Jury In Sophos Trial Awards FNJN $15 million

By Lisa Thompson

Finjan (NASDAQ:FNJN) won its trial against Sophos yesterday and was awarded $ 15 million for the life of the patents. This was at the high end of the range that an expert witness suggested. The jury decided that Sophos infringed upon all eight patents. It also decided the infringement was not willful and that Sophos has not proved that the patents were invalid. We now need to see if Sophos will appeal this award. Yesterday Sophos stated “the verdict is the next step in an ongoing process, and it will consider its options, including appealing the decision.” If it does not appeal, Finjan expects to receive payment in Q4 of 2016 or Q1 of 2017. If Sophos does decide to appeal, and the court does not overturn the ruling on appeal, collection could drag out until Q1 2018. In order to be conservative, and in light of the fact that the litigation with Sophos has been going on for six years, we are not increasing our 2016 or 2017 estimates at this point because we assume this case will be appealed. Once we know it is not, we will put the $ 15 million into our estimates. Because of this win, other potential licensees will have further impetus to strike a deal, and the preferred stock should be redeemed even more quickly.

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