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

March 9, 2007 – The Wall Street Journal

Rothwell, Figg, Ernst & Manbeck partner Martin Zoltick Verizon Services Corp. v. Vonage Holding Corp. 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. Verizon’s internet calling patents relate to connecting calls to ordinary phone lines and basic features such as call forwarding. Vonage provides discount rate phone service over the internet to over two million customers, and had a loss of $286 million last year despite revenue of $607 million. Still at issue before the court is whether to grant Verizon’s request for an injunction requiring Vonage to discontinue further infringement. Vonage intends to appeal the verdict and faces similar patent lawsuits from other traditional phone service providers, including Sprint Nextel Corp.

• "The verdict, if upheld, could create real problems for Vonage and other companies offering Internet telephony service,” said Marty Zoltick, a patent attorney with Rothwell, Figg, Ernst & Manbeck.

For more information, please contact Martin Zoltick at 202-783-6040 or mzoltick@rfem.com.