Piper Jaffray Comments On ROVI Vs. VMED Patent Appeal

A decision in the Rovi ROVI vs. Virgin Media VMED patent appeal will likely come in the next three months, Piper Jaffray reports.

“We believe the likelihood that Rovi prevails is low, but, in our view, the company remains well positioned to make Virgin Media a patent licensee in the next 12-18 months,” Piper Jaffray writes. “While the initial reaction to a loss in this appeal may be negative for ROVI shares, we would view that as a buying opportunity, given the loss of this case would have no impact on CY11 estimates.

“And, more importantly, as Virgin Media implements the planned integration of TiVo technology, we believe this will ultimately necessitate a patent license agreement.”

Rovi closed Friday at $54.96; Virgin Media close at $27.18.