Tuesday, April 24, 2007

Verizon patent litigation extorts Vonage for 5.5% royalty

Vonage Wins Permanent Stay in Verizon Patent Litigation --Bruce Perrens, whom we met recently in an MTB session, gave us the catchphrase, "If you can't innovate, litigate," and that's what Verizon's been doing with Vonage lately. Today, Vonage obtained a permanent stay, so it can go about it's business almost as usual, with the modification of paying a 5.5% royalty to Verizon and posting a $66 million bond. This is similar to the AT&T situation with the Ohio SB117, where an uncompetitive and hidebound older company tries to gain market share of a market in which they aren't in the least competitive, using their pawns in the state legislature to extort the companies that created the market. There's honest and forthright competition, and then there's the cheater's game played by AT&T, which might be rephrased as, "If you can't innovate, legislate," especially if you have cooperative "operatives" like Bob Spada and Lance Mason. Am I being too harsh, too unfair?

Bill Callahan's been giving this SB177 thorough and balanced coverage for the past month, and I guess Matt Zone testified today down in Columbus.

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