www.amphionplc.com
Amphion builds shareholder value in high growth companies in the medical and technology sectors, by using a focused, hands-on company building approach, based on decades of experience in both the US and UK.
Amphion has a significant shareholding in 8 Partner Companies developing proven technologies targeting substantial commercial marketplaces, each in excess of $1 billion. Each Partner Company is chosen with the goal of achieving an exit valuation in excess of $100 million.
Amphion Innovations shares rise as DataTern patents are reinforced
Amphion Innovations (LON:AMP) shares gained over 15 per cent this morning following positive news about the group’s ‘402’ US patents that have been re-examined by the United States Patent and Trademark Office (USPTO).
DataTern Inc, Amphion’s wholly-owned intellectual property business, has received confirmation that 20 of its original claims can be patented. It has also clarified three patent claims that were added during the re-examination process.
The group has been working to reinforce its IP position in recent years. In 2009, it had its group of ‘501’ patents re-examined and approved – this kept all original patents intact and added 26 new ones.
It says today’s determination by the USPTO is an important part of the further validation of the group’s outstanding patents.
"This outcome is an important validation of the strength of DataTern’s IP,” said Amphion chief executive Richard Morgan.
“Both key patents 402 and 502 have now been re-examined by the USPTO with positive outcomes.”
DataTern said that the positive outcomes for both the ‘402’ and ‘502’ patent re-examinations increases its confidence in the fundamental strength of the technologies and patents.
Furthermore, Ampion explained that DataTern is currently enforcing its patents against companies that are using the patented technology without permission.
“The result is another important milestone for the development of our IP program with our new legal partners McCarter & English LLP.
“We look forward with increased confidence to positive results in the existing cases and gaining additional licensing revenues from these and other companies using our technology in the future."
In a note to clients today Seymour Pierce analyst Dr Mike Mitchell said that today’s news is an important event in the context of DataTern’s IP licensing programme, although he says investors unfamiliar with the group may not see the immediate significance.
“In a nutshell, DataTern owns two key patents in the field of relational databases (the ObjectSpark patents, commonly referred to as the '402 and '502 patents) which are fundamental elements in the company's IP licensing model which has been delivering license income from a host of well-known customers/developers,” the analyst explained.
He added: “The successful re-examination of both the '502 and '402 patents is not only a general reflection of the quality of the ObjectSpark IP, it also signficantly strengthens the company's position in terms of its platform to pursue licensing agreements with large players within the field.
“We highlight the fact that the filing of a Declaratory Judgement by Microsoft and SAP effectively placed the burden on DataTern to demonstrate the validity of its IP: today's announcement significantly underpins DataTern's position and, we believe, potentially significantly increases the chance of delivering fair license agreements where it has legitimate claims against infringing parties.”
Mitchell says Amphion is fundamentally undervalued. Seymour Pierce rate Amphion as a ‘buy’ with a 10p a share target price.
Shares in the AIM-listed group rose 0.62p, or 16 per cent, to 4.38p.
