Article: Vonage barred from signups

ALEXANDRIA, Va. -- Internet phone company Vonage Holdings Corp. will be barred from signing up new customers as punishment for infringing on patents held by Verizon Communications Inc., under an injunction ordered Friday.

The injunction was to take effect Thursday, but the company was granted a temporary stay from U.S. Court of Appeals for the Federal Circuit in Washington, D.C., which will allow Vonage to sign up new customers until the court rules on its appeal.

The order issued by U.S. District Court Judge Claude Hilton is less severe than the punishment he initially proposed -- a blanket injunction that might have disrupted phone service for all 2.2 million of Vonage's existing customers.

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