Here’s The Secret In ParkerVision, Inc. (NASDAQ:PRKR)’s Patent Deal With Samsung


Finally ParkerVision, Inc. (NASDAQ: PRKR) and Samsung Electronics Co Ltd (KRX: 005935)(OTCMKTS: SSNLF) have agreed to put down their weapons and work together. ParkerVision has announced reaching a settlement with Samsung regarding a long-running patent dispute. But the companies are keeping some secrets and the most outstanding one is the financial details of the settlement.

ParkerVision, Inc. (NASDAQ: PRKR) clearly stated in a press release that it has agreed with Samsung not to reveal the specific financial terms of their deal. We don’t why, but it is also not strange because many companies agree to shield their patent deals.

But the fact that ParkerVision has agreed to a settlement with Samsung indicates that the terms of the agreement are favorable for its shareholders because it has been the complainant in the patent litigation.

Dropping litigations

The settlement paves the way for Samsung and its affiliates to use the portfolio of ParkerVision’s worldwide patents. With that, ParkerVision has agreed to dismiss claims against Samsung in two U.S. District courts and at the U.S. International Trade Commission.

As such, what you can see is that ParkerVision, Inc. (NASDAQ: PRKR) has reached a settlement as well as patent licensing deal with Samsung.

It is not clear whether the companies will keep the financial terms of their agreement secret forever or they will release the information at some point in the future. But investors will be closely looking to see what impact the settlement has on ParkerVision’s financial performance in the coming quarters.

The company generated revenue of $0.06 million and posted EPS loss of $0.45 in 1Q2016.

Pending patent litigations

Samsung is not the only company that ParkerVision, Inc. (NASDAQ: PRKR) has had patent issues with. The company took Qualcomm, Inc. (NASDAQ: QCOM) to court and managed to win a $176 million compensation but the ruling didn’t stand for long as it was later overturned. But ParkerVision still has ongoing patent litigations with Apple Inc. (NASDAQ: AAPL) and LG Electronics.

Equity fundraiser – ParkerVision, Inc. (NASDAQ: PRKR)

ParkerVision, Inc. (NASDAQ: PRKR) recently announced raising $3 million in gross proceeds from an equity placement deal. The company sold nearly 1.1 million shares of its common stock at $2.75 apiece. But ParkerVision didn’t disclose what use it has for the money.


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