RFE&M Partner Quoted on Verizon Services Corp. v. Vonage Holding Corp. Case

March 8, 2007 – Crain’s New York Business

Rothwell, Figg, Ernst & Manbeck partner Martin Zoltick was quoted by Crain’s New York Business on Verizon Services Corp. v. Vonage Holding Corp., a patent infringement case pending in the U.S. District Court for the Eastern District of Virginia.

The jury determined that Vonage must pay Verizon $58 million in damages and a royalty of 5.5% of its revenues for future infringement of three of the five patents at issue in the case. Vonage provides phone service over the internet to over two million customers, and subscribers were up 75% last year. Verizon lost 366,000 residential landlines nationwide in just the fourth quarter of 2006 to internet phone providers such as Vonage and cable TV companies offering phone service. Still at issue before the court is whether to grant Verizon’s request for an injunction requiring Vonage to discontinue further infringement. Vonage said it would appeal any injunction. If the jury verdict is upheld, it will create problems for Vonage and other Internet phone providers.