Boston, MA 09/03/2014 (wallstreetpr) – Vringo, Inc. (NASDAQ:VRNG) has informed its shareholders that it will seek a review of a lawsuit given in Google Inc (NASDAQ:GOOGL)’s favor. The stock jumped by as much as 5% after the news. It is a small gain as the stock has lost more than 65% after Vringo lost $30.5 million patent infringement case against Google last month.
The case
Customers use mobile software of Vringo, Inc. (NASDAQ:VRNG) that allows them to share content in the form of ringtones. The problem started when Vringo bought Innovate/Protect Company two years ago. It claimed that Lycos own the patent of technology that is used by Google’s Adsense. In the same case, it was awarded $30.5 million as compared to its demand of $696 million. Later on, in January, the court revised the royalties’ amount to $1 billion. The good news for Vringo soon turned bitter when court overturned its decision after some time. A ruling in favor of Google resulted in a sharp fall in Vringo’s stock price.
The latest developments
Vringo, Inc. (NASDAQ:VRNG) has plans to challenge the court ruling given by the Federal Circuit, which was in favor of Google and AOL, Inc.(NYSE:AOL). It is not the single royalty case Vringo is involved in. The other royalty cases are filed against ASUS and ZTE. Overall, it is expecting to get the results from ten scheduled hearings in this year. The lawsuits are going in six different countries.
The future ahead
The cases are about the infringement of intellectual property used by the defendants without any prior approval from the company. Vringo seeks justified royalties from the defendants in these cases. The court decisions in these royalty cases holds a lot more significance to Vringo as it is still in development states, and the rulings will directly have an impact on its financial health. As of now, Vringo, Inc. (NASDAQ:VRNG) has got $31.7 million in cash and cash equivalents with no debt in its book.
