Network-1 subsidiary files patent infringement lawsuit against Optiver

NEW YORK - Network-1 Technologies, Inc. (NYSE:NTIP), a micro-cap technology company with a market capitalization of $36.47 million, announced today that its wholly-owned subsidiary, HFT Solutions, LLC, has filed a patent infringement lawsuit against Optiver US LLC and Optiver Trading US LLC in the United States District Court for the Western District of Texas. InvestingPro data shows the company maintains impressive gross profit margins of 87.33% and offers investors a substantial 6.13% dividend yield.

The lawsuit alleges infringement of three U.S. patents that are part of HFT’s patent portfolio acquired in March 2022. These patents relate to technologies used in high frequency trading activities utilizing field-programmable gate array hardware, including clock domain management technology.

The patents in question provide transaction latency gains in trading systems where success can be measured in nanoseconds, according to the company’s press release. The HFT Patent Portfolio currently includes eleven issued U.S. patents and two pending U.S. patent applications, with patent terms expected to extend until 2040.

Network-1 Technologies describes itself as a company engaged in the acquisition, development, licensing and protection of intellectual property. The company currently owns 115 U.S. patents and 17 international patents covering various technologies. According to InvestingPro analysis, the company maintains a remarkably strong financial position with a current ratio of 102.56, indicating excellent ability to meet short-term obligations. Get access to 8 more exclusive InvestingPro Tips for NTIP and comprehensive financial analysis.

The company’s current strategy includes efforts to monetize four patent portfolios, including the HFT portfolio involved in this litigation. Network-1’s Remote Power Patent has generated licensing revenue exceeding $188 million from May 2007 through June 30, 2025, while its Mirror Worlds Patent Portfolio has achieved licensing and other revenue of $47.15 million through the same period. Despite recent market volatility resulting in a 14.21% decline over the past week, InvestingPro analysis suggests the stock is currently trading near its Fair Value.

The HFT Patent Portfolio is available for licensing to firms that use FPGA systems utilizing the patented technology for high frequency trading activities.

In other recent news, Network-1 Technologies, Inc. has initiated a patent lawsuit against Samsung Electronics Co., LTD and Samsung Electronics America, Inc. The legal action, filed in the United States District Court for the Eastern District of Texas, accuses Samsung of infringing on six U.S. patents related to eSIM and 5G technologies in its mobile devices, including Galaxy smartphones, watches, and tablets. These patents are part of Network-1’s M2M/IoT patent portfolio acquired in December 2017. Additionally, Network-1 Technologies has extended its share repurchase program, authorizing the buyback of up to $5 million of its common stock over the next two years. This extension allows the company to repurchase shares in open market transactions or through privately negotiated deals, depending on market conditions. The company retains the flexibility to increase, suspend, or discontinue the program at any time. These recent developments highlight Network-1 Technologies’ strategic actions in both legal and financial arenas.

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