Prosecution closes on 2 more VHC patents - ALL CLAIMS REJECTED!
In yet another setback for VHC yesterday, the USPTO confirmed its earlier rejection of claims 1-60 of US Patent No. 7,921,211 and claims 1-60 of US Patent No. 7,418,504.
The USPTO closed prosecution in both cases, dismissed VHC's assertions that the prior art references lacked the necessary publication dates, and pointed out several errors in the "expert" declarations submitted by VHC.
Copies of the Actions Closing Prosecution (ACP) and a summary of the ongoing reexams can be found using a link posted on IV (Yahoo does not permit posting URLs)
Hardly surprising that the stock was down today. Savvy investors should read these documents carefully to get a clear view of how patent experts view the patents.
At this point, as I posted, ahead of the trial date, the most significant event coming up will be the final decision, FINAL, on patent '759.
The US Patent laws clearly stipulate that, the first invalidation or affirmation of a patent claim takes precendence by either a court or the USPTO, when the patent is litigated while it is also being reexamed by the USPTO.
If the rejections to those claims in patent '759 stick in the final decision, the court will have no choice but to respect the USPTO's final decision. VHC would lose the most significant part of the patented technology - the core - the secrued VPN.
The stock will tank to single digit when that final decision comes out ahead of the court day.
The Wall Street big bulls in this stock clearly underestimated the potential impact from the reexams by the USPTO in this particular case.
To start, they really failed to understand how the patents are connected - and why VHC filed those patents in such a fashion.
Once the USPTO saw the clear pattern that connects all of the VHC's patents, the reexams became a rather routine and simple task.
In the court case, because of the large amount of works already done by the USPTO, which are readily available to all parties and to the public, the defense strategies will be centered on exactly how USPTO came to reject those patents and claims.
It is now pretty much an open book in this case for the court and to the defense. VHC has very little room to wiggle. Very little!!