NEW YORK (TheStreet) -- Vringo (VRNG) spiked 34.8% to $5.35 Wednesday following the announcement of a court order of a post-judgment royalty rate of 6.5% against Google GOOG, AOL (AOL), and other companies.
The U.S. District Court for the Eastern District of Virginia issued a Memorandum Opinion and Order in Vringo subsidiary I/P Engine's case against the Internet companies. The court found that Google and its partners infringed on I/P Engine's patents with the AdWords system.
The court held that Google willfully infringed the patent, and continues to do so.
In a statement Vringo CEO Andrew D. Perlman said "We are pleased with the District Court's ruling. We are committed to vigorously defending our intellectual property rights to redress Google and its customers' continuing and willful unlicensed use of the technology invented by Ken Lang, our President and Chief Technology Officer."
TheStreet Ratings team rates VRINGO INC as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate VRINGO INC (VRNG) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, notable return on equity and increase in stock price during the past year. However, as a counter to these strengths, we also find weaknesses including deteriorating net income and weak operating cash flow."