Arcsoft had not provided much resistence to date. The news of settlement discussions may be pivotal for Nunchi. I said in my last post that Google (Dropcam) is in a win win situation with Edigital because they can test the strength of the Nunchi patents in court and then if they are strong, buy Edigital and use the patents against competitors in the context awareness space. Arcsoft can see that scenario developing and may want to make sure they do not need to go up against Google when they can still negotiate with Edigital and remain in the space. Now others like Arcsoft may or could be thinking the same way currently or when additional suits are announced. This then puts pressure on Google. The more fish (i.e. companies) they let swim though the net, the more competitors in the space. One company like Arcsoft may not be a big deal but the more fish that swim through the net, the less control Google will have in the context awareness space. This is all provided Nunchi patents are strong as we all hope they are. The question is "What does Google believe?".

IMO

LO