Internet phone services company Vonage Holdings Corp. said on Monday it did not infringe on Verizon Communications Inc.’s patents and a lawsuit will not disrupt its business whatever the outcome.
Verizon has sued Vonage, alleging that it infringed its patents related to voice-over-Internet Protocol (VoIP) technology. VoIP services allow consumers to make calls over the Internet.
The trial began last week and is expected to conclude next week in the U.S. District Court for the Eastern District of Virginia, a Vonage spokeswoman said.
“First and foremost, we are confident we have not infringed on any of Verizon’s patents and, in any case, we believe the Verizon patents are invalid,” Vonage Chief Executive Mike Snyder said in a statement.
Snyder added that the company had enough financial reserves to allow it to maintain normal operations regardless of the litigation’s outcome.
The lawsuit filed by Verizon in June last year added to Vonage’s woes after a weak stock market debut. Investors have been wary of the shares amid growing competition, as cable companies and other Internet firms offer similar services.
Vonage shares rose 13 cents, or 2.4 percent, to $5.52 in early trade, but were still trading at about a third of their IPO price of $17.
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