Appellants Vonage Holdings Corp. and Vonage America, Inc. (“Vonage”) appeal from the judgment of the United States District Court for the Eastern District of Virginia in favor of appellees Verizon Services Corp., Verizon Laboratories Inc., and Verizon Communications, Inc. (“Verizon”). The judgment awarded $58,000,000 in compensatory damages and a royalty of 5.5% on any future infringing sales, based on a jury verdict that Vonage infringed claims of U.S. Patent Nos. 6,282,574 (“’574 patent”), 6,104,711 (“’711 patent”) and 6,359,880 (“’880 patent”), and that those patents were not invalid as obvious. Vonage also appeals from the injunction entered by the district court barring Vonage from further infringing the asserted claims, including provisions that bar the use of certain methods and devices.
We hold that the district court did not err in its construction of disputed claim terms of the ’574 and ’711 patents. Therefore, we affirm the judgment of infringement with respect to those claims. However, we hold that the district court improperly construed one of the disputed terms in the ’880 patent, and accordingly vacate the judgment of infringement with respect to the ’880 patent and remand for a new trial.
We hold that the district court did not commit prejudicial reversible error in instructing the jury on the law of obviousness with respect to the ’574 and ’711 patents, and therefore affirm the judgment that the asserted claims of those patents would not have been obvious. However, in light of the error in the construction of the claims of the ’880 patent and the possibility of error in the jury instruction on obviousness, we remand to the district court to determine whether prejudicial error occurred with respect to the jury instructions that would affect the obviousness verdict with respect to the ’880 patent.
We vacate in its entirety the award of $58,000,000 in damages and the 5.5% royalty and remand to the district court for further proceedings. We affirm the injunction as to the ’574 and ’711 patents. We vacate the injunction insofar as it pertains to the ’880 patent.
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