Vonage has asked the U.S. Court of Appeals for the Federal Circuit in Washington D.C. "to vacate and remand" the U.S. District Court's finding of the company's infringement on certain Verizon patents. It cited the U.S. Supreme Court's unanimous decision Monday, establishing a new test for determining when an invention is too obvious to warrant patent protection. "The Supreme Court's decision should have positive implications for Vonage and our pending patent litigation with Verizon," said Jeffrey Citron, Vonage chairman and interim CEO. Verizon's deputy general counsel however, said "there is no merit" to Vonage's request, calling it "a delaying tactic to avoid final resolution of the appeal." The Wall Street Journal reports Vonage has "... mounted an aggressive public relations campaign in recent days to suggest Verizon's motivation is to stamp out competition, rather than protect its intellectual property." Shares of Vonage rose 2.3% to $3.14 in normal trading and gained 1.6% to $3.19 in the after-hours on light volume under 50,000 shares.
Sources: Press release, Bloomberg, The Wall Street Journal
Commentary: Vonage Wins Stay of Injunction, May Continue Pursuing New Customers; Shares Gain 29% • Vonage Blues May Be Spreading To Clearwire • Verizon/Vonage Patent Infringement Suit: Does 3Com Actually Own the Deed? • Supreme Court Sides with Innovators Over Patent Holders
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).
Related: Vonage filing [pdf]
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