Unwired Planet Inc (NASDAQ:UPIP) stock gained by a huge 50 percent during trading on 21st March, on the back of company disclosing the previous day, that it had sold a part of its patent library consisting of 21 patents to Chinese Hardware firm Lenovo. In exchange, the intellectual property focusing firm received a total of $100 million.
Steady Per Unit Royalty
In addition, the two firms have also inked a separate agreement whereby another set of patents and licenses owned by Unwired Planet Inc (NASDAQ:UPIP) can be accessed by Lenovo for a recurring royalty. The royalty would be applicable per unit and the hardware make has concurred to make a substantive upfront payment for this royalty payout.
Win Win Deal
Expressing his happiness at the conclusion of this complex negotiations, into mutually agreeable contract, Unwired Planet Inc (NASDAQ:UPIP) Chairman Board of Directors and Intellectual Property Committee head Philip Vachon has been quoted to have said that, “ We thank Lenovo for their vision to reach agreement with us on a consensual non-litigation basis. It was actually pretty refreshing not to have deal with the usual legal drama of the patent world. The cost to both of us in this transaction was relatively minor. Each paid our own fees and expenses for the deal. No contingent fee or ROE patent words will participate in this licensing agreement”.
Incremental Addition Of Patents
Insiders at Lenovo, who have been privy to the decision of purchase of patents have let it be known that this move is a incremental increase in the huge portfolio of patents that the Chinese company holds and have indicated that with the latest augmentation in its IP, the firm is all set to increase its products and presence in the smart phone and tablet markets. The firm has been looking at expanding its product portfolio to address the needs of all levels of the target market segment.