March 17, 2010

Litigation time

In the last couple of weeks I have read a number of news regarding litigation conflicts among important players in the TMT scene. It is amazing how a ruling in one way or another might have such a huge impact on a company's strategy going forward. An unfavorable one may force a company to change its plans overnight because of the burden imposed. On the other hand, a favorable one may bring a considerable boost to a company's cash reserves or clear the way for future actions.

For instance, today I have read that Google's Nexus One smartphone is facing an unexpected hurdle since the US Patent Office's has refused to register the phone's name, due fact that the "Nexus" name is registered by Integra Telecom, a telco operating in the Western US. After the release of the phone it seems to me like Google will have to pay Integra big time. Didn't anybody think about some basic due diligence?

On a separate pre-litigation - or maybe for litigation avoidance - note, it seems like Google is determined to pull out of China. I do not know whether Google is the new "evil" or not but I do value that the company is not giving in to the Chinese Government's blackmailing to censorship and is willing to leave the biggest world market (and to forego some yummy dollars).

A few days ago, a court finally dismissed Dish's appeal against a Tivo's lawsuit for DVR patent infringement. Thus, Tivo will be entitled to receive $300m in damages. As a result, Tivo's stock jumped 62%!!

Even Spain is seeing some action in this regard. At a time where the main private FTA channels are in merger discussions , Sogecable, owner of Cuatro", will have to pay cable provider Ono around 90m euros due to abuse of dominant position and a breach of a distribution contract. Some claim that these rulings may severely harm Sogecable's strategic plan for the coming years.

No comments:

Post a Comment