Universal Display's 'Essence' Expires In 2017, Street Sweeper Warns

Universal Display Corporation (NASDAQ: OLED) has its investors believing that its "essence" falls apart in 2017. TheStreetSweeper warned on Tuesday that Universal Display's fundamental patent is scheduled to expire in 2017, and that other patents appear to face an expiration date of 2018 and later.

Universal's 1998 SEC filing indicates that Patents typically expire 20 years after application:

"In December 1997, the first patent, titled "Transparent Contacts for Organic Light Emitters", was issued to Princeton University by the U.S. Patent and Trademark Office … In January and February, 1998, two additional patents relating to Multicolor Organic Light Emitting Devices were issued to Princeton University. Princeton University and USC have filed approximately 30 additional patent applications relating to the OLED technology in the United States, and have filed for intellectual property protection internationally."

TheStreetSweeper writes that when the New Jersey-based company's technology started "falling off the patent cliff in December 2017, the patents hit the free-for-all known as the public domain," and additional killer risks are poised to hammer Universal stock.

For investors, the company indicates that the filing stating "The agreements run through December 31, 2017," are significant to pay attention to on Tuesday.

"That's right. Just as Universal's key patent expires, the company's key agreement expires, too. And Samsung, understandably, wanted to wiggle out of its deal with Universal early. Universal really needed – and still needs – what its filings call its "most significant commercial license agreement" with Samsung," wrote TheStreetSweeper.

Universal Display's Director Keith Hartley sold 25,000 shares of the business's stock in a transaction dated Friday. OLED shares were sold at an average price of $54.74, for a total transaction of $1,368,500.00.