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California based Google ordered to pay royalty

For many years, Google has been one of the top names in the Internet industry. What started as a search engine quickly morphed into a variety of other tools and services, including its popular AdWords advertising system.

While Google may be headquartered in California, the company has offices in many states throughout the country. And of course, it has customers all over the world. Most companies the size of Google are faced with litigation from time to time. They have so many logs in the fire that it is only natural to be involved in lawsuits. Recently, the company has been ordered by U.S. District Court for the Eastern District of Virginia to pay a royalty to I/P Engine for patent infringement in relation to its AdWords system.

I/P Engine has been awarded an ongoing royalty of 6.5 percent on a part of the revenue generated by AdWords. While Google argued that it had redesigned AdWords before it infringed on two of I/P Engine's patents, the court was having none of it.

The judge added that the new system was "nothing more than a colorable variation of the system adjudged to infringe." This judgment has been a long time coming, with the initial lawsuit filed on Sept. 15, 2011. It now appears that a resolution is in place.

While Google is likely unhappy with this decision, it is something I/P Engine has been fighting for for nearly three years. When this type of litigation is brought to the forefront, an experienced legal team may be able to help improve the final outcome.

Source: Computer World, "Google ordered to pay royalty on AdWords revenue to Vringo" John Ribeiro, Jan. 29, 2014

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