VRINGO CEO RELEASES LETTER TO SHAREHOLDERS
NEW YORK - October 7, 2014 - Vringo, Inc. (NASDAQ: VRNG), a company engaged in
the innovation, development and monetization of intellectual property, today
released a letter from Andrew D. Perlman, Chief Executive Officer, to
shareholders.
October 7, 2014
Dear Fellow Shareholders,
The management team at Vringo is focused on restoring shareholder value and
investor confidence. We continue to seek royalties from companies that use our
intellectual property, and we remain confident in our business strategy. As of
the end of the third quarter, we had $26.5 million in current assets, which
consist of cash, and bonds paid into courts, to support our execution of that
strategy.
Last month, the Court of Appeals for the Federal Circuit issued a split 2-1
decision in our subsidiary I/P Engine's case against Google and others. We
believe that the District Court judge, jury, and dissenting appellate judge --
as well as the U.S. Patent and Trademark Office -- were correct when they upheld
the validity of our patents. We have engaged David Boies, chairman of Boies,
Schiller & Flexner LLP, to join our appellate counsel Joseph R. Re of Knobbe
Martens Olson & Bear LLP, as well as our trial counsel at Dickstein Shapiro LLP,
in seeking further review of the appellate panel's split decision.
Next week, on October 15th, we will file a petition for the Federal Circuit to
rehear the case en banc. Other parties who support our position may file amicus
curiae, also known as "friend of the court", briefs by October 22nd.
On September 2nd, we issued a press release updating shareholders on events in
our litigations against ZTE, ASUS, Google, and other defendants.
Since September 2nd, the following litigation events have occurred:
* In India, the court continued hearing Vringo's motions for contempt. These
motions stem from Vringo's assertion that ZTE failed to comply with orders
previously issued by the Indian court in both of Vringo's infringement
actions against ZTE.  Vringo has also asked the court to order ZTE to
deposit additional security. The court's rulings on Vringo's contempt
motions are pending.
* In the Netherlands, the court held a hearing on ZTE's request for a
preliminary injunction against Vringo, seeking, among other things, the
release of certain ZTE products currently detained under Dutch law. We are
currently awaiting the court's ruling, which we expect in late October.
* In the United States, in the Southern District of New York, Vringo filed a
motion seeking an early determination of Vringo's claim against ZTE for
breach of the parties' non-disclosure agreement, entered into in December
2013 in advance of settlement discussions. Vringo is seeking compensatory
and punitive damages, as well as preliminary and permanent injunctions,
against ZTE.
We have several important events currently scheduled to occur in the fourth
quarter of 2014. In the United Kingdom, on October 27th, the first of two
trials on liability in our case against ZTE is scheduled to begin. In Germany,
on November 21st, the court is scheduled to hear our motion alleging that ZTE
failed to comply with the accounting ordered by the court pursuant to the
injunction granted against ZTE in December 2013. In Spain, on November 25th, the
oral hearing in our case against ASUS is scheduled to be held. In Germany, on
November 27th, the oral hearings in our cases against ZTE and ASUS are scheduled
to be held. In France, on December 8th, the trial on liability in our case
against ZTE is scheduled to be held. We look forward to keeping investors
updated with the results of these trials.
In addition to the Google, ZTE and ASUS litigations, in the last year, we have
successfully licensed a number of companies in the remote monitoring/security
industry and will continue to seek to license our patents in this technology
area. Â A common industry practice is that parties agree to keep the terms of
licenses confidential, which is the case in each of these agreements.
We have received numerous inquiries from investors regarding what we believe to
be false and misleading statements about the company that are circulating on
internet forums, blogs and message boards.
We encourage our shareholders to rely on information from credible sources, most
notably our public filings and press releases.
Sincerely,
Andrew D. Perlman
Chief Executive Officer
About Vringo, Inc.
Vringo, Inc. is engaged in the innovation, development and monetization of
intellectual property and mobile technologies. Vringo's intellectual property
portfolio consists of over 600 patents and patent applications covering telecom
infrastructure, internet search, and mobile technologies. The patents and
patent applications have been developed internally, and acquired from third
parties. For more information, visit: www.vringo.com.
Forward-Looking Statements
This press release includes forward-looking statements, which may be identified
by words such as "believes," "expects," "anticipates," "estimates," "projects,"
"intends," "should," "seeks," "future," "continue," or the negative of such
terms, or other comparable terminology. Forward-looking statements are
statements that are not historical facts. Such forward-looking statements are
subject to risks and uncertainties, which could cause actual results to differ
materially from the forward-looking statements contained herein. Factors that
could cause actual results to differ materially include, but are not limited to:
our inability to license and monetize our patents, including the outcome of the
litigation against online search firms and other companies; our inability to
monetize and recoup our investment with respect to patent assets that we
acquire; our inability to develop and introduce new products and/or develop new
intellectual property; new legislation, regulations or court rulings related to
enforcing patents, that could harm our business and operating results;
unexpected trends in the mobile phone and telecom infrastructure industries; our
inability to raise additional capital to fund our combined operations and
business plan; our inability to maintain the listing of our securities on a
major securities exchange; the potential lack of market acceptance of our
products; potential competition from other providers and products; our inability
to retain key members of our management team; the future success of Infomedia
and our ability to receive value from its stock; and other risks and
uncertainties and other factors discussed from time to time in our filings with
the Securities and Exchange Commission ("SEC"), including our annual report on
Form 10-K filed with the SEC on March 10, 2014. Vringo expressly disclaims any
obligation to publicly update any forward-looking statements contained herein,
whether as a result of new information, future events or otherwise, except as
required by law.
Contacts:
Investors and Media:
Cliff Weinstein
Executive Vice President
Vringo, Inc.
646-532-6777
cweinstein@vringoinc.com
