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Message: RE: e.DIGITAL CORPORATION SEEKS INJUNCTION

RE: e.DIGITAL CORPORATION SEEKS INJUNCTION

posted on Aug 17, 2006 08:16AM
This Shareholder Alert prompts a couple of thoughts:

Could this be a signal that EDIG has a new set of legal eyes looking at this situation? I suggest this for several reasons. First, the issue of the first bullet has been around for months, so why wait till now to file this amendment? (possible answer later). Second, the issue of the second bullet COULD be related to patent infringement, but then again maybe not (how would you KNOW without having a device to test, etc.?). It actually sounds more like BOW and company ``said the wrong things`` when ``selling`` the studios/content providers on the security of their new device through possible comparison with our digE. Third, it seems that the first essential action of a new legal representation would be the resolution of Wencor ``issues`` to better assure the health (not heath) of our company, thereby better enabling further legal actions on other fronts. Fourth, the ``contemplating further legal action`` - what else could possibly be done here in the way of legal action? I mean, really, beyond these injunctions (if successful), what further legal action can be taken? Okay, I don`t really KNOW, but IMO it would have to be either something to do with Wencor`s visit with Maycom in January, or along the lines of claims of patent infringement.

ON THE OTHER HAND:

We could still have the same legal team working for us and, even though the items of the first bullet have been around for awhile, they now have more solid ``ammunition`` regarding this concern, and probably some way of assessing damages due to Wencor`s ill-founded ascertions (i.e., EDIG has essentailly stated in recent communications that prospective customers are stepping back due to Wencor`s claims). In other words, the first bullet may not just be purely for the instant injunction, but also setting things up for claims for damages due to Wencor`s frivolous public claims (and this fits in with the ``contemplating further legal action``).

Also, assuming same ole legal team (or not), the injunction sought in the second bullet could not be much better timed. ``Let Brent spend his resources on his manufacturing facility, acquiring components, training, etc., etc., and when he gets real close to firing the whole thing up, spring this puppy on him, potentially stopping him cold with his resources already spent``. I cannot believe this was not EDIG`s intent - and quite brilliant.

But, ``AAAH`` you say, ``this will just piss BOW off (more) making it less likely that he`ll accept delivery of those 1,250 units coming from Maycom``. True, BUT without those units and without his new XT, how will he service his existing customers? Maybe not an issue, but maybe a big issue depending on digEcor`s commitments to existing airlines/AMTRAK. Assuming the latter, Brent may be over a barrel and has to accept those 1,250 to avoid defaulting on existing contractual obligations.

Just some thoughts - again making it very clear to all that I KNOW nuttin`!

SGE

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