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My notes from the Stockholder MeetingNotes from VHC Stockholder Meeting
Personal Observations: Kendall Larsen is a very strong leader and made a great presentation of where Virnetx came from, where it is today and where they will be tomorrow. I was extremely impressed with his presentation, his professionalism and his ability to hold his audiences attention. He will do great next week at Cowan. I hope I can do justice in relating his comments. All the presenters Mr. Kendall Larsen, Mr. Robert Short and Mr. Victor Larsen know their product and do an excellent job in presenting it. Mr. Greg Wood does a good job in IR and greeted all attendees warmly. I certainly enjoyed meeting all from the IV and Yahoo boards. Mr. Larsen’s comments follow: Many of the things we already knew or had partial knowledge of, however clarity was given to me on many of the points. 1. The 135 and 180 patents are the core patents and both have passed 100% (which is extremely unusual) reexamination by the USPTO. The Patents were developed in 2003 and have 10 years remaining. 2. All the vendors being sued will be required to license from Virnetx in the future. 3. ETSI is not an European standard, it is a worldwide standard and Virnetx products will be licensed worldwide. Virnetx BET THE FARM when they declared the patents essential in December 2009. They would not have taken this step without first doing substantive research to make sure they were on solid footing. 4. The 211 patent issued in April was quickly added to the current lawsuit. 5. The second suit against Avaya (old Bell – Lucent company) and Siemens will be large. 6. 654 patent issued 5/17/11, sorry I didn’t make note of the comment. 7. As to the value of Virnetx, you are only seeing the tip of the iceberg, 90% of the value is below water. 8. Size of market: 120 Billion 2011 150 Billion 2012 180 Billion 2013 200 Billion 2014 Over 200 Billion 2015 Virnetx licenses will be 1% - 2% with 1% being the absolute minimum. License will require a volume commitment on the part of the licensee. The license royalty paid by the licensees will be based on the wholesale export price (Not retail). VHC will have 80% of the market. 9. 3GPP was optional as to the standards, 4G LTE will be mandatory. 10. They are not working with Intel. 11. VHC owns VPN technology period. 12. When they started the company, they had 15 patents and 32 applications for patents submitted. Today they have 60 patents and have submitted 100 applications for patents. 13. Gabriel goes across multi platform environments and multi device environments. Floyd and another gentleman ( I believe he is called oneguy but I am hard of hearing and not quite sure) from the board was there during their demonstration and I am sure they will be able to give you better technical updates then I am. However, the demonstration of Gabriel put on by Mr. Robert Short and Mr. Victor Larsen was very impressive. 14. Virnetx will market two products the Patent license and a Technology license. 15. They are working on determining how best to market SDNI whether it be by license, Joint Venture or build it themselves. 16. Kendall said they have a top 5 in the world patent portfolio. 17. They don’t file suit frivolously, they only file what they are confident they will win. 18. Some of Microsoft products are not covered in the license they have (Kendall said to stay tuned). 19. The current two lawsuits are both 9 figure deals. 20. Can you assume licensing negotiations are going on? Yes. Can we announce today no but will be forth coming. 21. Virnetx is and will always remain stockholder friendly. Kendall is the largest shareholder and is not selling. Actually he said to STAY LONG. I know there is more but that’s the best I can decipher on my notes at this late hour. I can only say that the two days it took for me to attend this meeting was well spent. My belief in the company was strong before, now it is rock solid. Disclosure: I am long VHC and intend to add to my holdings. I don't guarantee that my notes on all the above to be 100% accurate, I just did my best. |
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Msg # | Subject | Author | Recs | Date Posted |
9375 | Cool! | embraceyourinnerhillbilly | 1 | 5/27/2011 1:47:52 AM |