ParkerVision's 80% Gains Have Evaporated

ParkerVision, Inc. PRKR went about a wild ride last week amid news of favorable patent decisions in a Inter Partes Review filed by QUALCOMM, Inc. QCOM.

The stock rallied 22.8 percent to $2.59 on Tuesday on whispers regarding the decision and gained 8.5 percent to $2.81 on Wednesday, when the company confirmed the news. Intra-day gains were a whopping 80 percent over the two sessions.

The stock moved back and forth in the next two sessions. Come Monday, the stock plummeted. To the rally's credit, volumes were above-average, although Monday's retreat was on thin volume. The stock is down another 10 percent Tuesday at $2.

News Behind Last Week's Rally

ParkerVision announced last week the Patent Trial and Appeal Board's latest decisions with respect to the Inter Partes Review filed by QUALCOMM have increased the favorable rulings it has received to over six, with the latest decisions according three favorable verdicts.

"With these latest decisions, there are no further IPR's challenging ParkerVision patents currently before the PTAB," the company said in a release.

What Changed this Week?

ParkerVision announced Monday it's filing a motion to terminate its International Trade Commission, or ITC investigation following the Administrative Law Judge, or ALJ, disallowing key factual evidence in its ITC proceedings. The company became privy to the ALJ ruling just prior to the start of the ITC hearing, which was originally scheduled to begin on Monday.

In December 2016, ParkerVision filed a complaint with the ITC, alleging that Apple Inc. AAPL, Qualcomm, LG ELECTRONICS INC KRW5000 LGEAF and SAMSUNG had infringed upon certain wireless networking patents.

The company clarified Monday's decision to terminate is despite its preparedness to try its case based on evidence collected from respondents, which goes on to prove the accused products infringe the asserted claims of the '528 patent.

This termination, according to the company, would allow it to request removal of the current stay on the proceedings in two U.S. district court cases against Qualcomm and certain of its customers. Furthermore, this action has no impact on the ongoing infringement proceedings against LG and Apple in Germany, the company added.

"While we are disappointed that we were not allowed to present key evidence that could significantly impact the outcome of this case, we believe the termination of these proceedings is the appropriate strategic decision for the Company. Our objective to obtain fair compensation for Qualcomm's infringement of our patent rights remains unchanged, and we will continue to take steps toward pursuing this goal," ParkerVision CEO Jeffrey Parker said.

Other patent plays such as RPX Corp RPXC and Spherix Inc SPEX, which moved up strongly last week, have defied the selloff in ParkerVision.

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