Verizon Claims Vonage Owes It $197 Million For Patent Infringement
from the nice-work-if-you-can-get-it dept
This is also a good example to disprove the commonly stated claims of patent system defenders. They usually claim that these patents are needed to protect smaller players from being stomped out of business by a big company with more money and connections who can simply "steal" their idea and dominate the market. In this case, it was Vonage, the smaller player, that innovated in the market while the bigger company was slow to act. Verizon did later copy Vonage's offering, but was unable to succeed in the marketplace, despite having a lot more money, much better brand recognition, and many more telephony customers already in place. That's the exact opposite of what the patent defenders would have you believe would happen. Vonage continued to innovate, while Verizon was unable to compete. And then, rather than competing in the marketplace, the big company used patents to try to hamstring Vonage, adding additional fees (and the expense of a pointless patent lawsuit). It's hard to see how that's innovative at all.