Stocks Digest LLC

Stocks Digest LLC

April 24, 2012 09:27 ET

Must Own Patent Portfolio Plays: Motorola Mobility Holdings Inc. (MMI), Intel Corp. (INTC), General Electric Co. (GE) & SEFE Inc. (SEFE)

NEWARK, DELAWARE--(Marketwire - April 24, 2012) - What do Motorola, Intel, GE, and SEFE all have in common? This may come across as ubiquitous bunch, with one company standing out as an unlikely peer within the group. Four of the five are multi billion dollar companies, having existed for decades, and all created a valuable niche within their respected industries. Yet there is a common bond which unites each and every one of these companies. There is a demand for strong patent portfolio protection. And as a result - each has dominated within their niche.

Let's take a look at what a strong patent portfolio does for a company. Motorola (MMI) came into 2011 with over 25,000 patents and patent applications worldwide. Their patent portfolio generally relates to wireless, audio, video and security. It's so valuable that Google (GOOG) paid $40 per share for the company, strictly for their patent portfolio to help protect the Android Ecosystem.

Intel (INTC) recently paid $120 Million to Real Networks (RNWK) for 190 video-related patents, and 170 patent applications.

Meanwhile GE (GE) has vastly outpaced all of their competitors in IP protection in many industries; however their primary focus is green energy and wind turbines. GE owns over 20% of the patents and applications in the sector, and is the top utilizer of the "Green Patent Fast Track" in the USPTO.

GE is also famous for identifying key technologies which are required within the industry at a future point in time, such as power factor control, VAR support or more recently curtailment, and then develop a multi-patent "fence" around those technologies. They also look to bracket around their competition with patents. This is the result of GE's focused brainstorming approach in taking a broad based view of identifying key developments and acquisitions.

Facebook Inc., awaiting a landmark initial public offering, is shelling out $550 million to shore up its patent arsenal amid escalating tensions in a legal dispute with Yahoo Inc. (YHOO).

The social network struck a deal with Microsoft Corp. (MSFT) to buy 650 patents, a portion of the patent portfolio the software giant agreed to buy earlier this month from AOL Inc. (AOL) in an auction.

Enter SEFE: Can they be the next acquisition candidate?

SEFE Electric has introduced several patents in the last few weeks, which have coincided with tremendous appreciation in their stock. SEFE is an innovative research company with the potential to provide much of the world with virtually unlimited cheap power. Only one company has the innovative ability to pull static electrical energy out of the atmosphere, and convert it to a usable electric form - that is SEFE electric.

Being the first of it's kind in this unique industry, there is a direct need to be protected moving forward. This is in the form of Intellectual Property - or Patents as they're commonly known. Simply put, when SEFE registers their proprietary technology with the government, a process which can take more than a year, they gain the legal right to exclude anyone else from manufacturing or marketing it. Now that they own the rights to several patents, and have 26 more in various stages of approval, SEFE can license their products and collect significant royalties from anyone else who attempts to use it. This is part of what makes SEFE so valuable. And this is specifically why SEFE is a perfect take over candidate.

In many cases, Intellectual Property can have far greater value than physical assets. This is specifically why SEFE implemented a firm strategy of staking out a strong intellectual property position within the atmospheric energy realm -- offering protection for the technology as well as increasing value for shareholders.

Let's examine some of SEFE's patents in the news recently.

SEFE, Inc. Highlights Patent for Strain Reduction System

SEFE explained the applications of a pending patent for Strain Reduction On A Balloon System In Extreme Weather Conditions. the patent-pending strain reduction system is achieved by using an elastic bungee between a balloon and the tether attached to the balloon. As wind pushes on the balloon, immediate pressure caused by the wind is absorbed by the elastic bungee rather than the balloon or the tether, thereby reducing immediate force and tension and protecting the components from damage. The patent for the strain reduction device was filed with the U.S. Patent and Trademark Office as application #13/103,988 on May 9, 2011.

SEFE Introduces Patent-Pending Atmospheric Energy Collector

The Atmospheric Energy Collector is a proprietary invention that puts the Company one step closer to bringing its revolutionary technology into reality within the $300 billion-plus clean energy industry. The Atmospheric Energy Collector, assigned pending patent 13/103,963 by the USPTO, includes a windsock arrangement that has a large upwind opening on one side tapering to a small downwind opening on the other side. The upwind side is secured to a tether made from an electrically conducting material. The windsock, extended outward by wind, collects the atmospheric energy and transfers it to the tether. This patent was filed with the USPTO on May 9, 2011.

SEFE Highlights Pending Patent 13/106,759

This patent covers the Collection of Atmospheric Ions, and involves a method for collection of atmospheric ions using parallel plate collectors that are part of the Company's proprietary Harmony III unit. A voltage source, collected from energy in the ambient air, can cause a high electric field between those parallel plates, resulting in an electron avalanche that then causes electron multiplication. The energy associated with these multiplied electrons can be extracted and studied, giving insight into where the most abundant source of atmospheric charge is located.

SEFE Inc. Receives Patent for Dynamic Electrical Converter System

SEFE is the recipient of U.S. Patent #8,102,078 issued by the United States Patent and Trademark Office (USPTO) for a "Dynamic Electrical Converter System." The dynamic electrical converter system receives the variable voltage collected by the Harmony III airborne unit from static electricity in the atmosphere, and converts it into a usable electrical configuration. This system includes a monitor to check the incoming voltage as well as multiple converters, each of which can accept a unique range of voltages and create the desired electrical output. The issuance of this patent further establishes SEFE's core technology as the owner of foundational atmospheric energy technology. The patent was filed on September 4, 2008.

SEFE has procured themselves as a prime takeover candidate by investing the necessary time and resources to secure these and other patents. The only way for GE or another multinational to break into this niche would be to acquire SEFE and their patents. Can SEFE be the next big patent play in the press?


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