I don't believe I've seen you here before, so first of all, welcome aboard!

While your opinion definitely has merit, there is more to consider.

First, probable semantics problem. A settlement of the litigation in TX will primarily have to do with past infringement. Thus, the royalty stream has already flowed, and the only way they can pay is in a lump sum (possible time payment plan). Now, as for a license that would likely come with a settlement, to cover contemplated future infringement - that could have an ongoing (quarterly or annual) royalty stream. With this comes assumption of some risk (e.g., if the infringer for any reason stops production of infringing products, the stream stops flowing).

Now I'll offer the thought I usually pass along when I read an opinion like yours that throws in an "only if" regarding PPS appreciation and ongoing royalties. What if the TX litigation is settled with a past/future license where PTSC ultimately gets a lump sum of $200M (maybe a fat number, maybe not, but this is just a "for example"). Plop it in any reasonably safe investment vehicle and they should be able to get a 10% ROI, or $20M annually. Recurring revenue, purely under our control, with no risk of the stream stopping, and still $200M in the 'bank". And how many stocks, penney or otherwise, can boast about a basically assured $20M in gross revenue/year AND $200M in the bank (all before the tax man comes along)? And recognize that this is the simplist of methods to grow that money.

Also, as others have mentioned, a strong settlement in TX can reasonably be expected to prompt many, many more licenses, just adding to the coffers. Over time, such income may become fairly predictable, thus constituting a "recurring revenue stream".

But there are many here that share your opinion. I just think that I'd prefer the money from infringers "up front" (risk on that side eliminated), then use the proceeds to develop revenue streams that are under our (PTSC's) control.

I do think that at some point, perhaps very soon with a dramatic increase in the cost of a license, some infringers will be forced to pay over time - to us in the form of ongoing royalties or to a lender - just because the cost will be too great to absorb all at once.

Just MHOs, and some things to consider.....

And I KNOW nuttin'! (FYI - that's my standard sign-off, which serves as a disclaimer and a clear indication that I do not have access to any inside information).

SGE