Why Vringo, Inc. Shares Tumbled Today

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Vringo  (NASDAQ: VRNG  ) fell more than 10% Tuesday, after Google asked a U.S. appeals court to overturn a previous patent judgment.

So what: Specifically, Google is asking the court to throw out a $30.5 million patent-infringement verdict won by Vringo in 2012. The trial centered around ad placement filtering technology covered under Vringo's patents and used in Google AdWords, AdSense, and Search.

Google attorneys are claiming a "fundamental failure of evidence," while one member of the court's three-judge panel stated he had "problems with the jury's findings" regarding whether Vringo had adequately proven evidence of copying.

Now what: Vringo shareholders should keep in mind this appeal only involves the 2012 verdict, not subsequent rulings in Vringo's case against Google. However, Vringo may still have the upper hand, but note Google also has pending appeals for other positive Vringo rulings. In the end, today's events serve as a reminder of just how difficult it can be for intellectual property firms to cash in against well-funded, unwilling licensees.

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  • Report this Comment On May 06, 2014, at 5:23 PM, Patentplays wrote:

    This appeal was over before it started. Apparently Google wanted the 3 Justices of the COA to hold for a new Markman Hearing, in its attempt to cry foul for what many consider a less than stellar defense. Vringo took complete control of the hearing, not even fielding one question relating to laches.

    Don't confuse COA sympathy with an overturned award. I had sympathy for the Google Counsel as well, his argument was far to weak to make an effective Appeal.

  • Report this Comment On May 06, 2014, at 10:04 PM, stockined wrote:

    I still can't figure out why Vringo fell so sharply today, its not like no one knew that google was going to try and appeal. And Vringo fell even before the hearing started. Everyone knew that google was going to try and appeal. And Vringo's lawyer handled himself very well

  • Report this Comment On May 07, 2014, at 6:09 AM, GCF007 wrote:

    i agree and listened to the audio and was actually surprised by Google and their lack of a real case and preparation while Vringo was totally prepared and ready for all the inquiries. If justice is served, it should be in Vringo's favor!!

  • Report this Comment On May 09, 2014, at 9:30 AM, Honest2trade wrote:

    David vs Goliath

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