As punishment for infringing on patents held by Verizon, a judge issued an injunction that bars Internet phone carrier Vonage from signing up new customers. Vonage planned an immediate appeal.
Vonage's lawyers said the compromise injunction posted by U.S District Judge Hilton is almost as devastating as an injunction that would have affected Vonage's 2.2 million existing customers.
"It's the difference of cutting off oxygen as opposed to the bullet in the head," Vonage lawyer Roger Warin said.
Verizon Communications Inc.'s lawyers had suggested the compromise injunction as a way to avoid shutting down Vonage Holdings Corp.'s entire network.