This will answer some of your question re DRM , please read it several times !
e.Digital admits that the DRM, which speaks for itself, was intended for “e.Digital . . . to adapt its DRM technology [as further defined in the DRM and Addendum One] for the digEplayer,” which technology “protects . . . multi-media content on closed system portable devices,” (DRM recitals), subject to the further terms and conditions of the DRM. e.Digital denies any remaining or inconsistent allegations in paragraph 23 of the Complaint.
24. e.Digital admits and further alleges that the DRM, which speaks for itself, provides as follows in paragraph 2:
License, Gees, and Payment Terms: DIGECOR will pay EDIGITAL a $25,000 one-time flat fee for an unrestricted, unlimited, irrevocable right to use the DRM technology for use on the DIGECOR digEplayer and other DIGECOR products, including the right to modify and add to the DRM technology at DIGECOR’s discretion. The DRM technology labor (man hours) is included as part of this one-time payment and the Parties understand that this [is] not a billable project. This one-time payment will be made after the major movie studios have approved the DRM technology for use on the digEplayer. If the studios do not approve the DRM for use on the digEplayer, DIGECOR has the choice to make the one-time payment and thereby secure the unrestricted, unlimited irrevocable license or not make a payment and not use the DRM technology. With regard to the DRM technology, the aircraft industry will be an exclusive license for DIGECOR and all other markets will be non-exclusive. Further, the Parties agree that
6
Case 2:06-cv-00437-TS-DN Document 92 Filed 05/29/2007 Page 6 of 23
EDIGITAL will have a non-exclusive, unlimited right to use its DRM technology for non-aircraft industries.
e.Digital further admits that at one point in time, digEcor raised the issue of payment of the $25,000, but it never actually tendered the payment after learning that the parties had different interpretations of paragraph 2 of the DRM. e.Digital denies any remaining or inconsistent allegations in paragraph 24 of the Complaint
