And for once, Vonage doesn't have to shell out millions...
by Karl Bode 02:01PM Monday Dec 31 2007 Tipped by Phoenix2088
The VoIP patent settlements just keep on coming for Vonage, who today announced they've settled their legal dispute with Nortel Networks. Fortunately for the struggling VoIP provider this settlement won't involve any monetary payments. Instead the settlement involves a "limited cross license":
quote:The companies will each license three patents to the other, Nortel spokesman Mohammed Nakhooda said today in a statement. They'll drop claims of past damages, and dismiss those related to other patents, Vonage and Nortel said. Vonage shares rose as much as 10 percent.
Vonage has settled four other patent suits already this year.
Vonage is wondering who is next. And how long they can dish out money. Whether its worth is to pay out all the royalties without raising their rates.
2007-Dec-31 2:12 pm: ·
Shrapnel64 Premium join:2001-01-24 Hayes, VA kudos:1
In my opinion, you're right that Vonage is wondering who is going to be next on the list.
It is also my opinion that Vonage is in a catch 22 -- if they raise rates and pass the costs on to their customers, they will start looking for alternatives as their rates will be with that of their competitors. Vonage from what I've seen offers you everything possible, much, much cheaper than say AT&T's VoIP service.
If they raise rates, a lot of people will be upset...some will pay, others will go with someone who they feel more comfortable with, and who has a lot of reliability behind them (AT&T for example).
At some point in time they have to raise their rates. They were losing tons of money before the lawsuits and the lawsuits just made it worse...
2007-Dec-31 7:04 pm: ·
Kearnstd Elf Wizard Premium join:2002-01-22 Mullica Hill, NJ kudos:1
what i find interesting is all these so called patents, why wernt the lawyers sicked when Vonage came out. clearly the owners wanted hopes of big bucks lawsuits vs the Cease and Desist that you would normally have to use on someone small. -- [65 Arcanist]Filan(High Elf) Zone: Broadband Reports
You should be happy. A friend and I both got the "invitation" to join in on the IPO. Both of us were "accepted", but I backed out at the last minute. He ended up buying something like 2000 shares at the IPO special price... I think it was something like $12 a share.
Be glad you were not there! It is still a bitter topic for him. He sold at about $4 a share.
Oh well... you just got to look at it like this... do not gamble with money you cannot afford to lose.
Actually lots of people have Vonage and it's great. I've never had a service from a company be so hassle free and just all around great. I highly recommend them. It's sad to see Vonage get trashed on by people that know nothing about them. Vonage is awesome.
I had DSL for 7 years, overall I was pretty happy with it. I later added a few different VoIP services and the VoIP call quality was OK as long as I wasnt doing any uploads or downloads. There is a big difference with VoIP over a Fios (or cable) vs. a DSL connection.
2008-Jan-1 12:54 am: ·
Jahntassa What, I can have feathers Premium join:2006-04-14 Conway, SC kudos:4