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Vringo (VRNG) Updates on Patent Litigation; Says Legal Team Reviewing, Will Address at Post-Trial

November 7, 2012 1:25 PM EST Send to a Friend
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Vringo, Inc. (AMEX: VRNG) provided an update to shareholders.

Yesterday, a jury in U.S. District Court in Norfolk, Virginia ruled in favor of Vringo, Inc.'s wholly-owned subsidiary, I/P Engine, Inc. in its litigation against AOL, Inc. (NYSE: AOL), Google, Inc. (Nasdaq: GOOG), IAC Search & Media, Inc. (Nasdaq: IACI), Gannett Company, Inc. (NYSE: GCI), and Target Corporation (NYSE: TGT) (collectively, "Defendants") with respect to the Defendants' infringement of the asserted claims of U.S. Patent Nos. 6,314,420 and 6,775,664. After finding that the asserted claims of the patents-in-suit were both valid, and infringed by Google, the jury found that reasonable royalty damages should be based on a "running royalty," and that the running royalty rate should be 3.5%.

I/P Engine presented evidence at trial that the appropriate way to determine the incremental royalty base attributable to Google's infringement was to calculate 20.9% of Google's U.S. AdWords revenue, then apply a 3.5% running royalty rate to that base.

The jury also found that a total of $30,496,155 from Google, AOL, IAC, Gannett and Target, if paid now in cash, would reasonably compensate I/P Engine for the Defendants’ past infringement commencing on September 15, 2011.

The company has received numerous inquiries about the jury's calculation of past damages. Vringo's legal team is reviewing the verdict and plans to address all post-trial matters with the Court.

"We are very pleased with the jury’s conclusions with respect to validity and infringement,” said Jeffrey Sherwood, co-leader of Dickstein Shapiro’s Intellectual Property Practice and lead counsel for Vringo. "It is a very significant win."

Andrew Perlman, Chief Executive Officer of Vringo, said, "I would like to take this opportunity to thank our shareholders for their continued support. We are pleased with the fact that the jury found our patents valid and infringed, and that the defendants should pay a running royalty rate of 3.5%. Yesterday's verdict was an important milestone in demonstrating the value of our intellectual property portfolio. We look forward to continue to build shareholder value through the monetization of our assets."

The case is styled I/P Engine, Inc. vs. AOL Inc. et al., and is pending in U.S. District Court for the Eastern District of Virginia, Norfolk Division. The case number is 2:11cv512RAJ. The court docket for the case is publicly available on the Public Access to Court Electronic Records website, www.pacer.gov, which is operated by the Administrative Office of the U.S. Courts.




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Comments

Calculation obviously wrong
shawn holt on 2012-11-07 13:46:57
Mark as Spam | Reply to this comment

$VRNG Jury obviously made $100M++ error in calculating damages. Judge will fix. http://yhoo.it/Su2jW8 and http://bit.ly/UkHLFc - Market doesn't get this!


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