U.S. District Judge Claude Hilton has ordered internet telephony provider Vonage to stop signing up new customers as long as it continues to use technology which infringes on patents held by Verizon.

Last month a federal jury found that Vonage was violating Verizon's patents. Judge Hilton says his order will minimize harm to both companies, but a lawyer for Vonage say the company plans to appeal.

Vonage has about 2.2 million subscribers right now, but has a turnover rate of about 2.5% each month. If the company cannot add new subscribers, it could lose quite a bit of money. Current customers should not experience any service interruptions.

Update: Vonage has asked the U.S. Court of Appeals in Washington D.C. for a permanent stay on the ruling banning the company from signing up new customers. And while that case is pending, the court has temporarily stayed the order.

[via Techdirt]