In a brief letter to shareholders of Spherix Inc (NASDAQ:SPEX), the company’s CEO, Anthony Hayes, disclosed how much the company is will receive from a recent license agreement. The amount is $4.38 million and it comes from RPX Corp. (NASDAQ: RPXC), marking the second license agreement between the two companies.
Hayes did not directly reveal the plans they have for the $4.38 million license payment from RPX Corp, but he did detail where the company wants to be in the future. Although Spherix Inc. (NASDAQ: SPEX) has for years operated like a patent troll, the company is considering a diversified business model.
When you read Hayes’ letter carefully, you get the sense of a management trying to reduce Spherix’s exposure to risks and limiting operating costs. If risks can be lowered and costs contained, Hayes believes shareholders will be able to smile all the way to the bank.
Continuing with pursuit of offenders
Monetization of intellectual property will continue to be Spherix Inc. (NASDAQ: SPEX)’s core business for the foreseeable future. For example, Hayes left no doubt that they will continue to pursue those who they deem to be infringing on their patents. Although the issue with RPX Corp is settled, Hayes said that their litigation against Uniden, TW Telecommunications, L3 Communications and Fairpoint Communications will continue.
Tweaking patent monetization strategy
However, Spherix has reached an agreement with an entity known as Equitable IP that is expected to narrow its downward risk in patent monetization efforts but maximum value for the company.
In the future, Hayes said that Spherix will restructure how it monetizes patents. For example, the company will only acquire a percentage of a patent from the holder and try to monetize it. The strategy will is expected to lower patent maintenance costs for Spherix, thus boosting the bottom-line.
Spherix Inc. (NASDAQ:SPEX) and Non-patent monetization business
Spherix Inc. (NASDAQ:SPEX) is also working to diversify its revenue streams so that it reduces reliance on patent monetization for revenue. Hayes said they are currently in the process of exploring opportunities for the non-patent monetization operation and they hope to have something on the table by the end of the year.