Yup, I got point and your intent, and stated that up front. But you have to admit that applying statistics, or more specifically an average based on the past with no consideration of probable escalation on pricing, with so many variables and unknowns involved isn't too "scientific".

I equate using the averages of the first 25-26 licenses to determine future license fees to using the prices of a loaf of bread bought in five year increments since 1907, all purchased in different countries - some of which do not use bread as a staple food product while others eat only bread. How useful is that average as a predictor of the future for still another country's cost of bread? And is that sliced bread? French bread? Garlic bread? I'm sure you get my point.

This does bring up an influencing factor that actually hasn't been discussed too much, that being how critical is our tech to the infringer's business. DirecTV is a perfect example. Their entire business would fizzle without our tech, though the volume of microprocessors used by them isn't THAT huge (though probably in the 100M processors realm). I might add that DirecTV employs some top-notch engineers (the business and tech originated out of Hughes Aircraft). That said a lot to me about the validity of the patents (though to me there is little question).

I suspect that in your business, when utilizing your statistical tables, those statistics are applied when the variables have been narrowed to almost nothing, e.g., the only variables outstanding being an "act of God" or war breaking out (neither of which are probably covered). Even then there is risk factored in to the rates charged.

In any case, we're now picking at nits! Your point was made, and so was mine.

OT: Interesting.... I started out as a Math major (and aced 1st and 2nd semester Calculus, Advanced Algebra, Trig and Statistics). Then I switched to an Engineering major, just in time to see massive layoffs of Engineers across the country (early-mid '70s). So then I switched to Accounting, but the math aspect was too simplistic to be interesting/challenging. So then I settled on a Business Management major - always jobs available in that world. But I did get degrees in Math, Accounting (AAs)and Business Management (BS). I also got just 3 units away from minoring in Math, and likewise minoring in Psychology. But I'd already spent 4.5 years in college, and was ready to move on and make some money! Perhaps this somewhat similar background contributes to our like-mindedness so often. I think the same applies with the Wilke boys.

Perhaps I have difficulty in the statistics discussion because I did miserably in Quantum Statistics! LOL

Back to PTSC: Well, ya think the J numbers will be adequately disguised, or will we see another licensee tomorrow (last chance)?

SGE