Perpetual Innovation

Category: AOL

  • Vringo Requests Court to Increase Royalty against Google + AOL

    Vringo Requests Court to Increase Royalty Rate to Be Paid by Google, AOL | Fox Business: “Vringo Requests Court to Increase Royalty “

    Ouch. The royalty rates on AdWords by Google & ads by AOL could really get expensive.

    Google has kept a competitive advantage because of their bid-to-ad technology. That’s where they have historically made most of their money.

    The computation formula would be based on 20.9% of Googles adword revenue as the base. And 3.5% of that… That is only 0.7315%. So less than 1% of Google’s AdWords. Still lots of millions.

    This looks like it will start to get expensive for them and AOL to keep using the technology owned by Vringo. Huge winnings already in place but aiming for a 7% royalty going forward.

    Wow. This could get to be interesting.

    Keywords: patent, Vringo, Google, AOL, AdWord, willful, infringe, court

    ‘via Blog this’

  • AP: Yahoo, Facebook strike patent truce, ad alliance

    The Associated Press: Yahoo, Facebook strike patent truce, ad alliance:
    “Yahoo’s legal assault had exposed Facebook’s vulnerability to patent claims as it prepared to complete the biggest initial public offering of stock by an Internet company.”

    So Facebook had to go out and build its own war chest of patents: 750 here, 650 there. Now the law suit goes away and everybody’s making nice.

    “Facebook insulated itself by buying 750 patents from IBM Corp. for an undisclosed amount and spending $550 million to acquire another 650 patents that one of its biggest shareholders, Microsoft Corp., had purchased from AOL Inc. Armed with its own arsenal of intellectual property, Facebook signaled that it wasn’t backing down and filed its own patent infringement lawsuit against Yahoo in April.” That’s 1400 patents from IBM and AOL (via MSFT).

    For those people who used to think that anyone could duplicate Facebook; that’s going to now require some rethinking. Plus, if everyone you know (and a whole lot of “friends” who you don’t really know) are on Facebook, there’s really no easy way to switch. Unless, of course, you have become tired of your old friends and you wanna start over by looking for new ones:-)

    ‘via Blog this’