UPDATE: Vringo Requests Court to Increase Royalty Rate to Be Paid by Google, AOL

--Vringo says Google, AOL, others have continued to infringe on its patents

--Company has requested the court to raise the defendants' ongoing royalty rate to 7%

--Google says it is 'confident that the patents here are invalid, that we did not infringe them, and that we will ultimately win this case'

(Updates with Google response in seventh paragraph and Vringo closing share price in final paragraph.)

 
   By Nathalie Tadena 
 

Vringo Inc. (VRNG) has asked a federal court to raise the ongoing royalty rate to be paid by technology companies Google Inc. (GOOG), AOL Inc. (AOL) and others, arguing these companies have continued to infringe on its patents.

Vringo, a mobile-technology and intellectual-property company, said a federal court has ordered Google, AOL and other companies to respond to Vringo's motion for postjudgment royalties within 15 days. In November, Vringo was awarded about $30 million in damages and granted future royalties by a federal jury in its patent suit against these companies.

The company Wednesday said it 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.

Vringo has asked the court to order the defendants to pay ongoing running royalties for their infringement of its patents from Nov. 20, 2012, until April 4, 2016, the patents' expiration dates, or when the defendants cease infringement of the patents.

The company has thus requested the court to raise the defendants' ongoing royalty rate to 7%, arguing these companies' ongoing patent infringement is willful.

Vringo also said the court denied the company's motion for a new trial on the dollar amount of past damages.

"We remain confident that the patents here are invalid, that we did not infringe them, and that we will ultimately win this case," Google said.

Vringo sued Google--the primary defendant--as well as AOL, IAC/InterActiveCorp. (IACI) and others, alleging infringement of two of its patents used to select and position advertising on Internet-search results. AOL earlier settled a portion of the suit for $100,000.

In November, Vringo was awarded a 3.5% running royalty rate off a portion of the defendants' search-advertising revenue until the patents expire in 2016.

Vringo was founded in 2006 with a focus on mobile technology, but last year it agreed to merge with privately held Innovate/Protect, which now controls most of the company and brought it into the intellectual-property industry. Innovate/Protect, which bought the two contested patents from Lycos Inc. along with six others for $3.2 million, has alleged the technology it owns is widely used in the search industry.

Vringo shares climbed 7.5% to $3.30 in regular session trading Wednesday. The stock is up 15% year to date.

Write to Nathalie Tadena at [e-mail]

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