Counterpath soars after it is awarded authentication patent

Counterpath CEO Donovan Jones. Shares of Counterpath (TSX:CCV) gained more than 27% Monday after the company was granted a patent for network based authentication.

The Vancouver-based mobile application software company was awarded United States patent No. 8,763,081 from the U.S. Patent and Trademark Office. The patent will come as relief to those tired of trying to remember the host of passwords that seems to expand weekly for computer and mobile device users. It covers unique methods of authenticating a VoIP softphone through a GSM network, obviating the need for a traditional user name and password.

CEO Donovan Jones commented on the news.

“CounterPath’s latest patent for network-based authentication builds nicely on other recent advances we have made in client configuration and provisioning, virtual desktop infrastructure (VDI) and mobile device management (MDM), with the goal of making it easier for people to use soft-phone client applications on any device, any platform and over any network,” he said. “With this technology, our Bria application can be embedded into a device leveraging SIM authentication, offering an unprecedented level of ease of use to the customer. Consumer expectations for apps are high, and this patented technology positions us at the forefront of the industry as the only VoIP application provider with a patented SIM-based authentication methodology. Operators also benefit from this technology, as it enables them to launch an advanced and easy-to-use Operator OTT application with seamless authentication, thereby increasing customer satisfaction and reducing churn.”

Today’s action comes as welcome relief to Counterpath shareholders who have watched the stock trail off for more than two years. After trading at highs near the three dollar mark in July of 2012, the company stock has trickled to just over a dollar of late. Jones says he intends to tackle the company’s persistent losses with a sharpened focus on enterprise sales. The company recently expanded its direct sales force in the area.

Shares of Counterpath on the TSX closed today up 27.1% to $1.50.