On September 11, 2012 the Company and Duane Morris LLP terminated the March 23, 2007 legal representation agreement, effective immediately. The termination pertains to Flash-R patent enforcement activities, as outlined in the March 23, 2007 agreement. Pursuant to the termination agreement, Duane Morris will continue to be responsible for any matters directly related to those actions in which Duane Morris had previously represented e. Digital, without any additional fees charged to e.Digital. Also Duane Morris will receive its previously agreed contingency fee on certain future royalty payments.