VRINGO PROVIDES UPDATE ON I/P ENGINE VS. AOL, GOOGLE ET AL. LITIGATION
(Thomson Reuters ONE) -
Court Orders Defendants to Respond to I/P Engine's Motion for Ongoing Royalties
Within Ten Days
NEW YORK - May 1, 2013 - Vringo, Inc. (NASDAQ: VRNG), a company engaged in the
innovation, development and monetization of mobile technologies and intellectual
property, today provided an update on its wholly-owned subsidiary I/P Engine,
Inc.'s litigation against AOL, Inc., Google, Inc., IAC Search & Media, Inc.,
Gannett Company, Inc., and Target Corporation (collectively, "Defendants").
This summary is qualified in its entirety by the Court's rulings.
Earlier today, the U.S. District Court denied Defendants' Motion to Compel the
Deposition of Dr. Stephen Becker and for an Enlargement of Time to Oppose
Plaintiff's Motion for Post-Judgment Royalties. The Court found no basis to
permit further discovery on I/P Engine's Motion for an Award of Most-Judgment
Royalties, and ordered Defendants to respond to the motion within ten days. The
Court also permitted I/P Engine to file a reply to Defendants' response within
five days of the entry of Defendants' response.
Background
On November 6, 2012, a jury in U.S. District Court in Norfolk, Virginia ruled in
favor of I/P Engine and against Defendants with respect to Defendants'
infringement of the asserted claims of U.S. Patent Nos. 6,314,420 and
6,775,664. After upholding the validity of the patents-in-suit, and determining
that the asserted claims of the asserted patents were infringed by Defendants,
the jury found that reasonable royalty damages should be based on a "running
royalty," and that the running royalty rate should be 3.5%. The jury also
awarded I/P Engine a total of approximately $30.5 million. On November
20, 2012, the clerk entered the Court's final judgment.
I/P Engine's Motion for an Award of Post-Judgment Royalties
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.
I/P Engine has requested that the Court order Defendants to pay ongoing running
royalties for their continuing infringement of I/P Engine's patents from
November 20, 2012, the date of the entry of final judgment, until either (i)
Defendants cease their infringement or (ii) April 4, 2016, the expiration date
of the patents.
I/P Engine has argued that the Court should conclude that an upward adjustment
to a 5% running royalty rate for Defendants' ongoing post-judgment infringement
is appropriate. I/P Engine's damages expert, Dr. Stephen Becker, also reached
the conclusion that there is no reason to depart downward from the 5% royalty
rate because the patents are known to be valid and the patented technology is
acknowledged to be "mission critical" for Google.
Further, I/P Engine argued that Defendants' ongoing infringement is undisputedly
willful because Defendants are fully aware that their use of AdWords has been
adjudged to infringe all of the asserted claims of the valid and enforceable
patents-in-suit. Therefore, I/P Engine requested that the Court enhance the
ongoing royalty rate to 7% in light of Defendants' ongoing willful infringement.
Finally, I/P Engine requested that the Court order that, among other things,
Defendants pay ongoing royalties to I/P Engine on a quarterly basis in certified
funds or by wire transfer, accompanied by a statement certifying, under penalty
of perjury, the U.S. revenue attributable to Defendants' use of AdWords and the
calculation of the royalty amount.
A copy of I/P Engine's motion is available online at http://bit.ly/UPYkFh.
Additional Information
The case is styled I/P Engine, Inc. vs. AOL Inc. et al. District Court
proceedings are pending in the Eastern District of Virginia, Norfolk Division.
The case number is 2:11cv512RAJ. Appellate proceedings are pending in the
United States Court of Appeals for the Federal Circuit. The docket numbers are
13-1307 and 13-1311. The court dockets for the foregoing cases are 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.
About Vringo, Inc.
Vringo, Inc. is engaged in the innovation, development and monetization of
mobile technologies and intellectual property. Vringo's intellectual property
portfolio consists of over 500 patents and patent applications covering telecom
infrastructure, internet search, and mobile technologies. The patents and
patent applications have been developed internally, and acquired from third
parties. Vringo operates a global platform for the distribution of mobile
social applications and services. For more information, visit:
www.vringoIP.com.
Forward-Looking Statements
This press release includes forward-looking statements, which may be identified
by words such as "believes," "expects," "anticipates," "estimates," "projects,"
"intends," "should," "seeks," "future," "continue," or the negative of such
terms, or other comparable terminology. Forward-looking statements are
statements that are not historical facts. Such forward-looking statements are
subject to risks and uncertainties, which could cause actual results to differ
materially from the forward-looking statements contained herein. Factors that
could cause actual results to differ materially include, but are not limited to:
the inability to realize the potential value created by the merger with
Innovate/Protect for our stockholders; our inability to raise additional capital
to fund our combined operations and business plan; our inability to monetize and
recoup our investment with respect to patent assets that we acquire; our
inability to maintain the listing of our securities on NASDAQ; the potential
lack of market acceptance of our products; our inability to protect our
intellectual property rights; potential competition from other providers and
products; our inability to license and monetize the patents owned by our
subsidiaries, including the outcome of the litigation against online search
firms and other companies; our inability to monetize and recoup our investment
with respect to patent assets that we acquire; and other risks and uncertainties
and other factors discussed from time to time in our filings with the Securities
and Exchange Commission ("SEC"), including our annual report on Form 10-K filed
with the SEC on March 21, 2013. Vringo expressly disclaims any obligation to
publicly update any forward-looking statements contained herein, whether as a
result of new information, future events or otherwise, except as required by
law.
Contacts:
Investors and Media:
Cliff Weinstein
Executive Vice President
Vringo, Inc.
646-532-6777
cweinstein(at)vringoinc.com
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Vringo, Inc. via Thomson Reuters ONE
[HUG#1698469]
Unternehmensinformation / Kurzprofil:
Datum: 01.05.2013 - 19:18 Uhr
Sprache: Deutsch
News-ID 255158
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contact information:
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