A federal jury dealt a blow to Internet phone company Vonage, ruling that it infringed on patents held by Verizon. Vonage was ordered to pay $58 million in damages, plus royalties on future sales.

However, Vonage is delighted that the jury rejected Verizon's meritless claim that we infringed their two billing patents. Of the seven patents Verizon originally sued on, they prevailed on only three and we expect that verdict to be reversed on appeal. The jury's damage award represents a 70% reduction from Verizon's $197MM claim. The jury also unanimously rejected Verizon's claim that Vonage willfully infringed its patents.

In addition, we don't believe there is any basis to support Verizon's request for an injunction and we will have the opportunity to present our position to the trial court shortly. If the trial court does impose an injunction, we will seek an immediate stay from the Federal Court of Appeals. Vonage's customers should see no change to any aspect of their phone service.

It appears the Vonage Fan Van isn't running on four flat tires and will continue to terrorize people by throwing Vonage boxes at peoples heads.