Seeking Alpha

VirnetX pares gains; "colorably different" remark scrutinized

  • Up over 30% at one point in response to its Apple royalty disclosure, VirnetX (VHC +5.9%) closed with more modest gains, as investors tried to decipher the precise implications of a very short 8-K. Shares are up 2.5% AH.
  • Markman Advisors declares it difficult to parse the 8-K until a full court order is published. The firm particularly thinks more detail is needed on VirnetX's remark that an 0.98% royalty rate applies to products not "colorably different" from those adjudicated at trial, along with the adjudicated products.
Comments (6)
  • Matt James
    , contributor
    Comments (92) | Send Message
    This whole case is getting appealed. The East Court of Texas Patent cases never hold up on appeal. Search online, this is where patent trolls file, only to lose on appeal.


    VHC will never see a dime.
    3 Mar, 08:59 PM Reply Like
  • chase03670
    , contributor
    Comments (6) | Send Message
    78% of Cases were Affirmed in 2012. You need to check your data.
    3 Mar, 09:13 PM Reply Like
  • Michael Blair
    , contributor
    Comments (4517) | Send Message
    The decision can only be positive for VHC. To think otherwise is to live in dreamland. Appeal likely but settlement also possible and lower risk for Apple if the sides can come to terms. 0.98% on a $600 device at 150 million devices a year is not chump change for a company with a $1 billion market capitalization. If I were Apple I would buy VHC at a 50% premium to market rather than keep this circus going.
    4 Mar, 07:19 AM Reply Like
  • Yorick
    , contributor
    Comments (489) | Send Message
    In the race between VHC and VRNG where only cash in the bank apparently matters to PPS, VHC has the current edge with $200M from MSFT. VHC has won about $1b from Apple and is appealing the Cisco ruling. VRNG has won about $1b from Google, has ZTE in a bad spot with a $600M licensing deal and an unknown agreement with ADT for licensing. Additionally, VRNG has a 50/50 shot on the laches an jury error appeal which is all upside. Either way both of these stocks will put a large paycheck in their bank accounts by Xmas and in VRNG's case, by Memorial Day (ZTE).
    4 Mar, 11:26 AM Reply Like
  • Yorick
    , contributor
    Comments (489) | Send Message
    VHC and VRNG PPS headed to zero due to investor disbelief in any type of remuneration regardless of court win after court at 11..[sarcasm on]
    4 Mar, 02:03 PM Reply Like
    , contributor
    Comments (2) | Send Message
    VHC very good long term bet. Eventually as picture becomes clearer and appeals run thier course 45 to 55 dollar stock. VERY STRONG HOLD
    4 Mar, 08:33 PM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Tools
Find the right ETFs for your portfolio:
Seeking Alpha's new ETF Hub
ETF Investment Guide:
Table of Contents | One Page Summary
Read about different ETF Asset Classes:
ETF Selector

Next headline on your portfolio: