"In layman's terms, it means business as usual," said Brooke Schulz, a spokeswoman for Vonage.
The federal circuit appeals court, which specializes in hearing patent cases, put Vonage's appeal on a fast-track schedule, with arguments set for June 25.
It takes the appeals court more than a year to rule on most cases. But lawyers involved in the Vonage appeal said it could be decided as soon as this summer.
"It's a reprieve, but possibly a short reprieve," said Rebecca Arbogast, an analyst with Stifel Nicolaus,
Vonage shares jumped as much as 50% following the ruling before paring their gains to close up 28% at $3.72 on the New York Stock Exchange. Verizon shares closed 5 cents higher at $37.60.
At issue was an April 6 ruling by a federal court in Alexandria, Va., barring Vonage from adding new customers while it appeals the patent infringement finding.
Verizon is seeking to bar Vonage from any use of its patented technologies after a jury in March found Vonage had infringed three patents. Verizon's deputy general counsel, John Thorne, praised the decision by the appeals court to expedite the case, saying it would limit Vonage infringement of Verizon patents.