When M86 Security took over Finjan in 2009, it wanted to distance itself from any legal entanglements. Finjan was split into two companies (“reverse merger”). The operations\al side was merged into M86 and the IP side ended up in a new company (FSI Inc.)
At the time, M86 issued the following statement to clarify matters:
“M86 Security acquired the technology, people and operating assets of Finjan. The ownership of the patents remained with FSI Inc. and M86 acquired a license to use the patents. The original suit against Secure Computing, now McAfee, we understand is still being pursued by FSI Inc. This recent action appears to be related to new infringement suits. M86 Security is issuing this statement to clarify that it is not affiliated in any way with the lawsuit recently filed by FSI.”
FSI is a patent monetizing company partly owned by Iroquois Capital LP and Hudson Bay Capital Management LP both known for equity financing of microcap companies. The two hedge fund companies released Finjan from all its debts, liabilities and other claims. FSI’s main revenue stream consists of going after companies for infringing of its patents, which makes it a patent roll – an intellectual property portfolio company making a living by going after anyone infringing on any of the patents it holds. The IP portfolio contains numerous patents and other intellectual property with expiration dates extending through 2030.
The company is not always successful in its legal pursuits. In December 2012, a jury decided that Symantec, Websense and Sophos did not infringe Finjan’s patents for protecting computers and networks from “hostile downloadables”.
FSI was more successful with Webroot, maker of SecureAnywhere, when it reached a settlement.
FSI’s most recent lawsuit is aimed at Proofpoint, Inc., and its subsidiary Armorize Technologies, Inc. The company accuses Proofpoint of infringing its patents relating to endpoint, web, and network security technologies.
Apart from owning Finjan’s portfolio of online security technology patents, FSI also owns Converted Organics Inc., which operated a small fertilizer processing plant in Gonzales, California.
FSI latest move is investing in a new $60 million cyberfund, which will specialize in investments in start-ups dealing with information security.
(Image courtesy of www.anp.nl)
