Vringo (VRNG) having won a string of victories may have finally boxed ZTE into a corner with little hope of escape. Just last week Vringo won a key injunction to halt all ZTE Smartphone and Infrastructure sales in Romania. ZTE assembles smartphones in Romania, designed in part to avoid EU import taxes, and in November of last agreed to invest upgrades of $100 million. Late Friday with no notice to Vringo, ZTE filed a TRO(injunction) in Delaware Federal Court seeking to halt Vringo from completing the deposit required to initiate the won injunction.
Vringo attorneys immediately issued a letter to the presiding Federal Judge in Delaware who most certainly was unaware of Vringo's pending lawsuit in New York, concerning ZTE's violation of an NDA between the parties. Prior to Fridays filing the matter expressed between the parties was strictly speaking a European matter, exclusive of the NDA.
It now appears Vringo, who was "slow rolling" the Romania cash deposit, may have done so to provoke ZTE into filing a FRAND lawsuit here in the United States. Noteworthy at the previous NDA hearing 6 months ago ZTE claimed Vringo could not prove damages concerning ZTE's admitted violation.
It now appears that Vringo may have strategically aligned these series of events to advance not only a ZTE Frand settlement, concerning Vringo's 3G 4G LTE wireless patents, but a far reaching NDA lawsuit affecting the entire smartphone industry.
These events are happening real-time and investors need to be aware of their positions and monitor the ongoing events daily.
Vringos' Response to the late Friday TRO (posted after I wrote my instablog)
Disclosure: The author is long VRNG, IBM, HERO.