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Message: ptsc vs. e.Digital

Re: ptsc vs. e.Digital - LegalEagle

posted on Dec 29, 2006 08:06AM

You sure know how to open a can of worms!

I'm not sure how useful the debate really is, but there is a lot more to the "story" that should be looked at in terms of comparison.

Corrections welcome, but I believe the PTSC float is some 400M shares, EDIG 260M - so not quite 2:1.  Both have warrant issues, both are combatting those issues (PTSC more aggressively).

PTSC's IP includes not only the MMP, but also the Ignite/Inflame chip family's (based on the old SHBoom stacked architecture chip tech - which was once the backbone of the fastest performing computer in the world - developed by Genroco). This chip architecture has been licensed by PTSC (independent of TPL) to AMD and General Dynamics. PTSC also has patents for remote battery charging (just throw your battery operated devices on a tray, and they recharge, and recharge your pacemaker without surgery). So PTSC DOES have more than just the MMP patent portfolio to lean on, and can promote these other technologies with the income of the MMP.  Very similar to the scenario of EDIG possibly using patent infringement proceeds to promote the eVU.

PTSC MMP patent income is shared 50/50; EDIG doesn't have that concern (though will have to share some significant portion of any proceeds with a patent litigation firm).

Value of the IP: PTSC MMP - every chip produced since 1994 and into the foreseeable future. EDIG - every handheld device utilizing removeable flash memory. Both may be considered "maybes", as no court has decided a case in either's favor.  But PTSC has some major hitters who have already licensed - EDIG has none. And as far as sheer volume, PTSC wins hands down (after all, every device EDIG claims as infringing contains a chip that infringes the MMP).

Numbers of infringers: EDIG claims 174 companies, PTSC 300+ and quite possibly thousands.  Reality: PTSC IMO will only nail the producers of chips, those who license infringing chip technology, and those companies that bought infringing chips that were not witty enough to include a Patent Indemnification clause in their procurement contracts (which automatically eliminates the US and other Governments which will not accept a contract without such clause, as well as most automakers and other large corporations that will not accept such risk). Unfortunately, I cannot get my arms around who EDIG actually can effectively go after. Where does the use of their IP originate? At the design stage, where the use of removeable flash is incorporated? Are CE companies the originators of this design, or their suppliers (or suppliers to their suppliers)? Do these CE companies insist on incorporating Patent Indemnification clauses in their contracts as a matter of corporate policy?

Here, PTSC and EDIG are somewhat in the same boat. There is almost no way of KNOWING whether the suspected infringers are the parties guilty of infringement unless you know that they originated the infringing act or whether their supplier infringed and, if the latter, whether there was a patent indemnifcation clause in play. So the number of true PTSC MMP infringers may be only 100-500, or even less; and EDIG's true infringers may only be a handful - though a high volume handful.

So it's a very tough call. PTSC is well along its path on nailing infringers, with 14 recognizable-named licensees. But the products/other endeavors that PTSC could promote with the income are in their infancy.  EDIG has a long road ahead, probably/maybe, in enforcing its IP; but EDIG has a proven product to promote with the proceeds.

Amuzing thought process, but IMO it is impossible to effectively weigh one against the other. The competence of the management of either company is questionable at best, and down-right scary at worst.   But PTSC has money in the bank, and the licensees just keep coming - and BTW, PTSC management's forecast of licensing successes has been exceeded for 2006. EDIG has never exceeded its management's EXPECTations. But such thoughts are in looking backwards in time, so how meaningful?

Well, I hadn't posted for much for awhile, and just made up for it!

Happy New Year to all!

And I KNOW nuttin'! (dammit!)

SGE

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