A big win for Sonos (SONO) on the patent front against Google may unlock more gains for the stock price than the initial 12% pop seen in pre-market trading on Monday.
A U.S. International Trade Commission judge ruled Friday that Google infringed on Sonos’ patents.
The suit began in January 2020, with Sonos claiming Google infringed on five of its smart speaker patents by putting its technology in Google products.
Sonos wanted a sales ban on several Google products such as Nest home speakers, Pixel smartphones and Chromecasts.
While it’s a nice win for Sonos, a final decision isn’t expected from the International Trade Commission until mid-December.
By then the stock could be much higher, analysts reason, as the decision validates Sonos’ extensive patent portfolio, which has been pitched as a key asset by management since the company went public back in 2018.
The win sets the table for Sonos to secure potentially lucrative licensing deals from tech companies that may be infringing on its patents.