WASHINGTON, D.C.—The U.S. Court of Appeals for the Federal Circuit has granted Vonage Holdings a stay on an earlier court order that had barred the company from signing up new customers.
The stay, which is permanent until the companys appeal is decided, will allow Vonage to continue business as usual. The court sided with Vonage after arguments in which the company pointed out that otherwise it would go out of business, and when lawyers for the company pointed out that Vonage would have to pay royalties on the patents to Verizon in any case.
The arguments have centered around Vonages claims that a jury decision in March was too broad because of faulty instructions. Earlier in April, a Federal District Court in Alexandria, Va., ruled that Vonage could continue to serve existing customers but could not sign up new customers. The courts action on April 24 allows Vonage to go back to marketing for customers.
After announcing its decision, the court announced a June 25 hearing date on the Vonage appeal.