Boston, MA 08/19/2014 (wallstreetpr) – Google Inc. (NASDAQ:GOOG) has finally won bid to overturn the patent-infringement verdict which was earlier won by Vringo, Inc. (NASDAQ:VRNG). According to reports, the patent-infringement verdict worth of $30.5 million sent the shares of well-known patent licensing firm as much as 79%.
What Was The Matter?
Reports claim that there was a hearing on Aug. 15, 2014 for a patent-infringement case in The U.S. Court of Appeals for the Federal Circuit, located in Washington. After the hearing, court found that the patents of VRNG in this case were not valid. VRNG reported $1.1 million in revenues in the previous year.
VRNG had reportedly developed a technology to filter advertisement placement in search results in the past. It claimed that the Google Inc. (NASDAQ:GOOG) used its filtering technology in AdSense and AdWords for searching products. Although VRNG won a trial against Google back in 2011 which allowed it to take some of its customers due to infringement of the patents. Earlier they belonged to defunct search-engine company Lycos.
Google Inc. (NASDAQ:GOOG) later argued that it never used the filtering tools of VRNG. Rather all the methods that it used in AdSense and AdWords belonged to well known tools that were in place since a long time. The court in a 2-1 decision said, “We have found that Google Inc. is not guilty in this matter. Our belief is that no jury could conclude the matter otherwise.” Some of the other cases like this matter are 11cv512, I/P Engine Inc. v. AOL Inc., etc.
As soon as the decision came out, the shares of VRNG declined significantly. It has not only put negative impact on company’s stock value, but also on the social image of Vringo, Inc. (NASDAQ:VRNG). It picked a company of Google’s standard, but the court didn’t find Google wrong. It has sent a negative message in the market.