Quote:
Originally posted by theking
Are you saying that the Sony Case is important to the current matter...or just that Acacia may not be in a financial position to sustain a long court battle over the legitimacy of their patent?
If the later is the case...do you think that they are in a position to get new funding/backers?
If you do not think they can get new funding/backers what do you base your thinking on?
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In Acacia's 3Q call yesterday, the CEO or President said that they have $1M said aside for patent litigation.
An average patent infringement case from what i have heard, can run around $1.5M
The impending court cases with the 11 defendants could easily drain through their lawsuit stash.
But, they expect better 4Q revenue, so their warchest can be restocked with all those that settled in 3Q.
If Acacia is showing a revenue stream through licenses and they start to run out money, they do have the options of going to banks to get loans or selll more stock to keep them going.
A friend of mine did a quick analysis on their financial statements an besides saying it was a mess, he said it looks like they structured the arrangement of their companies to dump the expenses and overhead costs into ACTG, knowing that ACTG could end up failing, protecting the rest of the portfolio.
But then again, They introduced their updated business plan to have businesses with patents loan them to them, and allow them to acquire license fees and then split the bounty with the company.
Fight the Patent!