Acacia Research Corp (ACTG), Vringo, Inc. (VRNG), Spherix Inc (SPEX): Patent Players to Watch Closely

This relatively small company has been generating big news lately. Spherix Inc (NASDAQ:SPEX)  recently announced a new deal with IP player Rockstar Consortium, with Spherix Inc (NASDAQ:SPEX) to take over a suite of Rockstar’s patents. Spherix Inc (NASDAQ:SPEX) looks good for many reasons, but the future is all about North South Holdings Inc. and the future CEO, Anthony Hayes (expected August 2013). Back in January 2012, Mango Capital Inc. was barely trading. Hayes (co-founded Jansome IP), came in and ran a multi-million dollar patent fund, guiding 30% annual returns along the way. Hayes’ expertise lies in consulting, patent price arbitrage, mass licensing and litigation.

Ready to strike

The final name I will mention in the list of patent players is VirnetX Holding Corporation (NYSEMKT:VHC). Back in 2010, VirnetX filed an infringement lawsuit against Apple. In November 2012, a jury returned the verdict against Apple, awarding VirnetX Holding Corporation (NYSEMKT:VHC) damages of $368 million. Now the company has filed a case against Apple’s more recent products such as the iPhone 5 and iPad 4. This case was split in two, with one case for past damages and one case for future royalty rate. Since then, VirnetX Holding Corporation (NYSEMKT:VHC) and Apple have failed to reach a licensing agreement, and the presiding judge in the case recently denied Apple’s motion to alter the final judgment.

This is important for VirnetX Holding Corporation (NYSEMKT:VHC) as it would be collecting revenues from more recent Apple products. A shot like that could truly make this company more competitive in the patent acquisition game. A ruling in VirnetX Holding Corporation (NYSEMKT:VHC)‘s favor with regard to the ongoing royalty rate could line the company’s pockets with billions of dollars as well.

Currently, the company’s stock is hovering around $18.60 with a market cap of $953 million. Investors should watch for case developments closely. I believe there is a good chance for gains here over the rest of 2013.

Summary

The companies featured above use solid and strategic models for positive returns. As markets emerge and technology evolves, this is truly an exciting time for patent and IP investments. Investors should use a variety of strategies to profit from these IP investments.

Bill Edson has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Bill is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

The article Four Patent Players to Watch Closely originally appeared on Fool.com is written by Bill Edson.

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