e.Digital Corporation (fka EDIG)

[Cassandra]

In reviewing the Docket history for the KORG case, I see that although a Notice of Settlement was filed on 3/6/13, the Motion to Dismiss was not filed until 4/16/13. This is similar to what was done in the iriver case which settled in March but the motion to dismiss wasn't filed until May. IMO, Fred Falk wanted to delay the dismissals in order to allow the licensing fees to be reported in Q1 of FY 2014. That was a waste of judicial resources.

Because the $9,669 booked as licensing fees in Q4 does not appear to be either of the above, it would be nice if the company explained its nature. It could be that one or more of the retailers or customers that were dismissed paid a very small amount to be dismissed. Perhaps it was even termed "recoverable attorney fees."

KORG Docket history: http://www.rfcexpress.com/lawsuits/patent-lawsuits/california-southern-district-court/114198/e-digital-corporation-v-korg-inc-et-al/official-court-documents/

It's my opinion that license fee settlements in the CA suits will be very small -- probably under $100,000 each (possibly MUCH less). They are clearly aiming for very fast settlements and have no intention to follow through to trial.

I think these suits were intended primarily to get the share price out of the gutter than for any substantial licensing fees to be received.

This is classic patent troll behavior and even more egregious than the Texas and Colorado actions where at least the accused products had arguable potential for a meritorious claim. However after the CO Markman ruling regarding the claim constructions for '774 was found to be dispositive, the current suits which include products that don't seem at all covered by the patents, are baseless and nothing but patent extortion.

Fred is reckless in engaging in this scheme and I believe it could backfire in a big way.