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History tells us that when Vringo was estimating to be able to get $1B from Google it spiked to $5.73, or a market cap of approx $650M. In Vringo's case Google was always going to be 2/3 of the possible maximum amount of money available since they control the majority of the search business.
Worlds could easily get $500M from Activision. This is at best only 1/3 of the total amount out there that Worlds could get. So if you look at apples to apples both Vringo was going to be able to get $1.5B and was rewarded a cap of $650M. WDDD has the same potential to get $1.5B but so far has not been rewarded the correct risk to reward ratio by its current market cap of $31M.
Its clear to me that Worlds has a huge upside and almost no chance of going lower as we wait for the nuggets of info coming out right before and during the Markman hearing. If one of those nuggets is truly golden it will be to late to get in under $1. Don't gamble on timing just get in and buckle up for a hell of a ride coming over the next 30-75 days.
http://www.forbes.com/sites/johngaudiosi/2012/04/13/worlds-inc-explains-why-its-suing-activision-blizzard-over-world-of-warcraft-and-call-of-duty/2/
Worlds Inc. Explains Why Its Suing Activision Blizzard Over World Of Warcraft And Call Of Duty
While Electronic Arts was named the worst company in America by gamers recently, the other giant in gaming, Activision Blizzard, has been hit with something potentially worse – another lawsuit. On March 30, Worlds Inc. filed a patent infringement lawsuit against Activision Blizzard, Inc., Blizzard Entertainment, Inc. and Activision Publishing, Inc. in the United States District Court for the District of Massachusetts. Activision’s World of Warcraft and Call of Duty video games have been identified in the complaint as infringing on Worlds’ patents.
This comes on the heels of ongoing litigation between Activision and former Infinity Ward founders Jason West and Vince Zampella over the Call of Duty franchise. That legal battle has lawsuits heading in both directions with the showdown currently heading to court in California.
The issue is over Worlds Inc. US patents numbers 8,082,501, 7,493,558, 7,945,856 and 7,181,690 titled “System and Method for Enabling Users to Interact in a Virtual Space” and has additional continuation claims in process before the U.S Patent & Trademark Office (USPTO). These patents relate to computer architecture for three-dimensional graphical multi-user interactive virtual world systems. Such systems are used in Massive Multiplayer Online games (MMOs).
Worlds’ patents cover technologies and methods relating to a highly scalable architecture for a 3D graphical, multi-user, interactive virtual world system. In certain situations, multiple users interact within this virtual world environment, each viewing the virtual world from their own perspective. The virtual world shows avatars representing the other users who are neighbors of the user viewing the virtual world. Worlds’ patents include, but are not limited to, the various aspects of the information transmission and processing that allow the users to view in real time where other users and background objects are in relation to their own position as they move about in the virtual space.
Thom Kidrin, Worlds Inc. CEO, explains why his company is suing Activision now and why this litigation could impact other major players in the video game space in this exclusive interview.
Why are you targeting Activision Blizzard first with this lawsuit?
We believe there is plentiful and strong evidence of infringement of our patents by Activision Blizzard, Inc. et al and that we have an excellent chance of success in this case.
Can you explain in laymen’s terms what your patent covers?
Worlds Inc.’s patents cover load balancing between the user’s PC and the host server commonly known as a client/server architecture. These methods filter the number of visible avatars on the screen at one time when there are hundreds of thousands of users online simultaneously.
When Worlds’ initial patents were filed in 1995 the major constraints for multiplayer online gaming were bandwidth and PC processing power. Worlds developed methodology and techniques that allowed large numbers of users to log into the same virtual world from around the world concurrently without being locked out of the site due to reaching prefixed population limits.
In the late ‘90s users were limited to between 10 to 15 concurrent users per room and if you logged in a few minutes after your friends did, you could not play with them because the room had already reached its limit and been closed to additional users.
As the confluence of separate internet service providers (ISPs), such as Compserve, GE Net and Delphi, to name a few, evolved into the World Wide Web, the need for datastream management methods for avatars in a virtual world across different PC platforms accessing the web at varying internet speeds became a crucial problem to solve. Players wanted to play together even if they logged on at different times and expected a fluid user experience moving within graphically rich virtual environments. Worlds’ technology solved those problems.
What other game companies would be in violation of these patents?
Worlds has not completed its technical analysis of other companies’ potential infringement at this time.
What’s your plan when it comes to these other companies?
When we have completed our analysis, we will take the guidance of legal counsel on our next steps.
How might your patents influence the game industry beyond Activision Blizzard?
In patent litigation matters such as this one, at this time it is not in our best interest to state the names of any other companies that may be infringing on our patents nor to discuss any potential future actions being contemplated related to other companies. We will be working closely with Susman Godfrey to determine any additional parties to pursue and what actions to take related to patent infringement.
A successful outcome of this litigation will reaffirm Worlds’ patents’ validity and our place as an early innovator in virtual worlds development. A win will provide the company with greater flexibility in its pursuit of acquiring additional IP that is synergistic with Worlds’ technology.
These games have been around for years. Why are you going to court now?
The timing for the lawsuit was based upon the additional continuation patents that Worlds has recently received over the prior art, as well as independent analysis. We were fortunate that Max L. Tribble, lead counsel for Susman Godfrey LLP who has a stellar record for patent infringement wins against large organizations, was eager to be lead counsel on this case on a contingency basis following Susman Godfrey’s review of the patents, our history as an operating company since 1994 and other details.
It sounded pretty good from .17-.48 and it will sound good again from .40-$1. What's the harm with a little enthusiasm?
Thanks CB, it was just a taste of what's to come. We got a little ahead of our self but its obvious that current longs will not sell until the next leg, and the smart ones will not sell until many legs from now and keep a substantial position into Markman. June will be fun there will be 20% moves some days as news flows from the build up and during the hearing process.
Looks like the sellers have dried up. This would be the calm before the storm hits. The big players will be moving in soon and when they do watch out if your not securely in you might get left behind. As they say you ain't seen nothin yet!
Have a great weekend!
58 more days till Markman.
10 more days to get in under 50¢.
20 more days to get in under 60¢
30 more days to get in under 70¢
40 more days to get in under 80¢
50 more days to get in under 90¢
55 more days to get in under $1.00
As others have pointed out Vringo is an easy double, but Worlds is an easy 3-4 bagger with possibilities of 10X. Where do you have the bulk of your money? When Vringo hits you won't be able to get in WDDD under 50¢ IMO.
I think our core 20 has grown to 22 today! News is cranking up, I expect more very soon. PACER updates will start soon and be bullish as they will show the strength of our case and the amounts WDDD is seeking will be huge! Don't forget the current suit is only approx 1/6 of the total MMORPG industry not to mention possible FB and LNKD suits! The next 60-90 days will be a hell of a ride.
If only ATVI had billions just sitting around and, oh wait, that's right they do have billions in the bank. Sometimes the best investment is protection. Spend some money to save more later. Also it strengthens their patent portfolio and as said before they can recoup most if not all their investment from others. This is something Google couldn't do with Vringo as they were always going to pay the vast majority of damages. In Worlds case ATVI is only 1/3 of the total MMORPG industry!
Sure then they would hold the patents and make the rest of the MMORPG industry pay them. It's almost silly that this is not an option. Buy out now for $3/sh and your in it for $250M. Plus now you can collect hundreds of millions from your competition. Your final cost is nothing that route. Going to court against WDDD you are risking +$500M.
Seems to me if WDDD is the real deal that we think it is this is a strong possibility.
Think I figured out what Joe might know. We have been speculating that ATVI could possibly take a position in WDDD. Could ATVI insiders be buying into WDDD?
Also someone is floating buyout rumors on YMB.
It depends on who asks for the delay. If ATVI asks that is bullish IMO. No chance WDDD asks for one as Susman Godfrey and superstar Max Tribble have put the time in as they have been building their case for 12-18 months.
Don,
Please don't do that unless its for real. I almost fainted when your post came up.
Nice to see this article is on the yahoo finance page for WDDD. Next leg will surely take place soon. Selling has been exhausted so as new buyers move in up we will go. Susman Godfrey will handle the Markman hearing so the odds we move to the post Markman pre trial part of this story are very likely!
Vringo is popping which shows the patent play investments work and they are very lucrative, especially for those who get in pre-Markman.
Yeah news is growing and that will only pick up. Vringo having a huge victory is great for Worlds as it 1) shows the model works & 2) Vringo with its pockets full will be looking for a partner or possible buy out. Secret is getting out and the next run begins very soon. Joe is working on something & any good news will surely drive more people in looking for the next huge patent play!
It's obvious that tons of shares purchased below .30 have been sold in the past few weeks. This is a great profit but in my opinion they cashed out waaaay early and waaaay under where they should have. When news starts flying estimating hundreds of millions in settlements and billions total when they are done this baby will fly!
That's true we could be getting a dozen checks a Q
Will we be happy this week? Next week? This month?
I don't think we will ever see a true RR. RR hits EPS & ATVI won't want that. They have plenty of cash and will just pay us off for everything to just go away.
Celt he is just here to crap on WDDD so he can pick some up cheaper.
Pretty obvious money going into Vringo today. Any idiot can see that.
What's the difference your doom and gloom scenario only plays out if Markman fails? Obviously we all already know that if Markman fails WDDD will fall. It was structured to be good for the company after a successful Markman.
CB WDDD could be that multi bagging stock we wish we got in early on. Just sit back and watch the show because it will be a great one to watch. We are in good hands with Susman and Max Tribble. They make money when we make money. It's called a win win!
The bottom line is you want to be in these patent plays early. Do you think the people who got in Vringo under $1 were unhappy with Vringo's path? Same with WDDD those that get in early will have options. Sell on the Markman spike? Sell on the announcement of a new suit spike? Sell on announcement of settlement with ATVI? Hold all the way to the end to collect the special divs? Most if the current holders of Vringo missed most of those options that we have by getting in early.
Why? 1M shares at .50 is no different than 10M shares at .05. Why would they care what the price is? What they care about is making money. The only sure way they can make money is completion of a successful Markman. The investors plan on getting dollars for their shares not cents. Don't step in front of this train or you will get run over.
Yes WDDD is a card counters dream. Basically we have a $25M reward priced in and by all accounts it could be 20X that much. Also ATVI is only the beginning. Just like Vringo beat Google then MSFT will settle. Once Worlds beats Activision everyone else will settle based on the final amount from ATVI. So whatever we get from this round we will end up with much much more over the next 6-12 months.
Same logic but all Markman hearings are not equal. Based on facts of this case there is not nearly the risk involved with WDDD, but there is all the reward involved with the drug scenario you spoke of. Susman Godfrey knows what they are doing. They spent 9 months going over the case and took the case 100% on contingency, along with the fact that NCSoft settled already for violating the same patents pretty much throws the odds into Worlds favor. Discussions for licensing between Worlds and Activision took place years ago so willful infringement is a slam dunk. All the stars are lining up, including an absurd low price, making this next 60-90 days some of the most profitable days many of us will ever see.
Someone just asked me why theses 2 titles only. It's pretty obvious these make the most money for ATVI. By going after COD & WOW superstar Max Tribble will be able to stand in front of a jury and tell them how many billions of dollars Activision has made using Worlds patents. This has the same affect that LeBron James has when stealing the ball and has a clear shot to the rim. We call this a slam dunk!
I don't mind an alternative view but those that do have one should have some sort of reason why their message of doom and gloom will happen. Anyone can say "going to zero", but if they don't back up why its going to zero they should be ignored.
I understand he probably was going to get in around 20¢ and missed his chance so now he is trying to bash the price back down so he can get in at as good a level as possible. People who bash to buy just suck IMO.
WDDD v ATVI
How much will Worlds get?
ATVI revenue last year $4.8B
Assume 50% US Rev since only US Rev would be in play. So $2.4B total. COD & WOW assume 50% of that since there are dozens of games these 2 are by far the largest so it could be over 50% but just to be safe assume 50%. So $1.2B Rev for this case.
Typical Running Royalty is 1% - 5% we will assume 3%. $1.2B x 3% = $36M/year.
Since WDDD is going for willful infringement that triples or "trebles" the amount to $108M/Yr at current levels. The patents are good till 2018 and would go back 6-8 years. So a safe estimate for previous 6 years figure lower revenue 6 years ago compared to today I get a safe # of $500M. Future revenues would be higher than today's # so figure $500M for future RR. This totals $1B.
This is only based on ATVI's COD & WOW. It's safe to say that most if not all MMORP games would be included in future suits so ATVI's total can easily reach $1.5B.
ATVI is only 33% of the total MMORPG industry. So using these #'s is safe to assume WDDD could end up going after well over $3B in total damages/royalties.
I think once the Markman hearing is successful that ATVI will settle with WDDD for some amount very quickly for approx $500M. They don't want to go to court and be on the hook for over $1B so they will settle shortly after Markman.
After settlement WDDD will file against up to 10 other infringers including other gaming companies such as EA, MSFT, ZNGA and others. Also they will go after social sites such as FB and LNKD.
The final amounts when the smoke clears can truly be huge. It won't be long before the street takes notice of WDDD and the price gets inline with the possibilities. Buyers today could easily be siting on 20-30 bagger in just 12-18 months. I am and will be buying as much as I can at these levels before the next leg kicks in.
Sorry but you are an idiot. Why are you even here? Your not long and your not short. Just go away. Susman didn't spend millions and beg to take the case to get a micro settlement. You have no argument, or at least one that would make sense. Whatever ATVI settles for WDDD will get 3X that much total. So if settlement is just $50M longs will win huge. If its $250M longs are very rich. If they settle for $500M there are 20+ WDDD millionaires and you will still just be a pest. We have went over your dumb argument before, the investors protected their financing like all investors do. They are in it to make money not break even.
I just want to point out again that you are an idiot.
Can't wait its going to be legendary!
We put it on auto pilot since there is nothing new. Once we get some meaningful PACER release we will dive into it. Still every reason to expect a slow climb into 6-27 Markman date. Using this pullback to add some more shares.
Those thinking ATVI is the only party WDDD will go after are foolish see what superstar Max Tribble thinks:
"We intend to protect Worlds' intellectual property and enforce its property rights," said Max L. Tribble, lead counsel of Susman and Godfrey L.L.P. "However, we welcome a dialog with Activision/Blizzard and other MMORPG game vendors. We look forward to a speedy and just resolution of this matter."
OTHER MMORPG VENDORS.
This is going to be huge!
Train is loading up for the next stop +50¢ land all need to get in board soon as clock is ticking.........
Markman hearing details:
U.S. District Judge Denise J. Casper has established a schedule for upcoming hearings and other case deadlines in Worlds Inc. (OTCBB: WDDD) vs. Activision Blizzard, Inc., Blizzard Entertainment, Inc. and Activision Publishing, Inc. (Activision Blizzard, Inc. et al) in Civil Action No, 1:12-CV-10576(DJC), a patent infringement lawsuit filed by Worlds Inc. on March 30, 2012 in the United States District Court for the District of Massachusetts. The patent claim construction hearing, also called a Markman hearing, is set for June 27, 2013, at which time the judge will be asked to issue rulings regarding the language and interpretation of the Worlds patents at issue in the case. Markman hearings are considered a critical event in a patent lawsuit. The Markman ruling will define the property rights for the technologies that Worlds has invented and has the right to exclusively practice. The court's Markman hearing decisions will drive and inform many aspects of the litigation.
"We are committed to protecting our patented innovations and are pleased to have established the scheduling dates for moving forward in the enforcement of our patents," stated Thom Kidrin, Chairman and CEO of Worlds Inc. "We look forward to showing the court and jury how Activision Blizzard, Inc., Blizzard Entertainment, Inc. and Activision Publishing, Inc. have infringed upon our technology innovations despite the legal patent protections that we have expended a great deal of time and capital to secure. This firm timeline means that we will get our day in court."
Worlds Inc. brought this action because past and current products of Activision Blizzard, Inc. et al infringe several Worlds patents related to computer architecture for three-dimensional graphical multi-user interactive virtual world systems, which represent a body of intellectual property that Worlds pioneered in 1994. Worlds' lawsuit seeks monetary damages from Activision Blizzard, Inc. et al as well as a permanent injunction barring the manufacture and sale of Blizzard Entertainment, Inc. and Activision Publishing, Inc. infringing devices. Additionally, the complaint accuses Blizzard Entertainment, Inc. and Activision Publishing, Inc. of willfully infringing and seeks an award of exemplary damages, attorneys' fees and related court costs.
Max L Tribble, lead counsel of Susman Godfrey L.L.P, will be lead counsel for Worlds in the suit. Tribble has an extensive track record of patent infringement lawsuit wins and settlements for plaintiffs in lawsuits against large corporations, including: Paltalk v. Microsoft; Mass Engineered Design v. Ergotron & Dell, et al; Sky Technologies v. Oracle; and Sky Technologies v. IBM.
Worlds Inc. owns US Patents 6,219,045; 7,181,690; 7,493,558; 7,945,856; 8,082,501; 8,145,998 & 8,161,385, titled "System and Method for Enabling Users to Interact in a Virtual Space." These patents relate to computer architecture for three-dimensional graphical multi-user interactive virtual world systems. Such systems are utilized in Massive Multi-Player Online Games (MMORPG).
Longs must understand what's going to happen.
1) Over the next 60 days the only news that could significantly hurt share price is a release from WDDD that they are dropping the case. That is the only thing that will cause a huge loss.
2) ATVI will play the victim card stating they did nothing wrong and even if they did they only owe WDDD a pittance. This is right out of the play book and is expected.
3) The most bullish longs will make up stories of destruction trying to steal as many of your shares as they can before the true price increases happen so unless WDDD does #1 don't worry it's just all a bunch of BS.
4) WDDD price action is extremely bullish as it has constantly made higher highs and higher lows. This will continue right up to the 6-27 deadline. If the price gets above $1 then we may get some big turbulence so it is important to get in as early as possible so riding out these storms will be easier.
Bottom line I will be adding and not selling up till we get the real news of just how large our pay day will be. Once we get to this level I will let you know when and why I might sell, but for now I will not be scared out of my shares.
Move is currently underway. Lots of people who got in 3-6 months ago are reducing their position and reducing risk. Once this is finished we will continue moving back up. If WDDD is not much higher in 60 days then I am clueless about stocks. It's all risk v reward and when the reward is more than the risk the scales balance over time.
Why would it stay around $30M cap when the smallest estimates are for a settlement of 10X that much?
I expected a little dip today as Vringo and Worlds are held by the same people. Vringo had great news last week which is causing longs to move more money into it. The smart money will be snapping up WDDD's cheap shares this week as once the Vringo move has finished Worlds will be moved back into and in a big way. Success for Vringo is very good news for Worlds. It shows that the patent plays are working and that will bring new and more money into WDDD.
If you don't understand that they will Make actual huge amounts of money after a successful Markman then I can't help you. Understand you are on ignore now so don't bother replying.
Lets put this financing deal to bed. It's so obvious that you're attempting to flush out some weak hands so let's set the facts straight.
All financing at this level and amounts is backed by some sort of collateral. WDDD's patents are worth billions but they were not used so the only other asset is company stock.
The investors made this deal to make money not come out even. The only way they make money is with a successful Markman hearing.
Rain and student's lame attempts to case doubt are almost comical and I hope any long reading them understands that they are also hyper bullish and just want to get as much as they can as cheaply as they can.
Don't let someone scare you out of millions!