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Vonage finally has some news it can smile about: after a court ruling last month that the VoIP telecom startup had infringed on three patents held by Verizon, and a judge in the case issued an injunction barring it from signing up new customers to its service, the U.S. Court of Appeals for the Federal Circuit issued Vonage a stay of the previous court's injunction, allowing it to continue pursuing new customers.vg The news sent Vonage's shares higher by nearly 29%, for a gain of $0.83 yesterday, to a closing price of $3.72. Still the company continues to be riddled by uncertainty about its future, as well as by increased competition from cable providers offering customers internet phone services. Even with yesterday's gains, Vonage shares are down 78% since their June 2006 IPO. A Vonage spokeswoman reassured investors yesterday, saying that while the company fights the court's original ruling, it is back to “business as usual."

Sources: Wall Street Journal, MarketWatch, TheStreet.com
Commentary: Vonage Wins Permanent Stay On Order Barring New CustomersVerizon/Vonage Patent Infringement Suit: Does 3Com Actually Own the Deed?Competition, Lawsuits, Failing Strategies - Is Vonage a Sinking Ship?
Stocks/ETFs to watch: Vonage Holdings Corp. (NYSE:VG), Verizon Communications Inc. (NYSE:VZ).Competitors: Sprint Nextel Corp. (NYSE:S), Qwest Communications International Inc. (NYSE:Q), AT&T Inc. (NYSE:T), Charter Communications (NASDAQ:CHTR), Comcast (NASDAQ:CMCSA). ETFs: iShares Dow Jones U.S. Telecom Sector Index ETF (NYSEARCA:IYZ), Broadband HOLDRS (NYSE:BDH), Vanguard Telecom Services ETF (NYSEARCA:VOX)

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Source: Vonage Wins Stay of Injunction, May Continue Pursuing New Customers; Shares Gain 29%