The innovation patent being opposed by CLB was granted to Vis-e...

The innovation patent being opposed by CLB was granted to Vis-e Media Pty Ltd and has been lodged with the Australian Patents Office. This suggests that the innovation patent is limited to Australia (for now).

Innovation patents are quite hard to get in the USA and in Europe. In Australia, they are somewhat easier to get, as 'prior art' (ie: pre-existing evidence /use) is not taken into consideration.

To get around this exception, the opposition lodged by CLB goes to overturning the patent and providing a basis for the introduction of prior art.

If the patent, however, were to stand it would marginally impact CLB (arguably, to the extent of a licence fee). However, as CLB stated in its ASX release of 26/11, the table-top /outdoor advertising environment is all about first mover advantage and the award of contracts, not IP (ie: patentable IP).

If anything, the extent to which CLB has contracts in place covering Westfield, Lend Lease and AMP shopping centres in Australia now gives CLB >60% effective market reach.

It is likely that contracts will also be established with Stockland which would further extend that reach, particularly in the Melbourne and Sydney markets.

The Westfield contracts cover Australia, NZ and the USA.

With the USA, CLB now has exclusive advertising rights to ~11% of their target market (ie: the super-regional malls market segment).

With Westfield as an aggressive accumulator in the USA marketplace, CLB is well positioned for USA expansion.

A similar story prevails in Europe, primarily the UK at this stage, with the 'continent' likely to become a more considered story during 2005.

Similarly, one would think that Singapore is a likely target market for pursuit during 2005.

CLB is also now debt free having recently repaid its Convertible Note ($1.66M).

At 22/10, CLB stated that forward bookings, following 4 months of active selling, had topped 80% of FY04 revenue. So, with December sales now likely to top $400,000 compared to FY04 sales of $1.6M, it is clear that sales momentum is definitely building (even before the rollout to USA sites begins in earnest).

For these and other reasons, I have closely watched CLB since it listed.

Recently, the share price has fallen back from 20c to yesterday's 15.5-17c range (16c close).

Yesterday, however, it came within my threshold limits. I, therefore, bought into CLB yesterday, progressively buying @16, 15.5 and again @16.

It is a stock that I am watching with considerable interest and one in which I am now invested.