Vonage must pay Sprint $69.5 million

VoIP juggernaut Vonage absorbed another legal and financial hit yesterday, losing a technology patent lawsuit to Sprint Nextel that will cost Vonage $69.5 million. It's the company's second such loss, following an earlier lawsuit decided in favor of Verizon Communications.

Vonage is appealing the Verizon verdict, but the initial loss cost Vonage a lot of marketing energy and stock value, and the same will happen here. Unless it gains reversals on these court decisions, it's hard to imagine how it can afford to pay the damages and keep pace with increasing competition.

For more:
- Read this story in The Kansas City Star