VoIP Cloud Company Has Patent Trouble

A company that provides VoIP business phone systems was threatened with legal action by a Wi-Fi hotspot provider for using the term cloud’ in their name.

Although the two companies do not compete directly, The Cloud, a European Wi-Fi network (which was registered as The Cloud Networks Ltd in 2003) decided to start proceedings against Cloudnet Telecommunications (registered in 2009).

Instead of facing heavy legal costs in a high court case, Cloudnet Telecommunications has now changed its name to Birchills Telecom.

Company founder Dave Hill explained: "We were told by The Cloud's legal team to simply change our name in case The Cloud decided, at a later date, to sell telephone systems.”

It is reported that Mr Hill believes there are other reasons for the legal proceedings as many VoIP companies use the term ‘cloud’.

Mr Hill says that Birchills Telecom surpassed The Cloud in the Google rankings for that search term and the company was annoyed at the loss of visibility.

He said that in August 2010 Birchills Telecom got above The Cloud on the Google Search Results Pages and the legal threat was initiated soon after.

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