Re: Innovators Take Patent Bill Battle to Senate-lake
posted on
Nov 06, 2007 09:24AM
And the 90% doesn't mean anything when you are talking about edig. We may have 100% or we may 1% settlements, each one will stand on its own and be decided between the two law firms. It's only a statistic that cannot be applied to an individual company.
Another comment.........the 4/10ths of 1% compared to the total market revenue is somewhat misleading. The acid test is what percent that equates to Net Income, which is the ability and willingness to pay for an infringement.
It is reasonable (although not a high percent) to assume that a company had a billion dollars in revenue with net loses over a period of years. Any settlement would result in a high percent of income, given a modest amount in this scenario, but a low amount versus revenue. In this situation, they may not have enough cash and would need to add capital just to pay the settlement.
One of the subordinate factors in determining settlement or trial may be decided based on net income or cash flow and what impact that would have on shareholders and the share price.