We all know that Vonage was pronounced guilty in the patent battle with Verizon and as a part of the punishment it has been refrained from offering core VoIP services. This implies that either it would be have shut its services or find out an alternative solution for offering the service. In order to work out some way the company has asked for a stay which is expected to be heard in two weeks but is this time enough for Vonage to come out with some life saving idea? I am not sure about that. The effect of the news showed on the share prices of the company which plummeted further and reached an all time low of $3. I feel sorry for all those people who brought those shares during public offer at a whopping $17.25 per share.
Vonage is adamant and sticks to its stand that it did not copy any patent. Mike Snyder, CEO of Vonage stated:
Our fight is far from over. We remain confident that Vonage has not infringed on any of Verizon's patents — a position we will continue vigorously contending in federal appeals court — and that Vonage will ultimately prevail in this case.
The company will have to suffer the after effects of the case for a pretty long time and we might see a number of consumers parting ways with the company fearing that the company may close down and new customers may be hard to find since the market is losing confidence in the company. I don't think the company would fall like a pack of cards but the legal cost would surely shake its foundation – a good option would be to put itself for sale because revival would require a lot of time and of course money.
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We have an offer on the table for $3.22 a share.http://flatplanetphone.com/wordpress/?p=99
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