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Message: I had a brief conversation

I had a brief conversation

posted on Aug 28, 2009 12:44PM

with RP yesterday. My principal reason for calling was to discuss the X licensing and royalty issues. I'll try to be as objective as possible but don't take this as verbatim information, unless I state it as such. When I editorialize, it'll be obvious.

Regarding royalties, he said they're extremely difficult to negotiate and would take an inordinate amount of time and money. He didn't place a cost on the effort but he did say it would take "3 or 4 years" to prosecute royalty settlements. I suppose that answers the cost question. It does make sense, however, that a company would be loathe to allow a"parasite" to take a bite out of future revenues and would rather be done with it. I get the strong impression that they're not even attempting to include royalties in these cases ....so I'm not looking for it. I suspect DM is largely responsible for that strategy.

I asked him about the value of the X licensing for EDIG. Let me be clear about this. He never said anything about the added value impacting on potential partnerships or takeovers. His only response was that these could be utilized to enhance their existing products. I held my tongue on that one. :>)

I did ask him why the company didn't publicize the monetary results of these settlements. His answer was predictable, stating that the other companies didn't want it publicized. It's just one element of the settlement. He did say that the money does show up in the company's fiscal reports....that goes without saying. I don't think we'll get any of those glaring settlement headlines commonly posted here.

The discussion was pleasant and I purposely kept it short. I didn't want to overstay my welcome. :>)

I recommend that more members call him and discuss 1 or 2 issues close to each of you. Keep the conversation brief and he's likely to speak to you again. He's a pleasant chap but he won't give away the store. :>)

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