New Internet Advertising Patent Puts Modavox On the Radar

| About: Medovex Inc. (MDVX)

Think about the way that advertisers have traditionally used the spray and pray method of advertising. The Internet has changed the way advertisers target specific demographics and a new concept is circulating in the media space, creating a disruptive technology that is getting the attention of everyone in the industry. As the media space continues to explode in every market cap, this disruption has resulted in media consolidation across the board.

Need examples? Look at Sam Zell's purchase of the Tribune Company (TRB), Rupert Murdoch's bidding for Dow Jones (DJ), Thomson's (TOC) recent purchase of Reuters (RTRSY) and a silent bid by private equity on the table for Bloomberg.

Clearly, the media space is as hot as any sector on Wall Street. The stark reality is that Wall Street analysts covering the media space have undervalued all assets because of this simple supply and demand function. No longer are there three mediums for content delivery; there are now six delivery platforms for content. It has quickly evolved from broadcast TV, cable TV and radio to broadcast TV, cable TV, radio, PC, laptop and cellular phone services. This means there is the same amount of content available and double the demand, in turn, making all existing content immediately more valuable.

What this means is billions of dollars spent on media-driven advertising have more places to run ads. For example, ESPN just became worth twice as much, and all IPTV content on the Internet just became more valuable. This is the disruptive technology the industry has been squirming about since 2001. Look out Google (NASDAQ:GOOG), look out AOL (NYSE:TWX) ... you may have an issue.

A subtle and somewhat still under-the-radar player in this whole picture is Modavox Inc. (NASDAQ:MDVX), ands many industry experts are now just beginning to wonder if some mega market cap Internet giants have been infringing on their patent for years now?

Modavox, Internet broadcasting pioneer and holder of several patented technologies, announced last week that it has received an official communication from the U.S. Patent and Trademark Office [USPTO] announcing the allowance of a new patent arising from the company's proprietary Internet technology. In this communication the USPTO also provided a favorable indication toward one or more additional pending patent applications relating to Modavox's core technology, although some interplay with the USPTO remains before Modavox obtains a final approval for any additional patents. This new patent covers Advertising and Streaming Media Delivery technology, one of the hottest and talked about technologies of the time as advertisers seek to monetize online ad dollars through streaming advertisements and geo-targeting of consumers. One has to wonder if any of these Internet house hold names may be interested or benefit from owning or partnering with this little company for its potentially very valuable intellectual property ... I think I already know the answer. The space itself has recently seen numerous acquisitions and consolidation making Modavox one to watch closely.

Andrew Burgess, Modavox Intellectual Property Consultant, stated:

The claims of the recently allowed patent reflect a further refinement of the legal definition of Modavox's technology from the broad, groundbreaking technical space created by Modavox's original patent. In this latest patent we have further refined the legal definition of our invention to reflect how the broad concepts of that invention are implemented in state-of-the-art delivery infrastructure and delivery practices seen in the marketplace today.

David J. Ide, Modavox president and CEO, stated:

We're focused on using our technology to capture new business, and create useful applications of our products, such as geographically-targeted advertising and user-customized content delivery, all built on the framework of our patented technology.

Modavox CTO and Chairman Nathanial T. Bradley added:

We're pleased to have our intellectual property fortified with this new U.S. Patent. This gives us the opportunity to continue our leadership in our field and is a testament to our tenure and growing opportunity in the production of innovative and breakthrough online communications technology products.

Dr. Daniel F. Coughlin, Partner, Fox Rothschild, LLP, stated:

The latest decision by the USPTO on Modavox's patented inventions is a further affirmation, in the context of a rigorous technical examination, of the pre-eminence of the company's technology, both legally, and in the marketplace. With an expanding arsenal of intellectual property rights, Modavox will now be better equipped than ever to not only deliver marketplace solutions for their clients and customers, but also to secure richly-deserved recognition for its pioneering inventions in this technical space. The issued and newly allowed patents, along with their pending patent applications, will undoubtedly prove to be key components to bring Modavox's proprietary technology to the broadest possible base of clients and licensees. In my view, it will be only a matter of time before the industry will universally recognize Modavox for its technical advances in this field.

The question I ask myself each day is this: shouldn't we, as a news agency, cut a deal with Modavox to license their product? I think the answer to that question is a resounding YES!!!!

MDVX 1-yr chart


Disclosure: The author does not have a position in the shares of Modavox