e.Digital Corporation (fka EDIG)

[Neverending]

1Coyote: Duane Morris picked the venue based on their research to think otherwise is irrational. Legal venues are very carefully selected based on the perceived advantages. That is why the so called "Rocket Docket" of the Eastern District of Texas has been so popular for IP litigation. Duane Morris selected the Federal District but did not have the ability to select the judge although they probably researched who might be assigned the case. The amendments were approved because they conformed with the examiners suggestions. It was decided rapidly. The underlying problem of the "sole memory" limitation was in no way addressed as far as I can tell by any of the amendments. I have some doubt that they will continue the litigation even though the patent survived the reexam. I have followed other companies that had Markman rulings then reexams and in subsequent court cases the previous Markman rulings were referenced. What the board should be researching is the probability of future litigation. I read the amended claims trying to find some wording that would help with the sole memory issue. I tried to see if the "microprocessor" control added to the claims would necessitate some RAM processing for cache but found cache can be accomplished without RAM. As the judge (Kreiger) pointed out Norris should have "stood his ground" against the original examiners non-final rejection based on the Sharp and Kimura cited prior art. Norris stated he was "aware of no prior art that did not use RAM" to get around the prior art. It was explicitly stated in plain language. I do not think EDIG will be able to get more than nuisance settlements even if Duane Morris signs on to pursue litigation. My reference is PTSC that has had a very difficult time monetizing their patents.

Judge Kreiger did not just come up with the decision on her own. She has many technically adept clerks that thoroughly research the case. Without a strong markman ruling there is no chance of anything other than nuisance value settlements. High dollar settlements cannot be justified to corporate boards of directors without one. Consider the timeframe. I believe that EDIG will wait until the 737 is resolved before pursuing litigation. That could take 1-2mos. Then even if a case is filed it will not start for 4-6months then there will be legal wrangling and maybe a Markman hearing by middle of 2013 then it could take another 6 months to get a ruling.