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Message: Time & Sales - Friday 9/27/13 Vol 38,170 Closed at $0.0659

"Mr. Handal HAS NOT BURIED 774."

From what I'm reading, he is utilizing 774 as a bargaining chip to settle 737 and 170.

If these two settle without any interaction of the court, with regard to rulings on Markman proceedings....exhibt A will not be recorded with the court.....and 774 then becomes a dead issue.

This is a formal stipulation that e.Digital is agreeing to with the defendants...if the court goes along with the stipulation.....and then things settle out before getting to a Markman ruling on 737 and 170....exhibit A is not filed, its the end for sure of 774 for the current defendants.

The questions then are:

What happens to 774 in future reflecting on the above situation?

We can't go back and appeal the CE ruling because of the stipulation between e.Digital and the current defendants. If the court does not rule on any issues, exhibt A will not be filed and the defendants are not in jeopardy regarding 774. Thing is, if this happens and we can't go back to an appeal of the CE ruling, IMO, a future court will recognize the CE ruling if future defendants start a CE consideration yet again.

The current defendants only have a problem if the court rules on Markman issues(737/170) dis-positive to e.Digital. The defendants are agreeing to these terms, because they might have settlement considerations for 737 and 170.

It all comes down to what the defendants want to do, drag things through the Markman proceedings, get the claims construction rulings on 737 and 170 and then have exhibit A filed.

IMO, it does not matter if the ruling is positive or dis-positive to e.Digital in order to be filed, just that the court rule on the case.

Which brings us to two scenarios...

If e.Digital gets a positive ruling....the defendants settle, exhibit A can be filed preserving e.Digitals rights to appeal the 774 CE ruling in the future if it wishes.... Where in, if it does with positive results on that matter, can then go after the current defendants... the CE mess is cleared for future issues as well.

If e.Digital gets a dis-positive ruling....e.Digital settles, exhibit A is filed preserving e.Digitals rights to appeal the 774 CE ruling and the current dis-positive rulings and start the appeals process.

doni

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