Interesting that Wolverine didn't get a license on our Flash-R Patent Portfolio, rather only got a license for the 774 patent. I believe all of the TX 7 defendants received a license on our entire Flash-R PP and this is the first time we've licensed the 774 patent alone. I realize we only sued Wolverine for infringement of the 774 patent but we ended up only suing Samsung for infringment of 2 of our 4 patents, yet they got the entire PP. Also, the other six TX 7 defendants were only sued for 3 of our 4 patents, and they all got licenses for the entire PP.

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(SAN DIEGO, CA, – October 22, 2009) – e.Digital Corporation (OTC: EDIG), a leading innovator of dedicated portable entertainment systems and patented flash memory-related technology, announced today that it has entered into a cross licensing and settlement agreement with Samsung Electronics Co., Ltd. (Samsung). Under the terms of the confidential agreement, Samsung obtained a license and release on e.Digital’s foreign and domestic patent rights, including the Company’s Flash-R™ patent portfolio, and e.Digital obtained a license and release on certain Samsung patents. e.Digital also received a one-time licensing fee.

(SAN DIEGO, CA, – December 10, 2009) – e.Digital Corporation (OTC: EDIG), a leading innovator of dedicated portable entertainment systems and patented flash memory-related technology, announced today that it has entered into a royalty bearing license and settlement agreement with TIC Computer, Inc. doing business as Wolverine Data (Wolverine). Under the terms of the confidential agreement, Wolverine has agreed to make an undisclosed lump sum payment for past infringing sales and to pay a royalty for any on-going sales of products that practice e.Digital’s U.S. Patent 5,491,774 ('774).

e.Digital’s '774 patent is fundamental to the Company’s Flash-R™ patent portfolio that covers certain aspects of the use of flash memory in the large and growing portable electronic products market. The Company introduced the first portable recorder with removable flash memory in 1993 and believes its patent portfolio to be essential to many consumer electronic products that utilize flash memory including cell phones, digital cameras, camcorders, PDAs and other popular devices. To date, eight companies have entered into Flash-R-related license and settlement agreements.

"We are pleased to announce our first royalty bearing '774 license agreement and the first settlement from our recently filed round of infringement actions,” commented Fred Falk, president and CEO of e.Digital. “We expect further legal and licensing activity this fiscal year.”

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Also interesting that Wolverine's dismissal was without prejudice, meaning we can come back and sue later for other patent infringments if we want. All of the TX 7 defendants' cases were resolved with prejudice.

"Within legal civil procedure, prejudice is a loss or injury, and refers specifically to a formal determination against a claimed legal right or cause of action. [1] Thus, in a civil case, dismissal without prejudice is a dismissal that allows for re-filing of the case in the future. The present action is dismissed but the possibility remains open that the plaintiff may file another suit on the same claim. The inverse phrase is dismissal with prejudice, in which the plaintiff is barred from filing another case on the same claim. Dismissal with prejudice is a final judgment and the case becomes res judicata on the claims that were or could have been brought in it. Dismissal without prejudice is not."

http://en.wikipedia.org/wiki/Prejudice_(legal_procedure)