BETHESDA, Md., March 7, 2016 /PRNewswire/ -- Spherix Incorporated (Nasdaq: SPEX) -- an intellectual property development company committed to the fostering and monetization of intellectual property and the advancement of technology, released a letter to shareholders. The text of the letter is below:
To My Fellow Shareholders:
We enter 2016 with increased optimism, after a challenging, yet ultimately productive, 2015. We took significant steps and achieved meaningful milestones last year. We now have the opportunity to diversify business and position Spherix for success in 2016. I am excited to share our vision and objectives for 2016 and beyond.
Over the past several years, the patent monetization industry has evolved. There has been rising resistance by potential patent licensees to resolve patent disputes in a fair and reasonable manner. In our assessment, many potential licensees would rather wait to see if a company will fail, rather than reach a fair and reasonable settlement on technology they are using without adequate remuneration.
This approach by potential licensees to request for fair and reasonable licenses is disappointing. However, as the patent monetization space evolves, we will evolve with it. This year, we intend to partner with much larger patent monetization organizations that have the financial resources to maximize our assets. Our goal is to drive long-term shareholder value through partnerships that will initiate litigation across numerous technology sectors, including: routers, switching, networking, optical, and internet service. Multiple litigations, against multiple licensees, in multiple technology fields will help to optimize potential revenue generation. With an expansive addressable market we believe to be more than $50 billion, our strategy should position us to pursue and capture licensing revenue from a broad spectrum of technology companies that today utilize technologies protected by our patents.
This strategy is now available to Spherix, as a result of the satisfaction of our preferred stock payment obligations and the termination of all security interests on our assets. Prior to the end of 2015, we did not have the right to leverage our portfolio in such a manner. Our focus during the last few months has been on resolving this challenge, and I am pleased to report that we have completed this initiative.
Our strategy is well positioned in light of what appears to be the end of proposed patent reform legislation for 2016. As noted in the February 23, 2016, Washington Times article by Kellan Howell, patent reform legislation proposed by Rep. Bob Goodlatte of Virginia is stalled and unlikely to reach the Senate or President Obama's desk this year, according to the author. The removal of this cloud on the sector and the ability to diversify revenue, should position us for a strong 2016.
Another milestone for 2016 includes the continued discussions with RPX, as are required under the partial license sold to RPX in November of 2015. Spherix is committed to continuing those discussions in good faith and we hope to reach a fair and reasonable license. By agreement, these discussions can continue until May 23rd of this year. If an agreement is not reached by May 23rd, then the agreed "stay" on litigation expires and the number of potential licensees to our portfolio increases significantly.
Our goal is to create long term value for our shareholders. This value will be a direct result of our ability to derive revenue from the assets we acquired from Rockstar and others. Our new partnership approach will help drive revenue and cash flow by increasing potential licensing opportunities, while simultaneously decreasing our cash outlays.
The times have changed for our market sector and it is important for shareholders to know that we are aware of these changes and are pivoting to change with them. Prior to the vote on our recent reverse split, I spoke to many shareholders and listened to your comments and concerns. I have taken your feedback seriously. Spherix is well positioned for a successful 2016 and I hope this letter provides clearer guidance on the road ahead.
I thank you for being a Spherix shareholder.
Chief Executive Officer
Spherix Incorporated was launched in 1967 as a scientific research company. Spherix is committed to advancing innovation by active participation in the patent market. Spherix draws on portfolios of pioneering technology patents to partner with and support product innovation.
Certain statements in this press release constitute "forward-looking statements" within the meaning of the federal securities laws. Words such as "may," "might," "will," "should," "believe," "expect," "anticipate," "estimate," "continue," "predict," "forecast," "project," "plan," "intend" or similar expressions, or statements regarding intent, belief, or current expectations, are forward-looking statements. While the Company believes these forward-looking statements are reasonable, undue reliance should not be placed on any such forward-looking statements, which are based on information available to us on the date of this release. These forward looking statements are based upon current estimates and assumptions and are subject to various risks and uncertainties, including without limitation those set forth in the Company's filings with the Securities and Exchange Commission (the "SEC"), not limited to Risk Factors relating to its patent business contained therein. Thus, actual results could be materially different. The Company expressly disclaims any obligation to update or alter statements whether as a result of new information, future events or otherwise, except as required by law.
SOURCE Spherix Incorporated