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Message: Re: Settlement vs Royalties
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Sep 09, 2008 07:21AM

Sep 09, 2008 07:33AM

I don't know the "exact" answer to that question. My feeling from info I have received is EDig/DM are not interested in "partnerships" with anyone due mainly to the physical set up of EDigital. 18 employees, no accounting department. No department set up to monitor sales and profits of companies that would become "partners" Of course these departments could be set up if "partnershnips" arose but a "one time" settlement is what is being pursued by both EDig and DM. It is much simpler and DM does not have to worry about getting its cut of any "royalties" over time.

Plus, settling with a company like Vivitar, or the like, has inherent risks as time evolves. Say instead of a one time settlement with Vivitar, after enough evidence has shown they are definite infringers, EDig accepts "royalties" and Vivitar goes out of business in two years or so.

Lets say EDig/DM does this with 10 different companies and they all go bancrupt......Not too much income for the troops......

NOt a chance EDig/DM is willing to take that chance if there are any funds in the till of the infringer. Especially DM. It's not in this to get dribs and drabs over time after expending huge funds to get there.

And what an accounting nightmare......DM would have to examine the books on a daily basis, almost, to make sure an admitted infringers was playing straight with any reached agreement.

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