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Message: HTC 10 Million and Possible Substantive Ruling Impact
The following is in regards to the HTC 10 million dollar figure in the expert report. <<<<>>>> I do not believe that the report stated there was a license, it stated the number that TPL would settle for with HTC. I do not believe the 10 million settlement number is final and could easily go up if we get a substantitive ruling at the ITC or NDoC. The important piece of information I took away from our expert filing is the tiers that are being listed for licensing. According to the schedule of tiered rates, there are six listed and the expert stated there was a seventh and eighth tier that was not listed. I believe the table is only for a license, not for damages, etc., so if we were to go to trial in Cali, then damages could be included on top of the license if we prevailed. Now, based off of the calculations by taking the 10 million figure cited in the expert exhibit and dividing it by 8 billion, the % equals .125%. That % balances exactly back to a tier 3 license. One would have to think if we won at the ITC or NDoC, HTC could be forced to accept a tier 5, 6, 7, or 8 licenses, and based on the 8 billion $ revenue cited in the expert report, that would equate to a license (not including damages if we prevailed and received a jury verdict) of anywhere from ~ 20 million to ~ 30 million. If there are 100s of infringers left and we can average 10 million per, then we as shareholders would proabably be pleased with the outcome. All of the above means nothing if we do not obtain a substantative ruling at the NDoC or ITC. This week is going to be nerveracking for sure. Hopefully this pm helps and I'm writing from an iPhone so it doesn't format well and is tough to type on.
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