Vringo, Inc. : VRINGO SUBSIDIARY I/P ENGINE FILES NOTICE OF APPEAL IN
LITIGATION WITH AOL, GOOGLE ET AL.
Motions for Supplemental Damages and Ongoing Royalties Remain Pending in U.S.
NEW YORK - April 4, 2013 - Vringo, Inc. (NYSE MKT: VRNG), a company engaged in
the innovation, development and monetization of mobile technologies and
intellectual property, today announced that its wholly-owned subsidiary I/P
Engine, Inc. has filed a notice of appeal in its litigation against AOL, Inc.,
Google, Inc., IAC Search & Media, Inc., Gannett Company, Inc., and Target
Corporation (collectively, "Defendants"). I/P Engine's notice of appeal
applies to matters related to laches and the jury's calculation of past
I/P Engine has engaged Joseph R. Re, Esq., a partner at the law firm Knobbe
Martens Olson & Bear LLP, as counsel for proceedings at the United States
Court of Appeals for the Federal Circuit. Attorneys from Dickstein Shapiro
LLP, trial counsel to I/P Engine, remain engaged.
On November 6, 2012, a jury in United States 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%. 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 awarded I/P Engine a total of
approximately $30.5 million as past damages. On November 20, 2012, the clerk
entered judgment on the verdict. On April 3, 2013, the District Court
resolved all of the pending motions for judgment as a matter of law and for a
new trial on damages. Certain matters remain pending before the District
Court, as described below.
Notice of Appeal
I/P Engine has filed a Notice of Appeal, appealing to the United States Court
of Appeals for the Federal Circuit the final judgment entered by the District
Court on April 3, 2013. I/P Engine is appealing the District Court's November
20, 2012 ruling that the doctrine of laches barred I/P Engine from recovering
damages for any infringements by Defendants occurring before September 15,
2011, the date on which I/P Engine filed suit. I/P Engine is also appealing
the District Court's April 3, 2013 ruling denying I/P Engine's Motion for a
New Trial on the Dollar Amount of Past Damages.
Ongoing Activity in U.S. District Court
On November 9, 2012, I/P Engine filed a Motion for an Award of Pre-Judgment
Interest, Post-Judgment Interest and Supplemental Damages. This motion has
been fully briefed and is ripe for judicial determination.
On December 18, 2012, I/P Engine filed a Motion for an Award of Post-Judgment
Royalties. On April 3, 2013, the District Court ordered Defendants to respond
within fifteen (15) days. I/P Engine will then be permitted to file a reply
to Defendants' response within seven (7) days, at which point, the motion will
be ripe for judicial determination.
In this motion, I/P Engine has requested that the District 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
judgment on the verdict, until either (i) Defendants cease their infringement
or (ii) April 4, 2016, the expiration date of the patents.
I/P Engine 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
District Court enhance the ongoing royalty rate to 7% in light of Defendants'
ongoing willful infringement.
Finally, I/P Engine requested that the District 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.
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.
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:
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: our inability to license and monetize our patents,
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; our inability to develop and introduce new
products and/or develop new intellectual property; new legislation,
regulations or court rulings related to enforcing patents, that could harm our
business and operating results; the inability to realize the potential value
created by the merger with Innovate/Protect for our stockholders; unexpected
trends in the mobile phone and telecom infrastructure industries; our
inability to raise additional capital to fund our combined operations and
business plan; our inability to maintain the listing of our securities on a
major securities exchange; the potential lack of market acceptance of our
products; potential competition from other providers and products; our
inability to retain key members of our management team; 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.
Investors and Media:
Executive Vice President
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Source: Vringo, Inc. via Thomson Reuters ONE
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