VirnetX Shares Jumped: What You Need to Know

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Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of mobile patent wrangler VirnetX (ASE: VHC) jumped as high as 10.6% on average-volume intraday trading.

So what: This is the second double-digit jump in as many days for VirnetX, all amid buyout rumors as the patent wars in the smartphone sector continue to heat up. Today's reminder of the importance of a strong intellectual property portfolio comes courtesy of Apple (NAS: AAPL) and Samsung, whose international conflicts over patents and copyrighted designs are making news on three continents.

Now what: VirnetX supporters are quick to tell you that its security patents are as much as required for implementing a real 4G wireless service -- which is not the same as the souped-up 3G connections being marketed under the next-generation name today. That would make the company an obvious buyout target for jousting patent knights from Apple to Google (NAS: GOOG) and Microsoft (NAS: MSFT) . However, even if this patent portfolio is of central importance (which is up for discussion, as others could design workarounds and alternative solutions to the same security issues), it's a small cache compared to those of Motorola Mobility (NYS: MMI) and InterDigital (NAS: IDCC) , whose mobile patents number in the thousands rather than dozens. Quality or quantity? Gentlemen, choose your weapons!

Interested in more info on VirnetX? Add it to your watchlist.

At the time this article was published Fool contributor Anders Bylund owns shares of Google but holds no other position in any of the companies discussed here. The Motley Fool owns shares of Microsoft, Google, and Apple. Motley Fool newsletter services have recommended buying shares of Google, InterDigital, Microsoft, and Apple. Motley Fool newsletter services have recommended creating a bull call spread position in Microsoft and Apple. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool is investors writing for investors.

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