They say a company is judged by the company it keeps. What's less said - though never disputed - is that a company is equally judged by the kind of talent it can attract... winning people tend to only work for winning companies. In that light, the fact that the newest chief of Endeavor IP Inc. (OTCBB:ENIP) is a former executive from the ranks of Rambus Inc. (NASDAQ:RMBS) and Tessera Technologies, Inc. (NASDAQ:TSRA) should underscore just how seriously the market should be taking ENIP. RMBS and TSRA didn't become large powerhouses by hiring folks who don't know what they're doing, and conversely, the fact that a former Rambus and Tessera Technologies guy was willing to step into the unknown and take the helm at Endeavor IP speaks volumes about the potential of the young company's IP portfolio.
The new Endeavor IP Inc. CEO is Rob Dhat. He's more than got the chops to handle the job. Prior to joining the ENIP management ranks he spent two years as the VP of Business Development for Tessera Intellectual Property... a subsidiary of Tessera Technologies, Inc. Prior to that, Dhat spent eleven years with Rambus, performing a wide range of technical management and marketing management tasks. His educational background is just as impressive and just as relevant. Mr. Dhat earned a bachelor's degree in electrical engineering from the University of Victoria, and earned an MBA from Wharton. Not only is his educational background a perfect blend of technological know-how as well a business acumen, Dhat also has fifteen years of real-world experience in the field where's he's leading a company now. In fact, it's hard to imagine a better fit for Endeavor IP than Rob Dhat.
Endeavor IP isn't the only publicly-traded intellectual property enforcement company out there. It is, however, the only one to focus on quality over quantity. Whereas other players like patent portfolio names like InterDigital, Inc. (NASDAQ:IDCC) and Vringo, Inc. (NASDAQ:VRNG) will literally buy patents by the hundreds - perhaps sometimes without even knowing what some of those patents even cover - in an effort to arm itself with any and every possible patent for any and every contingency. Most are likely worthless, which means companies like InterDigital or Vringo may have wasted shareholder money by buying IP that isn't capable of bearing revenue.
Care to guess how many patents Endeavor IP currently owns? Three, and it's only actively enforcing one of them right now. When the one patent is a really, really good one though, it's all a budding IP company needs. Well, as it turns out, ENIP has a really, really good patent. It's U.S. Patent No. 7,379,981 (aka the '981 patent), entitled "Wireless Communication Enabled Meter and Network." While Endeavor IP Inc. is currently litigating or preparing litigation for four cases based on the 981 patent, four other companies have already entered into a royalty agreement with ENIP for the rights to use the technology described by 981.
It's not luck that a three-patent company - a young one at that - has a patent that's already bearing revenue. It's by design. Endeavor IP Inc. has been carefully and deliberately seeking out high-odds, low-risk, and cost-effective patents. Clearly the approach works. It'll be interesting to see which other patents the company digs up and adds to its arsenal in its future. And, given Rob Dhat's experience and rolodex, it'll be interesting to see just how much the company can do with this focused approach to patent protection. One thing is perfectly clear right now though... Rambus and Tessera Technologies' loss is ultimately Endeavor IP's gain, and ENIP is worth a much closer look from small cap fans.
For more on the company, visit the Endeavor IP website here, or review the SmallCap Network research report here.
No comments:
Post a Comment