A patent troll just scored a huge win against Google.
After finding Google guilty of using protected intellectual property in its AdWords advertising platform in 2012, U.S. District Judge Raymond Jackson has now awarded the plaintiff, Vringo, a 1.36 percent running royalty on Google’s U.S.-based AdWords revenue. (PDF)
It’s the kind of massive payout the publicly-traded Vringo was seeking. In 2011, the company purchased two patents involving the ranking and placement of ads in search results from Lycos, an old search engine, which it used to sue Google. After a late 2012 trial in Virginia, a jury found Google guilty of infringing on those patents and ordered Google and several of its advertising partners to pay Vringo $30 million. The jury also determined that Google should pay an ongoing royalty to Vringo, though it was up to Judge Jackson to determine whether that should stand.
Google modified AdWords following the Vringo verdict, but Jackson last week determined that the new system “clearly replicates the infringing elements of old AdWords.” After Google and Vringo failed to agree on a royalty rate, Jackson set it himself at 1.3585 percent, which is effectively the rate Vringo had requested