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Message: The case for more money comming

The case for more money comming

posted on Apr 17, 2008 04:44PM

A lot has been said about the issue of whether more payments are coming from the J2.5 settlement and there is much confusion on the issue but here is the case that there is more coming:

1. Common Sense. Pretty much everything was going our way at the time of settlement - some of the top IP minds on the planet had already agreed to settle and the Markman ruling was in our favor. Defendants are the ones who had their backs up against the wall and were at risk of being hit with treble damages and attorney fees so it make no logical sense to think TPL would have let them all off the hook for a few million and we pay our own legal fees. There has to be more coming some where, some how.

2. Turly's slip. Just eight days before settlement announcement, during an interview Turley makes the statement that "We now have income in the tens of millions of dollars per year to invest in new businesses and technology.”

3. NDA. There is no reasonable explanation for why there is such a strict confidentiality surrounding the settlment other then because it reflects some kind of royalty. The defendants wanted it because they dont want to look like fools for being the first to get hit with royalties when everybody else got out for a lump sum. However they stayed in too long and their backs were up against the wall. TPL agreed to it (with PTSC approval) because eventhough they know the shareholders would freak out with the low numbers in the 10Q and frustrated by the lack of explanation, the long term benfit of getting the royalty stream justifies the short term hit the sp would take from the low numbers and NDA.

4. Mumbo Jumbo wording for recording revenue. The language in the 10Q provision regarding how and when revenues are recorded leaves a lot of doors open. "...before revenue is recorded, there is persuasive evidence of an arrangement, the fee is fixed or determinable, collection is reasonably assured, and delivery to our customer has occurred."Thats a lot of wiggle room for why all revenues may not be in the 10Q.

5. Judge Ward maintaining jursidiction. Obviously the settlement terms have not been completed or there would no reason for Judge Ward to maintain jurisdiction over the settlement.

6. Business Resolution. All other companies "purchased a license"; J2.5 reached a "business resolution" which sounds to me like some kind of ongoing relationship.

There are probably a few more that I missed, but I think these are the main ones. Although there are factors that could be argued the other way, I believe these present a more pursuasive argument that something more is comming.

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