A judge issued an injunction Friday that would bar Internet phone carrier Vonage from signing up new customers as punishment for infringing on patents held by Verizon Communications Inc.
It could be game over for Vonage. Their IPO was already disappointing and if they are prevented from growing subscribers for a period of time I'd imagine that all future valuations go out the window and the stock goes in the toilet. This is the last thing they needed in a time of increasing competition (and ever lowering switching costs).
I'm a Vonage customer, but I don't know for how much longer.
1 comment:
I don't know very much about this case, but if you're Verizon, would you prefer to get a hefty license fee from Vonage than to put them out of business? If you drive them out, then some customers will switch over to cable-provided phones.
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