From Pearle site....
The following is an excerpt from BOTTOM-FISH ACTION FOR WEEK OF OCTOBER 25-29, 1999, Tuesday, November 2, 1999
Copyright 1999 John A Kaiser
Patent Enforcement and Royalties Ltd.
Patent Enforcement and Royalties Ltd. (PAL-C: $0.30), also called Pearl, has agreed to fund an Internet patent violation claim that will probably not amount to anything, but will generate publicity far more valuable than associated legal costs. On October 27 Pearl announced a deal with UFIL Unified Data Technology Ltd. which gives it 50% of all revenues received by the patent holder from three infringing parties affected by a court settlement or victory. UDTL owns US Patent 5,684,985 covering "technology that allows different forms of stored digital documents to be searched and accessed more efficiently on the Internet". The patent was granted one week after a standards body called the World Wide Web Organization adopted a "metadata" standard called the Resource Description Framework (RDF). Don't ask me what that means, but it is something that is only starting to be incorporated into Internet browser and search engine software. The WWWO's response will likely be that the patent should never have been granted for this technology, but before the issue gets settled it should generate lots of controversy. At the moment the infringing parties do not even know that they are using technology for which a patent exists. Pearl is presently negotiating with an attorney that specializes in Internet technology claims to handle the case. Although there has been no action in Pearl's market, the junior has been in contact with American groups interested in an Internet patent lawsuit stock promotion. A more mundane development for Pearl is the recent decision on October 15 by a US court judge to deny Conair's motion for summary judgement on Dr. Harry Gaus' claim that his patent on a hairdryer fuse designed to prevent electrocution upon immersion in water is being violated by Conair. The case can now proceed to trial sometime in 2000. Conair is a private company with revenues estimated at about US$700 million. It is a dominant manufacturer of small appliances, particularly ones used by the haircare industry. Conair has until now stonewalled the patent holder, who initiated legal proceedings in 1994. Historically plaintiffs have lost only 10% of patent infringement cases that have proceeded to trial. What would a settlement or victory be worth to Pearl and Dr. Gaus? For the moment they are not saying, partly because until they have reliable sales figures from Conair they do not know a reasonable settlement range. Pearl's game plan is to get involved in a number of patent infringement lawsuits. An early victory would give its story a big boost. Given the nasty publicity that the new RDF case is also bound to generate, I am elevating Pearl to a Top Priority Bottom-Fish Buy in the $0.30-$0.49 range. Tel #: (416) 860-1438.