Obviously this is all During the Obummer administration.
The following is the statement to shareholders in I believe 2016.
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The United States government has placed restrictions on NASA, the National Science Foundation and the
Commerce and Justice departments from buying information technology (in particular from Huawei) that has
been ‘‘produced, manufactured or assembled’’ by companies with ties to the Chinese government unless the
FBI or a similar agency first determines the purchase would be in the national interest. We believe these
restrictions impose no limitations on the Company’s ability to license or enforce the patent assets that the
Company has currently purchased or may purchase in the future from Huawei. Because we understand these
restrictions apply solely to purchases of actual hardware and equipment, we believe the patent assets and
rights which the Company has purchased from Huawei, with respect to those restrictions, include valid rights
within the geographical United States which remain enforceable against all potential infringers. However, the
United States government may try to apply other restrictions to prohibit its departments from licensing
Huawei-related intellectual property rights, in which case we may be unable to consensually license patent
assets purchased from Huawei to the U.S. government. Such interpretation of the prohibition, and other
changes in United States law, regulation or practice as it relates to the license or enforcement of patent assets
acquired from Huawei, could result in a material adverse impact on the Company’s business and financial
condition.
New legislation has been introduced into the House of Representatives and the Senate, seeking to curb
so-called ‘‘Litigation Abuses.’’ These bills include potential provisions for, among other things, expanded
pleading requirements for patent litigations, patent-specific discovery and case management rules, disclosure
obligations for parties having a financial interest in a patent case, certain provisions regarding so-called
‘‘customer suits’’ in favor of manufacturers. These bills have not yet been voted upon or amended and it is
uncertain what, if any, new legislation will issue from the United States Congress, and what if any impact
such legislation would have on the Company’s business and operations.
Furthermore, in various pending litigation and appeals in the United States Federal courts, various
arguments and legal theories are being advanced to potentially limit the scope of damages that a patent
licensing company such as us might be entitled to. Any one of these pending cases could result in new legal
doctrines.
In September 2013, the Federal Trade Commission announced that it is planning to gather information
from approximately 25 companies that are in the business of buying and asserting patents in order to develop
a better understanding of how those companies do business and impact innovation and competition. Both the
