I'm not saying they would want us; however, if our technology has been used in some fashion in their music player, then there is value in our portfolio and exposure to them.

Let's assume they used our technology, and only they know if it was used in their players, and multiply some dollar amount (value of license if there had been one) by the number of units sold and you end up with your starting point for determining your exposure.

You, being an attorney, understand that negotiating a settlement is just that - a negotiation. What's a reasonable settlement ratio you would be looking for, 20 or 30 cents on the dollar? Would DM and EDIG settle for that?

Let's use a number within your range as a starting point. If the settlement value was $35 million, which if they are using our technology is low, then with that $35 million you could purchase around 190 million shares of our stock at today's price or you could use just over 1 million APL shares in the transaction. The remaining 56 million shares would cost $10.4 million.

Buy out premiums aren't usually as high as 100% but for purposes of this analysis let's assume they offer 40 cents/share. The full price to acquire would be $98 million, of which, $35 million is already committed leaving a balance of $63 million. Now let's assume they see a value in controlling our portfolio and collecting licensing fees from all the other players, what could that be worth? What are these patents worth in the future as flash continues to grow as the storage platform of choice?

In the final analysis, and I know I've made quite a few assumptions, it could cost them nothing to acquire a money making portfolio of patents while protecting their own interests by getting rid of a nuisance. All depends on the importance and value of our patents.