Tag Archives: IP CloseUp 30

“Turn and face the strange” – Patent values fall to earth; PIPCOs, too

Changes, or should we say “ch-ch-changes,” channeling David Bowie, who reinvented himself repeatedly, have decimated the performance of most publicly held patent licensing companies.

Public IP licensing companies (PIPCOs) are changing their names and restructuring in an attempt to reframe themselves. The move appears part of an effort to shed the past, given that many of these businesses have significantly under-performed the S&P 500 Index.

With patent values at historic lows, a fresh perspective is welcome. But can PIPCOs turn the corner and successfully adapt to changing times (and valuations) in the patent space? Only some are likely to succeed.

A fuller discussion of public IP companies, “PIPCOs adapt to ch-changing times,” can be found in my “Intangible Investor” column in the September IAM magazine, out today. Subscribers can find the piece here. It includes companies that have changed their name or issued reverse splits of their stock. or otherwise reinvented themselves as operating companies with product sales.

A Closer Look

A closer look at the IP CloseUp 30 reveals several significant developments. One trend which financial analysts tend to question is rebranding; another is a reverse split, where a $0.50 stock can suddenly become a $4 one when investors are provided with fewer shares at a higher price.

To casual observers, it can appear that performance has taken off, when in fact the weak stock price is merely being obscured by a diminished public float. Many PIPCOs were formed by a merging a private enterprise into a public shell, which while not disreputable, often comes with baggage.

While one can appreciate different patent strategies – the need to monetize good assets through different business models – the perils of public ownership are ill-suited for the majority of companies whose primary focus is licensing.

Still, there are public and private patent licensing company successes, including Finjan, which has successfully fended off multiple IPRs, Network-1, inventor-owned PMC (Personalized Media Communications), which continues to license, and colleges like Northwestern and NYU, which have scored big on pharmaceutical licensing.  

Stanford University’s patent licensing take in shares of Google are said to be worth more than $300 million.

Image source: wikipedia.org

InterDigital leads PIPX public IP stock index to a 44.9% gain for 2016

The PIPX public IP licensing company stock index soared to a 44.9% increase in 2016, led by an impressive 86.3% move for InterDigital.

With a market capital in excess of $3 billion, InterDigtal (IDCC) led the value weighted PIPX with another stellar performance.  Poor performers for the year included Neonode (-27.3%, NEON), ParkerVision (-20.0%, PRKR) and VirnetX (-14.4%, VHC), who made less of a dent in overall PIPX performance because of their lack of market value. The S&P 500 stock index for the year was up 9.5%, a significant portion in the 4Q following November’s presidential election.

“For Q4 the PIPX index was up 11.2% after a remarkable 20.4% in Q3,” noted Dr. Kevin Klein, Vice President and GM of Products and Licensing at VORAGO Technologies, who compiled the IP stock performance data for IP CloseUp. “Pendrell underwent a reverse 1:10 split during Q4, as have several other of the smaller companies in the index, another example of the their shrinking share price and market capitalization.”

percentage-change-2016-4q-figure-3-jpeg

The imminent departure of President Obama, an advocate of weaker patents, and the election of Donald Trump, a strong supporter of proprietary content and brand, also may have had something to do with strong 4Q performance for the PIPX.

Despite the over all gains for year and quarter, Marathon (MARA) and ParkerVision were down 38.8% and 56.3% respectively in the 4Q, and were up 7.5% and down 20.0% for the year. Litigation developments were likely influences.

For both the year and 4Q, performance for InterDigital Tessera (TSRA) and Acacia (ACTG) accounted for all the PIPX gain and offset some of the losses from the smaller component companies.

4q2016graph

“InterDigital, Tessera, and Rambus (RMBS) continue to drive the recent growth in the index and make up an ever-increasing share of the index,” stated Dr. Klein. “These three companies accounted for 37% of the total value of the index at the inception in 2011, today they make up over 80% of the total value of the index. InterDigital alone now accounts for over 40%, up from 15% at inception.”

Change in value of PIPX component companies 2011-2016

4q-figure-4-jpeg

 

Five Years of Data

After more than five full years of tracking, the PIPX seems to be suggesting that a handful of strong IP licensing companies are getting stronger and the weaker (smaller) ones are becoming more volatile.

For the full 2016 and 4Q PIPX report, go here.

 Image source: PIPX IP Stock Index

 

Patent licensing index significantly outperformed the S&P 500 in Q1

The eagerly sought bottom for publicly traded patent licensing companies may have been reached according to the data provided by an intellectual property index that tracks stock performance.

The PIPX public IP licensing index was up 13.1% vs. a barely positive 0.8% for the S&P 500 in the first quarter of 2016. This was the best quarter for the PIPX since it began tracking public IP licensing companies back in July 2011.

Rebound or Bounce?

Is this merely a “dead cat” bounce from PIPCOs (public IP licensing companies) having been beaten down over many quarters? Do the results reflect the relative strength of a few large players?

Or is the sector actually rebounding from over-correction which has devalued many good patents? From this observer’s perspective, it is too soon to tell.

The S&P has dramatically outperformed the PIPX since the IP index’s inception, almost five years ago, when patent values were at a record high. Exceptions have been the second and fourth quarters of 2014 (see graph below).

Screen Shot 2016-04-10 at 12.36.22 PM

“The change in value of the component companies (below), ranging from +78.6% for Virnetx to -34.4% for Vringo,” said Dr. Kevin Klein, Vice President and General Manager of Products and Licensing at Vorago Technologies, a semiconductor company. “Parkervision (1:10) and Unwired Planet (1:12) had reverse stock splits this quarter. Vringo effected a reverse 1:10 stock split in Q4. Prices and valuations are adjusted to reflect these splits.”

Market Cap Weighted

The PIPX is a capitalization-weighted, price-return measure of the change in value of a segment of publicly traded companies. The performance of more highly valued companies, such as InterDigital (IDCC), Rambus (RMBS) and WiLAN (WILN) in the first quarter had the greatest positive impact on the overall index. The PIPX was brought down less strongly by the poor performance of by Acacia, Neonode, Vringo and Unwired Planet, whose market cap have shrunk.

Many of those who follow PIPCOs do so in conjunction with the IP CloseUp 30®, a real-time index of individual company performance in this sector, which also provides up-to-the minute news and updates. Readers also can quickly find market capitalization information there. The URL can be copied and placed on your home screen or home page.

Screen Shot 2016-04-10 at 12.35.55 PM

The PIPX index is designed to provide a measure of the market value, and hence a reading of the relative health of the publicly traded intellectual property licensing sector. The index consists of 13 companies with a primary focus of licensing and enforcement of patent intellectual property.

In addition to a focus on intellectual property, the companies must be publicly traded and have a market capitalization greater than $100M. Since being added to the index, the market caps of many of the companies have shrunk below $100M. The index was initiated with a value of 100 on July 1, 2011.

For the full PIPX Intellectual Property Sector Index Q1 2016 update, go here.

Image source: PIPX Index

Burford Capital, Digimarc and Imagination added to IP CloseUp 30

Three public companies that are active in patent licensing or highly dependent on patents for success have been added to the IP CloseUp 30 index of public intellectual property companies, or PIPCOs.

nav_3_7383531__burfordBurford Capital (BUR.L), is primarily a litigation funding organization that trades on the London Stock Exchange. It recently hired Justin Daniels, previously a IP litigation partner at Proskauer Rose, as a Managing Director to further develop and manage its IP offerings. Prior to Proskauer he was a litigator with Skadden, Sullivan & Cromwell and Cravath.

Digimarc Corporation, (DMRC) provides media identification and management solutions to commercial entities and governments. It has a number of key patents and was previously associated with Intellectual Ventures.Digimarc

Imagination Technologies Group (IGMNF) is involved in the development and licensing of silicon and software intellectual property solutions for system-on-chip devices for semiconductor, network operator and electronics original equipment manufacturer, and original design manufacturer companies.

Both Burford and Imagination are UK-based.

Real-Time PIPCO News

The IP CloseUp 30® is a real-time index of publicly traded IP monetization companies. By accessing it here, readers can add the url to their home screen or desk top for easy comparison of companies in the sector, and to get up-to-the-minute news.

imagination-logoTo be considered for inclusion in the index, invention rights (patents) must play a significant role in a company’s value or revenue stream, and its market capitalization must be above $5 million when included. A few companies on the list, including InterDigital, Rambus and Universal Display, are capitalized at over $1 billion. Companies are removed from time-to-time as lack of trading volume, market cap or share price warrant.

Image source: company websites

1Q + 2Q 2015 = downer for most PIPCOs; a few bright spots shine

Shares of public IP companies (PIPCOs) continued to fare poorly in the 2Q of 2015. The stock of companies with larger market capitalization tended to do better, and there were even a few whose shares were up significantly.

Just how bad was the first half of 2015 for PIPCOs? Pretty bad.

Through July 6 the S&P 500 Index was virtually flat, down just .51%. Patent licensing company losers YTD, however, include Spherix (SPEX), $.43, down 60.28%; Inventergy Global (INVT), $.39, off 50.29%; Marathon (MARA), $2.89, down 65.68%; Finjan (FNJN), $1.35, down 46.64%; Document Security Systems (DSS), $.29, off 35.51%; Unwired Planet (UPIP), $.61, off 38.8%; and VirnetX Holding Corp. (VHC), $4.22, off 23.13%.

CopyTele (now Itus, stock symbol ITUS), $.14 was up 27.27%. (Could a name change make a difference? I guess maybe if the stock barely trades and has a market value of $1M.)

Pendrell (PCO), which was down as much as 30% and up 5% since May, finished the first half of the year just a shade under flat.

[For a snapshot of individual PIPCO performance, including recent news, and a look at how they compare to each other, visit the recently updated IP CloseUp 30, here.]

Bigger Players

Of the bigger players Acacia (ACTG), $8.11, was down 52.13%; and WiLAN (WILN), $2.23, was down 25.42%. WiLAN with $93M in annual stock-market-predictions-2-300x199revenues and $118M in cash, appeared to stand a good chance of weathering the storm. Its shares pay a 7.1% dividend.

On the plus side: RPX Corporation (RPXC), $22.57, was up 22.57% year to date; InterDigital at $56.30 gained 6.43%; Tessera (TSRA), $37.75 was up 5.56%; and Rambus (RMBS) at $13.89, advanced 25.25%.

Perhaps the most outstanding performer of the group is licensing/ operating company Universal Display Corporation (OLED). It stood at $51.17, up an amazing 81.84% YTD. The flat panel display and solid state lighting company has 3,500 worldwide patents and applications and licenses to many leading electronics sellers, including Apple. It was founded by Sherwin Seligsohn, who was founder and Chairman of InterDigital 

Deals in the Works?

In a quarter-ending column by Richard Lloyd that ran on the IAM blog he speculated that there could be some deals in works as some of these licensing business wind down. “This blog and others in the market have been predicting for a while that there will be some sort of shake-up of the PIPCO sector,” Lloyd wrote, “be it consolidation through mergers or asset sales. But so far any signs of that shake-up have been limited to an approach by Marathon to Spherix (which was rebuffed) and the merger between Internet Patents Corporation and Prism Technologies. But, thanks to the continuing tough conditions, are we now approaching the point where we will start to see heightened activity?”

Inventergy could be delisted from Nasdaq as its share price has remained below $1. It has applied for an extension to remain on the exchange for a further six months. Vringo, ParkerVision and Spherix have all been granted extensions to remain on the NASDAQ in the first half of 2015.

Challenges Ahead

It will not be easy for PIPCOs to be acquired or otherwise merged with stronger players, nor will it be easy for them to sell off assets. One prominent CEO told me that he has been approached by several PIPCOs but that he does not see much value in merging or in acquiring potentially undervalued public licensing companies, even for stock. “Numerous encumbrances involving the patents and relationships with capital providers would need to be sorted out, and, frankly,” he said, “few of the assets are worth it.”

Image source: mt5.com; onlinesharetradingtips.in

A Few IP Stocks Shined in 2014; Most Declined, Some Significantly

Size helped in 2014 when it came to public IP licensing company stock performance, but it did not assure success.

As a group, the twelve companies in the PIPX Public IP Performance Index out-paced the S&P 500 for the 4Q 2014 9.1% to 4.4%, with Neonode, Tessera and InterDigital leading the way, all with 4Q gains in excess of 30%.  Marathon, under $100M in market cap for most of 2014 and not represented on the graph below, was up 17% for the quarter and 167% for the year.

2014PIPX4QFor the year 2014, however, companies in the index fare much worse, with PIPX companies generating a collective return of just 4.3% vs. 11.4% for the S&P 500. Tessera and InterDigital were notable performers each with 40% returns for the year. Rambus and Acacia were up about 17% each.

Eight of the twelve companies in the PIPX, which is provided to IP CloseUp by Dr. Kevin Klein of Freescale Semiconductor, were down, led by ParkerVision, VirnetX and Vringo. RPX was down 18.5% for the year and WiLAN 11.3%.

The PIPX is weighted by value or market capitalization, so poor performance by smaller companies has less of an overall impact on index performance.2014PIPXyr

Conclusions? 

It is difficult to draw too many conclusions from this, the first year of the PIPX. Investors tended to reward higher value stocks, but size was not a guarantee of performance, with RPX and others down against both the index and S&P 500.

It’s important to recognize that despite uncharacteristic pressure on patent values due to legislative reform and judicial decisions, good assets have continued to hold value. With the recent Rockstar settlements and sale of 4,000 patents to RPX, we could be at or near the pricing bottom, depending on the nature of 2015 patent reform.

A few small stocks bucked the trend, notably Marathon (MARA), which was not on the PIPX list because it was under $100M in market cap for most of the year. It is now at $110M and is being added. MARA ended the year up 167%. I’m pleased to say that Brody Berman Associates, my firm, helped to develop with the company’s early messaging.

Other companies not in the index performed poorly and their results can be readily tracked on he IP CloseUp 30 found here. (Paste the URL onto you home screen or desktop for easy, real-time monitoring of the public IP sector.)

Image source: Freescale Semiconductor

VirnextX Settles with Miscrosoft Over Skype; Vringo is Delisted

VirnetX announced that it has settled a patent infringement suit with Microsoft for $23 million sending its shares up 20%.

VirnetX (NYSE: VHC), whose stock had been pummeled in 2014 as the result of adverse court decisions, is currently down 70% YTD.

VirnetX Holding Corp. and Microsoft Corp. (NASDAQ: MSFT) have reached an agreement to settle a lawsuit over alleged patent violations related to Skype, which Microsoft acquired in 2011 for $8.5 billion.

As reported in the Wall Street Journal: “VirnetX, a communications-technology company that in 2010 won a $200 million settlement from Microsoft over patent violations, sued the software company in April 2013 charging Skype had broken the terms of their licensing agreement regarding six patents. Microsoft bought Skype, a phone-and-video-calling Internet company, in 2011.”

VirnetX had initially won in 2013 a $368 million verdict against Apple, which was later overturned.VRNG

*****

Also just announced, Vringo (NASDAQ: VRNG) in an 8-K filing with the SEC said that it had received a notice of delisting because it no longer met the exchange requirements. The filing also said that its Chief Operating Officer had resigned. The company has 180 calendar days, or until June 16, 2015, to regain compliance.

*****

Hipcricket (Other OTC: HIPP) and Paid, Inc. (Other OTC: PAYD) are being removed from the IP CloseUp 30. They are trading at $.03 and $.05 per share respectively.

Image sources:seattlepi.com; aimhighprofits.com

Nine Companies in IP CloseUp 30 Index Fall Below $1/share

More than one-third of the IP CloseUp® 30 public patent licensing companies (or PIPCOs) are currently selling for less than or about $1 per share — Opportunity of red flag?

With the S&P 500 and other major market indices up slightly for the year, about as expected, PIPCOs continue to defy expectations both on the down and the up side.

As of mid-day December 17, nine IP CloseUp 30 companies are trading below $1 per share and two others are just barely above gold-bear-market-cnbcit. The laggards include Copytele, DSS, Hipcricket, Inventergy, MGT Capital, Opti, Inc., Paid, Inc., Single Touch, Unwired Planet and Vringo. Pendrell is at $1.27 and Spherix at 1.13, 2014 lows. VirnetX is down 75% for the year and Finjan 64%.

It remains to be seen whether 2015 investors will regard these stocks, beaten down by new patent laws and lackluster performance, as buy or sell opportunities.

Patent licensing stocks continuing to outperform the market by a wide margin are Tessera, Rambus, InterDigital, Marathon Patent Group and Acacia Technologies. Collectively these stocks are up well over 50% in 2014. Marathon is up 188%.

*****

ipcu30-blurb2-21Year end stock selling can be fueled by many things, including mutual funds that announce their mandatory distributions, typically in mid December. This year fund distributions have been particularly high because many have taken gains from previous years, including a huge 2013. Some investors sell to avoid the taxes passed on by funds. The plunge in oil prices is adding volatility as is the Fed’s suggested easing of economic support.

PIPCOs that have transcended the general public NPE stock trend appear to be well-positioned for 2015 and may benefit from proposed new patent legislation should it pass.

Image sources: ipcloseup.com; promotaka.com

IP CloseUp 30 Index is Updated

Exclusion of two prominent patent holders will make the IP CloseUp® 30 index of publicly held IP companies (PIPCOs) more relevant.

ARM (ARM.L) and Qualcomm (QCOM), while strong, patent licensing companies with excellent IP portfolios, have been removed from the IPCU 30 because their large market cap, $14 billion  and $131 billion, respectively, dwarfs the others in the index and can cause a weighting issue. Most of the companies in the index are public patent licensing companies that are much smaller. Modest settlements and licenses, or even a good day in court, can move their shares dramatically.

In contrast, a recent trial loss by Qualcomm to ParkerVision (PRKR) for $173 million, the largest patent award of 2013, caused barely a ripple at the San Diego-based chip maker, which has $45 billion in assets on its balance sheet. (Ironically, PRKR shares were down significantly because of pumped-up expectations leading up to the decision.)

We also removed RWS Group (RWS.L), or Inovia, which is primarily a patent filing company, and barely trades, with an average ipcu30-blurb2-21of just 3,287 shares trading hands daily.

Measures of Performance

It is our hope that a wider range of IP-centric companies will eventually be included in the index, including those that do not out-license but nonetheless generate good returns on their patent portfolio and enhance overall performance. (Maintaining market share and profit margins ought to count somewhere other than on the bottom line.)

For now companies that will be included fall in the range of approximately $1 billion market value or lower. These are the IP businesses that — for better or worse —  will tend to be hyper sensitive to their patent licensing and enforcement activity, to the extent that it is understood by investors.

Removal of the three companies will make performance comparisons easier. Suggestions for additions or changes to the index are welcomed. We are planing a more quantitive look at some of the companies in the index in the 2Q.

Patent Properties, formerly GlobalOptions Group, Inc. (GLOI), can now be found under the symbol PPRO. It’s CEO, Jay Walker, previously founded Priceline.com.  

Rockstar’s Deal with Spherix Could be a Game-Changer for IP Investors

The emerging public IP company space took an an unexpectedly positive turn last week.  

Rockstar Consortium, with a portfolio of more than 4,000 communications patents, has struck a deal with a tiny public patent monetization company, Spherix (SPEX), that is certain to increase the already growing interest in public IP-centric companies, or PIPCOs. 

Spherix, with a market cap of only $5M, said in an announcement that it has entered into a deal with Rockstar, one of the world’s leading patent holders, to acquire a suite of patents. The announcement did not specify the patents being acquired, or the number, nor did it disclose the terms of the transaction. The press release did state that Rockstar has agreed to become a shareholder in Spherix, and that Spherix intends to bring its first enforcement action on the Rockstar portfolio within 30-60 days. 

Rockstar has said that it has been actively licensing its portfolio, but, to date, has not filed any suits. It could be using Spherix as a privateer, or third-party, to do its nasty bidding. However, a rockstar-consortium-247x180successful patent monetization executive close to IP CloseUp told me that would be unlikely, “because without shell companies obscuring ownership, as some patent holders have been known to do, the source of the IP rights in this case is fairly clear.” Rockstar may be merely testing the waters to see how public ownership will affect its portfolio value and licensing potential, and if access to the capital markets can make a difference.

IP CloseUp readers will recall that Rockstar bought most of the patent portfolio from bankrupt Canadian telecom company Nortel for $4.5 billion in 2011. The transaction constitutes what is probably the most expensive patent acquisition ever. The genesis of it was thought to be a collective move against technology rival and Android champion Google. Rockstar is owned by Apple, Microsoft, Ericsson, Blackberry, Sony and EMC.

It’s important to remember that Apple, with a $2.6 billion investment, owns some 58% of Rockstar and, presumably, had some input in the Spherix deal. There may be something on Apple’s agenda that makes the Spherix deal particularly attractive. Time will tell us if this is in fact the case. A few weeks ago in IP CloseUp I wrote about an IEEE Spectrum story that showed how Apple was involved in acquiring a Mitisubishi-originated patent that was eventually turned over to an NPE, presumably more for competitive leverage than cash.

The IAM blog wrote that “On the face of it, then, what we have here is a classic privateering arrangement; but it is possible there is more to it than that. As a Spherix shareholder it is not only assertions of its own patents that Rockstar will benefit from, but also of other portfolios Spherix owns and may acquire in the future.” 

IAM also reported that Anthony Hayes is expected to become CEO next month. Previously a partner at law firm Nelson Mullins Riley & Scarborough, Hayes “was one of the people behind JaNSOME IP Management, a New York-based IP advisory and monetization outfit launching a $30 fund that would invest ‘in global opportunities in the patent market’. Whether his move to Spherix is fund-related, or whether Hayes has cut his links with JaNSOME is not clear.”

60710_spherixSpherix announced a restructuring in December 2012 when it effectively became an IP monetization company. In Seeking Alpha, Adam Gill reports that “[Spherix] had no patents to speak of before this Rockstar deal, but its wholly owned subsidiary Nuta is about to merge with North-South Holdings, which brings $2 million in cash and a portfolio of 222 patents acquired from Harris Corporation (HRS), another company known to have a robust patent portfolio.” Details on that deal can be found here.

*     *     *

It will be interesting to see if other large patent holders, including operating companies, will seek to test the patent licensing market the via the public equity one.

There is nothing to stop a public company that owns IP rights from taking an equity position in another one, putting it in a better position to monetize its IP rights. In fact, this may be a more efficient and financially rewarding for shareholders.

If I am not mistaken, a 5% or greater stake in a public company is subject to a 13D filing with the S.E.C., disclosing the owner. It could be Rockstar directly or a representative, or Rockstar could own its stake through several entities. We’ll have to wait and see how this plays out.

*     *    *

Both Spherix (SPEX) and Global Options Group (GLOI), which began trading on Monday after announcing a deal with the group that holds the Walker Digital patents, have been added to the IP CloseUp 30

Illustration sources: thecarecompany.com; techweek.co.uk; sepherix.com 

“Hot Topic” Luncheon will Explore the Impact of Public IP Companies

Are publicly-owned businesses that monetize patents a catalyst for innovation and job creation or a roadblock to profits?

Georgia State University College of Law is featuring at its May 14 “Hot Topics” luncheon discussion of an emerging trend that has divided innovators, investors and lawmakers.

“How are Public IP Companies Affecting Innovation and Investment?” will be the focus of a mid-day presentation at which yours truly, Bruce Berman, has been invited to speak.

Pubic IP Companies, also known as PIPCOs, are an emerging trend with no fewer than 30 currently traded on U.S. and UK stock exchanges. (See IP CloseUp® 30, herefor a list.)  Some believe these businesses are no more than non-practicing entities, gsu lawNPEs, or to some patent “trolls,” re-purposed for better access to capital. Others believe that PIPCOs, some of which are operating businesses that sell products, are part of  the inevitable evolution of IP rights as an asset class, and are a viable business model.

Will IP monetization companies whose shares are bought and sold on the public stock markets deter commerce, as some academics suggest, or will they serve as a catalyst for more and better innovation, and higher return on the R&D investment that underlies patents?

Regulatory Disclosure –  Burden or Opportunity?

S.E.C. mandated disclosures will provide some transparency for public IP companies. They are an opportunity for all IP rights holders to put their intangible assets, amorphous at best, in a clearer business context. Hopefully, transparency will encourage other companies whose IP is an integral part of their particular value proposition to demonstrate more visibly the role it plays in generating return or protecting revenue and market share.

It has yet to be determined whether the investor public has the ability, or the access to the right information, to interpret complex legal developments, such as a favorable Markman hearing or a venue change in a patent litigation, and gauge their impact.

PIPCOs like Qualcomm and InterDigital have led the way, while businesses like RPX and Acacia have come up fast behind them, and still others, “micro caps” with market value typically under a few hundred million dollars, are bringing up the rear. The smallest players are most dramatically affected by a successful settlement or licensing agreement. They present the best opportunity for investor return, but they also are the most volatile.

*    *     *

Past speakers at GSU Hot Topics and Corporate IP  Roundtable Annual Series have included Kevin Rivette, author of Rembrandts in the Attic, Marshall Phelps, former VP of IP Business and Strategy at IBM and Microsoft, and Judge Paul Michel, who served as the Chief Judge of the Court of Appeals for the Federal Circuit.

The 9th Annual IP “Hot Topics” luncheon will confront the public IP company question head on. For those interested IP Hot Topics is being held at the GSU Student Center on May 14, 2013 at 12 Noon. I look forward to seeing you there.

Register here to attend. Or contact Christine Nwakamma at 404.413.9083, cnwakamma@gsu.edu.

Image source: GSU.edu

Tap “IP CloseUp 30” to get a Continuously Updated Snap-Shot of Public Patent Companies

IP CloseUp 30 is a handy tool for those who want to track the most active IP stocks in an instant.

IP CloseUp is pleased to announce the IP CloseUp® 30 a free, all-in-one information update of the leading patent stocks. A click or a tap is all investors, innovators, lawyers and or businesses to track the ups and downs of the rapidly expanding universe of IP-sensitive stocks.

In addition to Acacia, WiLAN and Virnetx, smaller players like Marathon Patent Group, Augme Technologies and MGT also are represented. The list will be updated periodically and companies are likely to be added or dropped.

Criteria for inclusion in the IPCU 30 index includes:

– A company must have IP rights, typically patents, as part of its core value proposition.

– The company must be publicly held for at least one month and reporting.

– Companies may hold significant IP rights but do not have to be out-licensing or direct monetization businesses.

– Listed companies have to file required regulatory disclosures and are encouraged to provide discretionary ones. (Transparency counts.)

*MOSAID is listed because it had a purchase value of $594 USD when it was taken private by Sterling Partners in late 2011 and is likely to go public or be sold to a public entity at some time in the future.

Expanded List

Our goal is to expand the list beyond 30 companies and to include more IP-rich companies whose model does not necessarily include monetization or enforcement-driven patent licensing. Not all the companies on the current list are non-practicing (patent owning) entities (NPEs),

ACTG Basicor so-called patent assertion entities (PAEs) that have been established to solely to enforce. Examples of these companies include Document Securities Systems and Single Touch, which are small, potentially under-priced operating companies with significant patents.

Companies listed in the IP CloseUp® 30 tend to be more directly affected by developments regarding their IP rights. For example, if Samsung settles a dispute with Apple for $1 billion, it is barely a blip on either company’s radar. It’s may not even be worthy of an 8K filing. If an IPCU 30 company secures a license for say $10 million, it is not only material, it is likely to move the corresponding revenue needle and stock price.

The five menu-tabbed views based on Yahoo! Finance data found in the IP CloseUp® 30:

Basic: This includes  pricing and trading information, as well as market capitalization or market value. It also provides access to a chart and recent information, including key statistics. Scroll down for the most recent company news.

Performance: 52-week range

Real-Time: % change

Fundamentals: Includes average daily volume, earning per share (EPS), price earning ration (P/E), if applicable, yield and EBITDA.

Detailed: This offers probably the most convenient summary, including bid and ask, market cap, P/E and EPS, as well as optional monthly, weekly or daily share price and trading volume.

Custom permits you to create your own screen, including or excluding information you may require.

*     *     *

Copy and paste the IP CloseUp® 30 link into your browser or create an icon for your desk top and watch the these companies evolve. Suggestions about new companies to add will be considered.

Image sources: Yahoo! Finace; Brody Berman Associates

*     *     *

IP CloseUp 30, by capitalization:

IPCU 30


%d bloggers like this: