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Message: On a different note....

On a different note....

posted on Sep 21, 2006 08:10AM
I wonder if there is any relationship between the Maycom delivery of the 1250 players in mid October, and the scheduled court date for our hearing. The company is not willing to announce when it is scheduled because it could easily change. About the only way the August 17th announcement could relate to the court date would be if the negotiations for delivery from Maycom were subsequent to the scheduling of the date of the hearing.

In the August announcement EDIG ratchets up the pressure on Wencor.

e.Digital is seeking an injunction against digEcor’s manufacture and/or sale of their next generation player (currently marketed as the “digEplayer XT”) to the extent digEcor and its agents have improperly used e.Digital’s confidential information as alleged in the full amended response.

Now it is in both parties favor to settle this ASAP. If this injunction is served, Wencor will not be able to produce the XT. I believe all EDIG is interested in at this point in time is to remove all doubt cast on them by the Wencor lawsuit and force Wencors hand to take delivery of the Maycom order. I believe the injunction against them would essentially provide them with this kind of negotiating posture. Ideally the court case would somehow coinside whith the date of the hearing.

The other thing that might play into eDigitals hand is if we partner with and announce 1 or 2 high profile lawfirms prior to the hearing date. Depending on the stature of our partner (partners) this would have the effect of elevating our shareprice and strenthening our position. Even though the monitizing process and our dealings with Wencor are apples and oranges as Putnam said. I still think there would be some sort of effect, if only sending a signal to Wencor that we have a reputable lawfirm willing to monitize our IP.

It should be interesting to see how the next month or so plays out. The only indication that sometning will happen by the end of October is that Maycom should have delivered by then. If there is any semblance to reality given my conjecture, then we could be hearing hearing more than just that.

Larry

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