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Message: Re: PACER Samsung
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Apr 04, 2009 11:12AM

Re: PACER Samsung

posted on Apr 04, 2009 11:17AM

Excellent thoughts with which I tend to agree...

Just to clarify my position on this, I have no reason to second-guess or call into question DM’s strategy. I don’t know enough to make an informed judgement one way or the other and I must operate under the assumption that they know what they are doing. However it’s interesting for me as we watch the filings to speculate on what their strategy might be or what would seem most likely to happen next.

Your point regarding the chipmakers may very well have been foreseen and considered. I hadn’t yet thought of that aspect. There is definitely value in the two patents however it’s possible that dropping them was anticipated by DM such that from EDIG’s point of view, it wouldn’t reduce the amount (really) being sought. From Samsung’s point of view, they could be thinking they just scored.

Put another way, perhaps DM decided on a number they’d like to ultimately get from Samsung - say $10M. If they told Samsung they’d be willing to settle for $20M based on 4 patents, then eliminated 2 of them - that opens the door for Samsung to settle for $10M knowing they just ‘saved’ themselves $10M... except that was what DM really wanted all along. An oversimplified example but you get my drift.

I’ve always thought that ‘774 would be easier to prove than ‘445 or ‘108 anyway. DM seems to agree.

My only lingering concern (which no doubt will linger on for some time) is whether DM is really in this for the long haul no matter what it takes and is prepared to go the full distance with the chip makers or whoever based on ALL the patents. They probably don’t even know the answer to that yet as it still depends on how the earlier cases go. Looks like so far so good. But will they ever take a company up to and though Markman to PROVE the patents are valid and worth big bucks? I thought they might be on track to do this with Samsung but it’s not looking that way at this moment. Do they care that they might be getting $20M or more (for example) after Markman, but instead are consistently willing to settle for $10M or less in an early settlement? I can’t help but wonder where the tipping point is.

And forget about the actual amounts. My question is really whether and when they will put more at stake in pursuit of a larger victory versus having much less at stake but accepting smaller victories. I could argue that one either way depending on the amounts sought, the effort involved, and the risk of losing. No doubt DM has already considered all of this.

It’s an exciting prospect we have regardless of the ultimate strategy. I also now believe that settlement with Samsung could occur within the next few months well before Markman is scheduled. If that is indeed anticipated by DM, then I could also see them not announcing any more infringers until after Samsung has settled.

I also can’t help but be thrilled by the recent digEcor filing. BOW obviously wants his day in court. What’s amusing is that this could ultimately end up with digEcor having to cut a check to EDIG... and wouldn’t that be sweet?

- Sinkman


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