Immersion: The Haptic Patent Ambulance Chaser

Gary Bourgeault
13.26K Followers

Summary

  • A number of people that don't like the business model of Immersion Corp. have dubbed it the "patent troll."
  • Based upon its almost non-existent R&D, IMMR is relying upon its patent portfolio to generate revenue and earnings.
  • For the duration of a patent, it can generate predictable revenue streams, but patents end and revenue streams dry up.
  • With the business model it currently employs, outside of legal wins, it appears it's going to continue to trade in a range that it'll struggle to break out of.

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Immersion Corporation (NASDAQ:IMMR) has had a mixed reputation in the investing world in regard to its business model, which primarily entails defense of its 1,200-plus patent portfolio, which it has successfully defended against big players like Sony (

This article was written by

13.26K Followers
I am a former investment advisor and owner of several businesses. These days I invest only for myself while continuing to write on a variety of financial and economic topics.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such 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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