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Message: Distributor:

*We're having a bit of a problem with the menu choices we made. Seems a company by the name of e.Digital has a problem with the way these devices format the memory....and utilize controller / power distribution on the devices.*

*What else do you have that has a cost comparative that we can brand? We're not making much on them, they are for pushing our network contracts....2 year contract(1500 bucks) and we give the devices away(not really, with a wink).*

OEM: *Well, we have these items, however, they are a bit more expensive, however, there will be no problems with IP issues.*

Distributor: *What do you suggest? Can you be more competitive with price on them?*

OEM: *Not really, we're to tight on them as is. The devices you utilized have brought the cost of final products down and now we have a problem of competing with the issues.

At this point, we gave you all of the specifics of the devices, it was up to your legal and technical people to evaluate liabilities.

I guess things will have to be sorted out through the legal issues now*...

doni

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