I/P Engine, Inc. v. AOL, Inc. et al
Filing
954
MOTION for Leave to File Notice of Supplemental Evidence by AOL Inc., Gannett Company, Inc., Google Inc., IAC Search & Media, Inc., Target Corporation. (Attachments: # 1 Exhibit A, # 2 Exhibit B, # 3 Exhibit C)(Noona, Stephen)
Exhibit A
UNITED STATES DISTRICT COURT
EASTERN DISTRICT OF VIRGINIA
NORFOLK DIVISION
I/P ENGINE, INC.
Plaintiff,
v.
AOL, INC., et al.,
Civil Action No. 2:11-cv-512
Defendants.
DEFENDANTS’ NOTICE OF SUPPLEMENTAL EVIDENCE
Defendants respectfully submit this Notice of Supplemental Evidence. Attached is an
excerpt of a May 30, 2013 recent SEC Form 8-K for Plaintiff I/P Engine’s parent corporation,
Vringo, Inc. regarding a settlement of I/P Engine’s action filed in Southern District of New York
against Microsoft on January 31, 2013, alleging infringement of the patents at issue in this case.
That filing reports:
On May 30, 2013, Vringo, Inc. (the “Company”) issued a press release
announcing that its wholly-owned subsidiary I/P Engine, Inc. (“I/P Engine”) has
entered into a Settlement and License Agreement with Microsoft Corporation
(“Microsoft”) to resolve patent litigation that was pending in the U.S. District
Court for the Southern District of New York (I/P Engine, Inc. v. Microsoft
Corporation, Case No. 1:13-cv-00688 (SDNY)). Pursuant to the Settlement and
License Agreement, Microsoft agreed to pay I/P Engine $1 million within fifteen
(15) business days, plus five percent (5%) of any amounts Google pays for use of
the patents I/P Engine acquired from Lycos. The parties also agreed to a
limitation on Microsoft’s total liability, which would not impact the Company
unless the amounts received from Google substantially exceed the judgment
previously awarded. In addition, the companies entered into a Patent Assignment
Agreement, pursuant to which Microsoft will assign six patents to I/P Engine.
The assigned patents relate to telecommunications, data management, and other
technology areas.
Exhibit A at Item 8.01.
This recent settlement agreement is relevant to I/P Engine’s pending motion for postjudgment royalties. Specifically, it confirms that I/P Engine is willing to grant lump-sum
licenses to the patents-in-suit. (Dkt. 822.) Microsoft must provide a payment of $1 million, six
01980.51928/5345501.1
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patents, and a percentage of any award that I/P Engine may recover from Google in this case.
Each of these components is a lump-sum transfer. In particular given that the payment tied to I/P
Engine’s recovery against Google is capped as a percentage of the existing judgment in this case
and is not tied to Microsoft’s revenue or use of the invention, that amount is effectively a lump
sum. See Lucent Techs., Inc. v. Gateway, Inc., 580 F.3d 1301, 1326-27 (Fed. Cir. 2009) (“In a
standard running royalty license, the amount of money payable by the licensee to the patentee is
tied directly to how often the licensed invention is later used or incorporated into products by
the licensee.”) (emphasis added). This is strong evidence that I/P Engine’s argument that it
would have insisted in a hypothetical negotiation with Google in 2012 upon a running royalty
agreement with no upward bound (Dkt. 949 at 16-17) is incorrect. See Transocean Offshore
Deepwater Drilling, Inc. v. Maersk Drilling USA, Inc., 699 F.3d 1340, 1357-59 (Fed. Cir. 2012)
(patentee’s licensing practices are relevant to determining form of agreement that would result
from hypothetical negotiation).
DATED: June 4, 2013
/s/ Stephen E. Noona
Stephen E. Noona
Virginia State Bar No. 25367
KAUFMAN & CANOLES, P.C.
150 West Main Street, Suite 2100
Norfolk, VA 23510
Telephone: (757) 624-3000
Facsimile: (757) 624-3169
senoona@kaufcan.com
David Bilsker
David A. Perlson
QUINN EMANUEL URQUHART &
SULLIVAN, LLP
50 California Street, 22nd Floor
San Francisco, California 94111
Telephone: (415) 875-6600
Facsimile: (415) 875-6700
01980.51928/5345501.1
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davidbilsker@quinnemanuel.com
davidperlson@quinnemanuel.com
Counsel for Google Inc., Target Corporation,
IAC Search & Media, Inc., and Gannett Co., Inc.
/s/ Stephen E. Noona
Stephen E. Noona
Virginia State Bar No. 25367
KAUFMAN & CANOLES, P.C.
150 W. Main Street, Suite 2100
Norfolk, VA 23510
Telephone: (757) 624-3000
Facsimile: (757) 624-3169
senoona@kaufcan.com
Robert L. Burns
FINNEGAN, HENDERSON, FARABOW, GARRETT &
DUNNER, LLP
Two Freedom Square
11955 Freedom Drive
Reston, VA 20190
Telephone: (571) 203-2700
Facsimile: (202) 408-4400
Cortney S. Alexander
FINNEGAN, HENDERSON, FARABOW, GARRETT &
DUNNER, LLP
3500 SunTrust Plaza
303 Peachtree Street, NE
Atlanta, GA 94111
Telephone: (404) 653-6400
Facsimile: (415) 653-6444
Counsel for Defendant AOL Inc.
01980.51928/5345501.1
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CERTIFICATE OF SERVICE
I hereby certify that on June 4, 2013, I will electronically file the foregoing with the Clerk
of Court using the CM/ECF system, which will send a notification of such filing (NEF) to the
following:
Jeffrey K. Sherwood
Kenneth W. Brothers
DICKSTEIN SHAPIRO LLP
1825 Eye Street NW
Washington, DC 20006
Telephone: (202) 420-2200
Facsimile: (202) 420-2201
sherwoodj@dicksteinshapiro.com
brothersk@dicksteinshapiro.com
Donald C. Schultz
W. Ryan Snow
Steven Stancliff
CRENSHAW, WARE & MARTIN, P.L.C.
150 West Main Street, Suite 1500
Norfolk, VA 23510
Telephone: (757) 623-3000
Facsimile: (757) 623-5735
dschultz@cwm-law.cm
wrsnow@cwm-law.com
sstancliff@cwm-law.com
Counsel for Plaintiff, I/P Engine, Inc.
/s/ Stephen E. Noona
Stephen E. Noona
Virginia State Bar No. 25367
KAUFMAN & CANOLES, P.C.
150 West Main Street, Suite 2100
Norfolk, VA 23510
Telephone: (757) 624-3000
Facsimile: (757) 624-3169
senoona@kaufcan.com
01980.51928/5345501.1
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