$1M just in costs?? What actually figures into this?

Costs are surely just that - actual costs incurred by DM (including filing fees, travel, hotel, etc.) as a result of the work they’re doing for e.Digital. I doubt they’d be THAT much (maybe $100-200K??) and in any case should be relatively constant regardless of the size of any settlement. I wouldn’t figure much more than 1% and then only to account for it. For example, 1% of a $10M settlement would be $100K - that should cover a lot of "costs".

Those costs also shouldn’t include any billable hours - that’s what I understand is meant by "contingency". They must believe that 40% (or 50% if appeals are necessary) of a likely settlement will be far more lucrative than charging straight billable hours (even at $200+/hour). That should indicate something : )

So given that, a $10M settlement would net e.Digital $5.9M - which they wouldn’t split further with anyone and wouldn’t have any other costs associated. What are the legal costs for PTSC/TPL? All things being equal, wouldn’t they also have to pay out 40% of a settlement to their lawyers, then split the remaining 50/50? So they’d receive about half of what e.Digital would receive for the same settlement.

No doubt I’m over-simplifying on all of the above, but isn’t this basically correct?

- Sinkman