B-Lunist:
You are correct. Sue first, THEN negotiate.
The reasons have been covered here when DM filed the first round over a year ago. They have also been covered on the P*(Censored) board.
My recollection (I haven't revied those posts since then) is that if done in the opposite order, the plaintiff can not ask for treble damages, and possible 'patent exhaustion' issues come into play.
If no one else can review the old posts (I will be busy until this weekend to research it sufficiently) I will try to get back on the reasons as they have been discussed.