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

Suggested Articles

Now that Nvidia has pivoted into the networking and mobile chip market with its acquisitions, large networking incumbents should be very nervous.

Windstream Holdings announced on Monday that it's now free from the shackles of Chapter 11 bankruptcy.

VMware's VeloCloud SD-WAN has found a home in Equinix's data centers, which means VMware can now offer it as a virtual network function (VNF.)