Internet telephone company Vonage Holdings Corp. may be in big trouble after being ordered in federal court Tuesday to pay Sprint Nextel $69.5 million in damages for infringing on six telecommunications patents owned by Sprint Nextel Corp. In addition, jurors awarded Sprint Nextel a 5% royalty from Vonage on future revenues. Vonage said in a written statement that it would appeal the decision but also would begin developing workarounds so it won't need to use the disputed technology.
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We are disappointed that the jury did not recognize that our technology differs from that of Sprint's patents," said Sharon O'Leary, chief legal officer for Vonage. "
Our top priority is to provide high-quality, reliable digital phone service to our customers." On the other hand, Matt Sullivan, a spokesman for Reston, Va.-based Sprint., said the company was "extremely pleased" with the verdict and that Sprint plans to ask U.S. District Judge John Lungstrum for a permanent injunction against Vonage using the patented technology. Greg Gorbatenko, a telecommunications and media analyst for Jackson Securities, said the decision "feels like a death knell" for Vonage because future revenue will likely dry up, preventing the company from investing in better technology or improving customer service.
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