The verdict is already out in the Vonage- Verizon patent infringement battle and it is expected that the decision awarded could have serious repercussions on the entire VoIP carrier market. Verizon has also appealed for injunction and if that goes through then Vonage would have to shut their shop even if that means temporarily and besides Vonage even other VoIP companies using the same technology may have to face the axe.

This is being labeled as a case of revenge rather than patent infringement since in U.S Vonage is the largest standalone VoIP provider. This judgment should send shiver down the spines of smaller players and in case Verizon targets them it would be the end of road for them. Vonage has been ordered to pay $58 million in damages which is almost near the one quarter losses of the company coupled with royalty fees of 5.5% on future revenues and in case smaller players are slapped with such Punishment they would surely have to look for some other work.

The implications of the judgment is going to dent Vonage in the long run since existing customers might plan to leave the service and prospective customers may shy away from the service. The damage has already been done no matter what the judgment for injunction comes and Vonage seems to be in a state of six and seven as to its future course of action and above all it has left the smaller players to keep on worrying. Verizon has played its cards in the best possible manner and now Vonage needs to give a serious thought as to how it can save its skin.