Supreme Court decision clears way for large punitive damages awards for patent infringement cases
On June 13, 2016, the Supreme Court of the United States cleared the way for patent owners to win large punitive damages awards against willful patent infringers if they are successful in their claims.
This decision has the potential be a boon for ParkerVision (NASDAQ:PRKR), which is currently embroiled in an ongoing federal lawsuit and a corresponding complaint with the International Trade Commission involving patent infringements of four of ParkerVision's patents.
The decision overruled the precedent that was set by the U.S. Court of Appeals for the Federal Circuit. This court is a specialized one that hears appeals of patent infringement matters. The Supreme Court's ruling overturned the lower court's stringent rules that previously had to be met in order to win punitive damages.
ParkerVision's (PRKR) lawsuits are filed against Apple (NASDAQ:AAPL), Qualcomm (NASDAQ:QCOM), Samsung and LG. The company previously won an award in the amount of $176 million in a previously filed lawsuit against Qualcomm that was later overturned.
The upcoming results of the lawsuits or possible settlements will determine the near term and medium term direction of the stock price. The company is clearly a speculative buy for aggressive investors.
ParkerVision's ITC complaint scheduled for hearing in Aug. 2016
As we previously noted, ParkerVision's ITC complaint is scheduled for an upcoming hearing from August 24 to September 1, 2016. If the complaint is successful, ParkerVision's stock price should increase substantially, as it will be able to finally monetize the patents it holds.
Brickell Key Investments has provided funds in the amount of $13 million, half of which are restricted funds that ParkerVision is to use in its patent enforcement litigation. BKI's investment was made with the understanding that it would be repaid out of the future enforcement actions, indicating BKI's strong belief in the potential success of ParkerVision's complaint and lawsuit.
The venerable Boston law firm of Mintz Levin is representing PRKR. The firm has a meaningful success history in the complicated IT litigation space.
ParkerVision files patent infringement lawsuit against LG in Germany
In addition to the company's pending U.S. federal lawsuit in Florida and its pending ITC complaint, the company recently also filed a patent infringement lawsuit in Germany against the German subsidiary of LG.
ParkerVision is seeking damages and injunctive relief for the infringement of patents involving the subsidiary's devices that have been offered, placed on the market, introduced or offered in the country.
Recent performance
As of the morning of June 20, 2016, ParkerVision was trading at $3.35.
As we previously noted, one optomistic Wall Street analyst has set a price target of $18.50 for the stock. If he is right and the company settles and/or wins their lawsuits, PRKR shareholders could reap a large upside.
With the pending complaint, the vote of confidence from BKI through its provision of funds, the recent Supreme Court decision and the filed suits in Florida and in Germany, the company could see some meaningful move to their stock price in 2016.
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Conclusion
ParkerVision stock price appears to have the potential for growth if its complaint and corresponding lawsuits are successful. If it is successful, the company could then monetize the patents that it holds.
The company's deeply discounted price and the potential for patent settlements could translate into meaningful growth in it's stock price during the remainder of 2016 and 2017.
We recommend that only aggressive investors buy shares of ParkerVision at this time.
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