Monday, June 29, 2015

6/29/2015 Market Wrap

News:
ACTG announced they signed a patent license and settlement
with BMW in their Rambus (IDT) portfolio
ACTG announced they signed a patent license and settlement
with Kyocera in their Rambus (IDT) portfolio
CRDS announced a rights offering
VRNG provided an update on their litigation v ZTE
WDDD announced they received a favorable markman opinion
in their lawsuit v Activision
Filings:
CRDS S1/A
INVT 8K
Ticker $CHG %CHG  Volume      Closing 
Price
ACTG  $        (0.37) -4.11%         500,500  $8.63
ANDR  $   (0.0054) -7.94%                  500  $0.0626
BCYP  $      (0.005) -4.35%         269,600  $0.11
CRDS  $        (0.06) -3.66%         211,300  $1.58
DSS     $      0.0105 4.21%         229,800  $0.26
EDIG  $   (0.0006) -0.80%         385,700  $0.0744
ENIP  unch  unch            82,000  $0.0004
FNJN  $          0.06 4.17%            35,200  $1.38
IDCC  $        (0.74) -1.29%         458,300  $56.83
INVT  $      (0.021) -5.69%         151,400  $0.348
ITUS  $        (1.00) -20.00%              9,200  $4.000
MARA  $        (0.06) -2.05%            48,100  $2.86
MAXD  $   (0.0039) -10.03%      2,233,600  $0.035
MGT  $        0.001 0.15%            13,000  $0.4106
MVPI  $   (0.0001) -0.09%            11,600  $0.115
NEON  $        (0.05) -1.59%         443,100  $3.10
NLST  $      0.0349 6.33%         172,100  $0.586
NTIP  $          0.06 3.45%            40,200  $1.80
OTIV  $        (0.06) -4.20%            51,000  $1.37
PAYD  $        0.001 1.70%         154,100  $0.0539
PCO   $        (0.09) -6.21%         211,700  $1.36
PPRO  $        (0.13) -8.67%                  900  $1.37
PRKR  $   (0.0250) -6.25%         824,900  $0.375
PTNT  $        (0.01) -0.32%            17,900  $3.08
RMBS  $        (0.61) -4.01%         674,500  $14.60
RPXC  $        (0.10) -0.59%         278,000  $16.72
SITO  $   (0.0050) -1.41%            70,700  $0.35
SPEX   $   (0.0201) -4.02%         296,500  $0.48
STRP  $          0.34 1.07%         150,800  $32.25
TIVO  $        (0.38) -3.60%      2,503,000  $10.18
TSRA  $          0.23 0.60%         578,300  $38.49
UPIP  $   (0.0299) -4.53%         498,400  $0.6301
VHC   $        (0.21) -4.87%         499,600  $4.10
VRNG  $      0.0276 5.00%         752,800  $0.58
WDDD  $      0.0199 15.30%      3,095,800  $0.15
WILN   $        (0.16) -6.69%         172,600  $2.23

Monday, June 22, 2015

6/22/2015 Market Wrap

News:
IDCC announced they will be hosting a RCR Wireless WIFI
Offloading Webinar
MARA announced they received a favorable ruling in their
Medtech portfolio v Stryker in Germany
SPEX announced they were notified by the patent office of
a new patent allowance
WILN announced they have entered into a licensing agreement
with Microvention in their Back Bay Medical portfolio
Filings:
ACTG 8K
NEON 8K
Ticker $CHG %CHG  Volume      Closing 
Price
ACTG  $        (0.07) -0.72%         468,800  $9.62
ANDR  unch  unch              8,000  $0.068
BCYP  unch  unch            37,300  $0.12
CRDS  $        (0.03) -1.86%            71,000  $1.58
DSS     $      0.0185 7.07%            94,100  $0.28
EDIG  $      0.0049 5.44%            43,500  $0.0949
ENIP  $   (0.0001) -14.29%      5,256,700  $0.0006
FNJN  $          0.03 2.26%            45,100  $1.36
IDCC  $          0.12 0.20%         336,100  $59.31
INVT  $        (0.03) -7.89%         150,400  $0.35
ITUS  $        0.011 7.86%         516,600  $0.151
MARA  $          0.06 1.94%         121,800  $3.15
MAXD  $   (0.0062) -13.14%      2,891,800  $0.041
MGT  $      (0.062) -14.69%         342,600  $0.36
MVPI  unch  unch  N/A   $0.14
NEON  $        (0.02) -0.58%         272,200  $3.45
NLST  $          0.01 1.52%         421,400  $0.67
NTIP  unch  unch            76,000  $1.83
OTIV  $          0.02 1.32%            62,900  $1.54
PAYD  $      (0.001) -1.89%            25,500  $0.052
PCO   $          0.13 9.92%         332,400  $1.44
PPRO  $          0.07 4.90%            10,900  $1.50
PRKR  $   (0.0047) -1.14%         246,200  $0.407
PTNT  $          0.01 0.41%              5,500  $2.44
RMBS  $          0.03 0.21%         477,200  $15.01
RPXC  $          0.17 1.01%         291,400  $16.84
SITO  $      0.0224 6.22%            33,100  $0.3825
SPEX   $        0.010 1.82%         145,200  $0.56
STRP  $          2.37 8.44%         259,500  $30.44
TIVO  $          0.01 0.09%      1,275,700  $10.69
TSRA  $          0.71 1.83%         566,300  $39.49
UPIP  $   (0.0601) -7.75%         167,700  $0.7149
VHC   $        (0.12) -2.56%         268,100  $4.56
VRNG  $   (0.0207) -3.39%      1,136,400  $0.5901
WDDD  $   (0.0065) -7.30%            58,600  $0.0825
WILN   $          0.06 2.51%            89,300  $2.45

VHC Q&A from June 2015 Report

The following is a portion of some Q&A that I did with someone who bought the report.  The report will be available for purchase through Friday June 26, 2015.

The following are my opinions on these issues.  Hopefully I am right on most of them, but could be wrong.

My first question is SDNI/LTE-Advance.
Can future communication exist without SDNI?  Can LTE-A exist without VHC's patents?
Communication between devices probably involves hundreds of patents that are licensed.  Why is VHC having such difficulty in licensing a security patent that is "essential"?  Is it because there might be a better method out there to do the same thing that may not have been invented yet?


LTE-A can exist without the VHC patents, they would just run the networks without adopting key security features the standards board adopted.  I believe VHC is having trouble due to a very difficult patent licensing environment and the security technology has not been implemented in the advanced networks yet.  From what I understand the advanced network has been delayed building out and adopted.  It is starting to get close and should be running an all IP network sometime in 2016.  If there is something that has been invented it has not been adopted yet by the standards organizations that I am aware of.

IPValue
It seems prudent that IPValue would have vetted the VHC patent portfolio before signing on.
1. Can IPValue still be effective given the numerous IPRs?  Are they concern that 697 did not survive?  Doesn't this hinder their ability?  Does IPValue have a good success rate in obtaining licenses from all their public clients?  Or are they a company that will take anyone and wait to see if anything sticks.


IPValue would be sure to take a deep technical dive of the entire portfolio before signing agreement.  They will construct validity, technical, and infringement claim charts.  I think they can be effective regardless of the numerous IPRs that have been filed.  At some juncture a handful of the patents/claims should survive.  I personally think the new patent grants with the encrypted communication link terminology will be a tough portion of the patents to invalidate.  The '697 will be appealed to the CAFC, but I am not sure how that will affect anything.  From what I have heard, IPValue only takes on premier portfolios and has a pretty good success rate.  They have generated a steady stream of licensing revenue since exception.

In reading your Microsoft settlement, did I understand correctly that you expect additional revenue from Microsoft other than the $23M?

I need to word the MSFT settlement better.  I don't think VHC will get another nickle out of Microsoft in the future.

On June 4, you twitted that they talked about VHC for about 10minutes in the trial that you attended.  Can you give me more information about what was discussed?  Was it positive for VHC?

Dr. Becker testified for Apple in the Virnetx trial back in 2012 for their damages theory.  I attended a trial where Dr. Becker was testifying for the plaintiff.  On cross examination the VirnetX transcript was shown where an analogy Dr. Becker made was the exact opposite argument in his damages theory for the plaintiff.  He was grilled on why the cases were different.  I will download the transcript when it becomes available in the future.

In your opinion, has VHC advanced in reaching its goals from 5 years ago, or was 2014-2015 a setback?

I would say 2013-CAFC was a setback and a "dead" period.  Nothing really moved forward and now they have to go back to trial in Jan 2016.  Any progress in that period on licensing/partnership is currently not public and unknown.

With some execution ie Gabriel roll-out over the next 18 months, Tier 1 partnerships, and IPValue licensing there is a good risk/reward profile.  A nice result with Apple in January will also be very helpful.  Apple will of course appeal, but it should reverse the very bearish sentiment in the investor base.

Friday, June 19, 2015

6/19/2015 Market Wrap

News:
Nothing to Report
Filings:
PCO 8K
Ticker $CHG %CHG  Volume      Closing 
Price
ACTG  $        (0.13) -1.32%         463,300  $9.69
ANDR  $      0.0005 0.74%              5,300  $0.068
BCYP  $      (0.002) -1.64%         163,100  $0.12
CRDS  $        (0.06) -3.59%         129,600  $1.61
DSS     $        (0.01) -3.15%         117,000  $0.2615
EDIG  $   (0.0009) -0.99%            81,200  $0.09
ENIP  unch  unch   10,991,800  $0.0007
FNJN  $        (0.06) -4.32%            84,600  $1.33
IDCC  $        (0.75) -1.25%         565,500  $59.19
INVT  $      0.0503 15.26%         322,800  $0.38
ITUS  $          0.01 7.69%         377,200  $0.14
MARA  $        (0.03) -0.96%         157,700  $3.09
MAXD  $   (0.0071) -13.08%      1,199,500  $0.0472
MGT  $   (0.0012) -0.28%            38,900  $0.422
MVPI  unch  unch  N/A   $0.14
NEON  $          0.15 4.52%         605,300  $3.47
NLST  $        (0.04) -5.71%         555,000  $0.66
NTIP  $          0.06 3.39%         868,400  $1.83
OTIV  $        (0.08) -5.19%            87,700  $1.52
PAYD  unch  unch            29,800  $0.053
PCO   $        (0.04) -2.96%         723,200  $1.31
PPRO  unch  unch              2,000  $1.43
PRKR  $        0.007 1.65%         488,900  $0.4117
PTNT  $        (0.09) -3.57%            77,500  $2.43
RMBS  $        (0.08) -0.53%      1,368,500  $14.98
RPXC  $        (0.05) -0.30%         309,900  $16.67
SITO  $        0.000 0.03%            29,800  $0.3601
SPEX   $      (0.015) -2.65%            66,500  $0.55
STRP  $        (0.41) -1.44%         112,900  $28.07
TIVO  $        (0.11) -1.02%      1,177,400  $10.68
TSRA  $          0.70 1.84%         767,700  $38.78
UPIP  $      0.0251 3.35%         570,600  $0.775
VHC   $        (0.06) -1.27%      1,515,200  $4.68
VRNG  $   (0.0091) -1.47%         393,800  $0.6108
WDDD  unch  unch              8,000  $0.089
WILN   $        (0.10) -4.02%            81,800  $2.39