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Message: Re: Samsung, Foxconn, LG, Dell, Cisco, Quanta, Ricoh, Compal - YOU OWE!!
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Oct 17, 2013 07:06PM

Gumbo:

"Mostly I'm basing my comments on the fact that willfulness is a difficult ruling to get. If I were one of the companies being asked to take a license and I got to court, I'd make the following argument: if two federal level courts can't come to the same conclusion regarding infringement, then how can I? Hence my continuing to use the technology was not willful, but rather I was thinking along the lines of the ITC claim construction.

I think the above is an argument that's reasonable enough that a judge/jury wouldn't find willfulness. It's all conjecture and litigation is unpredictable. I don't think there's a clear cut answer, but given that HTC wasn't found willfull, I think it will be a difficult thing to get going forward."

Really??.....

Assuming an alleged Infringer is taken to Court, PTSC/TPL/Otteson? will almost certainly take the case to a Federal District Court. Assuming that's the case, Otteson will tell the jurors a recent similar case was adjuticated in NDoC (David vs. Goliath story), and the verdict was HTC Guilty of Infringement on 6 Claims in front of a Jury of 9 people. That's legal Precedent. When/if the other side claims I was just following the ITC 's interpretation, as a juror, I would ask 1) What's the ITC? Administrative Arm of Gov't, you say?...Hmmm...Who made the Decision there? A single Judge NOT a Jury. Oh really......Hmmmm.....I'll take those odds anytime !!

IMO, given the fact proving Willfull Infringement is such a high bar to overcome, and the reported ease of which to obtain 3rd-party Attorney written statement to the contrary, PTSC is barking up the wrong tree if/when they seek this remedy,IMO. It has been rare for a jury to grant treble damages in recent memory. Investors may like to dream of such events happening, but in the current legal environment and recent history, it's a long shot at best, IMO.

Regardless of the ultimate ITC results, PTSC is primed for the future with a huge cudgel - Thor's Hammar sotospeak. If the ITC Commission decides to review the initial ITC decision, grants PTSC a Full Hearing, and reverses Gildea's original decision, so much the better. But to advocate, PTSC is in legal limbo or will be severely limited in what the firm can/will demand for a future licenses is poppycock, IMO. Published Tier Pricing will go a long way to solve appropriate license fee amounts. Geez, we WON in a Federal District Court. This has WEIGHT !!!

As has been explained on this Board in great detail regarding the $1M Damage award, to use that amount as a basis to constrict future licenses fees is illogical. The Award covered $8B worth of revenue, covering a limited array of products for only a few years. While I don't necessarily agree with all of Lambert's assumptions, and why the $1M is not such a bad thing, I can understand where he is coming from and will give him points for at least putting forth a good effort. IMO, the $1M is the Floor at a minimum, and will leave it up to Otteson to convince a prospective licensee a higher amount is warranted in their particular case.

IF I'm Otteson (Assuming Agility Law will take the reigns as the Primary Licensing Agent, a big IF I agree), I'm in close coordination with PTSC/TPL on how to map the future Licensing Strategy going forward. (More likely, PTSC will remain silent as usual,) It's a Brave New World out there now!!

In all liklihood, a lot of work is going to be subcontracted out because the potential licensing universe is so large. Agility must convince other IP Law firms to join us. With an already favorable verdict in Silicon Valley Home Turf, I would think legal recruitment would be doable. Alliancense will have to staff up accordingly. Undoubtedly, Someone is going to be a Prime Target soon. Hopefully, Agility will file a case(s) in EDoT to show we mean business. We have a Target Rich Environment for the next few years!

I would be interested to know how we will proceed in Europe & Asia as well. We have been in legal limbo for several years in Deutschland. Am wondering what, if any, the NDoC favorable verdict will have there and in the EU, in general?? Will we now press the issue much harder there, hopefully??

Key Issue: Can Otteson effectively convince prospective licensees to agree to TIER Pricing??.....If/When that issue is clarified, it will be much easier to forecast future licensing fees...I believe some kind of Tier Pricing will be established, the question is what the rates will be..TBD

Virt

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