Equity Briefing: Vringo Inc. Merger Slated to Close on July 19th; Lawsuit Damages Against Google, AOL and Others Expected To Be Potentially in the Billions

On July 19th Vringo (AMEX:VRNG) is expected to complete its merger with I/P Engine, Inc. a wholly owned subsidiary of Innovate/Protect which has entered into a definitive merger agreement with Vringo. We expect this will be another catalyst for the stock, perhaps the most significant to date. The last time we reported on Vringo was just after they received a positive Markman ruling. At that time the stock was at $3.70 per share and went to $5.45 a few days later...

On July 19th Vringo (AMEX:VRNG) is expected to complete its merger with I/P Engine, Inc. a wholly owned subsidiary of Innovate/Protect which has entered into a definitive merger agreement with Vringo. We expect this will be another catalyst for the stock, perhaps the most significant to date.

The last time we reported on Vringo was just after they received a positive Markman ruling. At that time the stock was at $3.70 per share and went to $5.45 a few days later. This was a 45% gain in 5 days driven by the favorable court ruling These Markman rulings determine what language the jury will hear when determining whether or not the patent has been infringed. They have a significant impact on the potential outcome, in this case of Vringo vs. Google.

Shortly after the merger is completed, expert damages reports are expected to be filed with the court. This will be the first time that investors will see the magnitude of Vringo's claims against Google Inc. (NASDAQ:GOOG), AOL, Inc. (NYSE:AOL), IAC/InterActiveCorp (NASDAQ:IACI), Target Corporation (NYSE:TGT), and Gannett Co., Inc. (NYSE:GCI). Vringo's case strikes at the core of Google`s revenues according to the complaint filed.

As pointed out in an article by James Altucher, Google has allegedly willfully infringed upon Vringo's patents with their AdWords and AdSense products, "which have been 97% of Google's revenues since 2001. 97%. $67 billion dollars."

Observers anticipate that a number of market analysts will pick up coverage of Vringo right after the merger closes, offering yet more insight into Vringo as well as the rapidly growing and increasingly attractive intellectual property asset class. The trial is scheduled to begin on October 16th in the eastern district of Virginia, which according to PriceWaterhouseCoopers' 2011 patent litigation study is very favorable to plaintiffs and one of the fastest court docket in the country.

Billionaire Mark Cuban has purchased a stake in the Company and Vringo was just added to the Russell Microcap Index on June 22nd.  

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