But the U.S. Court of Appeals in Washington asked the U.S. District Court in Alexandria, Va., to reconsider its ruling on a third patent, about WiFi phones.

Because the punishment against Vonage was based on all three patents, the court also sent back for further review a $58 million award and 5 1/2 percent royalty fee a federal jury called for March 8.

The decision came a day after a separate federal jury found Vonage had infringed on patents owned by Sprint Nextel Corp.

Vonage shares closed at 96 cents, down 34 cents or 26.15 percent on the New York Stock Exchange.

Vonage Chief Legal Officer Sharon O'Leary said Vonage was pleased the appeals court asked the lower court to reconsider the one patent infringement and the overall damage figure.

She said Vonage would "continue to vigorously assert" it had not infringed on the patent.

She added Vonage had developed "workaround" technology for the two other patents, so "it's business as usual."

A Verizon spokesman said, "The court decision speaks for itself."