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Additionally, in October 2011 we entered into a Flash-R licensing agreement with a manufacturing company outside of the above litigation rounds. While we continue to evaluate future licensing and enforcement actions, the Order and the Statement, described above, could negatively affect future licensing prospects

As of September 30, 2011 we had licensed and settled with ten defendants, suspended the complaint against one defendant, and dismissed with prejudice, two additional defendants. Subsequent to September 30, 2011, we entered into two licensing and settlement agreements related to the Flash-R portfolio. The remaining four defendants were dismissed with prejudice, thereby ending the Colorado patent litigation case.

Two of our patents are in the process of being reexamined by the United States Patent and Trademark Office (USPTO). Favorable determinations from the reexamination could bolster our licensing and unfavorable determination could adversely affect our ability to monetize our patent portfolio. We expect the reexamination process to be complete in approximTwo of our patents are in the process of being reexamined by the United States Patent and Trademark Office (USPTO). Favorable determinations from the reexamination could bolster our licensing and unfavorable determination could adversely affect our ability to monetize our patent portfolio. We expect the reexamination process to be complete in approximately six months.

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