Vonage - It's Nortel's Turn to Sue

The patent lawsuit problems at Vonage continue. This time, Nortel is alleging that Vonage infringes on 12 of its patents dealing with click-to-dial. Earlier this year, Vonage alleged that Nortel had violated three of Vonage's patents.

Nortel's spokesman, Sami Asiri stated that "Defending our intellectual property rights is a top priority for Nortel. That is why we are seeking damages and a permanent injunction against Vonage around the use of our technology."

Vonage has expended a lot of energy and money defending itself against a host of previous suits brought on by Verizon, AT&T and Sprint Nextel.

Vonage reported net losses of $160.5 million in the third quarter of this year. That was more than double the $65.8 million loss it reported for the third quarter of 2006. In the past three years Vonage has incurred a net loss of more than $500 million.

I actually would like to see Vonage become profitable and survive but the law suits keep coming and their long term viability does not look promising.

Rick McCharles
Telecommunications Consultant, Toronto, Ontario Canada
RIC Services


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