(By Balachander) Vringo Inc. (NYSEAMEX:VRNG) shares jumped after a federal judge reportedly ordered settlement discussions with Google Inc. (NASDAQ:GOOG) over pending patent litigation.
VRNG alleged that Google has infringed on patent technology Vringo purchased from Lycos Inc. Google used the patented technology by filtering and presenting search and search advertising results based on a combination of an item's content relevance to a search query; and click-through rates from prior users relative to that item.
The complaint alleges that Google has adopted the patented technology with its use of Quality Score, according to regulatory filing from Vringo.
The complaint alleges that, after adopting the patented technology, Google's market share significantly grew and its profits from search advertising considerably outpaced those of other pay per click advertising providers. Google also allows third party publishers, for example AOL, IAC, Target and Gannett Media, to display advertising search results in response to search queries made on the third party websites.
Last Thursday, Vringo's wholly-owned subsidiary, I/P Engine, Inc. received notice of an initial Office Action at the U.S. Patent Office (USPTO) with respect to Google's Ex Parte request for Reexamination of U.S. Patent No. 6,314,420.
I/P Engine acquired the 420 Patent from Lycos, and it is one of the two patents-in-suit in I/P Engine vs. AOL, Google et al.
According to a statment from Vringo last week, I/P Engine looks forward to sharing its input with the USPTO by November 25, 2012. I/P Engine believes that it will be successful in obtaining re-confirmation of the 420 Patent.
I/P Engine does not believe this will result in any delay of the trial, which remains scheduled to commence on October 16, 2012.
The judge refused to end the case in Google's favor, according to documents spotted by Streetinsider.
The talks are scheduled for October 9, Streetinsider says.
Shares gained 89 cents, or 28.80 percent, to trade at $3.98 on Wednesday.