Seeking Alpha

Vringo lower; Google, others withdraw motion to consolidate appeals

  • Google and the other defendants in Vringo's (VRNG -3.7%) infringement suit have withdrawn a motion to consolidate their appeals.
  • The withdrawal comes less than a month after an Eastern Virginia court assigned Vringo a 6.5% royalty rate for its IP on a base of 20.5% of Google's AdWords search ad revenue.
  • Google's court filing (.pdf)
Comments (22)
  • SoCalNative
    , contributor
    Comments (515) | Send Message
     
    A non-event to delay the inevitable?
    13 Feb 2014, 11:12 AM Reply Like
  • wwu124
    , contributor
    Comments (241) | Send Message
     
    We have heard a lot about the money Google has to pay Vringo. But, roughly how much money are we talking about with the other defendants? If not big, are they going to appeal separately? Or, maybe, some of them think it is not worth it. Anyone has a point?
    13 Feb 2014, 11:45 AM Reply Like
  • SoCalNative
    , contributor
    Comments (515) | Send Message
     
    We need KP, Marpha, Justin et. al to weigh in.
    14 Feb 2014, 12:44 AM Reply Like
  • Budavar
    , contributor
    Comments (1387) | Send Message
     
    Astonished GOOG cares so little about its repute. IMO resembles more + more like a medival robber baron 600 years ago = I know of what I speak as on my mother's side I'm descendant of exactly that kind of robber barons. They held up all merchants going though a key trading road to exact a toll. My mother's family shed the robber baron status hundreds of years ago = is GOOG their reincarnation?
    GOOG in the 21st C. is according to court reports I've read, willfully infringing on VRNG patents = exacting a toll of delay + more delay to forestall the inevitable.
    When you have billions in the treasury, GOOG's mentality becomes beyond my ken.
    13 Feb 2014, 11:55 AM Reply Like
  • xcglider
    , contributor
    Comments (22) | Send Message
     
    Perhaps the other defendants didn't want to be associated with robber baron GOOG any longer because of the 6.5% award and thought they could get a lesser amount on their own merits.
    13 Feb 2014, 02:53 PM Reply Like
  • 4everyoung
    , contributor
    Comments (9) | Send Message
     
    So this means what? They each want their own appeals?
    13 Feb 2014, 03:08 PM Reply Like
  • dave935
    , contributor
    Comments (2) | Send Message
     
    what does this mean? More delays?
    13 Feb 2014, 03:08 PM Reply Like
  • Ppmatino
    , contributor
    Comments (73) | Send Message
     
    I have invested in vringo for over a year. I will not abandon ship now.
    13 Feb 2014, 03:09 PM Reply Like
  • Johnismyname
    , contributor
    Comments (4) | Send Message
     
    Sounds to me like AOL and others are jumping ship. Lost confidence in Google strategy. Settlements coming from them?
    13 Feb 2014, 03:09 PM Reply Like
  • Seppo Sahrakorpi
    , contributor
    Comments (2005) | Send Message
     
    IMO, two ways to interpret this:

     

    1) Everyone will file their separate appeals, forcing VRNG to put even more resources. There is some overlap but still. So this might be a concentrated effort by the defendants to exhaust Vringo.

     

    2) The other defendants are jumping ship, and will soon announce individual settlements w/ Vringo. Leaving Google to continue its fight alone...

     

    I tend to think the latter, and bought some more $VRNG today :)
    13 Feb 2014, 03:14 PM Reply Like
  • LYogi
    , contributor
    Comments (2303) | Send Message
     
    with you Seppo
    13 Feb 2014, 05:20 PM Reply Like
  • crta23
    , contributor
    Comment (1) | Send Message
     
    Seppo, on Stocktwits people say the motion was about combining the different appeals (by content) and not about splitting the appeals per defendant. Meaning, they are still appealing together, one appeal at the time.

     

    So, what is it? And how can I (not an expert) understand what it is?
    14 Feb 2014, 03:50 AM Reply Like
  • Seppo Sahrakorpi
    , contributor
    Comments (2005) | Send Message
     
    @crta Excellent point, I did not do my homework. Indeed this is withdrawing the previous appeal (January 21st 2014, doc #88) to consolidate cases subject wise. The original seems to be this one:
    http://bit.ly/MRhNae

     

    Now, interestingly Vringo _opposed_ the original appeal above (see bottom of page #2), and now (logically) approves/supports this withdrawal motion.

     

    This is certainly beyond my pay grade, but one would assume this is good for Vringo, since something they opposed has been dropped voluntarily by Google et al...

     

    And still for some reason the stock dropped ~4%?.
    14 Feb 2014, 08:00 AM Reply Like
  • caddy311
    , contributor
    Comments (154) | Send Message
     
    This is not correct in any way. If you are investing in this, you should try to read up. I would suggest the freeforums board for relevant information. This meant that Google did not want to consolidate the appeals any longer. VRNG was opposed to this consolidation, so that fact that google withdrew is interesting to say the least. This has nothing to do with the other defendants
    15 Feb 2014, 12:31 AM Reply Like
  • xamd
    , contributor
    Comments (514) | Send Message
     
    hi,
    thanks for the tip, can you give a concrete address for those freeforum boards. Thanks in advance. I want to understand this better.
    15 Feb 2014, 09:57 AM Reply Like
  • caddy311
    , contributor
    Comments (154) | Send Message
     
    http://bit.ly/1bUDbBq (great resource!)
    It's a great place to learn more and all crazies are banished to the netherworlds. Definitely not to be confused with the Yahoo Message Boards
    15 Feb 2014, 07:45 PM Reply Like
  • stockhawk
    , contributor
    Comments (252) | Send Message
     
    We all have one don't we (an opinion)? Mine is, after 2 years following this story, and listening to the CC from last night, the obvious is even more telling. Goog will continue to drag this out and hope for an executive decision (Obama), aka a pardon if you will, as the company vringo wins and wins. Or some kind of legislative relief that will weaken "patent trolls" and fatten the corporate white collar criminals. The call last night was informative and concise, and twice the low value given by the street was mentioned. 340 million dollar market cap for a company eventually owed 1 billion from one suit alone? They have 2 years worth of capital even without any revenue coming in. Listen to the call for yourselves. JMHO.
    13 Feb 2014, 05:19 PM Reply Like
  • gob smacked at the drop
    , contributor
    Comments (469) | Send Message
     
    An executive order to overturn a court ruling.....hummmm? One would think Obama has too much on his plate now for taking that on. As pointed out by Vringo in the call, legislation intended to weaken patent trolling will be hard to craft so as to target just the Trolls....and at least in this case against Goog, Vringo should be somewhat immune, having the Inventor, Lang, as President and CTO. Either the market for Vringo stock has been cornered and is being manipulated without SEC awareness, or folks just do not understand/believe that David will eventually prevail against Goliath....even though Goliath is now missing an eye?
    14 Feb 2014, 09:41 AM Reply Like
  • biffpincus
    , contributor
    Comments (51) | Send Message
     
    I think its telling that VRNG did not oppose Google's motion.
    Perhaps an early conclusion is in the cards with the other defendants?
    13 Feb 2014, 05:38 PM Reply Like
  • gob smacked at the drop
    , contributor
    Comments (469) | Send Message
     
    Let's see....if Goog makes most of their money from adwords and this is around $80,000,000,000 per year, then doing the math $80B * 20.5% * 6.5* =~over $1B per year....how can Goog not buy Vrng and stop the pain? Did I get the math right?
    13 Feb 2014, 05:43 PM Reply Like
  • gob smacked at the drop
    , contributor
    Comments (469) | Send Message
     
    I read that 96% of Google revenue is Adword based...they made $50B in 2013 I think.
    So doing the math...that makes Vringo's annual share is roughly $640,000,000 per year (= 0.96 * 50B * 0.205 * 0.065. How can Google not be thinking of buying Vringo to stop the pain? If they don't it sound like Vringo management wants to give cash back to shareholders in the form of dividends and or stock buybacks....sounds like a win, win...yet vringo drops following the call....go figure...I'm mystified, but in for the long haul.
    13 Feb 2014, 05:44 PM Reply Like
  • xamd
    , contributor
    Comments (514) | Send Message
     
    yeah, I was mystified too Gob smacked. I bought Wednesday "doh". Saw it go down Wednesday AH, but then read the news about the companies not appealing and I thought , OK well it will go back up now to Wednesday¨s highs. Did it? Hello, Im waiting, where are the buyers pushing it up? What happened? Cmon go back up. I guess its just a VRNGO phenomenon. It was happening like this several months ago sitting under 3 bucks.
    13 Feb 2014, 06:53 PM Reply Like
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