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Message: The $491,000 improvement in operating income was attributable to the patent lice

As I see it the only reasonable explanation for the low settlement is that both EDIG and DM are cash straped and needed the funds. Litigating this type of case through the whole process would cost the defendent about $10 million. Hence, settlement for anything less would be a "win". I suspect the other infringers are kicking themselves for not being the first to settle. PTSC settled with AMD on similar terms for $2 million. The Lecrones who were co-owners of the patent portfolio at the time wrangled $9 million out of INTC. As I recall the high water mark was $30 million out of Sony after ownership of the patents was merged. The game has just started. There are many variables that we don't know. While I am very disappointed with the settlement, I know that the settlement did not define the value of the patent portfolio as some are claiming. Let's see what they will settle for on the court house steps. That will take some time but I promise you it won't be for a couple of million. Also, we must remember that the settlement is based on infringing products not the size of the infringer.

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