ParkerVision reaches settlement with Samsung for license of its patents

ParkerVision (NASDAQ:PRKR) reached a settlement and license agreement with Samsung (OTC:SSNLF), announcing it before trading on Monday, July 18. The financial terms of the settlement are confidential.

Samsung will hold a worldwide license to use ParkerVision's patented material in its huge number of cell phones, which had been the subject of ongoing litigation by ParkerVision against the company. ParkerVision also moved to dismiss two federal lawsuits against Samsung and agreed to dismiss the company from its complaint with the International Trade Commission for patent infringement.

ITC hearing for Apple, LG and Qualcomm still scheduled

As we previously reported, the U.S. Supreme Court recently overruled the U.S. Court of Appeals for the Federal Circuit by removing the stringent test the lower court had required patent owners to meet in order to recover punitive damages for willful patent violations. This ruling, which was issued on June 13, cleared the way for ParkerVision to recover potentially very large awards in its patent infringement cases.

The company has a pending ITC hearing that is scheduled for Aug. 24 through Sept. 1 against Apple (Nasdaq:AAPL), LG, Qualcomm and Samsung.

In its settlement agreement, ParkerVision agreed to file a motion to dismiss Samsung from the case, but the hearing is still scheduled for the other three major cash rich companies.

The infringement suit involves all four companies violating four separate patents held by ParkerVision. ParkerVision previously won a case against Qualcomm for an award of $173 million, but that case was later overturned by the Supreme Court on appeal.

Stock soars during trading on July 18

Following ParkerVision's settlement announcement, its stock started to soar in very active trading on Monday, July 18. By late afternoon, the share price was up by 94.81 percent to $6.94 per share. The share had earlier reached a high of $8.18 before dropping back slightly. The company's last closing price on Friday, July 15, 2016, before this victory, was $3.56 per share.

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Conclusion: Buy now

Because of the Supreme Court ruling and the settlement with Samsung, the other three companies may feel increased pressure to also quickly negotiate settlements with ParkerVision in advance of the hearing that is currently scheduled for Aug. 24 through Sept. 1.

If ParkerVision is successful at the hearing or if it reaches settlements with the remaining companies, it stands to further monetize the patents it holds, bringing the potential for the stock to increase even further.

We recommend investors who are not risk-adverse consider buying shares now in advance of the scheduled hearing.

We have closely followed the story as noted in the two earlier links above as well as here and here for full reference.