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From the Boston Globe Business Team

Verizon sues Vonage over VOIP technology

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June 19, 2006 08:30 AM

Executives at Vonage Holdings Corp. might want to check their caller ID the next time the phone rings. It could be rival Verizon Communications Inc.'s lawyers calling.

Vonage acknowledged this morning that it and subsidiary Vonage America Inc. are being hit with a patent infringement lawsuit by the Baby Bell for over some of its voice-over-internet-protocol, or VOIP, technology. Vonage's statement said Verizon accuses it of violating seven of its patents but did not disclose further details of the suit. The company denied any wrongdoing.

"Vonage believes that its services have been developed with its own proprietary technology and technology licensed from third parties and intends to vigorously defend the lawsuit," its statement read.

Traditional phone companies like Verizon have been under assault in recent years by companies like Vonage and cable companies like Comcast Corp., which have used VOIP to weaken the phone companies' lock on local and long distance calling.

Voice-over-internet services convert telephone conversations into packets of data which are then sent over the Internet or in Comcast's case, private data networks, to their destinations. The packets are reassembled when they reach the person on the other end of the line, becoming audible.

Verizon, though it does offer VOIP service under the VoiceWing brand name, still carries most of its traffic over copper wires.
(By Keith Reed, Globe staff)

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