MGT Capital Investments Inc. (NYSEMKT:MGT) announced that on September 2nd the Company and John McAfee filed a lawsuit in the United States District Court, Southern District of New York seeking a judgment that the Company’s use of “John McAfee Global Technologies, Inc.” does not infringe upon any trademark rights of Intel Corporation or breach any agreement between the parties.
By way of abbreviated background, in 1991, Mr. McAfee entered into an asset acquisition agreement with McAfee Associates, L.P., with Mr. McAfee as Managing Partner. That agreement transferred ownership of certain business assets, but did not transfer or otherwise assign rights to Mr. McAfee’s personal name via assignment of trademark or otherwise, or agree to restrict his right to do business using his name. Further the agreement did not contain any non-compete provisions of any kind. In fact, any trademarks pertaining to doing business as “McAfee Associates” were subsequently cancelled or abandoned.
Over the past 25 years, McAfee Associates was involved in a merger and was renamed “Network Associates,” later changed back to “McAfee Associates.” It was then purchased by Intel Corporation in 2010. Intel itself renamed the business “Intel Security” a few years later, and, according to press reports, Intel is now attempting to sell Intel Security.
Mr. McAfee sold his remaining stake in McAfee Associates in 1997, and has remained a notable entrepreneur with several business ventures, as well as a renowned global thought leader and public figure. The plan to change MGT’s name to John McAfee Global Technologies, Inc. is a clear reference to Mr. McAfee as a famed international figure in his own right.
“When MGT announced it was to be renamed John McAfee Global Technologies, Intel sent a letter claiming they owned my name,” John McAfee explained. “In my opinion, it has been Intel improperly using my name, and I have not been happy that the general public associates Intel’s products with me. I am a respected pioneer in the cybersecurity industry with a new vision and paradigm to combat the horrific effects of cybercrime and invasion of privacy in today’s world.”
Mr. McAfee concluded, “In summary, I find it unconscionable that after tarnishing my reputation with what I feel are inferior cybersecurity solutions to address today’s threats, Intel is now trying to prevent me from earning a livelihood using my own name, and attempting to sell my name, something it doesn’t own.” (Original Source)
Shares of MGT are currently trading at $3.36, up $0.03 or 0.90%. MGT has a 1-year high of $5.58 and a 1-year low of $0.15. The stock’s 50-day moving average is $3.24 and its 200-day moving average is $1.94.
On the ratings front, Ascendiant Capital analyst Edward Woo initiated coverage with a Buy rating on MGT and a price target of $6, in a report issued on August 15. The current price target represents a potential upside of 80.2% from where the stock is currently trading. According to TipRanks.com, Woo has a yearly average return of 14.5%, a 62.5% success rate, and is ranked #392 out of 4147 analysts.
MGT Capital Investments, Inc. engages in the business of acquiring, developing and monetizing assets in the online and mobile gaming space, as well as the casino industry. It operates through two reportable segments: Gaming and Intellectual Property.