Palto,

You said,

Edigital's product potentially complicates the patent infringement cases because a defendant can assert patents back against Edigital in its answer. This means that Edigital may have to cross-license patents with revenue flowing to Edigital. If the EVU becomes profitable and volume picks up, then those sales may be subject to a cross-license which would shrink margins.

I think this assertion might be bogus. I know eDigital pays Ittiam (Sp) a lisencing fee for the technology we've incorporated in the eVu player. I'm aware of additional lisencing fee's we've payed other patent holders for their IP. Although we may have inadvertantly incorporated other IP without properly lisencing, I suspect that this is not the case.

By the way, before replying to you I attempted to review your posting history. According to Agora, you have no profile nor a posting history even though you've been a member for nearly a year. You might want to clear that up.