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Worlds Files Appeal to Federal Circuit on PTAB Rulings, Claims Related to Patent Trial
2017-05-22 08:30:00 AM ET: Eastern Time - View release on GlobeNewswire.com
My reply of WDDD option to sell Marimed shares was in reply to your repeated posts of dilution forthcoming with additional debt.
It seems your statement and logic is refuted.
Footnotes to the financials state clearly accrued salary for Kidrin.
Having spoken to Kidrin he negotiated a flat fee for the appeal and has been paying that cost amortized over the past 6 months.
The appeal will be filed this Friday,
Only remaining costs are reply to Bungie's response and oral arguments, no more than $40k.
I stand by my statement of no recurring costs equal to Q3&4 and Q1 of '17
WDDD holds roughly 6 mil free trading shares in MRMD which will continue to accelerate in value based on MRMD 10Q and the medical marijuana comp market valuations it's clearly undervalued.
No need for further dilution imo.
The burn you cited was to cover the IPR and appeal, those are not recurrent expenses. As Kidrin has differed salary, expenses would be no more than $150K for balance of 2017
Market cap is over $50 Mil.
75 mil for 49% consolidation plus
75 Mil shares fully diluted prior to acquisition
Since the hearing is en bance it will provide insight into all of the Judges mindsets through the line of query each judge pursues in their line of questions on the key issues underlying RPI. This will afford Worlds an opportunity to hone their appeals response based on these lines of questioning.
When the CAFC panel for Worlds appeal is released it will offer specific guidance as to how best to prepare and present the oral arguments.
It is my understanding that Worlds lawyers will be attending for this reason.
I believe your analysis is off.
Worlds cash needs for the coming year are no where near $1Mil.
The IPR appeal has been fully funded this past summer and Kidrin hasn't drawn a salary or employment benefits in years, check his accrued salary in the 10K.
If further cash needs were required than the note holders who funded the IPR appeal could convert for 35 million shares and provide the company with $850,000 based on a favorable CAFC ruling.
You also haven't figured in additional
Litigation against multiple infringers as well as reversal of the Federal Courts limitation of the damages time frame since the certificate of correction was issued.
Finally if Worlds were to acquire additional IP currently in litigation that would be a major game changer.
Some things to consider.
iMO
The company raised sufficient funds to run operations and IPR appeal for 2017 by converting notes in August as reported in Q's n K. There will not be any quarterly dilution.
Wrong again, this is for WORX,
Read the statement correctly you morons
Read the information statement, it clearly says Worlds Online Inc.
This information is not for WDDD it is for WORX
Don't post inaccurate information on this board.
This is a challenge of AIA with the ultimate aim of SCOTUS review
Under a new administration.
Great news for Worlds appeal on RPI issue.
The Federal Circuit just granted Wi-Fi One’s petition for en banc review. The Court requested briefing on this issue: Should this court overrule Achates Reference Publishing, Inc. v. Apple Inc., 803 F.3d 652 (Fed. Cir. 2015) and hold that judicial review is available for a patent owner to challenge the PTO’s determination that the petitioner satisfied the timeliness requirement of 35 U.S.C. § 315(b) governing the filing of petitions for inter partes review?
Amici briefs are due by Thursday, February 23, 2017.
The order is available here: http://www.cafc.uscourts.gov/sites/default/files/sWi-Fi_One_15-1944_Rehearing_Order.pdf
First and foremost, my reply was in response to the skepticism of Morris Smith having a large position in Worlds, to which I pointed to the public record of the S1. The point being sophisticated investors are in Worlds not for pennies but rather dollars of profit.
That fact and confirmation has turned into a discussion of how many shares and what did he sell? The obsession and fear that sophisticated investors are going to or have ( which is false)
dump shares and hurt themselves shows a fundamental lack of common sense and undercuts the important point of their believe in the strength of Worlds legal position by investing money in the company when it was below $ .01 without an IPR decision and further investing through warrant conversion after the IPR decisions.
It's clear to me that very smart investors are in for a potential significant upside, while others are preoccupied with fears of dumping by the very people who have stepped up with a vote of confidence.
Named in the S1 filed in August
Given the sophistication of the qualified warrant investors, I don't expect their 35 mil shares to be sold anytime in the near future. Since they exercised their warrants to fund the appeal they likely are expecting a favorable outcome and are looking for a return of dollars not pennies on their investment.
It wouldn't be in their own interest to tank the shares to make a few dollars cents per share or less. Morris Smith who ran Fidelity Magellan Fund
is a major league player not a penny stock flipper.
I just had a call with Kidrin and his reply was that based on the recent WORX Q's representing quarterly revenue growth in WORX that those shares could appreciate substantially going forward based on public valuation comps in the MJ space and that it is in WDDD and shareholders best interest to hold those shares to realize that appreciation.
He said that since the warrant holders exercised their warrants bringing funds into WDDD for the PTAB appeal there is no immediate need for selling off WORX holdings and losing the value they could bring to WDDD SP as well as having an appreciating asset on the books for future options if needed.
Why don't you call him to find out.
According to a Worlds board member they did pursue funding from Fortress, Paramount, Beaufort, Altitude, Intellectual Ventures, IPNav, Themis, Parabellum and even Mark Cuban all and more between 2011 -2016.
The deal they made with Hudson Bay was based on their close banking relationship with
Based on public filing they received $2.4 mil which would have carried them for years and the convertible notes had floors above the market that were set to expire after the first scheduled Markman.
It was only when the Markman was postponed due to the Bulger trial that Hudson started to short and sell into the market that The board unwound that deal. The delays in this case had nothing to due with Worlds tactics rather the courts scheduling and challenges by ATVI.
Kidrin did sell a big piece of this case... to Susman, it's called called contingency.
In addition if you read SEC filings you would also see that there are notes to investors for a % of proceeds from this case.
Know your facts before you speak.
Whatever "this" is for 31 years that you've been doing,it is ill informed at best.
To be precise each of your statements is refuted below.
1. There is nothing about "Being greedy"to file an appeal based on legal opinions that are more informed than yours. Why not enlighten us all to the superior legal mind and strategy you possess that's sharper than Tribble and Helgy.
An appeal had nothing to do with greed, rather the potential to reverse PTAB invalidity rulings and regain additional claims and possibly tossing the entire IPR based on the related party of interest issue.
Based on your deficient logic, Worlds should forfeit any chance at a stronger case not only against ATVI but other potential infringement suits.
2. Shareholders don't pay Kidrin's salary.
3. Kidrin hasn't taken a salary, it has been accrued for years, do some DD and read the SEC filings.
4. The patents have already expired.
5. The stock is not dead, it trades millions of shares.
Every one of your comments is factually and provably incorrect.
Your analysis is consistently flawed,
There is absolutely nothing preventing a new suit on the 6 PTAB validated claims as well as other patent claims Worlds holds that have not been asserted.
Your comment that the ATVI case has to be resolved before any additional suits are filed is flat out wrong.
CAFC will be completed in 2017, the ATVI case likely will be completed in 2018.
it will not take a year, at most 6 months from the court scheduling pretrial discovery to trial, just look at the previous schedule set by Judge Casper.
You really don't have an accurate handle on timelines and legal options.
All of your analysis does not factor any additional litigations therefore at face value it is flawed.
Every infringer can be sued for damages looking back 6 years from the time a suit is filed minus the time from patent expiration.
In addition to the potential for treble damages for willful infringement.
Worlds has 250 mil shares authorized, where you come up with the notion and possibility that company will have to issue 500 mil shares is technically impossible and flawed.
The comments you make are not mutually exclusive. Clearly what was stated in the proxy was the authority to facilitate a R/S for future financing as well possible uplisting after a positive outcome such as Claims surviving the IPR, nothing misleading or misdirected in that. Had the sp moved up to a higher level perhaps there would have been more options available to fund the appeal.
Personally I and a group of investors represent a sizable position in Worlds and appreciate more than most the consequence of a R/S.
With that in mind I support whatever is necessary to continue the pursuit of extracting the maximum value from the IP, which could not be achieved without triggering the warrant exercise and creating additional shares other than thru the R/S which was precisely why that tool was sought and overwhelmingly supported by a majority of shareholders, myself amongst them.
The proxy clearly authorized the company to reverse at a ratio of between 2 for 1 up to 20 for 1.
That is a range on the high and low side. I've not seen any statement as to what the reverse would ultimately be, so as you correctly point out, it's all speculation, nothing more.
What warrants did you hold that were sold out from under you? You had none, because you never made a direct investment in Worlds! Have you ever contacted Kidrin and offered to fund the IPR? i'll bet not but you seem to believe that others offer financing for free for you to benefit. Have you taken the time to read any of the Q's or K's? probably not because if you had you would have seen that not only has Kidrin not taken a salary for years, he gave back 7mil options for the benefit of the company and loaned the company money.
Your suggestion that shareholders should complain to Kidrin for harming them is baseless absent an alternative proposal for funding the appeal and SEC compliance so you can have a stock to trade.
Get real. You nor anyone else on this board put a penny into Worlds, pays any bills or salary for Worlds. You are just a trader in and out of penny stocks waiting for someone else to do the work to raise the share price for your own benefit.
All the hardworking blue collar drivel is just that.
Agree with you. The investors funded the IPR at above market in August with the highest of risk with no guarantee of positive PTAB. Warrants were part of the funding at higher price to fund company if PTSB was successful, which they have done. Now freeloaders who have no skin in the game complain about these same investors and Kidrin need to fund appeal to possibly strengthen claims and shareholder value. I've seen no where any 20 for 1 R/S, Kidrin has more to lose with dilution than anyone on this board.
Small minds have limited capacity to understand big picture opportunities and what it takes to get there.
Good riddance to garbage.
I disagree, the shares selling into the PTAB win were penny flippers IMO. Investors in the IPR saw a win at the PTAB, they wouldn't be selling for pennies and then exercising warrants to sell more. These are serious investors I.e. Morris Smith, looking for big upside returns acting on validated claims hedging on possibly more claims thus funding the appeal. It's nonsense to believe they would sell into the market at these levels.
Day traders and penny flippers fingerprints all over these sales.
The investor didn't sell tier warrants, they exercised them to give the company money to fund the appeal. Read the release and understand what it means. They had no motivation to exercise if they didn't believe in the 6 claims and the potential to recover more. Your comments are counter to the facts.
Worlds Inc, VirtnetX and MaxSound
View this email in your browser
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Institutional Analyst Inc, Tuesday 12/13/2016
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Patent Stock Review
1. Worlds Inc (WDDD). USPTO Review Validates 6 Worlds Inc. Patent Claims -Activision.
2. VirnetX (VHC). Federal Circuit Issues Decisions - Apple.
3. MaxSound (MAXD). CEO Update - Google, Netflix.
4. Disclaimer.
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Patent Stock Review
We mothballed the Patent Stock Review in 2014 after having great success with VirnetX (VHC), Vringo (VRNG), Sphirex (SPEX) and a number of others and after when the respect for intellectual property rights from representatives of all three branches of government, flew out the window. Leaving in the wake dozens of positive rulings and awards being overturned and horrific market performance for the group as a whole.
But we still follow the group and post interesting news items on the Patent Stock Review Magazine website. We have this nagging feeling that one big win for the patent holders which is followed by an avalanche of licensing deals for the patent holder and a patent holders' stock price that runs 10-folder higher (key) - that money will come back to the group. And all boats will rise.
In the past month we saw two nice new releases from World's Inc (WDDD) and MaxSound (MAXD) and one not so nice release from VirtnetX (VHC) which in our opinion has kept a ceiling on the upward move of the two former.
Could either Worlds Inc or MaxSound be the play which turns investors perception of the group? Only time will tell - and we don't think it will be years to get that verdict.
Out thinking is if everything goes right for Worlds and the stock goes from $0.040 to $0.40 and/or if everything goes right MaxSound and the stock goes from $0.02 to $0.20 that there will be a flood of interest in the group and we'll reopen PSR. And then you'll see a flood of patent attorneys doing reverse mergers to take their law firm (or infringement suit) public and everything will be fun and good again !
Here is the news, chronologically. Both World's and MaxSound appear to be in the late innings of their infringement ball-game.
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Worlds Inc (WDDD). $0.04
First in August - when the shares were trading around $0.03, the company announced that it had retired the balance of its convertible debentures and arranged funding from key shareholders.
CEO Thom Kidrin stated "The repayment of our outstanding convertible debt obligations allows the Worlds to move forward without the highly dilutive uncertainty of the debt conversion we have seen over the past few months. Some of our key shareholders have provided funding to retire these convertible debt obligations and the necessary funds that we expect to be sufficient to carry the company through the US Patent and Trademark Office (USPTO) Oral Arguments and subsequent Patent Trial and Appeal Board (PTAB) ruling that are expected before year's end."
We're not sure exactly who those shareholders were but we did see in SEC filing that Morris Smith who ran the Magellan Fund (we assume this is the same Smith) was listed. It could have been him. Interesting.
Then 12 days ago on December 1st, Kidrin announced that a USPTO review validated six of Worlds patent claims. This ruling allows Worlds to resume their federal court case against billion giant, Activision.
Kidrin stated "In the five years since starting litigation against Activision et al, we've overcome the numerous challenges they've raised against our intellectual property (IP). We've already received a favorable Markman ruling, as well as overcame the Motion for Summary Judgment and lawsuit by Activision in California. Once again our IP has been validated and we are renewing our commitment to pursue those infringing upon our patents."
Legal team is Susman Godfrey L.L.P. and Davidson, Berquist, Jackson & Gowdey, LLP.
(Despite the recent struggles, it never gets old watching these heavily awarded and pedigreed law firms from both sides duke it out.)
Full News.
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VirnetX (VHC). $2.28
On December 9th, we read the following.
"We are disappointed by and disagree with the Federal Circuit's decisions affirming the Patent Trial and Appeal Board," said Kendall Larsen, VirnetX CEO and President. "However, we are heartened by the strong dissent in one of the appeals. We are evaluating all of our options, including potentially seeking rehearing en banc."
The company noted that it has two currently-pending patent infringement lawsuits against Apple Inc., and that none of the patents considered in these decisions are at issue in the Apple I or Apple II cases pending against Apple.
Full News.
This is in contrast to happier news a couple months ago of VirnetX being awarded $302.4 million from Apple.
MaxSound (MAXD) $0.02.
Last night we came across a very well written and eye-brow raising CEO update from MaxSound a small audio processor and former client back in better days, when it ran from near $0.25 to a high of $0.75 a few months later.
By no means, base a trading decision on the following excerpts on their own..
Full News.
German Court Action
On December 7, 2016 an offer was made to settle by Google and Netflix in the final hours of the day prior to the hearing in Germany, concerning the entire global patent portfolio. The VLL steering committee decided the offer required further consideration and significantly more detail around the terms and suspended the negotiations so not to jeopardize the value of the overall portfolio (specifically including the US).
On December 8, 2016 both parties presented arguments in the Nullity proceedings in Munich, Germany. The court will issue its written ruling early 2017. The VLL steering committee intends to continue negotiations with all parties concurrently. Further details will be provided in the very near future.
The Legal Team
MAXD's attorneys in the United States agreed to handle the US lawsuits against Google on a contingency fee, reflecting their belief in the strength of MAXD's patent infringement claims. Together, we feel justice will be served, and MAXD and our Shareholders will prevail! Legal advisors of MAXD in the United States: Buether Joe & Carpenter, LLC
Additional Case Against Google
Our case number "2014-1-cv-274103" has made significant progress. Stay tuned for an update and possible resolution on this matter in late January 2017.
Full Release.
Website: MaxSound
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DISCLAIMERS. Past performance is no indication of future performance or inkling into future performance.
WDDD, This release contains certain forward-looking statements and information relating to Worlds Inc. that are based on the beliefs of Worlds' management, as well as assumptions made by and information currently available to the Company. Such statements reflect the current views of the Company with respect to future events including estimates and projections about its business based on certain assumptions of its management, including those described in this Release. These statements are not guarantees of future performance and involve risk and uncertainties that are difficult to predict. Additional risk factors are included in the Company's public filings with the SEC. Should one or more of these underlying assumptions prove incorrect, actual results may vary materially from those described herein as "hoped," "anticipated," "believed," "estimated," "should," "preparing," "expected" or words of a similar nature. The Company does not intend to update these forward-looking statements. Not a client, yet.
VHC, See Press Release. Not a client.
MAXD, Statements in this press release which are not purely historical, including statements regarding Max Sound's intentions, beliefs, expectations, representations, projections, plans or strategies regarding the future are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The forward-looking statements involve risks and uncertainties including, but not limited to, the risks associated with the effect of changing economic conditions, trends in the products markets, variations in the company's cash flow or adequacy of capital resources, market acceptance risks, technical development risks, and other risk factors. The company cautions investors not to place undue reliance on the forward-looking statements contained in this press release. Max Sound disclaims any obligation and does not undertake to update or revise any forward-looking statements in this press release. Expanded and historical information is made available to the public by Max Sound Corporation and its Affiliates on its website. Not a client, currently. Compensated with 400 thousand shares back in 2012.
--
Roland Rick Perry
Managing Director
Institutional Analyst Inc.
310-594-8062
roland@internetstockreview.com
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The value of the 6 claims would not be know until expert valuation reports are submitted to the federal court as part of the pretrial scheduling prior to trial. Even then those reports may not be publicly available.
Your observations are generally correct, however the problem with penny stocks is that institutional investors can't buy them and analysts can't cover them.
So credible exposure and liquidity is limited to flippers and promoters.
That is the reason I believe that Kidrin stated he wanted to uplist to a senior exchange when positive news permitted along with sp increase, unfortunately traders looking for pennies and mm's keep these shares down.
By statute appeals of a PTAB ruling must be filed within 60 days of the final written decision.
Not whenever a patent holder feels like it or to increase the stock price for increased shareholder value.
In addition, naming Bungie in the Activision suit would not invalidate the IPR. If that were the case Worlds and Susman would have done so and saved 1 1/2 years, $450k, dilution and the IPR rulings.
A party can be added to the lawsuit but that would not cancel the IPR after it had been filed.
I respectfully disagree, the conclusion of the IPR proceedings can be interpreted to mean until all appeals of the PTAB rulings are exhausted, either by Worlds or Bungie.
Don't expect a ruling from the bench on the 15th, simply proposals from both sides to either lift the stay and proceed with the litigation or continue the stay pending possible appeals.
Possibly discovery requests of Activision's relationship with Bungie.
The hearing is a status conference which should inform the public of the strategy of both parties. judge Casper will take the positions under advisement and issue a ruling, perhaps within a few weeks.