Silver Lining of Akamai Patent Suit

A recent patent suit which was filed by Akamai against Contendo has resulted in a buyout of Contendo by Akamai. The patent infringement case was filed by Akamai about one year ago, and the fact that it resolved in a $268 million bid in cash for Contendo is a good sign that there is a silver lining to many patent suits today. It is also a reflection of the fact that Akamai saw value in Contendo’s business as more than just a copy cat of its intellectual property.

This is one of several similar cases in recent weeks in which patent infringement suits have led to buyouts or acquisitions. For example, Nuance Communications also bought out a smaller rival called Vlingo following a patent suit lodged against this voice recognition company.

A patent infringement lawsuit is increasingly a sign that a start up company has potential in the tech world, and the pattern seems to be that more of these companies are resolving the suits in a positive manner through acquisitions. This pattern became evident back in 2007 when Data Domain issued millions to Quantum as part of the settlement terms on a patent infringement case.

Two years later, Data Domain was purchased by EMC for over $2 billion, which represented a doubling in price from the IPO issue. Quantum, on the other hand, has seen their stock drop by more than 25% since the IPO of Data Domain due to falling tape system sales, which have decreased by more than 30% year on year to around $250 million.

Another way of looking at the patent suit resolution between Akamai and Contendo is that it helps to bolster Akamai’s competitiveness. Unsurprisingly, news of the deal caused the share price of Akamai to pop when the deal was announced. Another aspect of the story to consider is how the lawsuit and acquisition will affect the relationship of Contendo with AT&T. It is rare for a company like Akamai to get a deal on a company like Contendo for such favorable terms.

The total cash buy out for about $268 million represents 6 times the revenue estimates for Contendo for fiscal year 2012. Wall Street pushed up the market cap of Akamai to $1 billion on news of the deal because it represents an answer to the assault on Akamai’s business and shows the company has found a way of fighting back.

Kodak in Hot Water after Apple Contests Patent Ownership Claims

Embattled camera-maker Kodak Eastman Co., has filed patent infringement cases against Apple for its four patents relating to digital camera technology.

Apple however denies this claim and petitioned the US Bankruptcy Court in the Southern District of New York hearing Kodak’s bankruptcy case to attach “clarifying language” to such orders by the court that will allow financing to Kodak. It asked the court to indicate that the patents owned by Apple or those it claims which remain disputed should not be attached as security or lien. It clarified that they are not blocking any request of Kodak for post petition financing but that Kodak cannot use the patents that they do not own as collateral.

Apple maintained that during the early 1990s, they had a partnership with Kodak which among others, focused on how Kodak can help Apple in the further development and commercialization of its digital cameras. This resulted in the sharing of digital camera technologies. The two companies entered into a non-disclosure agreement which also includes a provision that all the developments or changes in those technologies will remain with Apple. Therefore, ownership of the patents is with Apple and not Kodak. As a matter of fact, Apple added, that when the information that Kodak was using the subject technology and that they were already claiming the patents as their own, came to their attention in 2010, they were consequently pressed to file a patent infringement case. This still remains under litigation. Kodak on the other hand denies the allegations and maintains that they are the owner of the patents and not Apple.

Kodak has been aggressively claiming its patents in an effort to produce capital to sustain its operation. However, the efforts were still insufficient, prompting it to declare bankruptcy under Chapter 11 in New York. Kodak failed to adapt to the technological advances in digital photography which, ironically, it invented.

US Grants Patent to MorphoSys

MorphoSys is on the height of creating antibodies as they receive the US patent intended for MOR202. The world’s leader when it comes to forming the technology for antibody is proud to have received the patent that is to expire on 2028. However, it is said to be exclusive of any extensions that may be due to regulations.

The said antibody is known to give therapeutic cure to myeloma of multiple forms and even several types of leukaemia. Patients who are currently suffering from a relapsed myeloma are now being subject to the human HuCAL antibody in Phase I/IIa therapeutic tests. It is also a medical development fighting against the deadly cancer cells. MorphoSys has generated this antibody. Having undergone a crucial medical engineering procedure, it is declared as fully human. As studied by the medical experts of the company in four locations of the world, MOR202 or simply the HuCAL antibody to fight CD38, has the potential to be a cure against myeloma and leukemia. This finding is still the focus of the doctors who are experts in engineering and forming the medicines that can cure the incurable diseases currently suffered by many people today.

MorphoSys was established in 1992 as a company catering to the developing and creating antibody technologies that are fully human. This company has been an expert in this medical engineering technology field. In fact, several big companies have partnered with them to support the engineered medicines that are trying its way through the market. Some of these companies include Daiichi Sankyo, Novartis and Boehringer Ingelheim. Companies that are well-known all-over the world who have used the benefits of the antibodies developed by MorphoSys are Pfizer, Merck and Roche.

MosphoSys has come to pass the difficulties in proving themselves. And receiving the US patent for MOR202 is another milestone that serves as their green light for more developments yet to be found.