Speedus.com, Inc. (Nasdaq: SPDE) accelerated 42 percent Friday after the Internet broadcast system operator announced it had a patent partnership and new subsidiary, which would establish it in the broadband wireless market.
Shares were up 2 1/2 to 8 7/16 after the news. The company has reached a high of 9 1/4 from a low of 1 over the past year, and the stock doubled last May when the company licensed technology from Cisco (Nasdaq: CSCO) to allow real-time video and audio for its subscribers.
Speedus said it had purchased intellectual property from GEC Partners, including a U.S. Patent titled "System for the transmission and reception of directional radio signals utilizing a gigahertz implosion concept."
Speedus.com made the purchase through BroadBand Patents, LLC, a new wholly owned subsidiary designed to develop the company's broadband wireless technology.
BroadBand Patents has also entered into an alliance with Cornerstone Wireless Communications to assist in the development and marketing of its wireless technology. Cornerstone is an engineering and regulatory consulting firm with experience in the design of broadband wireless systems and equipment. Speedus.com has rights to all complementary wireless technology developed under the alliance, the company said.
GEC's predecessor company, GHz Equipment Company, Inc., developed the first 38 GHz broadband wireless system in joint venture with Pacific Telesis.
GEC's decision to sell all of its broadband intellectual property rights to Speedus.com for stock, reflects its confidence in synergies between the GEC patent and Speedus.com's technology, the company said.
Speedus.com is currently limited to a pilot program of its super high-speed Internet service under its FCC license covering Metro New York.
Speedus.com is also exploring incubation opportunities in Internet and e-commerce companies. In September 1999, the company announced its equity investment in Speedia, a wireless and web-based information delivery service.