My post is labeled upfront as "opinion" and I stated why I formed that view.
It is true that Samsung is a huge company -- probably the most significant target e.Digital could sue given its volume of products in the categories claimed as infringing.
So, how much do you think the one-time fee from Samsung will be?
If my opinion is correct and it is just another less than nuisance value settlement, will you be disappointed?
The fact is e.Digital hasn't "won" any of the cases. They accepted early settlements that cost the defendants far less than it would cost them to mount a defense, which is currently pegged at a minumum of $4 million.
If the patents are so valuable, why did e.Digital settle for so little rather than take them further and hold out for much more?
Is it possible that e.Digital and Duane Morris know that the infringement contentions are weak and that the patents may not stand up to a re-exam? Is it possible that the strategy all along has been to file nuisance lawsuits with the goal of extracting nuisance value settlements?
e.Digital has a better balance sheet than in 1999-2000, but it doesn't have the same kind of perception of future possibility it had then (global standard OS like Qualcomm, Nasdaq listing, etc.). Market exhuberance was also different in that era. The hype and resulting SP movement brought in investors beyond typical penny stock risk takers.
However, e.Digital failed to achieve any of its great expectations despite multiple business strategies over 10 years and survived on continous dilution. It blew its credibility outside of the remaining hopeful longs who have kept the company afloat by continuing to buy the shares the company issued to financiers.
The IP monetization strategy may keep the doors open, but IMO it's not persuasive enough to entice the necessary droves of new investors willing to pay a significantly higher price, which would allow existing longs to finally cash in at levels above much above the current SP. IMO many current longs are so emotionally invested that they lack the objectivity to see EDIG in the same way a potential new investor would see it.
If keeping the doors open is what's important to you, then e.Digital is indeed in better shape. However, if your goal is to eventually sell your shares at a price much higher than current levels, I believe perception by potential investors is much worse than 10 years ago.
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