Vringo, Inc. (NYSE MKT: VRNG), a company engaged in the innovation,
development and monetization of mobile technologies and intellectual
property, today 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. ("AOL"), Google, Inc. ("Google"), IAC
Search & Media, Inc. ("IAC"), Gannett Company, Inc. ("Gannett"), and
Target Corporation ("Target") (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,
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 shreholders 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
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
including Facetones® and Video Ringtones which transform the basic act
of making and receiving mobile phone calls into a highly visual, social
experience. For more information, visit: www.vringoIP.com.
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 the NYSE MKT; 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 Innovate/Protect,
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 quarterly report on Form 10-Q filed with the SEC on August 14, 2012.
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.
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