Vringo, Inc. (NASDAQ:VRNG) Announced Favorable Ruling in the Patent Infringement Lawsuit


Dallas, Texas 12/02/2014 (FINANCIALSTRENDS) – Vringo, Inc. (NASDAQ:VRNG) recently announced favorable ruling by the Chancery Division’s High Court of Justice in the U.K. in the patent infringement lawsuit. Vringo Infrastructure, Inc., the company’s wholly owned subsidiary, filed the lawsuit against ZTE (UK) Limited.

The lawsuit was related to ZTE’s patent infringement of Vringo’s 3G and 4G infrastructure equipment. The Court ruled that ZTE has infringed the UK part of the company’s European Patent. In a subsequent hearing, the Court will address the remedies sought by the company against ZTE.

The Legal Disputes

London Judge Colin Birss identified the trial as the first of a series of patent trials between these parties. Vringo, Inc. (NASDAQ:VRNG) has also been involved in legal disputes with the tech giant Google Inc (NASDAQ:GOOGL) in the U.S.

In August, the U.S. Court ruled against the company, which dragged the stock under $1 price levels. However, the company requested an en banc review of its case against Google. Vringo alleged that the judgment is at odds with a series of decisions from the Federal Circuit and Supreme Court.

Financial Impact

Vringo, Inc. (NASDAQ:VRNG) provided update on global enforcement actions along with its 3Q14 earnings report. The company incurred total of $8.5 million in operating legal costs during 3Q14. The expenses were mainly in connection with ongoing legal disputes against ZTE Corporation, ASUSTeK Computer, Inc. and other planned enforcement actions.

The company also incurred legal expenses for filing petition requesting en banc review of the Federal Circuit`s decision in connection with the litigation involving AOL Inc, Google, Inc. et al.

As a result, the company posted net loss from continuing operations of $12.4 million or $0.13 per basic share during 3Q14. It was also attributed to non-cash expenses of $5.1 million and general and administrative, and other expenses of $1.6 million during the quarter.

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