Canaccord's Comments - FP Article Shares of Wi-LAN Inc. jumped nearly 10% on Wednesday after the United States Patent and Trademark Office confirmed the validity of the V-Chip (’402) patent and has allowed the addition of 30 claims.
This news will now tip the balance of power in favour of Wi-LAN since the company will be able to move forward more aggressively with the patent, according to Eyal Ofir, technology analyst at Canaccord Genuity.
He noted that the V-Chip licensing program has been at a standstill since Wi-LAN received an initial negative ruling in the LG case late last summer, while this patent re-examination has been ongoing.
The analyst expects this licensing program will be bolstered by the addition of 30 new patent claims, as well as the company’s acquisition of 1,400 Digital TV and Display patents in December.
In our opinion, this announcement, along with the anticipation of the Markman hearing scheduled for late April, could result in momentum returning to the stock,” Mr. Ofir said, reiterating his buy rating and $8 price target on Wi-LAN shares.
He recommends establishing positions in the stock ahead of this event and more positive news going forward.