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VRNG Form Hldgs Corp Npv

1.97
0.00 (0.00%)
Last Updated: 01:00:00
Delayed by 15 minutes
Share Name Share Symbol Market Type
Form Hldgs Corp Npv NASDAQ:VRNG NASDAQ Common Stock
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.00% 1.97 0 01:00:00

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

03/04/2013 7:55pm

Dow Jones News


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   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) and 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 Google, AOL and others.

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 rate the defendants' ongoing royalty rate to 7%, arguing that these companies' ongoing patent infringement is willful.

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

A Google representative wasn't immediately available for comment.

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 that the technology it owns is widely used in the search industry.

Vringo shares, which were briefly halted, climbed 7.5% to $3.30 in recent trading Wednesday. The stock is up 16% year-to-date.

-Write to Nathalie Tadena at nathalie.tadena@dowjones.com

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