Hi Fangk, It was a risk IPH identified in the prospectus at page...

Hi Fangk,

It was a risk IPH identified in the prospectus at page 45. I have quoted it below. I am trying to understand on how a big a problem it is.

"The Group currently files separate patent applications in Australia and New Zealand and these are subject to separate examination. However once the single application and examination processes are implemented, applications for both countries will be able to be filed in a single transaction and one subsequent examination/prosecution process will apply for both applications, prior to the separate grant of national patents. There is therefore a risk that New Zealand firms may take business away from the Group (in Australia and New Zealand) and there is an overall risk that the Group will generate lower revenues due to single filing and prosecution processes for both countries rather than separate processes for each country. This would negatively impact the Group."

I have been working through it point trying to understand the risks and exposure. It is difficult to assess the effects of competition say to note that some very large clients appear to have been lost. The court case appears to be embarrassing and hopefully they will make an announcement explaining its impact.

Shiva