Jury decides Vonage Violated Sprint Nextel's Phone Patents

Vonage was ordered in federal court to pay $69.5 million in damages for infringing on six telecommunications patents owned by competitor Sprint-Nextel. This is the latest in a series of lawsuits levelled against the Voice over Internet Protocol (VoiP) company, which have pitted Vonage against telecom giants such as Verizon and Sprint-Nextel. In fact, the Sprint-Nextel ruling, which was handed down on Sept. 25, came only a day before the US Court of Appeals affirmed that Vonage owed Verizon $58 million, although it struck down a similar royalty-based ruling. The jury found Vonage Holdings Corp had infringed six patents owned by competitor Sprint Nextel Corp. and should pay $69.5 million in damages. Vonage shares fell 66 cents, or 34 percent, to $1.30 at 4:32 p.m. in New York Stock Exchange composite trading. Trading was halted for almost two hours immediately after the verdict. The company's future may depend on the alternative technology for the disputed patent.