For the second time in less than a year Vonage loses another patent infringement lawsuit. Vonage has been ordered to pay Sprint $69.5 million in damages plus a 5 percent royalty on future revenue for violating 6 of its patents. If both cases hold up in the appeals process Vonage will have to pay a total of $127.5 million + 10.5% royalties on future revenues.

Can Vonage survive such a hit to its bottom line? They are going to have to develop alternative technologies that will allow Vonage to sidestep paying the royalties, keep increasing their customer base and somehow keep their investors happy. Seems like a tall order for a company whose is ripe for a takeover bid.

Source: Washington Post