My thoughts/supposition on the current events:
1. Cisco saw our appeal response to the CAFC and realized that there is a greater than 50% chance we are allowed to appeal.
2. When we go back to the PTAB for the unpatentable issues, Cisco has realized that there is a far greater chance that we will succeed than originally expected and win most if not all of the unpatentable claims that we lost originally.
3. During the recent depositions for the trial with the 13 cable companies, our experts provided great testimony for our case in both the technical and valuation areas. Moreover, when our lawyers responded to the 13s expert testimony asking to strike many portions of the 13s expert testimony, immediately the 13s lawyers responded and struck the language from the testimony.
With the above comments I think that Cisco has decided it is in their best interest to enter settlement negotiations.
To me it makes sense for Cisco to settle here is why:
1. UOIP/Chanbond has proved the case.
2. The 13 will sue for indemnification when they lose, and that amount could be very large, let alone reputation damage.
3. The valuations have shown that there are royalties to be had in the out years so Cisco owning the patents could now charge a royalty/service charge and reduce or even recoup the settlement amount based on future royalties.
Of course all my statements above a guess, but it makes sense to me on some level.
I remain long.
