Vonage (NYSE:VG) has announced that an appeals court has granted a temporary stay of a lower court ruling barring the company from signing up new customers while it is in violation of three of Verizon’s (NYSE:VZ) voice over IP patents.
Here is the text of the release:
Vonage today secured a temporary stay from U.S. Court of Appeals for the Federal Circuit in Washington, DC. The stay enables Vonage to continue to sign up new customers until the Appellate court can hear Vonage’s request for a permanent stay. The Court’s ruling allows Vonage to continue to provide phone service to existing customers.
Earlier today the U.S. District Court in Alexandria, Va. indicated it would enter an injunction against Vonage effective April 12, 2007 in connection with certain Verizon technology on which it was found to be infringing. The Court indicated that Vonage would be barred from acquiring new customers during its appeal to the U.S. Court of Appeals for the Federal Circuit in Washington, D.C. In response, Vonage filed for and received an emergency stay of the injunction from the Federal Circuit.