Patriot Scientific Signs Most Significant Licensing Agreement to Date (PTSC)

The Microcap Speculator submits: Only a week after signing a licensing deal with Casio, and a month after signing a licensing deal with Hewlett Packard, Patriot Scientific (ticker: PTSC) has announced a breakthrough licensing deal with Fujitsu. I think this is the most significant deal PTSC has signed to date.

Fujitsu was one of four Japanese companies that Patriot Scientific sued for patent infringement in a Texas federal court (Matsushita, NEC, and Toshiba are the other three). It is extremely unusual for a co-defendant to break ranks in early-stage patent litigation. Usually defendants will maintain a united front at least through discovery and summary judgment. The fact that Fujitsu folded before the substantive aspects of the litigation even began indicates to me that Patriot Scientific must be holding a pretty strong hand. I expect that the remaining three defendants will settle within the next year, and that the settlements will be even more lucrative. Each increasing licensing deal not only adds credence to Patriot's claims, but funds its litigation war chest. The stock has had quite a move and may be ahead of itself, but the fundamental story has a ways to go in my opinion.

DISCLOSURE: I have no position in PTSC.OB. Not a recommendation to buy or sell any security. For informational and educational purposes only.

PTSC 1-Yr Price Performance: