Vringo, Inc.: BRAZILIAN COURT UPHOLDS INJUNCTION AGAINST ZTE FOR INFRINGEMENT
OF VRINGO PATENT
NEW YORK - June 18, 2014 - Vringo, Inc. (NASDAQ: VRNG), a company engaged in
the innovation, development and monetization of intellectual property and
mobile technologies, today announced that the Court of Justice of Rio de
Janeiro in Brazil has upheld the ex-parte preliminary injunction granted
against ZTE Corporation and ZTE do Brasil (collectively, "ZTE"), having
rejected ZTE's interlocutory appeal of the injunction.
Vringo Infrastructure, Inc., Vringo's wholly-owned subsidiary, filed suit
against ZTE on April 14, 2014 in the 5^th Trial Court of Rio de Janeiro State
Court, alleging infringement of Brazilian patent PI0013975-0, which is related
to 3G/4G/LTE infrastructure. On April 15, 2014, the Court granted an ex-parte
preliminary injunction against ZTE, restraining ZTE from manufacturing, using,
offering for sale, selling, installing, testing, or importing such
infrastructure equipment. Vringo posted a bond of approximately $900,000 with
the Court in order to enforce the injunction on April 17, 2014. ZTE filed an
interlocutory appeal against the injunction on May 9, 2014. On May 26, 2014,
the Court denied ZTE's request for a stay of the injunction pending the
interlocutory appeal hearing, which took place on June 11, 2014. Judgment was
rendered at the conclusion of the hearing, and formally published thereafter.
Following the ruling, the injunction is likely to remain in place until a
decision on the merits has been reached. A trial schedule has not yet been
set; the average length of time in Brazil from the filing of a claim on the
merits until final judgment is two to four years.
On October 5, 2012, Vringo Infrastructure, filed a suit in the UK High Court
of Justice, Chancery Division, Patents Court, alleging infringement of certain
European patents. Subsequently, ZTE responded to the complaint on December 19,
2012 with a counterclaim for invalidity of the patents in suit. Vringo
Infrastructure filed a further UK suit on December 3, 2012, alleging
infringement of additional European patents. The first UK suit is scheduled
for trial in October 2014 and the second UK suit is scheduled for trial in
On November 15, 2012, Vringo Germany filed a suit in the Mannheim Regional
Court in Germany, alleging infringement of a European patent. The litigation
was expanded to include a second European patent on February 21, 2013. On
November 4, 2013, Vringo filed a further brief with respect to the proceedings
of the first European patent suit, asserting infringement by ZTE eNode B
infrastructure equipment used in 4G networks.
On December 17, 2013, the Court issued its judgment, finding that ZTE
infringed on the second European patent and ordered an accounting and an
injunction upon payment of the appropriate bonds. On February 19, 2014, Vringo
Germany filed suit in the Mannheim Regional Court seeking enforcement of the
accounting ordered and a further order that non-compliance be subject to civil
and criminal penalties. Trial in this suit is scheduled for September 2014.
On December 27, 2013, ZTE filed a notice of appeal of the Mannheim Regional
Court's judgment, and on January 24, 2014, ZTE filed an emergency motion with
the Court of Appeals seeking a stay of the judge's order pending appeal. On
February 24, 2014, ZTE's motion was denied.
On September 13, 2013 and January 28, 2014, Vringo Germany filed two suits in
the Regional Court of Düsseldorf, alleging infringement of two additional
European patents. Both cases are scheduled to be heard in November 2014.
On April 2, 2013, Vringo Infrastructure filed a patent infringement lawsuit in
France in the Tribunal de Grande Instance de Paris, alleging infringement of
the French part of two European patents. Vringo Infrastructure filed the
lawsuit based on particular information uncovered during a seizure to obtain
evidence of infringement, known as a saisie-contrefaçon, which was executed at
two of ZTE's facilities in France. The oral hearing in relation to these
patents is scheduled for December 2014 before the 3^rd division of the 3^rd
chamber of the Tribunal de Grande Instance de Paris (specializing in
intellectual property matters).
On June 11, 2013, Vringo Infrastructure filed a patent infringement lawsuit in
the Federal Court of Australia in the New South Wales registry, alleging
infringement by ZTE of two Australian patents.Vringo currently anticipates
that the Court will set a trial date in the second half of 2014.
On September 6, 2013, Vringo Infrastructure filed a preliminary inquiry order
against ZTE in the Commercial Court of Madrid, Spain, requiring ZTE to provide
discovery relating to alleged infringement of a patent which is the Spanish
counter-part of the second European patent filed in Germany. In light of
ZTE's non-responsiveness to the order, on March 24, 2014, the Court granted
Vringo's request to seek discovery of certain of ZTE's Spanish customers.
On November 7, 2013, Vringo filed a patent infringement lawsuit in the High
Court of Delhi at New Delhi, India, alleging infringement of an Indian patent
related to CDMA. On November 8, 2013, the Court granted an ex-parte
preliminary injunction and appointed commissioners to inspect ZTE's facilities
and collect evidence. ZTE appealed the preliminary injunction and, on December
12, 2013, the appellate panel instituted an interim arrangement, requiring ZTE
to file an accounting affidavit disclosing the number of CDMA devices sold by
its entities in India, revenue derived therefrom, and other supporting
documentation. The Court also required ZTE to pay a bond of 50 million rupees
(approximately $800,000),directed Indian customs authorities to notify Vringo
when all relevant ZTE goods are imported into India, and required ZTE to give
Vringo the opportunity to inspect those goods. ZTE filed its accounting
affidavit on January 13, 2014.
On February 3, 2014, Vringo filed a motion for contempt for ZTE's failure to
comply with the Court's order, and requested that the Court order ZTE to pay
an increased bond. Hearing on this motion is scheduled for July 8, 2014.
On January 31, 2014, Vringo filed a patent infringement lawsuit in the High
Court of Delhi at New Delhi, alleging infringement of a second Indian patent
related to GSM Infrastructure. The Court, finding a prima facie case of
infringement, granted an ex-parte preliminary injunction, restraining ZTE and
its officers, directors, agents, distributors and customers from importing,
selling, offering for sale, advertising, installing, or operating any
infringing products, and giving Vringo the right to inspect any infringing
goods arriving in India, which are to be detained by customs authorities. The
judge granted the injunction after ruling that Vringo would suffer an
irreparable loss if such an injunction were not put into place. ZTE
subsequently appealed the injunction, which remains in place pending a ruling
by the Court, which is expected on July 8, 2014.
On May 28, 2014, Vringo filed a patent infringement lawsuit in the District
Court of The Hague in the Netherlands, alleging infringement of a European
About Vringo, Inc.
Vringo, Inc. is engaged in the development and monetization of intellectual
property worldwide. The Company's intellectual property portfolio consists of
over 600 patents and patent applications covering telecom infrastructure,
internet search and mobile technologies. The Company's patents and patent
applications have been developed internally and acquired from third parties.
For more information, visit: www.vringo.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: 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 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; the future success of Infomedia and our ability to receive value from
its stock; 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
10, 2014. 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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the content, accuracy and originality of the information contained therein.
Source: Vringo, Inc. via Globenewswire
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