Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Worlds Set Up To Bounce Bungie; Activision Blizzard "Proxy" PTAB Challenge

|Includes: ATVI, Worlds, Inc. (WDDD)

As we all know the Software Developer Bungie, an Activision Blizzard(NASDAQ:ATVI) software developer partner and owner of the Destiny Franchise has an active case at the Patent And Trial Board to invalidate Worlds (OTCQB:WDDD) Patent 8082501. The purpose here is to stop the IPR case from being played out in Federal District Court, Worlds v. Activision Blizzard. Well its seems World's has won the 1st round in the Bungie case by referencing a public contract that requires Bungie to Indemnify Activision against patent violations as Activision pays Bungie expenses to do so.

This throws a massive wrench into Bungies complaint to invalidate Worlds patents. There exists in Patent Law a rule that requires a Defendant in an IPR case to file for a PTAB review no later than 1 year after the original IPR complaint (Worlds v. Activision). Worlds filed against Activision Blizzard in 2012. It appears that Worlds can prove that Bungie is Activision Blizzards defacto Proxy the PTAB case is subsequently OVER before it begins. The Judge hearing the PTAB case appears to be buying it, as he has allowed one motion for discovery to pass and Worlds is asking for more. On 8/16/2015 Worlds filed a request for what amounts to opening up Bungies Checkbook to see what Activision Blizzard bought, their contracts and agreements. Places I'm sure Activision does not want Worlds probing. Understanding the financial relationship of its partners can pay huge dividends on the IPR case.

Bungie has alternatives, other than proceeding on. They could just walk away from the matter all together, and some think they may just do that, rather than risk intrusive Discovery for themselves or their partner Activision Blizzard.

Stay tuned….

Disclosure: I am/we are long WDDD.