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Tuesday, August 21, 2012

Vringo, Inc.(VRNG) Could Make Billions Out of its Lawsuit Against Google (GOOG)


On October 16, erstwhile penny stock company Vringo, Inc.(AMEX:VRNG) will take on Internet search giant Google Inc(NASDAQ:GOOG) in a Virginia court as the smaller company will try to convince the court that Google had infringed on its [patent search technology.

In early 2012, Vringo had sued Google saying that on its patents for sorting ads based on click-throughs. Google's Adwords and AdSense are based on this technology and the online search company has reportedly amassed about $67 billion in revenues since 2001 from this.

Every search engine that uses Google will be infringing on this patent thus violating Vringo's patents. All the companies have been sued.

How Should Investors Trade VRNG Now, Find Out Here

In fact on August 6, AOL settled with Vringo's I/P Engine in the same court. I/P Engine is a company that merged with Vringo earlier this year.

According to the settlement, ""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."

However the actual amount involved in the settlement has not been disclosed.

Other companies who are involved in possible patent infringements are Interactive Corp, Ask.com, Target, Gannett and all those other companies and customers who use Google's AdSense.

Analysts and observers said that Vringo could well receive about $700 million in payment for past damages, with additional payments later from the other companies which have been sued.

Vringo, which was earlier a small obscure company, has become a company with a market worth of $200 million thanks to the lawsuit.

Since March this year when the lawsuit was initiated, the share price of the company has tripled and has been trading between $3 and $5. Some analysts expect the stock to reach $30 before this year is out.

It may be recalled that recently Nokia Corporation (ADR)(NYSE:NOK) sold off a portion of its patents portfolio to Vringo for $22 million.

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