``We rely primarily on a combination of patents,

copyright and trade secret protection together with licensing arrangements and

nondisclosure and confidentiality agreements to establish and protect our

proprietary rights.``

They devise on a combination of other IP patents....IMO..they do not need patents in devising application to supplement the stable of IP..

There is a patent problem, however, when building IP upon a consumer business model or idea such as the DigEplayer.

``The patent position of any item for which we have filed a patent application is uncertain and may involve complex legal and factual issues.``

They have to give secrets away to establish a patent..

`` We intend to make every reasonable effort to protect our

proprietary rights

to make it difficult for competitors to market equivalent competing products

without being required to conduct the same lengthy testing and development conducted by us

and not to use any of our innovative and novel solutions to overcome the many technical obstacles involved in developing portable devices using Flash and other portable storage formats.``

In reading that.. it`s hoped that they develop by short cutting the obstacles..in turn..not allowing it to function in the same capacity and cost to build by others... Make it hard for competing sources from under bidding a platform.......such as the DigEplayer...

However..IMO..some times it`s just plain over incentive offerings from competition that push you out.

With that...tight contractual agreements are needed...make them pay big to remove you....

doni