Charter sues Verizon

Charter Communications Inc., the US cable-television company controlled by billionaire Paul Allen, sued Verizon Communications Inc., alleging the phone company’s FiOS fiber-optic network infringes four patents.

Verizon, the second-largest US telephone-services provider, should be ordered to pay damages and stop using the on-demand and other technologies without permission, Charter said in a complaint filed in federal court in Norfolk, Va.

Charter, based in St. Louis, is trying to stave competition in the cable market as it works to reduce $21 billion in debt. Verizon, based in New York, is spending $23 billion over seven years to expand the FiOS network, which offers phone, TV, and Internet services.

“Verizon operates FiOS in territories throughout the US, including in markets where FiOS competes head-to-head with Charter’s cable television and other services,” Charter said in the complaint filed Dec. 31.

David Fish, a spokesman for Verizon, said the company believes the claims are “without merit.” He declined to comment further.

Verizon sued Charter in February 2007 in federal court in Texarkana, Texas, claiming infringement of eight patents for providing telephone services on a data network. The case is still pending. The company’s FiOS network had recruited 1.6 million TV subscribers at the end of the third quarter, compared with Charter’s 5.5 million customers.

Charter rose 7 cents to 17 cents on the Nasdaq Stock Market. Comcast Corp. is the largest US. cable operator by subscribers. Verizon rose 40 cents to $31.90 on the New York Stock Exchange. AT&T Inc. is the largest US phone company. (Bloomberg News)