this litigation."

Vonage will continue to serve existing customers by paying into
escrow a quarterly royalty of 5.5 percent throughout the appeals
process and by posting a $66 million bond as required by the court.
The company's current cash position allows it to pay these fees to
secure the stay as it continues to make progress on and pursues its
legal appeal over the coming months.

Appeal

Vonage remains highly confident in the strength of its legal appeal.

"We believe the original verdict was based on an erroneous claim
construction -- meaning the patents in this case were defined in an
overly broad and legally unprecedented way," said Sharon O'Leary,
Vonage's executive vice president, chief legal officer and secretary.
"We believe the district court's decisions repeatedly neglected well-
established law on claim construction and, as a result, artificially
expanded the coverage of Verizon's patents well beyond what was
intended by the patent trademark process."

O'Leary continued: "We are confident this error will be rectified by
the appeals court, which hears intellectual property cases
exclusively. As a result, we remain highly confident Vonage will
prevail on appeal."

About Vonage

Vonage (NYSE: VG) is a leading provider of broadband telephone
services with 2.4 million subscriber lines. Our award-winning
technology enables anyone to make and receive phone calls with a
touch tone telephone almost anywhere a broadband Internet connection
is available. We offer feature-rich and cost- effective communication
services that offer users an experience similar to traditional
telephone services.

Our Residential Premium Unlimited and Small Business Unlimited
calling plans offer consumers unlimited local and long distance
calling, and popular features like call waiting, call forwarding and
voicemail -- for one low, flat monthly rate. Vonage's service is sold
on the web and through national retailers including Best Buy, Circuit
City, Wal-Mart Stores Inc. and Target and is available to customers
in the U.S., Canada and the United Kingdom. For more information
about Vonage's products and services, please visit http://
www.vonage.com.

Vonage Holdings Corp. is headquartered in Holmdel, New Jersey. Vonage
(R) is a registered trademark of Vonage Marketing Inc., a subsidiary
of Vonage Holdings Corp.

Vg-f

Safe Harbor Statement

This press release contains forward-looking statements regarding
Vonage's development of workaround solutions, its financial position
and the likelihood of success on appeal. In addition, statements in
this press release that are not historical facts or information may
be forward-looking statements. The forward-looking statements in this
release are based on information available at the time the statements
are made and/or management's belief as of that time with respect to
future events and involve risks and uncertainties that could cause
actual results and outcomes to be materially different. Important
factors that could cause such differences include, but are not
limited to, our inability to implement an effective workaround,
potential claims by creditors, our history of net operating losses
and our need for cash to finance our growth; the competition we face;
our dependence on our customers' existing broadband connections;
differences between our service and traditional phone services,
including our 911 service; uncertainties relating to regulation of
VoIP services; system disruptions or flaws in our technology; our
ability to manage our growth; the risk that VoIP does not gain
broader acceptance; and other factors described in the "Risk Factors"
section of our Annual Report on Form 10-K for the year ended
12/31/06, and in our subsequent periodic reports filed with the SEC.
While we may elect to update forward-looking statements at some point
in the future, we specifically disclaim any obligation to do so, and
therefore, you should not rely on these forward-looking statements as
representing our views as of any date subsequent to today.

SOURCE Vonage

Brooke Schulz of Vonage, +1-732-528-2627, brooke.schulz@vonage.com;
or Nick Kalm of
Reputation Partners, +1-312-222-9888, nick@reputationpartners.com

http://www.vonage.com

----------------------------------------------
James Packard Love
Knowledge Ecology International
http://www.keionline.org
james.love@keionline.org
Washington, DC +1.202.332.2670

"If everyone thinks the same: No one thinks." Bill Walton"



_______________________________________________
Ip-health mailing list
Ip-health@lists.essential.org
http://lists.essential.org/mailman/listinfo/ip-health

