Spherix soars after settling with AT&T


Spherix's (SPEX +17.7%) Guidance IP subsidiary has settled a patent suit against AT&T.

Guidance IP had sued AT&T in Texas over a patent related to determining the location of a transmitter.

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Comments (8)
  • SPEXvalueis120million?
    , contributor
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    so how was this information reported to the public? I don't see any announcement.
    11 Aug 2014, 04:11 PM Reply Like
  • Hard Asset Investments
    , contributor
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    Anyone know the details? Here's the lawsuit info: http://bit.ly/1mDGXUW
    11 Aug 2014, 05:36 PM Reply Like
  • Hard Asset Investments
    , contributor
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    This is from a research report by RedChip.com:

     

    "Using a NPV, we are valuing SPEX’s lawsuit against AT&T at $91.3
    million. Spherix recently filed a claim against AT&T for infringement on its
    geolocation technology. We valued the litigation against AT&T by estimating that
    the claim of AT&T’s total revenue is 1.5%, due to the importance of geolocation for
    AT&T. We modeled AT&T’s revenue to grow by 8% per year. By again applying a
    3% royalty rate, 75% operating margin, 35% tax rate, the NPV for this case comes
    out to $182.7 million using a 10% discount rate. Attributing a 50% chance of
    success results in a NPV of $91.3 million. "

     

    http://bit.ly/1oYzcgO
    11 Aug 2014, 05:45 PM Reply Like
  • harizal5
    , contributor
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    How does $30,000 grab you. What a joke. No wonder they had an NDA. How do you feel about Red Chip now?
    10 Sep 2015, 06:39 PM Reply Like
  • China Investors Group
    , contributor
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    can any clever people expand on the terminology "with" and "without prejudice" and what it may suggest about this case? (see the filing to know what I mean)
    12 Aug 2014, 02:07 PM Reply Like
  • SPEXvalueis120million?
    , contributor
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    1.5% of ATT's total revenue??? I think Redchip is overstating that. I mean ATT has a lot of varied businesses. Besides if it settled this quickly it sounds like it was for a small payment amount.
    12 Aug 2014, 06:31 PM Reply Like
  • China Investors Group
    , contributor
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    I would not so quickly assume a small payment at settlement. Over 90% of patent cases settle within a year and before they ever see a jury. If the evidence was strong regarding infringement, then ATT might settle quickly, and thereby avoid a lot of legal costs and bad press. 2013 revenues were roughly 130 billion. Wireless services accounted for 53%, wireless data 28%, and voice/other 19% of revenues. If you peruse their annual report, you will see pictures of people and cars using ATT devices - and much of it emphasizing mobility. I think it is safe to say that geolocation seems to be a critical feature affecting most of their current and especially future business. A $20 million settlement per year (or $100 million over 5 years) would represent a mere 0.015% of revenues. Such a settlement could translate into a SPEX share price of 4-5 dollars, likely more, without a dent to ATT share price.
    13 Aug 2014, 03:56 AM Reply Like
  • China Investors Group
    , contributor
    Comments (43) | Send Message
     
    I would like to add, how would you feel, if (1) you were the inventor of geolocation, (2) you went through the effort and scrutiny to have your invention patented in the United States, and (3) then you watched (or became aware of) several titan United States companies incorporate your invention into their critical products without entering into a licensing agreement with you? You would call it theft, wouldn't you? What if those companies claimed they did not know they were violating your patent? What if they claimed they invented geolocation before you did, but they did not bother to have their inventions patented, even though their expertise in patent law is greater than yours, and extends back over 100 years? How would you feel about those arguments?
    13 Aug 2014, 04:08 AM Reply Like
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