Does anyone know the options Worlds has to formalize their patent term? Judge Casper has ruled it begins 9/24/2013. Should they get this settled before ATVI? Worlds has obviously chosen to move forward with the case, without refiling, so, if they win this case against Activision, appeal their patent term successfully to the original 1996 date, can they sue ATVI again for previous years of infringement (prior to 9/24/2013)?
With only three years of royalties, I have laid out my best layman's guesstimate below.
All figures are from Activision 10Q/Ks.
Assumptions
1. All of, and only, North American revenue will be allowed for consideration of infringement (this was mandated in Vringo trial, but may not apply here)
2. The percentage of North American revenue attributable to Activision and Blizzard is the same as their percentage of total revenue.
3. King Digital revenue will not be included (mobile apps/games, not using Worlds' patents)
4. Infringement will start 9/24/2013, date of the Certificate of Correction and will end 11/12/2016, 20 years after the filing of the first non-provisional patent
5. 3.5% royalty assigned
6. 2X market multiplier applied
7. 35% of receipts will be for legal fees
8. 30% of receipts will be paid in taxes (they can offset some of this with their NOLs)
9. no treble damages
All revenue figures are in millions. 2016-Q4 is an estimate based on prior quarters. The total revenue to be considered for infringement is the total of the North American revenue ($7,759,405,057).
Period____Total Rev.__King Digital______Net Rev.____Act/Blizzard %__Total N.A. Rev.__% of N. A. Rev.
2013-Q4___$1,518_____________________$1,518____100.00%_________$770_____________$770
2014______$4,408_____________________$4,408____100.00%_________$2,190___________$2,190
2015______$4,664_____________________$4,664____100.00%_________$2,409___________$2,409
2016-Q1___$1,455______$207___________$1,248____85.77%__________$753_____________$645
2016-Q2___$1,570______$484___________$1,086____69.17%__________$860_____________$594
2016-Q3___$1,568______$459___________$1,109____70.73%__________$796_____________$562
2016-Q4___$1,500______$400___________$1,100____73.33%__________$800_____________$586
$7,759,405,057____Total to consider for Infringement
________3.50%____Royalty Percentage
$271,579,177______Total Royalties
$95,052,712_______35% Legal Fees
$81,473,753_______30% Taxes
$95,052,712_______Net Cash
210,156,148_______Shares Outstanding (2016-Q3)
_______0.45_______Price per Share
__________2_______Market Multiplier
______$0.90_______Price per Share with Multiplier
$3- $4 per share may not be out of the question with treble damages, higher royalties, larger market multiplier, and a compassionate jury.