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Message: 10K

I did not expect big numbers from the 10K, but I thought we might have seen a stronger than 200K settlement from TEAC in a "raised bar" environment. Either we are not there yet or discovery showed that TEAC simply didn’t have as many infringing products or as high value ones as I (or DM?) might have thought. We are post-Markman hearing, yet pre-Markman decision.... so it is difficult to gauge. Naturally I’d have to guess that the Pentax settlement amount is likely to be similar, although I realize it could be quite different just based on product numbers/value.

The question I keep coming back to is how DM could be satisfied with such amounts going forward? Perhaps with a favorable Markman the bar will then be raised for all... or maybe they’re really just after the few large entities (Nokia, HTC) and not as concerned with the rest. In any event settlements will need to improve substantially I think if DM is to be interested in filing a third round.

It’s all about the Markman, baby.

- Sinkman

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