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Shlomo Wiesen
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My specialty is the hi tech sector- I work as an analyst in search engine optimization, so I have an acute understanding of some of the biggest companies in the world, all of whom use search technology in some way, shape, or form (Google, Microsoft, Apple, Twitter, Amazon, Facebook, & Yahoo).
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Kahena Digital Marketing
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  • Mistake In Vringo Jury Calculation 10 comments
    Nov 7, 2012 6:44 AM | about stocks: VRNG

    The jury calculated the 3.5% royalty rate from an incorrect number. Last year's Google profits were $4.5 billion, so 3.5% of that should be $158 million. Jury took the 3.5% from $450 million.

    I expect the judge to rectify that number today.

    Disclosure: I am long VRNG.

    Stocks: VRNG
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Comments (10)
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  • Hi Joe,


    Is the $4.5B profit figure, actually 20% of overall profits?
    7 Nov 2012, 07:14 AM Reply Like
  • Joe, if there is a math error, why do you think it will be corrected TODAY? The wheels of justice...
    7 Nov 2012, 07:18 AM Reply Like
  • Author’s reply » Well I assume today and not next week... An error is egregious. (If it truly is an error)
    7 Nov 2012, 08:53 AM Reply Like
  • I believe the damages were calculated using 20% of the earned revenue. If last year's profits were $4.5 billion, it would look like this:


    $4,500,000,000 x 20% = $900,000,000


    3.5% x $900,000,000 = $31,500,000
    7 Nov 2012, 09:54 AM Reply Like
  • This is getting ridiculous. Royalty should be 3.5% * 20% * U.S. REVENUE. It is not calculated on net income.
    7 Nov 2012, 10:03 AM Reply Like
  • The whole confusion is due to mis-understanding of the "Royalty Base". Folks who assumed earning to be the base, then $15M is right. If the base is US revenue, then the damages calculate to $158M just for past damages.


    Someone needs to confirm, the exact definition of "Royalty Base".
    8 Nov 2012, 12:38 PM Reply Like
  • Author’s reply » PACER UPDATE: (791) NOTICE by I/P Engine, Inc. of Calculation. (Attachments: # 1 Exhibit A)(Sherwood, Jeffrey) (Entered: 11/07/2012)
    7 Nov 2012, 03:25 PM Reply Like
  • Joe, can you give a short summary?
    7 Nov 2012, 03:38 PM Reply Like
  • Author’s reply » re: 2011 damages- ex. was AOL has ad-related profit of 22 mil, 35% is 7.3 mil, which went to Vringo
    In regard to GOOG, Vringo only got back $15.8 mil. Which means jury took 35% of 45 mil in order to get to 15.8 mil. But Googles profits were 458 mil, and 35% of that is = $158 mil..........meaning instead of 30 mil in past damages it should be closer to $180 mil
    8 Nov 2012, 06:08 AM Reply Like
  • Sorry, I meant the Pacer document. I realize now that a sealed document exists, and we will have an outcome at some point in the near future.
    8 Nov 2012, 12:02 PM Reply Like
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