Vringo, Inc. : VRINGO PROVIDES UPDATE ON I/P ENGINE VS. AOL, GOOGLE ET AL.
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
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.
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
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.
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.
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: 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.
Investors and Media:
Executive Vice President
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Source: Vringo, Inc. via Thomson Reuters ONE
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