An admittedly optimistic opinion...just for fun on a Sunday.

From the 8 Jan 09 PR: “We expect further portfolio activity this quarter and throughout our next fiscal year.”

Well, we certainly got some portfolio activity last week! And for the “throughout next year” statement to come true, they’ll need to file against a new list of defendants. IMO a minimum of 25 new defendants in FY10 (1 Apr 09 – 31 Mar 10) is reasonable and here’s why:

· DM’s quick settlement success with 6 electronics companies

· sunpoop’s report of up to 15-20 new defendants in the next filing

· EDIGOKIE’s report that EDIG will be hiring a new law firm(s) for cases where DM has a conflict of interest

If you consider we have 200 infringers to sue, I wouldn’t be surprised to see 50 new defendants in FY10. Quick legal success gives DM confidence in their case, and attracts new law firms to get a share of ‘easy money’.

Using the Nikon et al case as a model, my guess is at least half of the new defendants we plan on filing against in FY10 will probably settle because the 6 victories DM has enjoyed will be cited during negotiations. DM (and a new law firm) will stress these as patent validations by big name companies and ask, “Why waste money in legal fees by dragging this out when teams of engineers and attorneys have already conceded? Pay us a reasonable settlement now or 3 times that amount after a trial.” And just what will happen if EDIG does hire a new law firm in addition to DM. The new firm and DM will obviously face each other in court or there wouldn’t be a conflict of interest requiring the new firm. My guess is DM would advise their client it’s in their best interest to settle since they are intimately familiar with EDIG’s patents.

Now, what kind of IP monies are we talking about? Remembering EDIGOKIE reported that the new defendants would be large ones; companies like Nokia, Sony, Apple, Motorola, Qualcomm, NEC, Panasonic and Toshiba come to mind. These big CE names equal big IP money. I wouldn’t be surprised to see $5M-10M from each and even figuring only 25 defendants, that comes to well over $100M in IP revenues. Just imagine the kind of press coverage EDIG would enjoy if it received over $100M in IP revenues in FY10! With 60% of resources like that, new partnerships with companies that share their vision, and new industries receptive to our product, EDIG could easily increase eVU sales and show Wall Street recurring revenues to move our shareprice steadily north.

I believe FY10 will be great but that FY11 will be an even better year for EDIG.

$ilver$urfer :)