Shares of Vringo, Inc. (AMEX:VRNG) are hammered down by 36% to $2.56 after hitting session low of $1.75 as a federal judge this morning issued a major blow against a small tech company alleging Internet giant Google Inc(NASDAQ:GOOG) and other companies over accused patent violation.
Raymond A. Jackson, a US District Judge ruled that if Vringo and its subsidiary, I/P Engine, influence a jury that Google violated the patents, it cannot gather damages for the 6 years prior to the lawsuit’s filing the previous year.
Vringo is implementing a formula that calls for collecting a percentage of Google’s revenue from 2005 to the present day. At the least, the company is owed $500 million, as Vringo said.
Jackson has found that Vringo and its predecessor waited too long to file a lawsuit since Google made the patent technology public in the year 2005. The patents entails directing adverts to particular Internet used based on the searches they execute.
The technology was developed in the 1990s. The patents for the technology were acquired in 1998 and 2001. An attorney for Vringo has informed the jury that since the year 2004, Google’s profits have increased by 20% since it used a system that places adverts on searches. At the end of 2011, Google posted revenue close to $38 billion and should top that figure by the end of 2012.
A lawyer on behalf of Vringo asked the judge to hold back making a decision on the matter, known as the law of laches, until it can present a refutation witness. The judge nixed the idea since he found it to be procedurally unacceptable. To put it differently, Vringo must have made the move sooner.
Jackson said that the court is not approving Vringo of that chance.
The trial is predicted to wrap up soon.
Google is the chief defendant in the case. Vringo is also suing, for much lesser amounts, IAC, AOL, Target and Ganett that incorporate same Internet advertising technology from Google.