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The Count

09/15/08 1:01 PM

#233213 RE: ShallowMind #233212

Sammy's risk is beyond our current offer

IMO, the fact that we made an offer to SAM does not provide them with a worst case settlement. I strongly believe that any offer made in the past can be withdrawn. Let's say you were negotiating to buy an oil rig in the gulf a month ago and made an offer that was not accepted. When Ike began you would pull that offer off the table. Maybe the seller gave you a reduced offer as the storm got nearer. Now it's passed and the rig is undamaged. Do you think you can go to the seller and say, okay, now I accept your offer? No way. Similarly, there is no way SAM or any defendant in an ITC case could accept an earlier offer after losing the case. Otherwise it would be stupid to bring any action before the ITC if there is big risk and no reward.

This is just my opinion as I am not knowledgeable about the ITC, but your theory makes no sense - it would discourage any defendant to settle and my impression is that the ITC wants settlements, not decisions.

Frank
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olddog967

09/15/08 1:09 PM

#233214 RE: ShallowMind #233212

ShallowMind: I would assume that any offers that IDCC made to Samsung during negotiations were conditional offers. Therefore when refused, that offer is no longer on the table. If Samsung loses and an injunction is issued, they cannot just come back and say we will now accept your offer. At that stage there will be a different, and assuredly an offer more in IDCC's favor, then any previous offers. That is why you hear about settlements on the court house steps before a decision is rendered.

in reply to:
Why hasn't there been a settlement by now?

I've been pondering that question for a while, trying to keep the thought process free of influence of perpetual optimism this board creates, and have formulated the theory that Samsung thinks the pressure to compromise to reach a settlement is all on IDCC.

So...what underpins that theory? Just this. The downside for Sammy is limited. Some folks here will dispute that, claiming that an injunction is a big, BIG hammer. However, we've already offered Sammy a license and, if the ALJ rules in our favor, all Sammy has to do is accept our offer. That's THEIR worst case. Game over.