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A BlackBerry Win Against Facebook Might Add $3 To Its Share Price

George Kesarios profile picture
George Kesarios


  • BlackBerry is suing Facebook for patent infringement relating to messaging.
  • By virtue of the fact that BlackBerry was a pioneer in messaging, it probably has the patents to support its claim.
  • If BlackBerry wins, I am modeling $3 to its share price.

In an interesting twist of events, BlackBerry (NYSE:BB) is suing Facebook (FB) for patent infringement, alleging FB's messaging services infringe on BB patents.

BB is claiming infringement on patents covering message encryption, battery and message notifications, and combining messaging with gaming. BB also names Instagram and WhatsApp as defendants.

Chances are BlackBerry will win

We all know BB's BBM was the king of messaging years ago. We also know BB has thousand of patents, covering everything from encryption to (yes) messaging. Exactly what type of patents BB holds pertaining to messaging we don't know, but I imagine a whole sort of things, since BB was a pioneer in the space.

So it's only natural BB might have many patents covering messaging. Not because BB was the smartest kid on the block, but because it was the first in this space. Early bird gets the worm, or in this case, holds the patents.

Also, I am assuming BB's management has researched this case for months if not years. I think BB's management has been weighing when to proceed with litigation against FB, and I am also sure they did their research to prove FB is infringing (my opinion).

Coincidently, John Chen to date, has a very good track record for taking companies to court. The best example is when it took Qualcomm (QCOM) to court and managed to milk it for $814.9M.

Granted is was not a patent case, but nevertheless QCOM took the matter to court instead of settling. Which basically means QCOM thought it did not have to pay this money. Which goes to show just how good of a job BB's management did in the QCOM case.

What kind of monetary compensation might BlackBerry win?

To begin with if BB wins, the monetary compensation it will receive will not

This article was written by

George Kesarios profile picture
I only look at stocks that have the possibility to double over a twelve month period and stocks in which the risk/reward ratio payout is high. In addition I focus on swing trade opportunities. I focus more on valuations and risk/reward metrics as opposed to what make companies tick. I have been a professional investor for over 20 years and during the past several years an economics analyst and financial writer for capital.gr, the biggest economic news portal in Greece. I have managed money from time to time and have also done some seed venture capital projects in the past.

Analyst’s Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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