Trial has wrapped for the day and it has been an eventful day. As has been noted correctly elsewhere that the judge found for Laches and ordered damages to be measured beginning in September 2011. Back to that later. The afternoon session found Dr. Carbonell on cross examination by Google attorney David Nelson. Nelson took Carbonell through Rose, Culliss and Bowman and Carbonell was able to refute any suggestion that these patents anticipate the Prior Art introduced by Google. In fact it seemed clear sitting in the courtroom, and I have to believe to the jury as well, that Carbonell's testimony both direct and under cross is the best that we've seen in this courtroom period. He clearly knows these patents and systems in such a way as to be able to provide fluid examples in contrast to Nelson who just prepared himself for this particular case. Carbonell is someone with a lifetime of experience and it very much showed. It should be noted that when Nelson finished and VRNG counsel was able to redirect they said no.
After Carbonell's testimony the jury was dismissed. Kenneth Brothers, VRNG's attorney argued that Jackson's ruling of Laches was essentially improper because they could not offer a witness against it and the upshot was that VRNG was able to enter what amounts to a witness report from Mark Blais at Lycos. In short the court was not inclined to reverse its earlier decision. So then the question of running royalties or lump sum payment came up. Google's Nelson tried to argue that there was nothing in the record on which to base a damage award which Judge Jackson did not find credible. He said that reasonable evidence exists for a jury to make a decision on damages. He referenced Dr. Becker's quarterly chart. Some positives for Vringo are that the Judge denied Google's motion for invalidity. He also denied a judgement as a matter of law against infringement. As to obviousness my understanding is that there would be some interrogatives given to the jury from the court based upon evidence.
Judge Jackson will meet with counsel tomorrow at 9am and the jury will be back at 10:30am. The judge will decide based upon counsel input whether the jury will consider a lump sum or running royalties equation but Jackson pointedly said that all evidence for running royalties is certainly not excluded.
So up next are closing arguments and jury instructions which should take maybe two and half hours or so. The question people will ask is what can VRNG still win if an infringement of the patents in suit is found. Keep in mind the fact that while Judge Jackson has penalized VRNG for the years before it brought its lawsuit that has zero to do with a finding of infringement. I think Steve Kim had it right in an earlier Seeking Alpha instablog where he says the damages and royalties could still be worth as much as $600-700M not including interest and fees. Therefore as has been my thinking all along as an investor, considerable upside remains. Notwithstanding the volatility experienced today, which thankfully I did not see much of, there is every reason to be optimistic. I have tried to insulate myself to a certain extent from the day to day panic of these boards since they are not always fact based. It was reported that the Virginian-Pilot may have provided a big assist to the stock drop in publishing an erroneous damages figure of $500,000 instead of $500M. Since the Pilot only covered the first day of the trial one would hope that after today, if reports are true, they don't stick around to cover the verdict. I will be there again tomorrow and I expect we will likely see a verdict on Friday.
What a day for this drama queen of a stock. I'm glad I was traveling and able to read the facts at the end instead of dealing with the misinformation and bull all day long!
From the beginning James Altucher was confident that Dr. Carbonell would be Vringo's Ace Witness and the good doctor indeed hit a towering home run for VRNG. Could Carbonell's impact ultimately be greater than Judge Jackson's ruling that damages begin in 9/2011?
I used to live in Virginia Beach and the Virginia Pilot is a podunk p.o.s. newspaper. That was confirmed today with the typo of $500,000 instead of $500,000,000 for damages. How many traders saw that and sold or shorted only to find out later it was totally false? Where would the pps be if the typo had not happened?
Why is there still a T1 halt on VRNG? What is the "material news"? Settlement maybe?
From what I can see, the bottom line is VRNG will indeed win and longs are still in the hunt for a pps in the $7 to $10 range in a matter of a few days. This stock is a steal in the $2 to $3 range with a potential downside risk of maybe another buck?
Yes, I'm a gambler and I will be buying more tomorrow. GLTL.
Sentiment: Strong Buy
"Could Carbonell's impact ultimately be greater than Judge Jackson's ruling that damages begin in 9/2011?"
Are u serious with this? only god could overrule the judge at this point. Past damages are gone for those prior years.... its set in stone unless vrng appeals after trial
Except for one unfavorable ruling today, overall Vringo's had built a strong cased based on your reports. I'm looking forward to the jury verdict, and the 0.7% (same as 3.5% of 20%) damage award ruling.
Thanks for your reports.