Vringo Inc., owner of Lycos, one of the biggest search engines of 90′s said it has been awarded about $30 million from Google Inc. (NASDAQ:GOOG) and some of its customers, including AOL over infringing its patents. Vringo was awarded a 3.5 % continuing royalty rate on the patents, which expires in 2016.
Vringo, Inc. (NYSEAMEX:VRNG) shares fell 38 cents (9.6%) to $3.57 in trading of 36.9 million shares where as Google Inc. (GOOG)’s share fell $1.24 to $681.72 in Nasdaq Stock Market trading. Vringo claimed that Google Inc. (GOOG)’s advertising platform ‘Adsense program’ which is also used for third-party companies and AOL, Inc. (NYSE:AOL) Search Marketplace, infringed the patents. The company had been seeking around $493 million, but U.S. District Judge Raymond Jackson ruled out the possibility of said amount and said that Vringo will only get the damages cost that have occurred after the suit was filed in September 2011 and not before.
Vringo, Inc. (VRNG) spokesman said that the jury asked Google to pay $15.8 million, AOL, Inc. (AOL) $7.9 million, IAC Search & Media $6.6 million and Gannett Co Inc $4.3 million to Vringo Inc. All these companies use Google’s program to display ads.
Vringo, Inc. (VRNG) inherited the lawsuit from Innovate/Protect (I/P), the company it acquired in March. Innovate/Protect (I/P) specializes in monetizing intellectual property. I/P had filed a patent infringement lawsuit in 2011 against Google, AOL, IAC Search & media, Gannett Co Inc and Target Corp.
Google on the other hand has denied the charges and said that it did not infringe any patent and argued that claims are baseless.