Vringo, Inc.(NYSEAMEX:VRNG) shares are showing volatile session in the opening session after a crazy Wednesday. The stock opened lower by 3% and fell as much as 13% to session’s low of $2.17. However, the stock has now turned into positive territory and recent up 1.50% to $2.60, although off session high of $2.74.
Raymond A. Jackson, U.S District Judge, ruled against Vringo, Inc.(NYSEAMEX:VRNG) and said that damages should be calculated beginning on September 15, 2011, before which has been slapping lawsuits on to a number of big technology based companies, the main one being Google Inc(NASDAQ:GOOG). The judge rejected the patent infringement claims in not so many words, and the ruling by the judge also caused the share prices for Vringo to fall by about 36 percent before the trade market closed before the afternoon. The case has not just been filed by Vringo, the company also has a subsidiary by the name of I/P Engine.
The Judge, Jackson, ruled that if the company did manage to convince the jury about the infringement, the company would not be getting the damage compensation for the next six years since the filing of the case. Since the case was filed in 2011, the company cannot expect to see the money till 2017. The court made it very clear as to which side it was leaning towards. Vringo has demanded for a percentage of the profits made by the search giant, Google, for the infringement. It wants to get a percentage of the profits made from 2005 to the present year. The company claims that due to the infringement, the company is owed about 500 million dollars at the least, by Google. However, Google is not in this alone. Vringo has also filed cases against other big names such as AOL, Target and Gannett, and other companies.
According to the company, Google stole the patented idea of the routing of ads to users based on the kind of things they search for, through the Google search engine. The ads become less random, and more relevant to the users, thereby generating more sales, and more leverage for advertisers, which will lead them to continue doing business with Google. This idea was apparently a patented one, but since Google brought out this mechanism in 2005, the Judge asked Vringo why it had not filed a lawsuit earlier. When the company asked for a rebuttal witness, the plea was ignored by the judge as being unfair in the case. Vringo filed cases against the other companies for using the mechanism from Google.
The Court ruled that under the equitable doctrine of laches, damages should be calculated beginning on September 15, 2011, the date that I/P Engine filed its complaint. I/P Engine had previously sought to have such damages calculated from September 15, 2005. The Court considered a number of motions, including defendants' motions for judgment as a matter of law as to invalidity and non-infringement, which the Court denied.
Vringo currently expects closing arguments in the case to commence on Thursday, November 1, 2012, and that thereafter the Court will instruct the jury on its deliberations.