Boston, MA 04/07/2014 (wallstreetpr) – Acacia Research Corp (NASDAQ:ACTG) doesn’t like to be called a patent-strolls, a name that has come to describe companies which take others to court and seek compensation over patent infringement. Instead, the company is comfortable being referred to as a patent outsourcing company.
All the same, the company makes its money by developing, acquiring and monetizing technology patents. The company stands in court on behalf of clients whose patents have been infringed; it also helps companies to monetize their patents so that they can realize higher revenue. It shares revenue generated from such activities on 50/50 ratio, or more acceptable arrangement. But this business has seen the company being accused of bringing up frivolous cases, which at best stifle innovation.
In this view, big tech companies have been seeking to have changes made to the patent laws so that they are protected from patent trolls which stand in their way, mostly out to exploit their money. With big names such as Samsung, Apple Inc (NASDAQ:AAPL), Intel Corporation (NASDAQ:INTC) and others being among those up in arms against patent strolls like Acacia Research Corp (NASDAQ:ACTG), questions have been asked whether the business of monetizing patents like Acacia Research and peers have been doing it has a future.
Matthew Vella, the CEO of ACTG, believes the lobby against patent-trolls has not only lacked negative impact on the company, but has instead brought them more clients. So then, the CEO believes that such are the kind of emerging challenges which the company has been able to successfully navigate.
Patent settlement
Acacia Research Corp (NASDAQ:ACTG) managed to bring strength to its shares Friday, after the company settled three patent cases. The company lost its challenge against Behavioral Recognition Systems, but secured patent licensing agreement with Huawei Technologies and Motorola Mobility. The financial details of the settlements were not immediately available, but it is clear that the two licensing agreements will bring incremental revenue to the company.
Time will tell
With push for the change of patent laws gaining currency, only time will tell if Acacia Research Corp (NASDAQ:ACTG) will be able to wither the storm in the long run.
