Verizon Claims Vonage Owes It $197 Million For Patent Infringement
from the nice-work-if-you-can-get-it dept
If you want a good example of the backwardness of the patent system these days, just check out the lawsuit where Verizon claims Vonage infringed on its patents. It's pretty well accepted that Vonage really was very innovative in bringing VoIP to market. It was one of the first "telephone replacement" VoIP offerings out there, and did a great job creating that marketplace with a huge marketing effort. However, after it was successful in finding a market (and competing against traditional telecom players like Verizon), Verizon suddenly decided that it held a patent on VoIP offerings and sued Vonage. Remember, that Verizon has done pretty much everything possible to keep people from getting services like Vonage. It had its own offering in the market, but was much later to market than Vonage and noticeably more expensive. It should come as no surprise that the offering didn't get much attention. So, what do you do when you fail in the market? You sue for patent infringement. Not only that, but you then claim that Vonage owes you $4.93 per customer per month -- which seems just a bit excessive.This is also a good example to disprove the commonly stated claims of patent system defenders. They usually claim that these patents are needed to protect smaller players from being stomped out of business by a big company with more money and connections who can simply "steal" their idea and dominate the market. In this case, it was Vonage, the smaller player, that innovated in the market while the bigger company was slow to act. Verizon did later copy Vonage's offering, but was unable to succeed in the marketplace, despite having a lot more money, much better brand recognition, and many more telephony customers already in place. That's the exact opposite of what the patent defenders would have you believe would happen. Vonage continued to innovate, while Verizon was unable to compete. And then, rather than competing in the marketplace, the big company used patents to try to hamstring Vonage, adding additional fees (and the expense of a pointless patent lawsuit). It's hard to see how that's innovative at all.
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I am amazed all the VoIP providers and manufacturers are not banding together to fight this lawsuit. First they came for my neighbors and when there was no one left...they came for me.
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"
"ow" i just got hit in the head with an orange box"
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Go away giant telco-your mentality "we own the wiring to every house in America" days are over!
Good Riddance!!!
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two cents worth
Turn it off, Dissconect it, cancel your program, close your account.
Say it with your money.
You don't NEED it. But as long as the "Public" (slack jawed, glazed eyed, mindless masses) lemmingly accept it...
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Vonage != profitable?
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Patents to those with the better ads.
Try this hypothetical, Mike owns 1000 acres, and spends his last dime trying to strike oil there, and fails. Halliburton looks at the drilling maps and reports that Mike filed with the gov't. While Mike is stuck at an all-day hearing on his bankruptcy, the Big H set up a drill and strikes oil on Mike property. They efficiently pump it to a refinery, and gas prices drop a penny for all of us, based on this new found resource. Mike failed to make the most of what was his. He just couldn't deliver oil to the marketplace. but H did. Mike shouldn't be suing H, because they delivered, and the product of H's efficient effort was good for all of us. Right? So then, a well-financed start-up can review patents, take those that aren't being well-delivered to the market, and face no liability for patent infringement.
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Re: #6
how about this example, its like Delta suing United airlines for using a boeing jet, if delta had a patent on flying. Shouldn't they sue boeing? or in this case Cisco or whatever other vendors Vonage uses.
I think this lawsuit is all about crushing the competition. They can't compete in the open market but they can smack'em around in court.
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who developed the patent?
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Vonage? Verizon
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After all the bottom line is all the jury is going to understand anyway!
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Clarification of Issue
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voip started here first
C2 Communications Technologies Inc. Files Lawsuit Against Telecommunications Companies
Thursday June 15, 2006 9:00 am ET
MARSHALL, TEXAS--(MARKET WIRE)--Jun 15, 2006 -- C2 Communications Technologies Inc. ("C2"), a subsidiary of C2 Global Technologies Inc. (OTC BB:COBT.OB - News), announced today that it has filed a patent infringement lawsuit against AT&T, Inc., Verizon Communications, Inc., Qwest Communications International, Inc., Bellsouth Corporation, Sprint Nextel Corporation, Global Crossing Limited, and Level 3 Communications, Inc. The complaint was filed in the Marshall Division of the United States District Court for the Eastern District of Texas and alleges that the defendants' services and systems utilizing Voice over Internet Protocol ("VoIP") infringe C2's U.S. Patent No. 6,243,373, entitled "Method and Apparatus for Implementing a Computer Network/Internet Telephone System".
C2 is represented in this litigation by Susman Godfrey, LLP and Monts & Ware, LLP.
C2 Global Technologies Inc. is a subsidiary of Counsel Corporation (TSX:CXS.TO - News).
About C2 Global Technologies Inc.
C2's business is focused on licensing its patents, which include two foundational patents in Voice over Internet Protocol ("VoIP") technology. C2 plans to realize value from its intellectual property by offering licenses to service providers, equipment companies and end-users that are deploying VoIP networks for phone-to-phone communications. For further information, please visit C2's website at www.c-2technologies.com.
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If you build it they will come
Wednesday August 30, 4:48 pm ET
C2 Global Technologies Inc. Granted Patent in Canada
Wednesday October 18, 6:33 pm ET
C2 Global Technologies Inc. to be Granted Patent in Europe
Monday November 20, 9:00 am ET
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Vonage - in my experience, sucked. Sorry, I gave it a fair try... It wasn't the service so much - just how if the bill was a day late 'click' off it went, add to that their salesmen 'canvassing' me on that line. And the final nail was that $45 charge when I wanted to turn it off. If I had any thoughts about going back, they died right then and there.
So, eehh, I'm beginning to hate these companies abusing patent law as much as I hate the RIAA... I'll keep that in mind.
You know - someone needs to put up a web page that shames all these companies abusing copyright law, so we know who to NOT buy from.
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I am grateful for that :-)
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Can I copy movies and sell them for a dollar? It provides value to the marketplace, so shouldn't that be the only thing that matters?
So now Vonage is a replacement for a telephone line? So they have to comply with CALEA and E911 right? They have to pay or collect the same taxes as a telephone line, right?
To bad they don't, and when they are asked, they fight it tooth and nail.
You think Jeff Citron is the high and mighty bringer of good things to consumers? Yeah, wonder why he can't be in the securities industry any more. Wonder why he paid a $20 million fine to the SEC. Get real, just another guy with smoke and mirrors. Vonage lost money every year expecting someone to buy them. Didn't happen and they went public, which tanked. Anyone who invested in them is doomed.
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Only if it's valid...
I'm willing to bet that Verizon is only suing now because they thing Vonage looks like it could be profitable to them or they figured, "Hey someone else has done all the hard work now we can just sue. That way we can actually make them pay us for the hard work they put into it!"
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#13
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Verizon -- Vonage - True Competition
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Patent infringement? How about anti-trust?
Case closed!
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vonage
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What???
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So how long till Verizon files suit against cable companies?
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Sweetheart Deal in the Works for Verizon?
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To Verizon
For that, once you do, I'm dropping off of Vonage since I will not sign up fo CapTel (www.captelmail.com) service (I'm hearing impaired).
Frivulous patents...Verizon won't get away with this...
What are you going to sue next, Verizon? AT&T? Packet8? Tell me! You're a total monopolist!
It's great that you (Verizon) violated the Telecommunication Act of 1996! Have fun violating it...
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About my previous comment...
*sigh*
Somehow I got a feeling I might want to switch to Packet8 or CallVantage (I wonder if those two support G.711 codec for TTY (teletypewriter for the deaf) compatibility) but maybe not -- maybe just go for Embarq or Sprint (about $50 a month for phone service...maybe?) just to play it safe so I don't have to change the subscription service that much (I've already subscribed to Vonage service by October of 200).
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Stupid Patent System
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Does this affect vonage customers?
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Weak Patents
Or, imagine a world where only Ford cars (or whatever brand) were available because they got they patent on cars designed around the concept of an internal combustible engine!
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Verizon Sucks
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Don't Cry for Vonage
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All I know is...
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