Microsoft to settle Vringo lawsuit over search-related patents

NEW YORK Thu May 30, 2013 8:36pm IST

Monitors running Windows are pictured at the press center of the annual news conference of Bayer in Leverkusen February 28, 2012. REUTERS/Ina Fassbender/Files

Monitors running Windows are pictured at the press center of the annual news conference of Bayer in Leverkusen February 28, 2012.

Credit: Reuters/Ina Fassbender/Files

Related Topics

Stocks

   

NEW YORK (Reuters) - Microsoft Corp(MSFT.O) has agreed to settle a lawsuit accusing it of infringing patents that enable Internet search engines to place advertisements most effectively.

Vringo Inc(VRNG.O), whose I/P Engine Inc subsidiary filed the lawsuit in January, announced the settlement on Thursday. Microsoft has agreed to pay $1 million and enter into a licensing agreement as part of the agreement, according to Vringo's U.S. regulatory filings.

A Microsoft spokeswoman confirmed the accuracy of Vringo' description of the settlement but declined to comment further.

In the lawsuit, filed in U.S. District Court in Manhattan, I/P Engine said Microsoft had used search technology based on inventions by two employees of Vringo.

The lawsuit came after a jury in Virginia awarded I/P Engine about $30 million in damages after fining companies including Google Inc and AOL Inc(AOL.N) for infringing the same patents at issue in the Microsoft case.

That verdict last November was seen as a disappointment for Vringo, which had been seeking at least $696 million, and its stock fell as much as 10 percent following the news. An appeal is pending.

The patents at issue were acquired by I/P Engine from Lycos Inc, the once-popular search engine created in 1994. The two inventors of the patents now work at Vringo, the lawsuit said.

As part of the settlement, Vringo said Microsoft had also agreed to pay 5 percent of any amounts Google pays to use the patents.

The sum is subject to a cap, although Vringo said that would not affect the company unless the amounts received from Google exceed the judgment it won at trial.

Microsoft also agreed to assign six patents to I/P Engine for telecommunications, data management, and other technology areas, Vringo said in its filing with the U.S. Securities and Exchange Commission.

Vringo's shares were up 3.5 percent at $3.24 in midmorning trading, while Microsoft rose 0.5 percent to $35.07.

The case is I/P Engine, Inc v. Microsoft Corp, U.S. District Court, Southern District of New York, No. 13-688.

(Reporting by Nate Raymond in New York; Editing by Lisa Von Ahn)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

China's Twitter

REUTERS SHOWCASE

No-hire Trial

No-hire Trial

Tech workers seek to use Steve Jobs evidence in upcoming trial on no-hire accords  Full Article 

Apartheid-era Case

Apartheid-era Case

Ford, IBM to face renewed U.S. lawsuit over apartheid-era abuses  Full Article 

Online Banking

Online Banking

China issues banking rules to strengthen online payment security  Full Article 

Web Control

Web Control

China calls on Russia, central Asia allies to tighten Internet controls.  Full Article 

In Demand

In Demand

Microsoft's Xbox One sales cross 5 million.  Full Article 

Digital Currency

Digital Currency

Mt. Gox suitors seek support to save bitcoin exchange.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage