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Message: Re: Biajj2too & SGE1 / Re: Rick .. LL
1
Sep 04, 2012 02:00PM

Well, I awoke at 5:15 this morning, and immediately realized that there is a major flaw in my calculations. While my numbers do point to the value of the MMP portion of the Apple license being $5M (almost exactly), I neglected to consider the TPL cut. In other words, when thinking about the 20% of total - or the "up front" ~$1M to PTSC - the correct thought should have been 20% to PDS, not just PTSC. All else in the calculation left intact, this would suggest that TOTAL value of the Apple license being $10M, not $5M. I hope that makes some kind of sense....

So, while my calculations nail down the $5M to PDS as the MMP portion of the Apple license and how that worked out (so there is some value in the effort), they do not support the proposition that the total value was $5M, but more like $10M. And, ergo, that there was some profound negotiating in the settlement negotiation between PTSC and TPL. Now, based on my figuring, it would appear that the result was a 50/50 split of Apple revenues between MMP and all others combined. Again, using my same basic calculation (which could certainly be off) as the basis, with emphasis on 20% (if you can follow: 20% of $10M = $2M to PDS, and ~$1M to PTSC up front).

As an aside, I still cannot reconcile Moore's 5% statement, and still suspect he intended one fifth - or 20%. Using Moore's 5% when coupled to the ~$1M up front to PTSC (~$2M to PDS), this would suggest that the total value of the Apple license being some $40M, and I doubt anyone believes that would be correct.

So, with my usual humility, I admit to my error and am first to point it out and briefly explain it. Now I ponder how I, with my supposed tremendously huge ego, can be so compelled to admit to my error. It is what it is....

I will try to get answers from PTSC and advise. IMO, in would be nice to finally put the Apple license issue to bed. Not that it matters all that much, as it is water under the bridge with its relevance to the overall situation petering out about a year ago. At least for PTSC. DL still has to deal with it.

SGE

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