SIPphone Sues Vonage

SIPphone has filed a suit against Vonage for what they claim are misleading business practices. A closer look reveals a jealous company.

SIPphone, Inc. announced it has filed a lawsuit against Vonage Holdings Corp on behalf of customers falling victim to deception around Vonage’s VOIP phone service. The complaint filed in San DiegoSuperior Court accuses Vonage of unfair competition as well as false advertising. A copy is available at www.sipphone.com/legal.

“Vonage is crowding out legitimate companies with deceptive advertisements for low cost crippled Internet calling devices while keeping secret that they will function only if hundreds of dollars of fees per year are paid,” says SIPphone CEO and founder, Michael Robertson. “We want Vonage to be honest with consumers and disclose they are paying manufacturers to intentionally disable phone adapters so buyers are forced to pay a monthly fee to Vonage.”

“Customers will save billions if we move to a world where they can choose their phone company and know at all times what their costs will be so they can make informed choices,” continued Robertson. “Vonage is attempting to block competition by intentionally crippling devices to lock-in customers. Consumers buy these devices only to get home and discover it is locked to the Vonage service for which they will have to pay hundreds of dollars per year.”

SIPphone plans to ask the court to issue an injunction to halt Vonage’s misleading ads and suggests the following prescribed remedies:

1) Vonage and its retail partners must clearly indicate hardware is locked and cannot be used with any other SIP-based service today or in the future.

2) Vonage and its retail partners must clearly communicate on all ads, online and print catalog listings and packaging the minimum required monthly fee necessary to make the hardware functional

3) Vonage and its retail partners must drop misleading statements such as “no monthly contracts”

4) Vonage and its retail partners must offer all existing customers of their Internet Phone adapter sold with the deceptive ads and listings a full refund or a replacement with an unlocked version of the adapter.

In our opinion is looks like SIPphone (another VoiP company) is trying to use their suit as a way to promote their own company. We had to cut out a good 60% of this press release because it sounds like too much of an advertisement. We expect this lawsuit to go nowhere.