While the investment world waits anxiously to hear Judge Jackson's final ruling in Vringo's (NASDAQ:VRNG) case against Google (NASDAQ:GOOG), Vringo is showing shareholders that they've got much more than one horse in the stable.
Early in the day on November 14, 2012, Vringo filed Form 8-K with the SEC and released a 23 page presentation entitled "Communication Flow in GSM Architecture," which describes their communications patents. Therein, Vringo created a helpful and impressive global map, labeled "524 Infrastructure Patents and Applications" (see page 12 of Vringo presentation).
Note: GSM stands for Global System for Mobile communications, the world's most widely-used cell phone infrastructure. Cell phones use a service carrier's GSM network by locating cell phone towers in nearby areas. Some 80 percent of the world uses GSM technology when making mobile calls, amounting to approximately 3 billion people globally.
Ahead of Vringo's conference call scheduled for November 14 at 5pm Eastern Time, Vringo seems to be laying out the technology behind their next round of claims. Vringo diagrams and summarizes the scope of their extensive mobile patents recently acquired from Nokia, a portfolio containing some 500 patents and patent applications globally, including 109 issued U.S. patents. According to their press release at the time of acquisition, "Thirty one of the 124 patent families acquired have been declared essential by Nokia to wireless communications standards."
In the presentation released today, Vringo gives examples of what these various patents involve, including:
Communication Management (messaging, call-waiting, conferencing)
Data & Signal Transmission (data)
Mobility Management (tracking subscriber location movement)
Radio Resources Management (communication of network elements such routers, switches, gateways)
Services (remote transactions such as billing, ticketing, e-services, notifications)
Note that Vringo remains careful to include the following disclaimer in their presentation:
"The patents identified have been determined, following a preliminary analysis, to be relevant to the architectures and systems described. Certain Vringo patents have been declared in relation to ETSI, 3GPP and other standards. Vringo has not verified the essentially of those patents at this time."
It is of course far too early to say what these patents could yield Vringo via settlements and legal cases, but it seems clear that Vringo's future contains at least the possibility that additional revenues could be coming their way. Hopefully Vringo's management will use today's conference call to help their shareholders better understand what all of this means in terms of future potential to the company.
But as investors eye a stock that has pulled back from a recent high of $5.73 to trade as low as $1.87 after the Vringo vs. Google jury verdict, shareholders should bear in mind that there appears to be a great deal more upside to Vringo's future than we had perhaps realized, given our obsessive focus on the recent trial Those looking to make a quick trade off Judge Jackson's ruling may find themselves missing the forest for the tree, as Steve Kim recently noted. If Vringo's presentation of their mobile patents in any way foreshadows the same kind of future acumen their legal team has already shown in their recent multi-victory jury verdict regarding 14 patents, short term traders should consider becoming long term investors, and making certain they don't overlook the full gamut of Vringo's intellectual property.