There’s word on the street that Modavox, Inc. (OTCBB: MDVX) may spend some more time in the courtroom. The broadcast media/interactive media company holds various Internet advertising ads, and last year slapped Tacoda, a division of AOL (TWX), with a patent infringement suit.
The company’s broadcast media division generated roughly 80% of revenues last quarter. Its interactive media division develops behavioral targeted advertisements paired with interactive e-learning solutions – and that is where the issues begin. According to a contributing source of an editorial on SeekingAlpha.com, Tacoda may be viewed as a “test case.”
News of the Modavox’s lawsuit made ripples in the small-cap world last year, and some believe it’s the break of the new wave of behavioral advertising competition. We can distinctly remember the August day when Modavox released the news it would “take on” Tacoda, backed by Internet giant AOL. Journalistic lines were abuzz with questioning shareholders as the story topped small-cap headlines for weeks.
“Modavox’s commitment to innovation has yielded highly valuable patented intellectual property. Our management team, in conjunction with Fox Rothschild LLP, made a strategic business decision to design, create and execute a comprehensive plan in support of our patented process and technologies,” David Ide, CEO of Modavox previously stated. “We knew that decision would likely include pursuing enforcement through the legal system, and we are confident that the action we have taken today is an appropriate step on behalf of our shareholders and believe it will allow us to begin to reveal the true value of our patented intellectual property.”
Since then, AOL and Yahoo recently purchased such advertising companies, and, according to common speculation, if Modavox wins its suit, its Interactive Media division will take the spotlight.
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