I think a challenge to your core asset can't possibly be good...

I think a challenge to your core asset can't possibly be good news. Especially when we see evidence of a backup plan (ie filing of the innovation patent). No one really knows how serious this is and I guess we have to wait until the hearing results to find out. In all likelihood everthing will be fine but we will have to wait and see.

An innovation patent in no way is as good as a standared patent. These are the limitation as taken directly from the IP Australia site:

*The innovation patent has a shorter protection term than a standard patent - 8 years as opposed to 20.
*As the innovation patent is granted without examination, IP Australia has not made any checks that the patent is valid. This may make the patent more difficult to sell or license until the patent has been examined and certified. Also you are unable to go to court to enforce the innovation patent until it has been examined and certified.
*An innovation patent can only be applied for in Australia whereas you can apply separately in other countries for standard patents. Thus an innovation patent is not suitable to protect your innovations in export markets.

As for the pump and dump. This is based solely on past history and we are due for at least a small one based on the frequency of past moves. Maybe the successful defence of the patent will be the catalyst?