UPDATE 1-ParkerVision eyes legal options after Barron's story

(Adds Farmwald comment, closing share price)

NEW YORK, Dec 3 (Reuters) - Wireless technology developer ParkerVision (PRKR.O) said on Monday it was considering legal action after a story in Barron's business weekly said a short-seller was convinced the company was worthless.

ParkerVision's stock fell as much as 29 percent after Barron's said short-seller Mike Farmwald, co-founder of computer technology company Rambus Inc (RMBS.O), had called into question the technical claims of ParkerVision, a developer of radio frequency technology.

ParkerVision says the technology would help to improve mobile phone battery life as well as reduce the cost and improve the performance of the phones by eliminating costly and inefficient circuit processes found in traditional radio designs.

"None of the companies that have been in dialog with ParkerVision has indicated a view that the technology is not viable," ParkerVision said in a statement responding to the article.

ParkerVision said when it reported for the third quarter in November that it was focused on securing licensing arrangements in the commercial wireless handset marketplace and was confident that its efforts would result in adoption of its technology into products for the cellular handset market.

In response to the article in the Dec. 3 edition of the investors' weekly, ParkerVision said it was "pursuing and investigating all legal avenues and alternatives."

The Barron's story referred to a Web site, www.pvnotes.com, that Farmwald set up with his wife Barb Paldus about ParkerVision and its technology.

ParkerVision said it was unaware of any request from either Farmwald or Paldus to discuss its d2p technology.

Farmwald said in an e-mail that he had not contacted ParkerVision to discuss its technology, saying the company would only talk to people who agree not to discuss the results of the evaluation. Instead, he said, he had used published patents to make an evaluation.

ParkerVision shares closed down 13.3 percent at $8.52 on Nasdaq. (Reporting by Sinead Carew; editing by Ted Kerr)