Google to pay 1.36% of AdWords revenue for infringing patents

By on January 29, 2014, 11:30 AM
google, patent, adwords

Google has been ordered to pay 1.36 percent of AdWords revenue to Vringo, a publicly traded company which sued the search giant over infringement of its patents. Back in 2011, the company bought a couple of patents (numbered 6,314,420 and 6,775,664) from an old search engine called Lycos, transferred them to Innovate/Protect, its patent-holding subsidiary, and used them to sue Google, AOL, and others.

When Vringo dragged Google to court, its investors bet big on the move. Although in November 2012 the company did win $30 million in Jury trial, it was far less than the $493 million they were seeking. But last week, Vringo won a patent ruling entitling it to additional royalties from Google over its modified AdWords product, which was tweaked by Google after the November 2012 verdict.

The dispute centers on the filtering technology that determines placement of ads on search results. Vringo claimed that even after a modification that was meant to be a workaround, the AdWords program still infringes on one of its patents. The US District Judge Raymond Jackson agreed with Vringo, and said that the modified version of AdWords is “nothing more than a colorable variation of the infringing system”. On Tuesday, he announced the royalty rate.

According to Jennifer Polse, Google's lead patent lawyer, the company has already appealed the jury verdict and is planning to appeal the royalty award as well.

Vringo also has a 'Video Ringtone' business but the company is more or less a patent assertion entity. Last year, the company dragged Microsoft to court over ads in its Bing search engine. The software giant opted for settlement, and agreed to pay $1 million plus 5 percent of whatever Google ultimately pays.

 




User Comments: 8

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2 people like this | Guest said:

So this company bought patents so they could specifically sue Google (And did the same thing to Microsoft) patent trolling at its best.

Patents & trademarks - now you do something and no one can do anything even remotely similar or you'll get sued for millions.

2 people like this | m4a4 m4a4 said:

So this company bought patents so they could specifically sue Google (And did the same thing to Microsoft) patent trolling at its best.

Patents & trademarks - now you do something and no one can do anything even remotely similar or you'll get sued for millions.

Yup. Software patents are a ***** -_-

wastedkill said:

Just you wait until I patent "Birth" and "Death" I will sue everyone and it will be 100% legal and allowed thanks to the great patent system

NTAPRO NTAPRO said:

Just you wait until I patent "Birth" and "Death" I will sue everyone and it will be 100% legal and allowed thanks to the great patent system

haha you might be shortening your lifespan if you gain a bit of money from that. Those patents might never be heard from again haha

Guest said:

This is about as awesome as the makers of Candy Crush attempting to trademark the word 'CANDY', and they may just get their wish.

In the company's own words, if Apple can trademark that generic word and sue the hell out of everyone, but leave the fruit name the same, why can't they do it too?

It's a farked up world out there....

Guest said:

Techspot seem to be deleting innocuous posts on an ongoing basis.

What's wrong with mentioning the Candy Crush reports that they are trying to trademark the word "Candy"?

It seems that TS has become a totalitarian organisation who arbitrarily delete posts they don't like, or perhaps don't believe.

Guest said:

And then comments magically reappear.

Maybe it was cache.

mailpup mailpup said:

@Guest above. FYI, no posts have been deleted from this thread so far. I do not know what malfunction you experienced but I recall seeing your post in question just fine when you first posted it last night (USA Pacific coast time). Thanks for the kind words.

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