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Why Spherix is up 148 Percent Monday (SPEX)

Update: T-Mobile US Declines Comment on Pending Litigation with Spherix/North South Holdings


Shares of Spherix Inc. (NASDAQ: SPEX) are up more than 143 percent Monday on heavy volume. The stock has traded 2.2 million shares as of 12:00 p.m. EDT Monday versus an average of 41,000.

This morning, North South Holdings, a company that Spherix is purchasing, announced that it filed a patent infringement suit against T-Mobile USA (NYSE: TMUS) claiming that it infringed on a patent entitled, “System and Method for Determining the Geolocation of a Transmitter.” According to the release, The technology relates to the geolocation of cell phones on the T-Mobile cell phone network.

North South Holdings purchased the patent as part of a portfolio purchased from Harris in 2012. Just as notable to investors, Anthony Hayes, North South CEO, stated,

This is the first complaint filed on the patents North South acquired from Harris Corporation, but we anticipate more.  This is a valuable portfolio and we will continue to demonstrate its worth as we move towards our merger with Spherix Incorporated.

That statement is bullish for the stock given the fact that larger companies will often enter into licensing deals instead of investing time and money into defending the suit.

In a separate release Monday morning, the company said that it retained the law firm of Stevens Love, PLLC to commence monetization efforts of the patent portfolio acquired from Harris Corporation. It’s clear that more litigation is soon to follow.

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Disclosure: At the time of this writing, the author had no position in the company mentioned.

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