Alto Ingredients Inc (ALTO)

[Slashnuts]

Good question,

PEIX shareholders should be aware of the risks.
The damages are no less than past royalties. However in cases of producers knowingly and openly infringing, like this one, treble damages of 3X past royalties may be awarded plus court costs.

Cash award estimates floating around are several hundred million dollars. $300-$500 hundred million roughly? Your guess is as good as mine. ICM has indemnified BG and many ethanol producers(which are ultimately liable). The problem is, the drought has completely halted business for ICM. They are bleeding cash and laying off workers. They've laid off more than half their workforce since this lawsuit began.
http://1350kman.com/layoffs-at-icm-of-colwich/

What I'm trying to do is warn PEIX investors that ICM is hurting and might not keep their "go ahead, infringe, we'll protect yea promise, just buy our equipment, we're desperate, we promise"...

For example, Cardinal Ethanol bought ICM's equipment, currently a defendant, read what they said...Notice at the end they say if ICM is unable to pay, the ethanol plant is liable. They go on to say production could halt...


"In this amendment the manufacturer and installer of the tricanter oil separation system indemnifies the Company against all claims of infringement of patents, copyrights or other intellectual property rights from the Company's purchase and use of the tricanter oil system...The Company is not currently able to predict the outcome of this litigation with any degree of certainty. The Company estimates that damages sought in this litigation if awarded would be based on a reasonable royalty to, or lost profits of, the plaintiff. If the court deems the case exceptional(3X damages), attorney's fees may be awarded... However, in the event that damages are awarded, if the manufacturer is unable to fully indemnify the Company for any reason, the Company could be liable. In addition, the Company may need to cease use of its current oil separation process and seek out a replacement or cease oil production altogether."

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=82358596

ICM can't afford to indemnify all the plants they have. Ethanol producers may end up turning the keys to their plants, over to GERS. ICM has lost more thsn half it's workforce and the drought hit them hard. A half billion dollar fine would BK them and leave PEIX and other infringers holding ICM's bag full of empty promises.

In that event, what I think will really happen, is what is already happening. The licensed/legal producers will buy the underwater infringers.

ANDE is licensed with GERS, they bought out an infringer that was using an Edeniq system. ANDE licensed the system with GERS and settled the lawsuit for that plant. Notice how the owner of the ethanol plant was ultimately liable for infringement...The buck stops with PEIX.

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=76907169


Good Luck To All!$!$!$!$!$