Vringo, Inc.(AMEX:VRNG) will face-off with Google Inc(NASDAQ:GOOG) on October 16, taking on the Internet search giant over a patents trial where it has sued other search giants as well including AOL, Inc.(NYSE:AOL), Target Corporation and Gannett.
The case asserts that Vringo`s patents cover the ranking of Google's advertising search results based on content relevance and click-through rates. This strikes at the core of Google's revenues according to the complaint filed.
Google has made more than $67 billion in revenues since 2001 from Adwords and AdSense both of which are central to its advertising strategy.
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Staunch supporters of Vringo are hoping for a quick out of the court settlement between the two companies.
Vringo, which was earlier a penny stock, has seen a three-fold rise in its share price since the lawsuit was filed against Google earlier this year.
Analysts are expecting a large settlement from Google and investors are accumulating and holding on to the stock in the expectation of this.
Earlier this month Vringo's I/P Engine settled with AOL on the same count of patent infringement. The settlement read, "On this day, I/P Engine, Inc. and AOL Inc. announced to the Court that they have settled I/P Engine's claims against AOL relating to AOL's Advertising.com Sponsored Listings."
If Vringo prevails against Google at a 1 percent royalty rate for its technology, Vringo would receive $700M for past damages.
More payments are also possible, as Vringo's patents extend until 2016, and other companies have allegedly infringed on Vringo's technology.
Speculators have cited possible share prices for Vringo in excess of $30 per share versus the current $3-4 range.
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Shares of VRNG were up over 9% in yesterday’s session and today down 1.10% at $3.71. On the hands, shares of GOOG is trading near to its 52-week high.