Noted writer and investor James Altucher, posted an
interesting piece at techcrunch.com this weekend which has caused a huge spike in shares of Vringo, Inc. (NASDAQ:
VRNG). The entire story is fairly in-depth, but essentially, Altucher argues that VRNG could potentially see a big payday relating to a lawsuit it has filed against Google (NASDAQ:
GOOGVRNG). Subsequently, VRNG has sued Google claiming that the company willfully infringed these patents for sorting ads based on click-throughs. Vringo is claiming that Google has generated $67 billion in revenue as a result of their unlawful use of these patents. Furthermore, the lawsuit claims that every search engine that uses Google "is allegedly infringing on the Vringo patent and is being sued." This includes companies such as Interactive Corp.'s (NASDAQ:
IACI) Ask.com, AOL (NYSE:
AOL), and Gannett Co. (NYSE:
GCI).
Another interesting aspect to this story is that there is already some precedent for the claims being made. In the distant past, a company called Overture applied for certain patents based on search monetization. They were granted some of the patents which they were seeking, but denied others on the grounds that they were already held by Lycos. Overture was eventually acquired by Yahoo (NASDAQ:
YHOOentire piece, in order to better understand the situation and potential outcomes.
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