While there's no denying that Vringo, Inc. (NASDAQ:VRNG) and VirnetX Holding Corporation (NYSEMKT:VHC) have made a big name for themselves - not to mention made big, even if uneven, gains for shareholder of VHC and VRNG - within the worked of intellectual property enforcement, bigger isn't always better. Smaller companies in the IP arena have a focus and flexibility that larger players like VirnetX and Vringo could never enjoy. Take, for instance, Endeavor IP Inc. (OTCBB:ENIP). This little patent owner may not look like much at first glance, but just ask the four organizations that have already entered licensing deals with ENIP and/or the four, well, now five companies that are currently litigating against Endeavor IP.... this little outfit packs a huge punch.
Endeavor IP currently owns (and this isn't a typo) three patents. It almost seems like a comical number compared to the hundreds, if not thousands, of patents owned between Vringo, Inc. and VirnetX Holding Corporation. Take a closer look at how many of those patents VRNG and VHC are actually making an effort to monetize though. It's only a handful, at best. The rest of their patent portfolios are wasted capital that may never even be reviewed. Endeavor IP Inc. is taking a different approach, however. It's only interested in intellectual property with high odds of enforcement success; it's not interested in spending money to buy patents by the dozens, if not hundreds, knowing most of them aren't even worth the paper they're printed on too.
It's a different idea to be sure, especially in the patent-enforcement world where investors tend to like quantity over quality. But, even in just the few months that ENIP has been actively pursuing patent royalties - or suing those organizations that have refused to pay what Endeavor IP is due - the little company has found huge success. Four companies are already agreed to pay royalties based on U.S. Patent No. 7,379,981 (the '981 patent), aka the "Wireless Communication Enabled Meter and Network" patent, which doesn't bode well for the other four companies that are fighting ENIP in court over the same patent rights.
Well, you can add a name to the list of litigants that are fighting something of a lost cause against Endeavor IP. Per today's news release, the company has filed suit against a utility company, though not for an unlawful violation of patent 7,379,981. The patent behind the new lawsuit is U.S. Patent No. 7,366,201 (the '201 patent), covering a "Remote Access Energy Meter System and Method." It's the first time this particular patent has been part of an enforcement effort, but considering Endeavor IP's experience in related intellectual property, the legal and philosophical winds are blowing favorably for ENIP and its shareholders.
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A word of warning for those who are going to go hunting for a closer look at the patent being newly enforced here... the same patent number appears to have been assigned to a completely different patent; it's possibly a number assignment error. Whatever the case, a search for the name of the patent pulls up the right patent and description, or you can just go here and look at the official USPTO filings for yourself. Interested parties can also review the official complaint that got the legal ball rolling by going here. You'll notice the litigation actually started back on December 20th, but Endeavor IP decided to wait until now to say anything (probably not wanting the news to get lost in the holiday shuffle).
Regardless of the timing, current or prospective investors need to know that in the IP enforcement world, lawsuits are money... and rightfully so. While the now-five court cases will take months to complete, given that four organizations are already paying royalties for legal usage of a good portion the ENIP patent portfolio, investors have much to be encouraged about with the five current cases being made.
For more on Endeavor IP, visit the SCN research page here.
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