On March 8, 2007 a jury found Vonage guilty of infringing three patents held by Verizon, and not guilty of infringing two other patents.

Usage is generally referred to as "unlimited", though Vonage has different national "fair use" policies limiting Vonage-to-phone calls to a few thousand minutes per month in the UK, Evidence suggests that calls are limited to a length of 3 hours and 56 minutes.

Subscribers may choose a number in the country of the service they subscribe to for their primary line, in an area code of their choice.

The patents describe technology for completing phone calls between Vo IP users and people using phones on the traditional public switched network, authenticating Vo IP callers, validating Vo IP callers' accounts, fraud protection, providing enhanced features, using Wi-Fi handsets with Vo IP services, and monitoring Vo IP caller usage.

In 2007, Vonage launched a viral marketing campaign and website freetocompete.com, which garnered press coverage about Vonage, its campaign, the lawsuits, and issues of competition with established telecom corporations.

In the settlement, Vonage agreed to pay the seven investigating states $3 million for costs, issue refunds to complainants dating back to January 2004, and change several business practices in regard to advertising and customer retention.

Vonage offers cloud communications and calling plans for residential customers and businesses, including small and medium-sized businesses, mid-market companies, and enterprises.For 911 location services to work, subscribers must activate the 911 calling feature by registering their full address with the company.Customers are responsible for maintaining their 911 location information at all times.The price closed at .85, a decrease of 12.7 percent, the worst trading day for any IPO in 2006 up to that point. However, the existing customers who lost money filed a class-action lawsuit.The firms underwriting the IPO, Citigroup, UBS, and Deutsche Bank, were fined a total of 5,000 and ordered to reimburse customers for "failure to adequately supervise communications" with investors.To initiate subscription a customer must provide a billing and shipping address in the country of service.