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

   
Inside the Peshawar school

Inside the Peshawar school

The aftermath inside the Pakistan school where at least 132 students and nine staff members were killed by Taliban gunmen.  Pictures 

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:

REUTERS SHOWCASE

26/11 Accused

26/11 Accused

Pakistan to appeal bail for Mumbai attack "mastermind".  Full Article 

Android For cars

Android For cars

Exclusive: Google aiming to go straight into car with next Android – sources.  Full Article 

Mass Stabbing

Mass Stabbing

Eight children killed in Australia in reported mass stabbing.  Full Article 

In Distress

In Distress

Former SpiceJet owner leading rescue plan: reports.  Full Article 

PM's Moves

PM's Moves

Modi moves in to speed up $300 billion stuck projects.  Full Article 

Losing Popularity

Losing Popularity

Dalai Lama's star waning in the West, China official says.  Full Article 

Tis' The Season

Tis' The Season

Stars around the world wish you Happy Holidays.  Video 

Cyber Warfare

Cyber Warfare

For N.Korea's cyber army, long-term target may be telecoms, utility grids.  Full Article 

Reuters India Mobile

Reuters India Mobile

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