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Why Vringo Will Likely Receive The 3.5% On Going Royalty Rate In Future Damages

Dec. 05, 2012 9:08 PM ET18 Comments
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Why Vringo will likely receive the 3.5% on going royalty rate in future damages

By now, many of you probably have read Dan's article "Vringo Verdict And Future Royalties Against Google On Shaky Ground."In the article, Dan insists that Vringo received a verdict for 31M. However, it needs to be clear that this was a jury verdict. The Final verdict is yet to come. The final verdict is the verdict given by the judge and the only one that matters.

Moreover, Dan says that the jury has not awarded future damages and that is correct. But the jury has awarded an ongoing 3.5% royalty rate, and the judge will take that into account if he decides to award future damages.

As mentioned countless of time there seems to be a mistake in the jury's calculation for damages. The judge will certainly address this issue and decide what he believes to be reasonable award. So far, Google has argued that the damages received, in comparison to the other defendants, are too large. However, Vringo will of course argue that it works the other way around and Google's damages are too little in comparison to the rest of the defendants and pay more. Vringo's chances look better at this point since all the other defendants were based on the same calculation. The only one which is different is Google's and for that reason I believe it is the incorrect one.

Lastly, in regards to future royalties, the judge will do what he thinks is reasonable. The judge probably thinks that the jury made a mistake in past damages and for that reason Vringo should get the 3.5% on going royalty rate in future damages based on the 20% add increase.

Disclosure: I am long VRNG. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

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