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Rainmaker80

02/10/16 5:53 PM

#1518 RE: MakingGains #1517

Making gains - that comparable actually argues AGAINST your point

1. VRNG and ZTE litigated for 3-4 years across the globe

2. Injunctions were in place in Romania, Brazil, etc

3. Each ruling that went VRNG's way was appealed and appealed, remember Brazil? 11 times? Romania, wasn't it 13 times? Any chance to extend out the pain financially by ZTE was undertaken. Perhaps you were unaware? But reality is VRNG likely spent more litigating than they got from the settlement, this is why the stock dropped on the news. Certainly this is not a good example for your argument, as ZTE 'made war to make peace'.

4. Realize Apple, much like ZTE and Google vs VRNG is more than willing to appeal to the bitter end and pay more if it means setting an example for all other NPEs - Basically they are telling other NPE's that if you are going to come at us for 100's of millions you better be able to play this game for a 5-10 years as we stretch it out.

5. That tactic is what all the big tech companies are doing. They care little about an extra 10-20 mil in legal fees and interest, they care more about making an example of big awards that they will not 'go easily into the night'

6. Now you can choose to agree or disagree, but given what I have seen from big tech companies, that seems to be their game plan. NPEs relying on the public markets for financing are always at risk of time delay, they know this, this is leverage.

7. Moreover, it seems big tech gets alot of kicks at the can from the legal system which is trying to kill patent rights for some reason. Well we know the reason, big tech pays politicians to change the laws to suit them.

8. While VHC may get paid, realize that common sense says there is no way Apple will pay anything until it reaches a WoC to SCOTUS, they will fight to the bitter end. Right now they are paying regardless, so the benefit to drawing it out is maximizing pain on VHC to send a message to others.

9. Now, WHEN or IF VHC gets paid by Apple, only THEN does that precedent matter for VHC - THEN its a frightening hammer to other infringers....but not before.

My view, this stock trades down under $4 within a couple of months barring no settlement (again, which I don't see occurring).

Good Luck to those in the stock, I am on the sidelines as I see too much downside risk given appeals. That being said, given my results in VRNG maybe people should do the opposite of my views! haha!



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