Google Gets The Goliath Treatment From Vringo
Technology firm Vringo (AMEX:VRNG) has been awarded $16 million in damages and a royalty on Google (NASDAQ:GOOG) search ad revenue through 2016 after winning its patent case against the search company on Tuesday. Vringo was originally seeking nearly $500 million, but U.S. District Judge Raymond A. Jackson limited damages to just the past year. The firm will also receive $7.9 million from AOL (NYSE:AOL), $6.6 million from InterActiveCorp (NASDAQ:IACI), $98,800 from Target (NYSE:TGT), and $4,000 from Gannett (NYSE:GCI). AOL had earlier settled a portion of the suit for $100,000.
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A federal jury found that Vringo’s patents were valid and ruled that it will receive a 3.5 percent royalty rate on the search-advertising revenue of infringing firms until its intellectual property ownership expires in 2016.
As the anticipation for the verdict built in the afternoon, shares of Vringo were halted at $4.25. The tech firm’s stock has fluctuated wildly since the trial began last month and dropped 36 percent last week after a judge ruled that it couldn’t receive a major portion of past damages because it was too late in suing. However, it picked up on Monday after news of a jury question regarding damages got out, which led to speculation that Vringo may in fact win.