The recent strategic partnership between KodakOne and Image Protect Inc. (OTCMKTS:IMTL) provides a particularly good example of synergy in an interesting and underexploited target market.
The two entities hitched up over the summer in an ambitious deal to secure a new leadership position in the rapidly growing cloud-based digital rights management space, which, according to a recent ResearchNReports study, is projected to grow from a shade under a half-billion dollars three years ago to just over $2.5 billion by 2025.
So, how’s that deal progressing?
Ahead of Schedule
The best sign we can see in an aggressive market share gambit for new partners is that they get ahead of schedule in leading indicators because they simply seem to fit together well. By this, we don’t simply mean they’re buddies. We mean the operational systems complement each other well and the underlying technology involved doesn’t slow down the works through non-compatibility.
So far, according to a recent release from Image Protect Inc. (OTCMKTS:IMTL), that’s exactly what we’re seeing here.
“We were ahead of schedule in integrating platform technology, and now we are even further ahead of schedule in chasing down and settling infringement cases, which in turn will put us well ahead of schedule in booking initial revenues from the Partnership,” stated Matthew Goldman, CEO of Image Protect. “We want to go on the record in giving due credit for this rapid escalation toward sales to the back-end efficiency exhibited by the folks over at KodakOne.”
This is a very good sign for things to come. The Partnership has apparently already begun to Settle Cases well ahead of schedule. And this is big news because the companies continue to value the total sales value of the portfolio of infringement cases central to that Partnership to be worth at least $5 million.
In the release, management credited the “earlier-than-expected successful integration of the base systems” as key to this rapid progress and further suggested that the initial revenue projections would need to be pulled forward. In other words, money is going to be coming in the door ahead of schedule.
Mr. Goldman continued, “We entered this Partnership with the KodakOne platform because we knew there would be a strong synergy creating the new market leader in the digital image rights protection space. At this point, we have even more confidence in that thesis with each passing day because we now have tangible proof that it works.”
We would also point out one interesting dynamic that could spell much bigger things from this partnership down the line: apparently, because the underlying platforms have been completely synchronized and are functioning so well in tandem, the two companies believe the top line estimates for overall sales from the partnership could actually fall far short of where this is headed because they can now expand the pool of cases through ongoing image uploads, infringement identification, and aggressive recovery action to settlement.
As discussed above, this is turning into a huge market. And these two partners now may just control the most advanced process for infringement settlements. Since they have developed what appears to be a synchronized shared platform that is functioning effectively, they can keep churning out dollars going forward.
Because there’s always going to be more cases of image rights infringement on the internet than anyone can ever possibly prosecute, they can go on harvesting dollars from this partnership until the sun goes out.
On a technical note, one can spot a type specimen basing pattern on the IMTL chart right now, with the potential for a classic moving average breakout on a move above the $0.0013 level. If that happens, the sky could very quickly become the limit, with trading risk easy to identify under recent range lows.