March 11, 2015

IP HAWK
Acacia Research Group (ACTG)
Huawei License, German Injunction, New Litigation Filed,
Nokia Siemens Markman Opinion

David Hoff

David Hoff
iphawk@outlook.com
Founder
@theiphawk
iphawk@outlook.com
http://theiphawk.blogspot.com

Thoughts From the Hawk

Acacia Research Group (ACTG) announced this morning they have licensed Huawei to a royalty bearing agreement in their
VoiceAge / Saint Lawrence Communication portfolio. While the details have not been released I am estimating the deal size to be in
the $10-$15mm range. I estimate the Samsung license that was signed in Q2 2014 to be their 58% of revenue deal, which would
equal $29mm. Based on Huaweis presence in Europe and globally I believe this estimate to be fair. Actual results could be either
much lower or higher. When ACTG release Q1 2015 numbers the actual result should be able to be backed into and used for future
deals.
ACTG received very good news in their VoiceAge / Saint Lawrence Communication portfolio yesterday. In Germany they were
granted an injunction involving Telekom Deutschland GmbH, Sony Mobile, HTC, and Huawei. The company has hosted the German
version on their website. It appears to have already served as a catalyst as Huawei was announced as a licensee this morning. I
expect the injunction to serve as a catalyst to the remaining parties. The bullet points so far from my translation are as follows:
-

250,000 euros and up to six months in jail if the injunction is voilated.

Defendants paying costs of the proceeding.
$10,000,000 Euro bond to enforce an injunction.

There should also be language pertaining to a preliminary validity determination and which way the Mannheim Court is leaning. I
have not found the specific language as of this note. I am hopeful Acacia will release a full English translation.
ACTG also filed new litigation yesterday in the VoiceAge / Saint Lawrence Communication against Sony, Motorola, and ZTE in East
Texas. The three new cases allege defendants infringe five VoiceAge patents related to HD Voice. The new cases should add
leverage to negotiate license agreements.
The Nokia Siemens (Cellular Communications Equipment) subsidiary received their Markman Opinion yesterday March 10, 2015.
The oral hearing was held on December 16, 2014. Based on a first review it appears to be a clean sweep with terms being adopted in
favor of CCE. Also of importance, defendants motion for Summary Judgment of Invalidity for Indefiniteness was denied. Jury
Selection is set for April 4, 2016, which should provide enough time for Acacia and defendants to settle the cases. The CCE litigation
calendar can be found here on Acacias website.
Key Data
Price

$11.10

TTM Revenue

$130mm

Cash

$193mm

Enterprise Value

$373mm

Market Cap

$566mm

Shares Outstanding

50.95mm

52 Week Range

$11.00$19.93

3 Month Avg. Volume

622,363

I am long ACTG. I have not been paid to prepare or disseminate this report by Acacia Research Group or any company discussed. All information has been obtained from
public sources. All opinions are my own. Please consult a financial advisor before making any financial decisions.

March 11, 2015

IP HAWK
Acacia Research Group
Disclosure

David Hoff

David Hoff
iphawk@outlook.com
Founder
@theiphawk
iphawk@outlook.com
http://theiphawk.blogspot.com

Disclosure: I, David Hoff, own stock in ACTG. I have no plans to buy or sell any stock
within the next 72 hours. I wrote this report myself, and it expresses my own opinions. I have no business
relationship with any company whose stock is mentioned in the article.
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