Spherix Inc (NASDAQ:SPEX) on 27th March, came out with two announcements which were of immediate consequence. The announcement that hit the newsrooms was its raising of close to $4.4 million in funds via the placement of its common stocks and warrants through a private placement firm Laidlaw & Co Ltd. The funds would be used by the firm which is into the business of gathering patents and intellectual property, which it later lets out to companies for a recurring royalty. The funds thus generated would be used by the firm for its general corporate operations.
The second announcement to come through in the day from Spherix Inc (NASDAQ:SPEX), had a much wider impact, since the ramplifications would have bearing on much bigger tech firm CISCO. The firm disclosed that it has initiated a suit in a federal court against Cisco in order to impose its patent rights on certain technologies which are allegedly being infringed upon by the bigger tech firm. The Bethesda based firm is seeking $43 billion in damages from all the business it has lost due to the patent infringement.
11 Patents Used By Cisco Are Being Questioned
The eleven patents which have been red flagged by the tech firm as being infringed upon by CISCO came into Spherix Inc (NASDAQ:SPEX) stables when the firm both the same from ailing network major Nortel Networks in December of last year. The patents in question are being used by CICSO in most of its router and switch products as per the lawsuit filed in United States District Court for the District of Delaware.
$43 B – Damages Over Past 5 Years
Spherix Inc (NASDAQ:SPEX) has tried to make a case that in the past year, Cisco made $6 billion from sale of switches, while it made $3 billion from sale of routers in U.S alone by making use of technology which is patented to the itself. It hence has sought damages of $43 billion to account for the past 5 years of sales that Cisco has been carrying on with products bearing Spherix Inc (NASDAQ:SPEX) patents.