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Message: All we know is the 1st settlement was for 1.6 mil

All we know is the 1st settlement was for 1.6 mil

posted on Nov 16, 2008 07:07AM

We don't really know if the 1.6 mil represents the amount to edig or the total amount before the expense and the 60/40 split.

We don't know if the settlement was based on a discount and if so, how much.

We don't know how many products were infringed by LG and what value they represented.

We don't know if the settlement was based on one or all of our 5 patents.

We have no assurance that any of the remaining 7 lawsuits will settle before the markman hearing or not.

We do know that the Balance Sheet does not paint a pretty picture and that we are cash strapped and no doubt will require more debt or issuance of shares to continue operations, unless more settlements occur.

We don't know if the amount represents the average of the 184 mentioned by edig, (they have not provided documentation of 200 infringers), so some may be higher and some may be lower.

We need a few more settlements before we can see if the LG result and associated dollar amount had any impact on future agreements or amounts.

As to validating the infringement aspect, the LG settlement helps, however technically we need a court decision before we can actually state that we have proven the patent validity.

All in all, we know very little about the future of the lawsuits, except what was stated at the SHM and subsequent discussions with RP on the subject. Changes happen and none of the comments are cemented in concrete, a lot of questions are still unanswered.

Just one individual thought process, cost you nothing to read.

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