Rovi Corp (ROVI)

[lecorb]

Rovi's Patents Looking Less Valuable

7:21 am ET July 17, 2015 (Dow Jones)


7:21 EDT - Investors didn't take kindly yesterday to ROVI's overnight litigation update, sending shares slumping 20% to a nearly 3-year low after saying a judge granted Netflix's (NFLX) motion for summary judgment to find 5 ROVI patents in question invalid. That decision moves Pacific Crest from the bull camp as well, saying the ruling "could embolden" major pay-TV outfits "to test the courts, extending the period of uncertainty around ROVI," a patent holder on things like set-top-box guides. "Internet services are abstract by nature," the investment bank notes, "so Rovi's patents seem likely to be less valid as video transitions to Internet delivery." ROVI is inactive premarket and down 38% for the year. ([e-mail]; @kevinkingsbury)

(END) Dow Jones Newswires

July 17, 2015 07:21 ET (11:21 GMT)