I'll use Micron in this example, but I think that Apple or any other company would work just as well. Given what we know, here is basically what I see going on.

Handal: We've got you dead to rights, Micron. You've been using our patents without license and have sold millions of infringing products and made many more millions in profits off our technology. We want compensation for your past, present, and future infringement.

Micron: You make a very strong case for e.Digital, Mr. Handal. I don't think we really have a leg to stand on and don't want to drag this whole thing through court. Let's talk settlement. How does $100K sound?

Handal: Great! Let's settle!

EDIG: We're very pleased with the settlement with Micron and licensing revenues will be fully reported in our 10K as required. NDAs keep us from disclosing any terms of the settlement but as we said... we're very pleased. And by the way, it's just possible the other stuff we're playing around with (the things with the neat catchy names) might amount to something someday somehow although we have no idea for how much or when or how. But thanks to Handal we get to keep playing around with this stuff. We actually thought about maybe putting together some kind of demo or something. We'll let you know if anything comes of it. Maybe.

So Micron is happy to settle and be done with it, Handal is happy with their 'win', and EDIG gets to be 'pleased'. I have yet to understand how shareholders benefit from any of the above regardless of however it may get split up. There's just not enough money involved to matter and no one is pushing to change the status quo.

- Sinkman