After Virnetx hammered Apple in court and won a $368 million judgement the judge ordered a post trial hearing on dec 20th. At the post trial hearing HJD ordered Apple to submit its sales data for the newly released Iphone 5 and the mini Ipad since those were not included in the original complaint. The assumption, and with good reason was that Judge Davis wants to add additional penalties to the $368 million for the products that were not included but have infringed .That is speculation but why else would HJD ask for sales data. This sales data is due by Jan15th and another hearing is set for Jan 20th. Cisco is set to go to trial on March 3rd. Backtracting , to the Nov Apple trial ,Cisco's lead attorney was asked by Apple to present part of the case to the jury. Cisco's presentation was a joke and he did even worse then Apples attorneys.and lost on all his points. I bring that up to say why would Cisco go to trial knowing they will get crushed and face treble damages and could lose a $billion dollars or more. Will Cisco settle after HJD comes back with his Apple ruling,will HJD come back with his ruling in Feb so Cisco can see how bad it will be for them if they continue and go to court. My guess is yes to the above buts its also speculation.Between now and the end of Feb anything can happen and we can bet something WILL happen. Its borrowed time for the defendants. . Lots of money and credibility at stake here. Also remember that 4Glte Advanced is very close to release,especially in Europe and does Apple or anyone want to be in litigation while the others take a license from Virnetx and move forward. Dont you think Samsung would love for Apple to be stuck in a legal battle while they continue to move forward and out pace Apple with their products.Samsung already has a leg up on Apple and if Apple continues this losing battle Apple could pay dearly. Settlements and licensing are going to add much value to Virnetx and its pps could start to approach that which was mentioned in Floyds white paper. Much of the above is fact and some JMO.
Willie, sales data for Apple's not found infringing, but infringing, products (IPhone5 and IPad Mini) will NOT be used in a way that pays VHC for the sales of those products. Apple argues that VHC's numbers are skewed because they do not take into account the downdraft of sales of older products once new products are introduced. HJD wants to see the relationship between older quarter's numbers and how the release of the IPhone5 effects those numbers. Again, the IPhone5 numbers will NOT be added to his award.
There is also no scheduled hearing for HJD's final judgement. It will be released on PACER when the judge has written it up.
Jeff I checked my notes from trial and the quote from above was from Jsteven where he mentioned the Iphone 5 and mini Ipad. But you are saying its just the way JSB wrote that and the way I interpreted it and that Virnetx just wanted to bring updated data from June 2012( Apples cut off for sending sales data to the courts) to the end of 2012.That actually makes sense . Am I looking at that correctly now.. Thanks again for your input.
The hearing set Jan. 20th- after Jan 15th sales data ? Where did you see - or did you call HJD chambers in Tyler, TX- let me know please. I dont want to bother Cary again who is HJD's clerk.
Sentiment: Strong Buy
willie7 I have been reading 3gpp standards and 4G-LTE. The consortium want 4G-LTE out by the end of 2013. So everything will be settled by the end of the year. Licensees signing will be starting before this time.
Hi Joe From what I have read Many times licensing takes place after products start to get manufactured and even after the products are in the field. We can safely say that both products and infrastructure will start in 2013.licensing can take place before or after,so we are much closer to the end game for sure.
Correction to my post. Discussion about 4G LTE advanced on IV. Looks like the US is ahead of Europe on its release. Any way 4G LTE advanced should start mid to late 2013 and continue in earnest through 2014.2015.2016 and beyond.
Another correction may be in order. HJD may just come down with his ruling. No other post trial hearing on Jan 20th. Still checking. Thanks Carl for bringing to my attention. Thats the way a board should work. Many contibute to the end result.
My 3 largest buys- going back 3-4 years paid $3 sold too early at $7 share- then bought 1100 shares at avg 32.89 and yest 1700 at 29.77 avg. Looking at a $40 - $57 PPS by month end. Watch out I am one poor, cheap Italian who is close to the truth.
Sentiment: Strong Buy
Good post- but dont forget the 368.2 mill up front will be increased to 400-600 mill range- then the future license/ royalty fee to be in 1.5 to 2% range (not the 1% others may pay)- this will be achieved in 2 weeks Been waiting for this short squeeze too long!!
Sentiment: Strong Buy