A small technology company, Vringo, Inc. (NYSEAMEX:VRNG) was granted nearly $30 million in damages and also awarded with future royalties in its patent litigation against a few technology biggies that include AOL and Google Inc(NASDAQ:GOOG), as per a source having knowledge about the matter.
A federal jury has found that Vringo’s copyrights were valid. It has opened up the possibilities of lawsuits in the future. Vringo has been granted 3.5% running percentage rate off a portion of the defendants’ search-advertising income until the patents run out in the year 2016.
Vringo is a mobile technology and intellectual property company. it has sued AOL, Google and many others accusing them of violating two of its patent that have been used in selecting and placing advertising on Internet search results. AOL had initially settled for a fraction of the litigation in lieu of $100,000.
Vringo’s shares have moved drastically since the beginning of the patent trial earlier this month, plunging 36% on last Wednesday after the judge in the case concluded that Vringo could not be granted a large amount of the past damages it was seeking for, quoting a long hold-up in filing its patent claim. The stock reversed itself on Monday, after a jury’s query on damages fed conjecture of a Vringo victory.
However, the infringement grant is much lesser than what Vringo had expected to get out of the trial. The company had wanted to get nearly %550 million in damages for yearly violation dating back to the year 2005. The US Distrct Judge, Raymond Jackson restricted the damages to one year, concluding that the patent holders should have filed a lawsuit much earlier to collect for all the years that have passed. The jury gave the verdict on damages using a formula that takes into account the annual revenues of the company.
Shares of VRNG have been showing wild moves after the stock resumed trading after having halted for about 2 hours. The stock was up over 7% before halt. As it reumed trading it first went up as much as 8% and then fell 7%. It is now down 5.32% to $3.74.