VoIP Provider Vonage CEO Says Market Overreacting to Injunction: Report

By Spencer D. Chin

TMCnet Web Editor

 

 

Vonage (News - Alert) Holdings Corp. chief executive Mike Snyder said in an Associated Press report Monday the market is overreacting to a federal judge’s decision last week to bar the Internet phone company from using Verizon’s (News - Alert) VoIPpatents.

 

Vonage shares toppled nearly 26 percent on Friday after the injunction decision, even though the judge ruled a final decision on enforcing the injunction would not be made for two weeks.

 

"To paraphrase Mark Twain, the rumors of Vonage's death have been greatly exaggerated," Snyder was quoted as saying in a statement. "Friday's events represented one small step in what is sure to be a long legal battle."

Snyder reportedly said the market's reaction showed "an unfortunate lack of understanding of the judicial/appellate system, a lack of appreciation of Vonage's resourcefulness, or, perhaps, both."

 

Vonage has steadfastly maintained an air of confidence in the wake of a March 8 court ruling it has infringed three of Verizon’s VoIP technology patents and would have to pay the telecom company $58 million plus royalties on future sales. The company has gone great lengths to reassure customers it is financially able to continue providing service while dealing with the strong possibility of a protracted legal battle.

 

Vonage said the litigation would likely take years, but it was confident it would continue to provide service to its more than 2.2 million subscribers.