Vonage is saying that Verizon’s patent lawsuit against the VoIP-telephony giant is "frivolous". The Holmdel, New Jersey-based company vowed to defend itself and added that the lawsuit will not affect operations, no matter what happens.

Apparently Vonage has a large legal warchest and its CEO, Mike Snyder, said that the suit will not hurt the company financially and adds, "Our financial reserves would allow us to continue normal operations regardless of the outcome. In addition, we are confident that regardless of how this litigation is ultimately decided, Vonage’s customers will see no change whatsoever to any aspect of their phone service."

Verizon sued Vonage last week in the United States District Court of Alexandria Virginia. Verizon is seeking $197 million and claims that Vonage violated patents on billing, fraud detection and call forwarding. If Vonage losses, it could also be forced into a licensing deal for Verizon’s technology.

Vonage isn’t pulling any punches about the lawsuit validity and basically says Verizon is suing because it can’t compete. In a press release Vonage said that it, "intends to vigorously fight this frivolous lawsuit and expects to win. The company is confident it will be vindicated and, in the process, Verizon’s lawsuit will be exposed as a transparent attempt to stifle one of its most successful competitors."