Could this ongoing upfront $30,000/month retainer be pre-paid gravy for this "boutique" law firm who just happened to announce their own hiring of "Blue Sands IP" on the exact same day that e.Digital announced the agreement with Handal?
The most significant immediate and ongoing legal costs (in addition to the $30,000 monthly retainer)will be those vitally important areas that Handal is NOT "handling".
Evidently, HANDAL's $30,000 monthly "retainer" does NOT include initial and ongoing costs related to the following...(see BOTH press releases below and note the CAPPED WORDS as my own emphasis)
(1)...EXPERTS
(2)...PRIOR ART SEARCH
(3)...ADVANCED EXPENSES
(4)...TECHNICAL AND INTELLECTUAL PROPERTY SUPPORT
(5)...PATENT INFRINGEMENT ANALYSIS
(6)...IP PRIOR ART INVESTIGATIONS
(7)...PATENT LITIGATION SUPPORT
(8)...IP VALUATIONS
(9)...IP PROSECUTIONS
These 9 vital and expensive functions above are all found in the 2 press releases below. (my own CAPS for emphasis)
..." The Company will pay a monthly retainer fee of $30,000 creditable against future contingency recoveries. Handal has agreed to advance related expenses "excluding EXPERTS and PRIOR ART SEARCH FIRMS". The Company has agreed to (a) pay Handal a fee equal to 33% of any license fee or settlement related to Patent Enforcement Matters, less prior retainers; and (b) "reimburse Handal for ADVANCED EXPENSES"....
Marketwire – 09/17/2012 – San Diego. Handal & Associates has engaged Blue Sands IP for " TECHNICAL AND INTELLECTUAL PROPERTY SUPPORT related to e.Digital flash portfolio."...."Blue Sands IP specializes in PATENT INFRINGEMENT ANALYSIS, IP PRIOR ART INVESTIGATIONS, PATENT LITIGATION SUPPORT, IP VALUATION and IP PROSECUTIONS."...
JMHO...I wonder if Fred Falk used that same attorney he used in the "Boyer/APS Contract" to oversee this EDIG agreement with Handal? Or maybe EDIG BOD Chairman Alan Cocummelli was called in to "give it the once over" since EDIG is still paying Alan his $5000/month retainer as well.
Just how many Millions in ongoing protracted litigation fees DID that poorly constructed "Boyer/APS" contract end up costing e.Digital and it's shareholders?
Now the $30,000 per month retainer may just be the tip of the monthly iceberg.
Given e.Digital's remaining cash and now significantly increased
burn rate,will there even be any funds available if they even make it to court?...not to mention the actual monies (if any)from those still unknown defendants.
AI
