- NASDAQ:ROVI states the judge handling its infringement suit against Netflix (NFLX) granted a Netflix motion for summary judgment, ruling the 5 patents asserted in the case are "invalid on the grounds that they are not directed to patentable subject matter," based on a 2014 Supreme Court ruling that set limits on software patents. (Press Release)
- The judge's claim construction ruling largely went in Rovi's favor, with Rovi's proposed constructions adopted for 8 of the 9 disputed claim terms. Rovi adds the court also "rejected attempts by Netflix to limit the scope of the patents to the area of broadcast television."
- Not surprisingly, Rovi plans to appeal the invalidity ruling. Shares have tumbled to $15.37.
- B. Riley is defending Rovi. "ROVI shares are already pricing in the worst case scenario of that litigation ... We fully expect ROVI to 'appeal” this ruling by bringing additional patents into the litigation against NFLX ... 'Given that the “Big 4' license renewal discussions (Comcast, Time Warner Cable, Dish Network and DirecTV) cover a set of patents with significantly broader reach and use-cases than the original five involved in the NFLX litigation, we continue to believe this ruling is unlikely to have any impact on those discussions."
- Prior Rovi/Netflix coverage