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lesnshawn

09/18/09 12:16 AM

#185740 RE: in4it #185733

in4it: You totally missed construed my point. It's much more cost conscious to pay a license fee now than pay multiple times more than that down the road due to losing a law suit and having to pay treble damages.

Wouldn't you agree?

Think of the fines that MSFT recently paid in the highly publicized court losses over patent infringements. Just a guess but, it's very possible that they could have paid well less than a third of those amounts had they just been respectful of the patents and patent owners that they knew (yes, I think they knew) they were trampling over.

If I were MSFT, I'd MUCH rather pay a smaller license fee NOW than a higher court ordered fine a few years from now.

Wouldn't you?

lns
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Poptech

09/18/09 12:41 AM

#185741 RE: in4it #185733

In: What you are saying is everyone is much more successful at implementing the NeoMedia IP than NeoMedia. Second, you are assuming the courts grant an extremely high licensing fee. The real deal is you get about 10% maximum on a licensing deal. If Microsoft gets $10MM this year on the Tag, we will get $1MM - or two months of running money. The lawyers take 1/2 and we get one month of survival. Now figure it will take another 5 years to sue Microsoft and the patent expires. We win a wopping $5MM dollars. Or a couple months of expenses. The number just don't work.

In IP, you earn the most amount of revenue by negotiating a license, not by suing for it.