Re: Dramatic difference due just to settlement #1
posted on
Nov 18, 2008 11:08AM
The reason is simple; payments from patents have NO BASIC EXPENSE. Once the split is made with the legal team, the money that EDIG gets is net/net. No manufacuring costs, no shipping, no advertising costs...etc. Therefore, the marging is huge.
For $ 1,000,000 received in Patents, EDIG would most likely have to make 3 times this amount in gross revenues to net the same.
Do you see this picture?
New Settlements will be HUGE to EDIG, even if the amount is in the $ 1.6Mil each.
I believe the first deal got a discount...but we shall see.