Replies to post #35682 on XpresSpa Group Inc (XSPA)

[JJSeabrook]

MSFT includes RR, IMO. Look at the 8K>>

On May 30, 2013, Vringo, Inc. (the “Company”) issued a press release announcing that its wholly-owned subsidiary I/P Engine, Inc. (“I/P Engine”) has entered into a Settlement and License Agreement with Microsoft Corporation (“Microsoft”) to resolve patent litigation that was pending in the U.S. District Court for the Southern District of New York (I/P Engine, Inc. v. Microsoft Corporation, Case No. 1:13-cv-00688 (SDNY)). Pursuant to the Settlement and License Agreement, Microsoft agreed to pay I/P Engine $1 million within fifteen (15) business days, plus five percent (5%) of any amounts Google pays for use of the patents I/P Engine acquired from Lycos. The parties also agreed to a limitation on Microsoft's total liability, which would not impact the Company unless the amounts received from Google substantially exceed the judgment previously awarded. In addition, the companies entered into a Patent Assignment Agreement, pursuant to which Microsoft will assign six patents to I/P Engine. The assigned patents relate to telecommunications, data management, and other technology areas.

A RR of 3.5% IS included in that judgment in the award against GOOG. It's a final judgment under Rule 59, signed by the Judge. I think MSFT has effectively capped the RR at 3.5% of whatever % of GOOG revs the judge assigns, whether that be 20.9% - 40%. In compromise for the lock down of the RR % at 3.5%, I believe that's where the patents in the deal came in. Now WTF the value of those undisclosed patents is would be anybody's guess. The market assigned no value to them today, IMO. I sure as hell can't assign any value to them myself as I have no idea what they are, nor what VRNG is going to do with them.

The settlement terms are NOT clear, and the market felt they weren't clear today.These patents may be incorporated into VRNG's future plans and be the best thing since sliced bread, but it's not apparent, and the info released brought many questions to mind regarding the settlement.

Tom on here has asked me what I think about the settlement, and others have PM'd me. I honestly can't place a value on it, just as the market couldn't today, insofar as placing any huge value on it for the future. I also think the market didn't realize the judgment included the 3.5% RR finding against GOOG. It IS in the jury verdict and Judgment currently on appeal. I think that's more significant than the market did today, and I DO believe those patents have significant value to VRNG in the future. VRNG had MSFT locked up on willful infringement, and they weren't barred by the laches doctrine against MSFT. I HAVE to believe those patents have significant value. There was a chance of treble damages against MSFT, which didn't exist against GOOG. There was a chance of an injunction against MSFT, which was not in existence against GOOG in the suit. Those are tremendous rights to give up, so I DO believe this settlement is worth more than the market valued it today. Uncertainty is a harbinger of indecisive moves in the market. The market wasn't willing to speculate on the value of the patents assigned to VRNG, and I can't blame them. With further reflection, it might do so. We'll see.

JJ