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    Will Vringo's $22 Million Patent Purchase Pay Off?

    Wed, 08/15/2012 - 12:26 EDT - Seeking Alpha
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    By Patrick Anderson:

    As reported last week, Vringo (VRNG) paid $22 million in cash in exchange for a stash of patents from Nokia. (see "Vringo Investors To Fund New Business Model"). Vringo's stated motivations for the purchase are purely driven by monetization potential, with an investor presentation identifying key licensing areas as Communication Management, Data and Signal Transmission, Mobility Management, Radio Resources Management, and Services. However, Nokia successfully negotiated licensing terms to protect its commercial interests at the possible expense of Vringo's monetization potential.First, Nokia receives a whopping 35% royalty that kicks in too early. Second, Nokia placed significant conditions on Vringo's use of "essential" patents. Third, Nokia's prior licenses may limit the licensing market for the acquired patents.
    Nokia Royalty Will Delay Vringo's Profits
    According to Vringo's announcement, the "purchase price for the portfolio is $22 million, plus to the extent that the gross revenue (as defined in the Patent PurchaseComplete Story »

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    • 3 Reasons Why Shorting Vringo Right Now Is A Bad Idea

      ByAdam Gill:By now, most of the traders and investors following Vringo (VRNG) are familiar with the recent patent trial against Google (GOOG) in which VRNG won a verdict of infringement, validity, a 3.5% past damages royalty rate, and a $30 million award against the Defendants - approximately $15 million of which was levied against GOOG.

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    • Vringo: Winning Against Google Is The Only Solution

      By Qineqt:The key assets of Vringo (VRNG) are its patents and the team supporting this patent litigation. With a negative equity and high liabilities, we believe it will be very difficult for VRGN to raise cash if it loses the case. We would recommend a long position in VRGN to investors with a very high risk appetite.

    • Could Vringo Be Apple's 'Thermonuclear' Option Against Google?

      ByWriters Block:In my opinion, Vringo's (VRNG) turnaround story from ringtone to a probably-acquired short-lived merger company goes full steam ahead because of the Nokia (NOK) relationship, promise of future 3G patent litigation and the need for Apple (AAPL) to acquire stronger patent presence i

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      By Alex Shadunsky: Last Monday, the Wall Street Journal reported that the opening bids for the Kodak patent auction of 1,100 patents got off to a slow start as the opening bids were between $150 mill

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      By Canary Cash: A match made in Finland

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