The stock has corrected sharply from its recent high of $2.37. Despite this, the current price is around 59% above the recent low of $1.17 (December 2012). Unwired is trying hard to prepare itself for reaching a stage where it can monetize technologies like WAP which it created but did not patent properly. After selling its operating business in 2012, and the patent transaction with Ericsson (ERIC), it is being considered as a pure patent play. This particular deal was interesting with zero cash up-front payment. The revenue share schedule will be based on the actual revenue earned in future (20% of gross revenue on the first $100 million generated from the acquired patents, 50% of gross revenue between $100-$500 million, and 70% of gross revenue thereafter). This potentially can give hundreds of millions to Unwired. This deal apart, the real potential lies in its ability to patent and monetize those patents. The inventions are already being used widely, but lack of significant rights over those technologies reduces the probability of success in monetization efforts. Unwired can be encouraged by the success of Vringo, VirnetX etc. As mentioned in a recent report on Document Security System (NYSE:DSS) by prophetic analyst JP Moreno, a subsidiary of DSS has brought in a patent infringement lawsuit against Facebook (FB), LinkedIn (LNKD), Novell, Jive Software and Broadvision for infringement of a patent which is potentially worth hundreds of millions. The technology which is allegedly the “essence” of Facebook experience, is alleged to be violated by these biggies. Such lawsuits indicate the potential in monetization business. Unwired should move forward faster with the help of professionals in the monetization business for enforcing its rights. It needs cash and expertise to pursue its endeavors and the stock will move up decisively only after something concrete happens on this front. It is important that the replacement for the CEO Michael Mulica turns out to be good.
