Institutional Analyst Inc., Issues 2014 Watch List for Patent Plays
Chicago / January 29, 2014 / Institutional Analyst Inc. (IA) which publishes, the "Patent Stock Review," newsletter covering publicly traded companies involved in patent monetization released its 2014 Watch List of companies to follow. The site was launched in March of 2013 as a more focused coverage initiative, following the "Internet Stock Reviews" inclusion of VirnetX (NYSEMKT:VHC) in June of 2010 and Vringo (VRNG) in April of 2012, on its respective Watch List.
IA is an independent investment research firm founded in 1998, with the launch of the "Internet Stock Review" which now additionally provides coverage for companies in a number of distinct industries including; Biotech, Internet, Alternative Energy, Entertainment, Restaurants, Special Situations and Private Equity.
"The Watch List, was created as a starting point for investors who are interested in companies involved in Patent Monetization via internally held patents, patent portfolios or through the acquisition of potentially valuable patents," stated Roland Rick Perry, editor who added, "The list is not a buy list, but rather our universe of companies, whose technology, management, patent portfolio and/or recent market performance we currently find compelling."
"After adding VirnetX to our Watch List ($VHC), which traded from $6 to near $40 and Vringo ($VRNG) which traded as high as $5.43 after adding it to the Watch List at $2.10, we launched a financial portal dedicated to following the news and activities particular to the group." Adding, "The tech world is seeing continued expansion in patent litigation and monetization, often involving seemingly unknown technology which has been previously patented, but unenforced and unmonetized. The site provides a quick and easy way to peruse the news of many of the leading companies in this new, exciting and developing category."
The impetus behind the Watch List issuance is to bring attention to the names and/or to the existence of these companies (particularly those with no coverage on Wall Street) and then to have the investors themselves, do the due diligence necessary to decide on their own, if any of the companies warrant further study and/or investment.
The website provides individual news feeds for each company on the Watch List, enabling investors to easily follow the entire group with a single visit. Patent related blogs are also included from leading sources such as GrokLaw and standalone reports from third parties. Also links to leading Patent related websites such as ICAP Patent Brokerage, the Ocean Tomo Patent Index, IPIX International, the IP Investment Conference and our own blog, which our editors feature particularly interesting news and/or reports from a broad spectrum of Wall Street sources.
In the list below, are companies, which the review believes activities and progress should be monitored. The Patent Stock Review, will be following and reporting on the progress of these companies and others during the coming year. This year we will be catergorizing into two sectors, Patent Monetization Firms (NYSE:PMF) and Technology Monetization Firms (NYSEARCA:TMF).
PMF's are firms which are engaged in the business of monetizing patented technology created by third parties. Affectionally called "trolls," these firms operate under what we believe (in most instances) is an unwarranted level of controversy. As long as there are inventors, there will be patents infringed upon and patent holders who do not have the resources to successfully protect their ingenuity and hard work against potential infringers in a court of law which can be an expensive undertaking.
Fortunately PMF's created a publicly traded business model (once undertaken primarily by privately held law firms) which utilizes the equity markets to garner the necessary resources to help forward-thinking corporations, universities, organizations and individuals profit from their innovation. This permits a sharing model for the monetization efforts, which can benefit the patent holder, the firm and it's shareholders creating a win-win situation for all parties involved.
TMF's by contrast are operating businesses which derive their entire revenue stream or a portion of their revenue stream through use of their technology via traditional business methods or by licensing the technology. Thus their technology can the main source of business or a technology which can simply make business done by third parties more efficient or effective. These patents can be infringed upon unintentionally or in some instances, willfully. Patents can be monetized by licensing agreements prior to legal entanglement or otherwise. Monetization can come in the form of one time licensing fees or ongoing licensing fees. In the big picture, both the inventor and the user of the technology benefit through the use of the innovative technology. A good example is the MercExchange created innovative "Buy It Now" technology, which is used and enjoyed by millions who participate in online auctions.
Acacia Research Corporation $ACTG (PMF) - $14.10. Acacia through its subsidiaries, acquires, develops, licenses, and enforces patented technologies in the United States. It assists patent owners with the prosecution and development of their patent portfolios; protection of their patented inventions from unauthorized use; generation of licensing revenue from users of their patented technologies; and enforcement against unauthorized users of their patented technologies. The company owns or controls the rights to approximately 250 patent portfolios, which include the United States patents and foreign counterparts covering technologies used in various industries. Acacia Research Corporation was founded in 1992 and is based in Newport Beach, California. Website: www.acaciaresearch.com/
Blue Calypso Inc $BCYP (TMF) - $0.12. Develops digital innovation products and services for the social media marketplace using its patented IP portfolio. The company enables businesses to employ digital advertising to share and socialize brand content as well as track performance, monitor engagements and gather robust analytics -- all at lower costs than traditional marketing. Already, Blue Calypso has attracted a handful of large, well-known consumer facing companies in automotive, retail, travel and consumer goods. Blue Calypso licenses its IP in addition to offering digital innovation services through Blue Calypso Labs and solutions including POPSHARE(NYSE:TM), SOCIALECHO(TM), EMGAGE(TM) and DashTAGG(TM). For more about the company please visit www.bluecalypso.com/.
CopyTele Inc. $COPY (PMF) - $0.29. CTI develops and acquires patented technologies for the purposes of patent monetization and patent assertion. The company currently has 9 patent portfolios in the areas of Key Based Web Conferencing Encryption, Encrypted Cellular Communications, E-Paper® Electrophoretic Display, Nano Field Emission Display ("nFED"), Micro Electro Mechanical Systems Display ("MEMS"), Loyalty Conversion Systems, J-Channel Window Frame Construction, VPN Multicast Communications, and Internet Telephonic Gateway. CTI's management team has over 30 years of combined experience in Patent Monetization and Patent Assertion, and has generated in excess of $150 million patent licensing revenues. The company was founded in 1982 and is headquartered in Melville, New York Website: www.copytele.com/
DSS Security $DSS (TMF) - $1.60. Document Security Systems, Inc.'s (NYSE MKT: DSS) products and solutions are used by governments, corporations and financial institutions to defeat fraud and to protect brands and digital information from the expanding world-wide counterfeiting problem. DSS continually invests in technology to meet the ever-changing security needs of its clients and implements these patented solutions through the Company's operating groups. DSS Technology Management, Inc. ("DSS TM"), a wholly-owned subsidiary of Document Security Systems, Inc. ("DSS" or "Company"), provides strategy for DSS's IP portfolio, as well as legal expertise and investment capital for pioneering inventions. DSS provides counterfeit deterrence and authentication technology coupled with licensing and IP monetization solutions. When implemented, DSS technologies help ensure the authenticity of both digital and physical financial instruments, identification documents, sensitive publications, brand packaging and websites. Website: www.dsssecure.com/
Endeavor IP $ENIP (PMF) $0.49. Endeavor IP offers a portfolio approach to intellectual property investing that mitigates risk and maximizes returns. We are technology agnostic and apply modern investment management techniques to the patent sector. Their goal is simple: Provide investors with a "Best In Class" portfolio of intellectual property investments. Recently filed suit against Tucson Electric Power. Website: www.enip.com/
Inventergy $EONC (aka eOn Communcaitons) - $3.79. (PMF) Inventergy is an intellectual property (NYSE:IP) acquisition and licensing company dedicated to identifying, acquiring and licensing for fair value the patented technologies of market-significant technology leaders. Led by IP industry pioneer and veteran Joe Beyers, former head of IP and global strategy at Hewlett-Packard, the company leverages decades of experience, market and technology expertise, and industry connections to assist Fortune 500 companies leverage the value of their world-changing innovations to achieve greater returns. Inventergy aspires to enable a new world of IP value creation built upon a more transparent, above-board and ethical business platform. The Company currently owns a portfolio of over 160 patents from a Global Fortune 500 and Gartner-recognized technology leader in the telecommunications industry. Headquartered in Cupertino, CA, Inventergy's management team includes: Chairman and Chief Executive Officer, Mr. Joe Beyers; SVP & General Counsel, Mr. Wayne Sobon; and SVP of IP Acquisitions & Licensing, Mr. Jon Rortveit. www.inventergy.com/
FinJan Holdings $FNJN (TMF) - $9.87. Finjan is a leading online security and technology company which owns a portfolio of patents, related to software that proactively detects malicious code and thereby protects end-users from identity and data theft, spyware, malware, phishing, trojans and other online threats. Founded in 1997, Finjan is one of the first companies to develop and patent technology and software that is capable of detecting previously unknown and emerging threats on a real-time, behavior-based basis, in contrast to signature-based methods of intercepting only known threats to computers, which were previously standard in the online security industry. Website: www.finjan.com/
Patent Properties $PTNT (TMF) $4.00 Patent Properties, Inc. will continue to develop and commercialize its unique portfolio of intellectual property assets, which were created by Walker Digital, LLC, the research and development lab led by internationally recognized inventor and entrepreneur Jay Walker, and will also introduce a disruptive licensing solution for the mass market of patent owners and users. Mr. Walker is best known as the founder of priceline.com and has twice been named by TIME magazine as "one of the top 50 business leaders of the digital age." All of the patents owned by the company were developed internally by Walker Digital, LLC with Jay Walker as a named inventor on all issued patents and the lead inventor on the vast majority. Additional information regarding the company can be found at www.patentproperties.com/.
Logic Devices $LOGC (TMF) - $0.16. Our solutions offer greater computation rates, lower cost, and lower power consumption than alternative approaches. Using our experience in high-speed data path and embedded memory development, with a structured custom design methodology, our chip solutions involve highly optimized, integrated, and dedicated high-speed computation functions. We work closely with customers to define the features and performance required to meet demanding requirements. The Company is continuing to increase its activities in related complementary core technologies with algorithm and mixed signal efforts, while relying on standard advanced lithography semiconductor process technology provided by wafer foundry sources. Non-SEC filing company. Filed suit against Apple Computer in June of 2013. goo.gl/h1tOHA Website: logicdevices.com/index.htm
Marathon Patent Group $MARA (PMF) $6.30. Based in Alexandria, VA, Marathon Patent Group is a patent acquisition and licensing company. We acquire patents from a wide range of patent holders from individual inventors to Fortune 500 companies. Our strategy of acquiring patents that cover a wide-range of subject matter allows us to achieve diversity within our patent asset portfolio. We monetize our diversified portfolio through actively managed concurrent licensing campaigns. This approach is expected to result in a long-term, diversified revenue stream. To learn more about Marathon Patent Group, visit www.marathonpg.com/
MGT Capital $MGT (TMF) - $2.52. MGT Capital Investments, Inc. and its subsidiaries engage in acquiring, developing, and monetizing assets in the online and mobile gaming space. The company, through its wholly owned subsidiary, MGT Sports, Inc., owns a majority interest in FanTD LLC, an online daily fantasy sports wagering business. FanTD LLC owns and operates FanThrowdown.com, a daily fantasy sports website. FanThrowdown.com offers daily fantasy gameplay for the NFL, MLB, NCAA (basketball & football), NHL, NBA, and professional golf. MGT Capitals majority owned subsidiary, MGT Gaming, Inc., owns U.S. patent relating to casino gaming systems. MGT Gaming, a majority owned subsidiary, owns U.S. Patent Nos. 7,892,088 and 8,500,554 relating to certain casino slot machine systems and has filed a patent infringement lawsuit against WMS Gaming (a subsidiary of Scientific Games Corporation), and others. The Company also owns a majority interest in FanTD LLC, the operator of In addition, the company owns Hammercat Studios, a publisher and developer of videogames for digital distribution in the mobile app space. MGT Capital Investments, Inc. was founded in 1979 and is based in Harrison, New York. Website: www.mgtci.com/
Newtork-1 Technologies $NTIP (TMF) - $1.60.Network-1 Technologies, Inc. acquires, develops, licenses, and protects of intellectual property rights related to various telecommunications and data networking technologies in the United States. The company owns 19 patents that covering various telecommunications and data networking technologies, and technologies relating to document stream operating systems and the identification of media content. Its patents cover the delivery of power over Ethernet cables for the purpose of remotely powering network devices, such as wireless access ports, IP phones and network based cameras, and over Ethernet networks; enabling technology for identifying the media content on Internet, such as audio and video; the systems and methods of transmission of audio, video, and data over computer and telephony networks; and technologies that enable unified search and indexing, displaying, and archiving of documents in a computer system. Network-1 Technologies, Inc. primarily focuses on licensing its remote power patent covering the control of power delivery over Ethernet cables. The company was formerly known as Network-1 Security Solutions, Inc. and changed its name to Network-1 Technologies, Inc. in October 2013. Network-1 Technologies, Inc. was founded in 1990 and is based in New York, New York.. Website: www.network-1.com/
Paid Inc. $PAYD (TMF) - $0.25. PAID, Inc. offers AuctionInc™ online shipping calculation and shopping cart software employing its patented technology to streamline ecommerce. Known for quality and customer service, PAID offers turnkey online, tools and services that enable their customers to customize a solution that is right for them. AuctionInc, provides business management tools for online retailers. Additionally, it offers marketing, management, sponsorship, and mobile marketing services. Recently files suit against eBay. The company was founded in 1986 and is headquartered in Westborough, Massachusetts. details are available at www.auctioninc.com/ and www.paid.com/.
Internet Patents Corp $PTNT (TMF) - $3.00. Internet Patents Corporation focuses on licensing or enforcing its portfolio of e-commerce and online insurance distribution patents. The company was formerly known as InsWeb Corporation and changed its name to Internet Patents Corporation as a result of sale of its assets relating to insurance lead generation and marketing business to Bankrate, Inc. in December 2011. Internet Patents Corporation was founded in 1995 and is headquartered in Rancho Cordova, California. Website: www.internetpatentscorporation.net/
Patriot Scientific PTSC (TMF) - $0.10. Patriot Scientific Corporation, an intellectual-property licensing company, owns various patents covering the design of microprocessor chips. Its technologies are used in products, such as computers and cameras, printers, automobiles, and industrial devices. Recetnly licensed patents to Brocade and won infringement suit with HTC Copr. The company was founded in 1987 and is based in Carlsbad, California. Website: www.ptsc.com/
RPX Corp. $RPXC (PMF) - $16.40. RPX Corporation is the leading provider of patent risk solutions, offering defensive buying, acquisition syndication, patent intelligence, insurance services, and advisory services. Since its founding in 2008, RPX has introduced efficiency to the patent market by providing a rational alternative to litigation. The San Francisco-based company's pioneering approach combines principal capital, deep patent expertise, and client contributions to generate enhanced patent buying power. By acquiring patents and patent rights, RPX helps to mitigate and manage patent risk for its growing client network. Website: www.rpxcorp.com/
Single Touch Systems $SITO (TMF) - $0.59. Single Touch Systems, Inc. provides mobile media solutions for retailers, advertisers, and brands in the United States. The company offers patented technologies and a modular, adaptable platform, and multi-channel messaging gateway that enables marketers to reach consumers on various connected devices. Its principal products and services comprise Messaging and Notifications, a short message service gateway that provides a channel for retailers to communicate with their brand loyalists; Abbreviated Dial Codes; Campaign Management and Analytics, a Web interface that allows clients to manage and segment messaging campaigns with customized reporting tools; FollowMe, a mobile app that delivers location based mobile ads. Recently settled suit with Zoove. The company is based in Jersey City, New Jersey.
Unwired Planet Inc. $UPIP (TMF) - $1.58. Unwired Planet, Inc. is the inventor of the Mobile Internet and a premier intellectual property company focused exclusively on the mobile industry. The Company's patent portfolio of more than 2,400 issued US and foreign patents, includes the technologies that allow mobile devices to connect to the Internet and enable mobile communications. The portfolio spans 2G, 3G and 4G technologies, as well as cloud-based mobile applications and services. Unwired Planet's portfolio includes patents related to key mobile technologies, including baseband mobile communications, mobile browsers, mobile advertising, push technology, maps and location based services, mobile application stores, social networking, mobile gaming and mobile search. Recently filed suit against Square Inc., Unwired Planet is headquartered in Reno, Nevada. Website: www.unwiredplanet.com/
Vringo $VRNG (TMF) - $3.95. Vringo, Inc. is engaged in the innovation, development and monetization of intellectual property and mobile technologies. Vringo's intellectual property portfolio consists of over 500 patents and patent applications covering telecom infrastructure, internet search, and mobile technologies. The patents and patent applications have been developed internally, and acquired from third parties. Vringo operates a global platform for the distribution of mobile social applications and services. Website: www.vringoip.com/
VirnetX $VHC (TMF) - $17.80. VirnetX Holding Corporation develops software and technology solutions for securing real-time communications over the Internet. The company's software and technology solutions include secure domain name registry and GABRIEL Connection Technology that are designed to secure various types of real-time communications over the Internet, as well as enable organizations and individuals to establish communities of secure registered users, and transmit information between various devices, networks, and operating systems. These secure network communities are designed to support content applications, such as Instant messaging, voice over Internet protocol, mobile services, streaming video, file transfer, and remote desktop in a secure environment. It also intends to provide a portfolio of licenses and services comprising VirnetX technology; GABRIEL Connection Technology software development kit, including object libraries, sample code, testing and quality assurance tools, and supporting documentation required by customers to implement the companys technology; domain name registrar service; registrar server software; connection server software; and relay server software, as well as technical support and secure domain name master registry and connection services. The company serves developers and original equipment manufacturers of chips, servers, smart phones, tablets, e-Readers, laptops, net books, and other devices in the IP-telephony, mobility, fixed-mobile convergence, and unified communications markets. VirnetX Holding Corporation was incorporated in 2005 and is headquartered in Zephyr Cove, Nevada. Website: virnetx.com/
Worlds Inc. $WDDD (TMF) $0.14. Worlds Inc. designs and develops software, content, and related technology for the creation of interactive three-dimensional (3D) Internet Websites. The companys 3D Internet sites are designed to enable visitation by users by providing them with online communities featuring various content and interactive capabilities. Its technology is used in various applications, including virtual meeting places, 3D e-commerce stores, and virtual classrooms. Currently in litigation with Activision. The company was formerly known as Worlds.com Inc. and changed its name to Worlds Inc. in February 2011. Worlds Inc. is based in Brookline, Massachusetts.
Zecotek Phototronics $ZMSPF (TMF) $0.80. Zecotek is a photonics technology company developing high-performance scintillation crystals, photo detectors, positron emission tomography scanning technologies, 3D auto-stereoscopic displays, and lasers for applications in medical, high-tech and industrial sectors. Founded in 2004, Zecotek operates three divisions: Imaging Systems, Laser Systems and 3D Display Systems with labs located in Canada, Korea, Russia, Singapore and U.S.A. The management team is focused on building shareholder value by commercializing over 50 patented and patent pending novel photonic technologies directly and through strategic alliances and joint ventures with leading industry partners such as the European Organization for Nuclear Research (Switzerland), Beijing Opto-Electronics Technology Co. Ltd. (China), NuCare Medical Systems (South Korea), and National NanoFab Center (South Korea). Suits against Saint-Gobain and Phillips. For more information visit www.zecotek.com/.
Watch List Group Profiles: goo.gl/gnylgj
Watch List Group Charts: goo.gl/3qZPMo
About the Patent Stock Review
Each issue of the Patent Stock Review covers publicly traded companies of interest in patent monetization and includes hyperlinks to the news origination source for full coverage. The newsletter additionally reports on the availability of streaming audio/video profiles, press releases, shareholder conferences and interviews with senior management of the companies covered.
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*Prices are as of the Watch List creation date of 1/27/14.
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Roland Rick Perry, Editor
Patent Stock Review
Disclosure: I am long COPY, VRNG, PAYD.