SPHERIX COMPLETES $60 MILLION ACQUISITION OF ROCKSTAR IP ASSETS

Spherix recently completed a $60 million acquisition of IP assets from globally recognized technology innovator, Rockstar Consortium.

Rockstar's IP leadership is based on technology it acquired for over $4.5 billion from the famed Nortel Networks.
Nortel and its acquired companies spent over $30 billion dollars between 1995 and 2009 and employed more than 10,000 R&D employees at numerous sites including Ottawa, Massachusetts, Texas, California and Ireland. These employees made up a dynamic and rich research organization that excelled in innovation and the development of new technology, some of which often found its way into industry standards.
This portfolio covers numerous aspects of access, switching, routing, optical and voice communication network devices.
Rockstar had never sold any assets to another public company.Rockstar is Spherix’s largest shareholder.

PATENTS ACQUIRED FROM ROCKSTAR - MARKET OPPORTUNITY

The patents in this portfolio cover a large set of products in the telecom and networking area, spanning the range from access to core, from enterprise to service provider and from the application layer to underlying transport. There are standards related patents and those that will be found in the product implementations of various vendors. Rockstar estimates that the Total Addressable Market was over $20 Billion dollars in 2013.

The portfolio is made up of 37 families composed of a total of 101 patents and patent applications. The portfolio is predominantly composed of US assets including 45 granted patents and 13 pending applications. Ten families have foreign counterparts made up of 34 granted foreign patents (primarily in Germany, France and Great Britain) and 8 foreign applications.

SPHERIX LICENSING SEGMENTS

  • Access

    The access market can be further broken into Ethernet, PON, Cable, DSL. These technologies often incorporate switching and routing functionality in the service provider termination devices like OLTs, CMTSs and DSLAMs.

  • Data

    The data market can often be broken down in a number of ways; one form sees delineation by customer: Enterprise, Service Provider and Consumer. Another method of categorizing the market is by the functionality of the network element – most notably switching and routing. Some analysts go even further and delineate the switching and routing by network layer, products can span layer 2 (data link) typically considered the layer at which switching occurs, layer 3 (network) the layer that routing occurs at, or layer 4-­‐7 (transport through application) often called the application layers. Ethernet is the most common layer 2 technology in use today, but there still is a large market for older technologies such as private line, ATM and Frame Relay.

  • Optical

    Optical transport is largely used in the service provider space though there are a limited number of verticals in the enterprise space that purchase their own equipment (e.g., financial services). Distance over which optical devices are used typically segments the market, the two main categories being long haul (inter-­city) and the metro (in-­city). The market also can be categorized into devices that simply transport signals from point to point, those that are used to add and drop traffic and those that can switch optical traffic.

  • Voice

    The voice area is much more fragmented, with numerous lines of products available. There are call servers, contact center servers, unified messaging and voice response systems along with IP phones and numerous other potential applications that can be customized and added.