As we write this article, the jury in the Vringo Vs Google case is deciding on whether the Vringo patents were infringed and if they were, what the damages will be. We believe the longer it takes the jury to decide, the higher the likelihood for Vringo success.
If you are looking to go long a tech stock and have a speculative frame of mind, we think the shares of Vringo (VRNG), which we have written about twice , are certainly worth the risk-reward ratio now that the trial with Google (GOOG) is at its midpoint.
Moreover, Facebook certainly can be potentially viewed as an infringer of the same Vringo patents that Google is accused of violating. In fact, if Claim 1 of Vringo's U.S. Patent 6,314,420 applies to Google search and related ads, we feel it highly likely that Facebook's (NASDAQ:FB) desktop advertising would also be affected. If Vringo wins, a Facebook case is likely to follow.
Moreover, the combination of the above claim and Claim 1 in Vringo's U.S. Patent 6,775,664 seems to be what Facebook is practicing in its retargeting advertising program. Retargeting tracks users travels using cookies on the web and redirect advertising based on what the user previously clicked. Certain cookie programs deployed by FB maybe considered wiretapping and is the subject of litigation which we have outlined in a previous article.
Disclosure: I am long VRNG.
Additional disclosure: This is a trade only for investors with a high tolerance for risk.I am short FB.