Is RightsCorp Inc (OTCMKTS:RIHT) on the Rocket Pad?

RightsCorp Inc (OTCMKTS:RIHT)

RightsCorp Inc (OTCMKTS:RIHT) has been posting news that observers believe may propel shares higher in the coming weeks. Currently, RIHT shares are trading well above their 52-week low of $0.01 per share and are within striking distance of their $0.059 52-week high.

RightsCorp Inc (OTCMKTS:RIHT)
Daily Candle Bar for $RIHT

Intellectual property (IP) protection is a huge business. The U.S. Chamber of Commerce Intellectual Property Center has calculated the worth of intellectual property in the United States as being between $5 trillion and $5.5 trillion. Reports suggest that the U.S. economy loses $58 billion each year to copyright infringement including $16 billion in lost revenue to the owners of the IP, and $3 billion in lost tax revenue.

RightsCorp Inc (OTCMKTS:RIHT) provides data and analytics services to owners of copyrighted property such as artists or media firms. The company’s patent-pending digital technology focuses on the infringement of intellectual property rights and ensures that the legal owner’s rights are protected.

RightsCorp Recent History

At the end of February, RightsCorp Inc (OTCMKTS:RIHT) announced Mr. Cecil Bond Kyte as the company’s new Chief Executive Officer. Mr. Christopher Sabec, the Company’s current CEO, will serve as President and continue to spearhead RightsCorp’s intellectual property litigation support and copyright monetization services.

In late June, RightsCorp Inc (OTCMKTS:RIHT) announced that it has been granted an Israeli Patent for the company’s “System to Identify Multiple Copyright Infringements and Collecting Royalties”. Cecil Bond Kyte, CEO of Rightscorp, stated “Online piracy continues to be a major concern worldwide with Israel holding one of the highest rates outside Europe. Last year, it was recorded that approximately 66% watch movies and TV shows online with only 2% using legal direct-view websites. There is a need in Israel for content protection and our technology is an ideal solution for curbing piracy,”.

RightsCorp Can Scale

Clearly, there is positive movement in the ability for RightsCorp to execute on their business model. Their approach is to use their proprietary software to monitor global Peer‐to‐Peer (P2P) file sharing networks. As they monitor the P2P network, the software continuously scans for illegally downloaded digital media.

Once the software finds an illegally downloaded file, it sends an email to the internet service provider (ISP) using the notice format as specified in the Digital Millennium Copyright Act. The notice includes the date, time, song title and other specific technology identifiers to confirm the infringement by the ISP’s customer. Under Federal Copyright Law, once the ISP has actual knowledge of copyright infringements that take place using its network, it has specific duties in relation to the enforcement of the rights of the owners of the material in question. The ISP can legally cut off service to repeat offenders.

Fines for downloading IP without proper authority or permission can reach $150,000 per violation. However, RightsCorp provides these illegal users with a link to remit payment to Rightscorp who will then pay the IP owner a percentage of the collected fee. RightsCorp Inc (OTCMKTS:RIHT) believes this arrangement is economical and mutually beneficial to both the infringer and owner of the IP.

One thing is certain if the company is able to fully execute its business model – it could be a massive cash-flow generating machine.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

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About the author: Marc has a degree in economics and a MSc. in Finance. Marc worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant