Vringo, Inc.: VRINGO PROVIDES UPDATE TO SHAREHOLDERS
NEW YORK - October 4, 2013 - Vringo, Inc. (NASDAQ: VRNG), a company engaged in
the innovation, development and monetization of intellectual property and
mobile technologies, today provided an update to its shareholders on its
recent and near term events.
"We are taking this opportunity to update our shareholders on progress in
three of our wholly-owned subsidiaries' ongoing patent enforcement actions:
(i) against Google and others in U.S. District Court for the Eastern District
of Virginia and the Court of Appeals for the Federal Circuit; (ii) against ZTE
Corporation and its subsidiaries in the United Kingdom, Germany, France, and
Australia, and a preliminary inquiry in Spain; and (iii) against ADT and Tyco
Integrated Security in U.S. District Court for the Southern District of
Florida," said Andrew D. Perlman, Chief Executive Officer of Vringo.
I/P Engine, Inc. v. AOL Inc., Google, Inc. et al.
Eastern District of Virginia
On November 6, 2012, a jury in U.S. District Court in Norfolk, Virginia ruled
in favor of Vringo's wholly owned subsidiary I/P Engine, Inc. and against
Google and the other defendants with respect to their infringement of the
asserted claims of asserted patents. The jury also upheld the validity of the
asserted patents, found that past damages are due to I/P Engine, and
established a royalty rate.
I/P Engine's case relates to Google's search advertising system, not its
organic search system. Therefore, Google's "Hummingbird" update to its
organic search system is not related to the product that I/P Engine accused.
Vringo does not believe the "Hummingbird" update has any impact on its
As of August 26, 2013, I/P Engine's Notice of Calculation of Supplemental
Damages, Pre-judgment Interest and Post-judgment Interest was fully briefed
and is ripe for determination by the district court.
The parties are currently litigating before the district court the issue of
ongoing royalties and what additional reasonable royalty is owed to I/P Engine
for Google and the other defendants' continued infringement. Google has
asserted that, as of May 2013, it implemented a "design around" to its system
such that it no longer infringes the asserted patents. To resolve the ongoing
royalty rate and whether Google's alleged design around is colorably
different, the district court set a discovery and briefing schedule.
*I/P Engine served its expert reports on September 25, 2013.
*Defendants should serve their expert reports on October 15, 2013.
*The parties will then submit briefs to the district court on October 30,
2013 and November 10, 2013, respectively.
The district court also wants the parties to attempt to set their own royalty
rate before the district court imposes one. To that end, the district court
ordered that within five days of completing the aforementioned discovery and
briefing schedule, the parties shall meet to negotiate an appropriate ongoing
royalty rate, using 20.9% of U.S. AdWords revenues as the appropriate royalty
Court of Appeals for the Federal Circuit
I/P Engine and Defendants have appealed various portions of trial to the Court
of Appeals for the Federal Circuit.
*Defendants filed their opening brief on July 22, 2013.
*I/P Engine filed its response and cross-appeal brief on September 26,
*Defendants' response and reply brief is due November 7, 2013.
Vringo expects this appeal to be scheduled for oral argument during the first
quarter of 2014.
Vringo Infrastructure, Inc. v. ZTE Corporation
Vringo's wholly owned subsidiaries, Vringo Infrastructure, Inc. and Vringo
Germany GmbH, have filed a combined 7 patent infringement actions against ZTE
Corporation and its subsidiaries in the United Kingdom, Germany, France, and
Australia, and a preliminary inquiry in Spain. The asserted patents relate to
wireless infrastructure and handsets.
The hearing on infringement in Germany is scheduled for October 15, 2013.
Vringo is seeking injunctive relief, rendering of accounts, and damages.
ZTE describes itself as "a leading global provider of telecommunications
equipment and network solutions," with recently reported annual revenue of US
$13.7 billion (RMB 86.254 billion), according to filings with the Hong Kong
Stock Exchange. According to ZTE's public filings, the company generates its
revenue primarily from the sale of telecommunications equipment and handsets.
In a previous hearing, Vringo made public a term sheet it provided to ZTE
outlining proposed license terms for standard essential patents. The term
sheet is available online at: http://bit.ly/11tQrGZ (on page 5).
Vringo Infrastructure, Inc. v. ADT Corporation and Tyco Integrated Security,
On September 12, 2013, Vringo's wholly owned subsidiary, Vringo
Infrastructure, Inc., filed a patent infringement lawsuit against The ADT
Corporation, ADT, LLC, ADT Security Services, Inc., and Tyco Integrated
Security, LLC in the United States District Court for the Southern District of
The lawsuit alleges infringement of U.S. Patent No. 6,288,641, entitled
"Assembly, and Associated Method, for Remotely Monitoring a Surveillance
Area". The asserted patent relates to, amongst other things, the use of a
mobile terminal to remotely monitor a location (e.g., home or business).
The court dockets for the cases are publicly available on the Public Access to
Court Electronic Records website, http://www.pacer.gov, which is operated by
the Administrative Office of the U.S. Courts. The U.S. District Court
proceedings are pending in the Eastern District of Virginia, Norfolk
Division. Documents regarding United States Patent and Trademark Office
proceedings are publicly available on the Patent Application Information
Retrieval website, http://portal.uspto.gov/pair/PublicPair.
About Vringo, Inc.
Vringo, Inc. is engaged in the innovation, development and monetization of
intellectual property and mobile technologies. 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; 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 NASDAQ; 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 for the year ended December 31, 2012 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
This announcement is distributed by Thomson Reuters on behalf of Thomson
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
information contained therein.
Source: Vringo, Inc. via Thomson Reuters ONE
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