To Cliff, Carl, Gloria
posted on
Oct 08, 2013 11:23AM
First of all I would like to thank you for your part in reaching the recent victory in the No District of CA. The long awaited finding of infringement, although certainly a significant event, will not in and of itself bring value to shareholders. All of you, as well as all shareholders are well aware of the mistakes made in the past. Shareholders have voiced their opinions, in many ways, and on numerous occasions about your personal failures to be good stewards of this company. This is your duty and is not an option. The recent public trial has revealed even more troubling information about your business partner Dan Leckrone and the things he has done to damage PTSC shareholders. It is time for you use any and all of your legal means to remove him or minimize his influence. In the original master/comag agreement, I believe there was a provision for termination for bankruptcy. I believe there was also a provision, whereby, if a matching capital contribution was not made by either partner to PDS, then the other JV partner would receive a larger percentage of PDS. TPL has filed bankruptcy and it is no secret that you have covered TPL’s capital contribution time and time again. In effect you have perhaps robbed shareholders of a larger percentage of PDS. Shareholders have been kept in the dark long enough about licensing activity, the value of the licenses, the terms of your settlement with Leckrone and the subsequent new partnership agreements that were a result of that settlement. They have been kept in the dark long enough about Patriots business plan to bring value to its shareholders. The veil of secrecy surrounding Dan Leckrone’s self- serving methods of licensing (i.e. Apple) has been removed as a result of a very public trial and the great reporting of those trial events by certain shareholders. The Public Pacer documents have revealed even more. Shareholders were willing to wait years and risk it all on a verdict of non infringement. They will no longer tolerate continued low share prices. They will not tolerate secret and/or low ball license agreements that only benefit Leckrone. There is little doubt in my mind that shareholders would be willing to rise up as a group to support any effort by the BoD to do one or more of the following: 1. Allow shareholders to nominate 1-2 shareholder representatives. I would be surprised if they didn’t volunteer to do this for little to no compensation. However, in an effort to do the right thing, perhaps you should give up some of your BoD committee compensation to share with those appointed shareholder representatives. 2. Sever all contractual relationships with TPL, Leckrone, and Alliacense. 3. Use all legal means to assert a greater than 50% share of PDS. 4. Hire Jim Otteson or someone recommended by Otteson to be the third member of PDS Time is running out. You must act NOW on behalf of all Patriot shareholders. You must communicate your business plan to bring us value and excute that plan. If you do that , coupled with one or more of the suggestions listed above, I have no doubt you will find a unanimous outpouring of support for your efforts. Shareholders are waiting to hear from you now. Laurie Shareholders since 2006