Microsoft will pay Vringo subsidiary I/P Engine $1 million to settle a patent infringement lawsuit over technology originally developed by the Lycos search engine, according to a regulatory filing this morning.
The settlement also includes a provision for Microsoft to pay up to 5 percent of what Google ultimately pays for the patents in a separate case with I/P Engine. Vringo won a $30.5 million judgment against Google previously, in addition to future royalties that have yet to be determined.
Here’s the full text of the filing …
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.
Microsoft declined to comment beyond the details in the SEC filing and Vringo news release.
