Image Protect Inc (OTCMKTS:IMTL) is an emerging player in the digital content intellectual property protection space. We highlight the company here because it is one of the only pure plays in that space that we have come across. The proliferation of internet media has provided for a new niche in copyright protection, and IMTL is seizing that opportunity with increasing success.
The company is starting to see rapid revenue growth as well. The company just reported top line revenue of $299,024 for Q3 2016 versus $88,563.00 in Q3 2015, representing a 338% increase over the previous quarter of 2015. That’s the type of growth that demonstrates a revenue rich business is underway and investors need to sit up and take notice.
Image Protect Inc (OTCMKTS:IMTL) frames itself as a company that protects and monetizes creative works. “By uniting technology with a team of copyright experts, we ensure that content providers preserve the value of their digital assets.“
The company’s web application monitors the global Internet to seek and collect evidence for illegally used visual content. Then their legal partners in North America, Europe, Asia and Oceania ensure that clients receive appropriate compensation, recovering settlement fees when their work has been used without a valid license.
Adobe Systems (NASDAQ:ADBE) is a primary distribution channel for imagery in the market, with marketplace giants such as Shutterstock, Inc. (NYSE: SSTK) and Shutterfly, Inc (NASDAQ: SFLY) dominating the production side. IMTL exists at a higher trophic level of that very same food chain.
IMTL is carrying a capital value in the market of $4.2M at present. The company doesn’t have much cash on the books right now, but debt is also very light, at $684K in total current liabilities, which is far less than the trailing twelve month sales of $950K. In addition, the company is seeing recent top line growth, with sequential quarterly revenues growing at 109.7%, and y/y sales growth booming, as noted above, at well over 330%.
Copyright protection is starting to pay quite well, indeed.
Taking Advantage of New Opportunities
The company is also finding new avenues for expansion. Recently, they signed an exclusive engagement to assist www.stockpotimages.com in monitoring the Cannabis images used for the thousands of recently created corporate websites, blogs, and publications throughout the industry.
According to the company’s most recent release, the pot space has become very active due to the legalization in many states. However, that is leading to some cheating on the IP front as the Cannabis images are widely utilized without regard to Copyrights, while true ownership has become blurred.
IMTL’s role is to monitor the hundreds of thousands of sites taking advantage of this exploding industry, and ensure the rightful owners of some of most high profiled images are compensated properly.
According to the release, Image Protect Inc. www.imageprotect.com, was chosen due to their core technology, combined with the advanced software to monitor, identify, contact and successfully retain compensation for the rightful owners of these images while monetizing the life cycle for the company.
The COO, Jonathan Thomas commented,” we are pleased and feel grateful that www.stockpot.com had the confidence to choose Image Protect for the task, it’s a testament that our services are widening within the industry. He further stated “The Marijuana industry has exploded, and this space is rife with Infringements and were excited to be involved with our expertise.
The stock is starting to act quite well in response, forming a bullish flag pattern at a higher low on the weekly chart in recent action. It has also jumped nearly 10% in just the past week, with trading volume on a per-session average climbing in recent trade. This suggests traders and investors are starting to take note of the growth picture that seems to be forming for this company.
We will check back on this company soon as the situation appears set to become increasingly interesting as the days go by.