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Vringo (VRNG) has won its patent suit against Google (GOOG). The company has been awarded $30M...

Vringo (VRNG) has won its patent suit against Google (GOOG). The company has been awarded $30M in damages and a royalty on Google search ad revenue through 2016, when Vringo's patent expires - some reports indicate the royalty rate is 3.5%. Google will almost certainly appeal. Vringo shares remain halted.
Comments (29)
  • wonder if NOK get to share in the rewards. It did sell some patents to VRNG
    6 Nov 2012, 01:54 PM Reply Like
  • That was a part of the deal they made with VRNG.


    Nok gets a specific amount from earning in relation to the patents
    6 Nov 2012, 01:58 PM Reply Like
  • No, the patents that Nokia sold to Vringo were not part of this court case. Nokia only gets to share in rewards of court cases where Nokia's patents are being infringed.
    6 Nov 2012, 02:03 PM Reply Like
  • These were not the Nokia patents.
    6 Nov 2012, 03:35 PM Reply Like
  • yes, some others pointed that out also.
    6 Nov 2012, 03:37 PM Reply Like
  • The patent piranhas will go crazy on these news ...
    6 Nov 2012, 01:57 PM Reply Like
  • crazy dissapointed
    6 Nov 2012, 02:08 PM Reply Like
  • It's still $450-$600 million, you can bet they'll go crazy, I don't mean the VRNG speculators, I mean patent piranhas in general ... half a billion payola!
    6 Nov 2012, 02:09 PM Reply Like
  • Finally, Mr Modernist is dissapointed. Very happy to see you dissapointed.
    6 Nov 2012, 02:11 PM Reply Like
  • Santos, Google will stall, appeal, shares will drop to 1 dollars, google can then buy 51% of them and do a hostile takover, share holders will get burned, dont you agree?
    6 Nov 2012, 05:02 PM Reply Like
  • No, GOOG will probably appeal but also work around the patent.


    Or, if they're really confident and taking into account that $16 million or so is pocket change, they could just work around the patent and pay past damages without even appealing... that would be the worst case for VRNG, as GOOG appealing and not publicly saying they'll work around the patent keeps VRGN hopes up.
    6 Nov 2012, 05:17 PM Reply Like
  • paulo, by all means, if you think this is a half billion dollar verdict, buy vringo stock
    6 Nov 2012, 06:49 PM Reply Like
  • Modernist, the market might see it that way due to the news, the royalties would come to that if GOOG paid. What I think will happen, though, is that GOOG will end up working around the patent and not paying.


    So I think the stock will drop.
    6 Nov 2012, 07:00 PM Reply Like
  • I sold 42 nov 17 $2 puts for a total premium of $766. I basically bagged that already. $766 in 13 days ain't bad lols. Also today bought 2 $4.50 calls at .95. hope those will pay off also.


    Now back to trading NOK...
    6 Nov 2012, 02:01 PM Reply Like
  • Nice trade. I bought some of those $2 puts to hedge my long position. That's money down the drain but I'm satisfied as my long position was protected.
    6 Nov 2012, 02:29 PM Reply Like
  • only 30 million
    ouch ,not much
    the future royalties will pay for current expanses in the future..
    6 Nov 2012, 02:06 PM Reply Like
  • Trading halted. Anybody have an idea when it will continue? I bought more at 4.25 but am waiting for VRGN to open back up to trading to see if I got it at that price. I've been in for awhile so I got it at a much better price but I couldn't resist buying again with the actual news of them winning being released.
    6 Nov 2012, 02:08 PM Reply Like
  • Is this smallish award going to be a disappointment and drive the stock down?
    6 Nov 2012, 02:10 PM Reply Like
  • I think it will spike up after trading resumes
    6 Nov 2012, 02:13 PM Reply Like
  • $30 mill is a small award against google - for a yr of infringing --AT 3.5% something seems out of whack--did the jury get it wrong and did the judge lache on wrongly too?
    6 Nov 2012, 02:20 PM Reply Like
  • Steve Kim Comments on verdict
    I am very happy about the verdict. The 3.5% running royalty is the big prize here. Remember, if we got $100M past damages and no running royalty, we would be licking our wounds. The running royalty (in whatever amount ultimately set by the Judge, who has to be influenced by the jury's 3.5% finding) is what give us a share of Google's future ad revenues until the patent expires. Don't worry about workarounds yet, we are primarily concerned with price in the short/intermediate term for the moment. I think if Google had a workaround ready, they would have dropped it on Vringo already, during the trial.
    I think the past damage number of $30M vs. the $100M hoped for is not that relevant, frankly. The future damages are the key here.
    Read more:
    6 Nov 2012, 02:29 PM Reply Like
  • The 3.5% applies to the 20% of Google's search business that the jury found applicable to Vringo's IP. So in essence 3.5% becomes .75%. And that assumes the judge binds that much in the final order.
    6 Nov 2012, 04:47 PM Reply Like
  • It also assumes Google won't work around it, which it probably will.
    6 Nov 2012, 04:51 PM Reply Like
  • So, any ideas on when trading will resume?
    6 Nov 2012, 02:37 PM Reply Like
  • There was Bly ne unnamed source who provided the $30m number? It seems 3.5% is the correct royalty figure, but $30m is not 3.5% of Google's relevant yearly revenue, it's 3.5% of Google's relevant quarterly revenue. The relevant yearly income is ~$120m Is something being reported incorrectly? There is nothing on the court's docket report as of yet so the only way to know exactly what the verdict was is for somebody to have been in the courtroom. The first article indicated only an unnamed source provided information, not very reliable in my opinion!,
    6 Nov 2012, 04:39 PM Reply Like
  • The $30M is for past infringement. It's completely separate from the royalty calculation.

    6 Nov 2012, 04:41 PM Reply Like
  • And regarding the future royalties, there's the risk that GOOG will work around the patent.


    So the stock is clearly vulnerable.
    6 Nov 2012, 04:46 PM Reply Like
  • Check this out if you haven't seen it already. Possible miscalculation in VRNG damages:

    7 Nov 2012, 12:40 AM Reply Like
  • If that's the case, what's going to happen now? The jury has already been dismissed.
    7 Nov 2012, 02:42 AM Reply Like
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