You can stay on Induction indefinately, but at some point, you do need to go through the other phases in order to get to Maintenance so you don't gain it back.
This discussion recently took place on another site an a member posted some info from the site to back up the "indefinately" for induction:
atkinscenter.com>faqs>Phases of Atkins Nutrional Approach
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How do I know when to move from one phase of Atkins to the next?
You are ready to leave Induction and add more carbohydrates to your meals when you have lost much of the weight you want to shed. Or you may be bored with the options available on the Induction phase and willing to trade a slow-down in the progress of your weight loss in return for eating a wider variety of foods. The next phase is called Ongoing Weight Loss (OWL) when each week you add another 5 grams of carbs per day in the form of nutrient-dense foods, such as more vegetables, seeds and nuts, and low-glycemic fruits such as berries. So the first week on OWL, you go from 20 to 25 grams per day; the following week you would move to 30 grams per day and so on. Change the increments on a weekly basis until your weight loss slows to one to two pounds each week. Slowly increasing your carb intake allows your body continue to use its fat stores for fuel.
When you are within five or 10 pounds of your target weight, it is time to move to Pre-Maintenance. You will now be broadening your range of foods while learning what you can eat without regaining weight, adding 10 grams of carbohydrates per day in weekly increments. So long as you continue to lose weight at a slow, almost imperceptible rate, you can begin to add starchy vegetables and whole grains, such as brown rice or whole wheat bread. However, if adding these foods results in cravings or make you gain weight, you should stop eating them immediately.
After you have maintained your weight for four weeks, you will have transitioned to the phase called Lifetime Maintenance, where you are eating a whole-food diet. On rare occasions, you may be able to indulge in cookies, cakes, candies and other junk food, but in general you will continue to avoid products full of sugar and white flour to maintain your weight.
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How long can I stay on Induction?
The longer you consume no more than 20 grams of carbs daily, the more body fat you will burn. Depending on how much weight you need to lose, you can safely continue with Induction as long as the following three conditions are met:
Your blood chemistries, lipid values, blood pressure or blood sugar levels continue to improve or remain stable and within normal limits.
You feel well and are experiencing a high energy level, normal sleep patterns and stable moods.
You are not bored. Boredom could lead to cheating and undermine your efforts.
However, it is important to understand the entire Atkins Nutritional Approach. The ultimate goal of the program is to advance from the Induction phase through Ongoing Weight Loss and Pre-Maintenance, culminating in Lifetime Maintenance, which should become your permanent way eating. By following these steps, you can find your Critical Carbohydrate Level for Losing (CCLL), also known as your carbohydrate threshold for losing, and ultimately your Critical Carbohydrate Level for Maintenance (CCLM), also known as your carbohydrate threshold for maintaining. Segueing from one phase to another will help you maintain a healthful weight, feel good and decrease your risk factors for chronic diseases such as heart disease, hypertension and diabetes.
That being said, if you have a great deal of weight to lose, you can certainly stay on Induction for six months or even more. When you switch to Ongoing Weight Loss, your rate of loss will naturally diminish. On the other hand, if you have a modest weight loss goal, say 20 pounds, and lose the first pounds rapidly, it is important to move through the more liberal phases so you can establish the good eating habits that will become part of your ongoing lifestyle and end yo-yo dieting.
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The above information can be found at:
atkinscenter.com>faqs>Phases of Atkins Nutirional Approach
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How long have you been on Atkins?
Forgot to mention that after I reach my target weight doing induction, I will proceed to the next phase (and so on...) and make Atkins my WOE as well as my WOL. 
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