Vringo Awarded $30 Million in Patent-Infringement Suit - Source

   By Ben Fox Rubin 
 

Small technology company Vringo Inc. (VRNG) was awarded about $30 million in damages and granted future royalties in its patent suit against a handful of technology giants, including Google Inc. (GOOG) and AOL Inc. (AOL), according to a source familiar with the case.

A federal jury found that Vringo's patents were valid, opening up the possibility of future lawsuits. 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, a mobile-technology and intellectual-property company, sued Google, 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.

Vringo's stock has moved wildly since the patent trial began last month, sinking 36% last Wednesday after the judge in the case ruled that Vringo couldn't be awarded a large chunk of the past damages it sought, citing a long delay in filing its patent claim. The stock then reversed that loss Monday, after a jury question on damages fed speculation of a Vringo win.

Vringo's shares were halted for news at $4.25. The stock has surged so far this year amid the patent dispute.

Write to Ben Fox Rubin at [e-mail].

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