"as a result of the fee arrangement with current litigation counsel, we expect the legal costs of PDS to decrease substantially from 2012 levels."

Do we know what this 'fee arrangement' is, or is it 'confidential'?

My guess is that it could be a "pay me now or pay me later" approach, I believe known as "contingency" in legal parlance.

So "at cost" fees now (hence reduction in fees) but a sizeable % of license revenues down the line (in addition to TPLs 15% rake-off?).

Any other ideas why lawyers would agree to less in fees?