Nothing is likely to change under the new regime. The Obama Administration seems to be targeting frivolous lawsuits, often for small amounts of money that are cheaper to settle than defend in court. Acacia normally has a high financial threshold when it takes on new accounts. Small claims aren't worth its time any more. In fact, many new partners are Fortune 1000 companies with extensive patent portfolios. Key technologies they retain for themselves. But a growing number are partnering with Acacia to generate a return on their non core patents. The company has been expanding beyond the computer and communications area over the past few years, moving into medical, energy, and automotive in particular. It usually takes 12-18 months to analyze a new portfolio and develop a strategy to monetize it. Several large programs now are entering the royalty producing stage.
The outlook remains bright. Rising cash flow probably will be reinvested in additional patent portfolios, dividends, and stock buybacks.
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