Vonage: We Will Survive Post-Injunction

Calling the turmoil following a Friday verdict banning it from using VoIP technology patented by Verizon an "overreaction," Vonage said Monday that it was confident it would be able to win on appeal, but investors are worried.

US District Judge Claude Hilton issued an injunction Friday after dismissing arguments by Vonage that it was in the public interest to not enforce such an action, siding with Verizon's claims of 'irreparable harm.'

Vonage will get a stay of two weeks to allow the company to further press its argument against an injunction, and appeal the entire patent infringement case, Hilton said.. The ruling will be signed at the time he rules on the stay.

The surrounding fallout caught Vonage off guard, and it worked hard Monday to calm the market and assure its investors that the company would continue to operate even in face of an injunction.

"To paraphrase Mark Twain, the rumors of Vonage's death have been greatly exaggerated," CEO Mike Snyder said in a statement. "The fact is we've been preparing for this verdict and the possibility of an injunction for months."

Vonage said it expects Hilton to sign a permanent injunction, and will immediately file for a stay with the Court of Appeals. In addition, the company will appeal the jury verdict against it as well.

"We are optimistic the trial court judge will stay the injunction," Vonage Chief Legal Office Sharon O'Leary said. "Once the case is up on appeal, we are confident that the appellate court will overturn the verdict based on the faulty claim construction of the patents involved."

Two out of every five cases are overturned in the appeals court when issues of flawed claim construction are brought in front of it, she added, saying the entire process could take years to decide.