Development in the Apple lawsuit may be the next trigger
VirnetX has been in the news. The flow has been good and bad. A recent article on seekingalpha pointed to the high level of shorts in VHC as on 15th April. The shorts were around 38% which is extremely high. On 15th April, the price of VirnetX was around $18.45, and it has already traveled from there. So it is possible that the shorts may have been covered after 22nd April when the news about complaint against Microsoft (MSFT) came out. VirnetX has filed a complaint against Microsoft for willful patent infringement regarding six patents being specifically used in Skype products. It was contended that the infringements are outside the scope of the licensing agreement between the two companies for the patents because Skype was purchased by Microsoft after the deal. The complaint claims damages and injunction relief. This was a much needed relief after the stock had crashed vertically on news of adverse judgment in the patent infringement lawsuit against Cisco (CSCO). A bad news was that Apple may be contesting the $368 million claim of VirnetX. Considering this it is more than likely that the shorts are much lesser as on date. For companies like VirnetX, the fortunes fluctuate very fast. Positive news on the lawsuits has a great positive impact, and bad news always leads to strong negative reactions. In any case, the IP monetizing is very much a business model, and companies have even changed their businesses to align with this lucrative business. Spherix IP (SPEX), which is backed by investors like Hudson Bay Capital and Iroquois Capital Group, had recently sold its consulting business to concentrate on building an IP portfolio. Spherix is a full service IP company now and owns patents in the telecom sector. Several of its patents related to drug research for diabetes and atherosclerosis are pending approval. For VirnetX, however, the up and down ride continues.