Seeking Alpha

Daniel B. Ravicher's  Instablog

Daniel B. Ravicher
Send Message
Daniel B. Ravicher is a registered patent attorney who frequently consults with investment banks, hedge funds, and individual investors on legal issues that may materially affect the value of publicly traded companies. In addition to private consulting, Mr. Ravicher also regularly publishes... More
My company:
Daniel B. Ravicher, Esq.
My blog:
@danravicher on Twitter
View Daniel B. Ravicher's Instablogs on:
  • Vringo Settles Microsoft Patent Infringement Case

    Vringo (NASDAQ:VRNG) announced this morning that it has settled its patent infringement case with Microsoft (NASDAQ:MSFT). Terms of the deal are published in the 8K:

    Microsoft agreed to pay I/P Engine $1 million within fifteen (15) business days, plus five percent (5%) of any amounts Google (NASDAQ:GOOG) pays for use of the patents I/P Engine acquired from Lycos. The parties also agreed to a limitation on Microsoft's total liability, which would not impact the Company unless the amounts received from Google substantially exceed the judgment previously awarded.

    So, it's $1M today plus 5% of whatever Google has to pay, but no more than 5% of something that "substantially exceeds" the judgment against Google. So, forgetting about the cap for a moment, if Vringo is awarded $700M from Google, which some predict is possible, that means Microsoft would pay a total of $36M ($1M today and 5% of the $700M). The market cap of Vringo is up about that much as of the moment I'm writing this.

    Microsoft has also given Vringo six patents as part of the arrangement. Vringo likely intends to monetize those patents with future litigation and/or licensing. Untested unasserted unlicensed patents are typically worth between 50k and 500k, so those 6 patents may currently be worth another 3M, which is coincidentally about how much Vringo paid for the Lycos patents that it has now monetized for many multiples more. Perhaps that's a sign of things to come.

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    May 30 8:11 AM | Link | 8 Comments
  • Vringo Response To Latest Google Delay Tactic

    Vringo $VRNG response to latest Google $GOOG delay tactic, "Further delay would undermine justice." Indeed.

    Disclosure: I am long VRNG.

    Tags: VRNG, GOOG
    Apr 24 12:22 PM | Link | 3 Comments
  • The IP Investment Conference 2013

    Yesterday I attended The IP Investment Conference in New York. It was a fascinating day, filled with many great presentations on various aspects of IP Investing, from valuation, to transactional decision making, to opportunity identification, to using IP as collateral for loan, etc.

    I was a member of the second panel of the day, titled "Licensing vs. Litigating: How Patent Litigation Impacts the Value of IP," and after giving a very brief update on important recent legal developments, including the proposed Shield Act, I discussed how Apple's aggressive enforcement of its patents and other big cases in IP law have affected traders in intellectual property. My slides are here.

    In my slides, I include a couple quick and dirty charts of patent related events and their impact on the related companies. The charts are here:

    Technology

    ASUR

    Patent Office accepts request to review company's widely asserted patent related to JPEG digital imaging format.

    02/02/06

    -40%

    RMBS

    MU

    Appeals Court issues split decision in RMBS cases asserting memory chip patents against MU and Hynix.

    05/13/11

    -24%

    -2%

    IDCC

    Company with revenues based solely on licensing wireless network patents announces it is exploring possible sale.

    07/18/11

    +79%

    AAPL

    Jury issues verdict finding AAPL patents infringed by Samsung, awards $1.05B.

    08/24/12

    +2%

    AAPL

    Judge vacates Samsung jury verdict by 40%, orders new trial.

    03/01/13

    -4%

    Healthcare

    AZN

    MYL

    District Court upholds AZN Crestor patent against potential generic manufacturers MYL, TEVA, PRX, WPI, etc.

    06/29/10

    +9%

    -2%

    TEVA MNTA

    District Court rules in favor of TEVA and against MNTA in case involving potential generic Copaxone MS drug.

    06/25/12

    +5%

    -22%

    SNTS

    PRX

    Appeals Court partially reverses lower court invalidation of SNTS patents on Zegrid heartburn drug in suit against PRX.

    09/05/12

    +15%

    0%

    Other Sectors

    TIVO DISH

    Appeals Court rules for TIVO in its case asserting patent on "time warping system" against Echostar and DISH.

    03/04/10

    +62%

    -5%

    TIVO DISH

    Appeals Court recalls March 4, 2010 decision in TIVO's favor and decides to rehear case en banc.

    05/14/10

    -42%

    +5%

    MGI

    WU

    Appeals Court reverses lower court finding of infringement by MGI on WU patent related to money transfer systems.

    12/07/10

    +6%

    0%

    CIGX

    RAI

    Appeals Court upholds trial court loss on patent relating to low-tar cigarettes asserted against RAI's R.J. Reynolds.

    08/26/11

    -40%

    +1%

    Tags: AAPL
    Apr 05 4:45 PM | Link | Comment!
Full index of posts »
Latest Followers

StockTalks

More »

Latest Comments


Posts by Themes
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.