Last updated on July 29th, 2022 at 01:24 pm
Thanks to ongoing litigation over patent infringement, Milwaukee-based Koss Corp. will rake in nearly three quarters of a year’s worth in revenue during Q4 alone.
According to an SEC filing Monday, the company “expects to realize approximately $10 to $14 million in net proceeds, after fees and expenses, in the current fiscal quarter.”
The filing comes days after the company settled its lawsuit against Apple Inc. in the U.S. District Court for Western Texas.
Without naming Apple in the filing, Koss said the proceeds “are in connection with its ongoing intellectual property enforcement program, which includes lawsuits alleging infringement of patents relating to its wireless audio technology.”
Proceeds from the licensing deal far surpasses the $4 million to $5 million Koss typically generates per quarter. The company recorded $4.6 million in net sales for Q3 – up 16.2% year over year – and $13.4 million for the first nine months of the fiscal year. Last year, the company generated $19.5 million in net sales.
Koss filed a series of lawsuits in July 2020 against big-name competitors Bose, JLAB Audio, Skullcandy Inc. and Plantronics Inc., in addition to Apple. Other cases are still ongoing. In its original court filings, the company said the patents in the case relate to work it started in the mid-2000s to develop “truly wireless headphones” as part of a project called “Striva.”
Koss representatives did not immediately respond to request for comment.