Shlomo Wiesen's  Instablog

Shlomo Wiesen
Send Message
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).
My company:
Kahena Digital Marketing
  • Mistake In Vringo Jury Calculation 10 comments
    Nov 7, 2012 6:44 AM | about stocks: FH

    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: FH
Back To Shlomo Wiesen's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (10)
Track new comments
  • IPobserver
    , contributor
    Comments (82) | Send Message
    Hi Joe,


    Is the $4.5B profit figure, actually 20% of overall profits?
    7 Nov 2012, 07:14 AM Reply Like
  • Alan Brochstein, CFA
    , contributor
    Comments (7930) | Send Message
    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
  • Shlomo Wiesen
    , contributor
    Comments (224) | Send Message
    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
  • Gallowyn
    , contributor
    Comments (31) | Send Message
    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
  • cfvaughnii
    , contributor
    Comments (58) | Send Message
    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
  • slokare562
    , contributor
    Comments (47) | Send Message
    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
  • Shlomo Wiesen
    , contributor
    Comments (224) | Send Message
    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
  • cfvaughnii
    , contributor
    Comments (58) | Send Message
    Joe, can you give a short summary?
    7 Nov 2012, 03:38 PM Reply Like
  • Shlomo Wiesen
    , contributor
    Comments (224) | Send Message
    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
  • cfvaughnii
    , contributor
    Comments (58) | Send Message
    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
Full index of posts »
Latest Followers


More »

Latest Comments

Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.