& cplSiteName &

Openwave Puts Products Up for Sale

Ray Le Maistre
LR Mobile News Analysis
Ray Le Maistre, Editor-in-chief
1/12/2012
50%
50%

Following a year of financial toil and a change in management, Openwave Systems Inc. (Nasdaq: OPWV) has decided to quit the messaging and mediation products markets and focus all its efforts on its patent portfolio.

The company announced Thursday that it is has hired Jefferies & Co. Inc. to find buyers for its product lines and will focus on driving revenues from its intellectual property in an effort to become profitable again.

The company notes on its website that it "established many of the foundational patents that allow mobile devices to connect to the Internet," and that it has "approximately 200 patents covering many innovations spanning smart devices, cloud technologies and unified messaging."

The move comes after a tough 2011 for the mobile Service Provider Information Technology (SPIT) specialist, during which the company reported mounting losses, cut staff and appointed a new CEO. (See More Turmoil at Openwave, Openwave Cuts Staff as Losses Mount and Openwave Names New CEO.)

Shortly after Mike Mulica took over as CEO in October the company hired two experienced intellectual property specialists to head up its IP patent portfolio business. (See Openwave Hires Patent Experts.)

Investors appear to like the move, as Openwave's share price is up nearly 7 percent to $1.89 in pre-market trading Thursday morning.

Why this matters
Openwave was caught in a downward spiral. It had been trying to reinvent itself as an all-IP messaging and mediation system company for the mobile data market and had been positioning itself as a company that could help mobile operators with their data and video traffic optimization needs. But as 2011 progressed, rival Bytemobile Inc. gained momentum in that market while Openwave struggled. (See Waking Up to the Power of SPIT and Bytemobile Ekes Out More Capacity .)

The more focused strategy might save it from further years of product-related operating losses, but whether it can find a home for its product lines is another matter. The company says it will make announcements "as, and when, a specific transaction or transactions occur."

More immediately, Openwave's 440 or so staff and around 100 service provider customers will want to know what the company's changes mean for them.

Its strategy to capitalize on its patents might just work, though. The specialists it hired have a track record of generating hundreds of millions of dollars in IPR-related revenues at Good Technology Inc. and Openwave has already struck a license agreement with Microsoft Corp. (Nasdaq: MSFT) for its patent portfolio, giving it an impressive anchor customer.

It has also initiated action against Apple Inc. (Nasdaq: AAPL) and BlackBerry regarding patent infringement. (See Openwave Sues Apple & RIM.)

For more
Openwave isn't the only company looking to generate greater returns from its patent portfolio.

— Ray Le Maistre, International Managing Editor, Light Reading

(3)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
digits
50%
50%
digits,
User Rank: Light Beer
12/5/2012 | 5:45:53 PM
re: Openwave Puts Products Up for Sale


Does anyone have a view on whether Openwave had the wrong strategy or the right one but poorly executed?


 

paolo.franzoi
50%
50%
paolo.franzoi,
User Rank: Light Beer
12/5/2012 | 5:45:52 PM
re: Openwave Puts Products Up for Sale


 


I think that the ISP business is hard.  Selling to ISPs is a like getting blood from a stone.


Think about this (since this is the business I am in)....how much do you pay for your residential spam filter.  How much do you think your ISP is willing to spend on it?


seven


 

Jeff Baumgartner
50%
50%
Jeff Baumgartner,
User Rank: Light Beer
12/5/2012 | 5:45:51 PM
re: Openwave Puts Products Up for Sale


It seems like a hidden cost, so i have no sense on how much that is. As far as the plan goes, they could do well if they focus on licensing and litigation... at least no one can call them a patent troll since they did run a business based on its IP rather than buying the IP and then letting the lawsuits fly. JB

Educational Resources
sponsor supplied content
Educational Resources Archive
From The Founder
Download our complete guide to de-risking NFV deployment in 2016, including:
  • An eight-step strategy to deploying NFV safely, based on input from the companies that have already started virtualizing their production networks.
  • Interviews with leading executives at Colt, AT&T, Deutsche Telekom, Cisco, Nokia, ZTE, Ericsson and Heavy Reading.
  • Flash Poll
    Live Streaming Video
    Prepping for the Future: Upskill U Explained
    During this short kick-off video, Doug Webster, Vice President of Service Provider Marketing, Cisco, and Light Reading’s CEO & Founder Steve Saunders give an overview of Upskill U.
    LRTV Interviews
    AT&T Expert on the Key Pillars of UC

    4|29|16   |   03:58   |   (0) comments


    Vishy Gopalakrishnan, AVP of product marketing at AT&T, talks about the three developments that are making unified communications and collaboration secure and reliable for enterprise users.
    LRTV Documentaries
    LRTV Report: Mobile Core Innovation

    4|28|16   |   25:32   |   (0) comments


    Hear from multiple industry experts from Deutsche Telekom, SK Telecom, Heavy Reading, Huawei, Cisco, Ericsson, Nokia, NEC and many more about developments in the mobile core as operators virtualize their IMS and evolved packet core systems and prepare for a 5G world.
    LRTV Huawei Video Resource Center
    NFV World Congress Highlight

    4|26|16   |     |   (0) comments


    The highlight of the NFV World Congress contains exciting telecom news. Join us for an inside look at Huawei's ICT 2020 plan and its latest collaboration with industry leaders.
    LRTV Interviews
    Unified Comms Finds Its Voice

    4|25|16   |   03:44   |   (0) comments


    Peter Quinlan, VP of UCC Product Management at Tata Communications, talks about the evolution of the unified communications and collaboration services sector and how voice is now a big part of current developments.
    LRTV Documentaries
    So... What Do We Do Now?

    4|25|16   |   03:24   |   (0) comments


    After a long hiatus, Max Dingman, the CEO of a GeeGhiz, returns for a motivational board room pep talk.
    LRTV Documentaries
    NAB 2016 Highlights

    4|21|16   |     |   (0) comments


    Light Reading's Cable/Video Practice Leader Alan Breznick climbs down from the slots to tell us about the latest news in broadcast technology at NAB 2016 in Las Vegas.
    Between the CEOs
    CEO Chat: Deepfield's Craig Labovitz

    4|21|16   |     |   (0) comments


    In this latest installment of the CEO Chat series, Craig Labovitz, co-founder and CEO of Deepfield, sits down with Light Reading's Steve Saunders in Light Reading's New York City office to discuss how Deepfield fits in with the big data trend and more.
    Shades of Ray
    Leading Lights 2016: Shortlists Announced

    4|20|16   |   0:53   |   (0) comments


    The judging is over and the Leading Lights 2016 shortlists have been published -- you can see who made the cut by clicking on this link.
    LRTV Custom TV
    Introducing MulteFire – Qualcomm at MWC 2016

    4|18|16   |   3.29   |   (0) comments


    MulteFire is the latest option for using LTE in unlicensed spectrum. As oppose to its close 'siblings', LAA and LTE-U, MulteFire operates solely in unlicensed spectrum, which enables it to offer the best of two worlds – LTE-like performance with WiFi-like deployment simplicity. In this interview, Sanjeev Athalye, Sr. Director, Product Management at Qualcomm ...
    Between the CEOs
    CEO Chat: Grant Van Rooyen of Cologix

    4|18|16   |     |   (0) comments


    Grant van Rooyen, president and CEO of Cologix, sits down with Steve Saunders, founder and CEO of Light Reading, in the vendor's New Jersey facility to offer an inside look at the company's success story and discuss the importance of security in the telecom industry.
    LRTV Huawei Video Resource Center
    ONS 2016 – Demonstration of Huawei's NetMatrix Multi-Vendor SDN Orchestrator

    4|15|16   |     |   (0) comments


    This demonstration shows how Huawei's NetMatrix SDN Orchestrator (SDN-O) addresses an operator's core service agility needs for services spanning multi-domain, multivendor networks: it includes a demonstration of:
    - Rapid New Service Design: using YANG to model a complex example of multi-domain, multivendor L3VPN network connectivity service that ...
    LRTV Custom TV
    AT&T Wants to Own North Carolina

    4|15|16   |     |   (1) comment


    Venessa Harrison, president of North Carolina for AT&T, tells how the company will expand its GigaPower service beyond the seven N.C. cities it already serves.

  • This blog, sponsored by AT&T, is the second part of a ten-part series examining next-generation broadband technologies titled "Behind the Speeds."
  • Upcoming Live Events
    May 23, 2016, Austin, TX
    May 23, 2016, Austin Convention Center
    May 24-25, 2016, Austin Convention Center, Austin, TX
    September 13-14, 2016, The Curtis Hotel, Denver, CO
    December 6-8, 2016,
    June 16-18, 2017, Austin Convention Center, Austin, TX
    All Upcoming Live Events
    Infographics
    A new survey conducted by Heavy Reading and TM Forum shows that CSPs around the world see the move to digital operations as a necessary part of their overall virtualization strategies.
    Hot Topics
    Ultra-Broadband Summit, Hong Kong
    Iain Morris, News Editor, 4/27/2016
    WiCipedia: Woman Cards & Bitch Switches
    Sarah Thomas, Director, Women in Comms, 4/29/2016
    Mitel Asks: What Time of Day Do You Shower?
    Mitch Wagner, West Coast Bureau Chief, Light Reading, 4/25/2016
    GoT Fans Curse HBO (Not Right) Now
    Mari Silbey, Senior Editor, Cable/Video, 4/25/2016
    LoRa Alliance Defends Tech Against Sigfox Slur
    Iain Morris, News Editor, 4/28/2016
    Like Us on Facebook
    Twitter Feed
    BETWEEN THE CEOs - Executive Interviews
    In this latest installment of the CEO Chat series, Craig Labovitz, co-founder and CEO of Deepfield, sits down with Light Reading's Steve Saunders in Light Reading's New York City office to discuss how Deepfield fits in with the big data trend and more.
    Grant van Rooyen, president and CEO of Cologix, sits down with Steve Saunders, founder and CEO of Light Reading, in the vendor's New Jersey facility to offer an inside look at the company's success story and discuss the importance of security in the telecom industry.
    Animals with Phones
    Live Digital Audio

    Of all the tech companies in the Valley, Intel has made the most aggressive commitment to building a diverse and inclusive workplace culture. It's doing so by taking concrete, measurable steps, making a large financial investment and through a commitment to complete transparency about its progress. In this radio show, WiC Director Sarah Thomas will be joined by Shlomit Weiss, Intel's Vice President, Data Center Group, and General Manager of Networking Engineering, who will share with us why Intel is tackling this huge challenge, how and to what effect. She will also discuss her unique experiences leading development of Client SOC development in the past and today leading development of all of the chipmaker's silicon hardware for networking IPs and discrete devices and managing a team of 600 engineers across Israel, Europe and the US.