Updated EDIG Shareholder Q/A

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Updated EDIG Shareholder Q/A

posted on Sep 01, 2010 07:39PM

Bang & Olufsen -
posted on Apr 19, 10 07:07PM
I ask Robert if Bang & Olufsen was still a licensing partner; especially since their BO2 seems the true design as-per our claims 'it won't work if the SD/CF card is remeoved' as I've always contended.

He said that we continue to receive quartly royalty checks from them.
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Dear Robert:

Is our current undisclosed eVU OEM helping us with the various new technology designs on the our next-generation eVU?

Respectfully,

Tim Scott, Paducah, Ky

---------- Forwarded Message ----------
From: Robert Putnam <[email protected]>
To: "[email protected]" <[email protected]>
Subject: <no subject>
Date: Wed, 14 Apr 2010 15:16:24 -0700

Hi, Tim,

No... We are implementing the hardware, software and firmware upgrades and adding the technology enhancements in-house.

Best regards,
Robert

Robert Putnam,
Sr. Vice President

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Dear Robert

Would a Laptop computer possibly fall under our handheld/portable patent claims sometimes in the future?

Respectfully,

Tim Scott, Paducah, Ky

From: Robert Putnam <[email protected]> View ContactAdd to Address Book | Block SenderFull HeaderReply To:
To:"[email protected]" <[email protected]>Cc:
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Sent: Tue, Apr 20, 2010 05:10

Possibly.

Thank you, Tim.

Best regards,
Robert
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doni's Q sent via me
Dear Robert:

Why should e.Digital not be a micro-controller/APIcode/cache supplier to Samsung, as, ie... Zoran is/was? Is it not worth the effort?

Tim,

Our engineering team specializes in producing MicroOS™-based portable entertainment systems. We are working to augment the scope of our markets and products through further monetizing our Flash-R™ patent portfolio.

Best regards,
Robert

Robert Putnam,
Sr. Vice President

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Dear Robert:

*Will the the new pending encription patent utilize our current MicroOS patent/s as a foundation?

*Is our MicroOS unique attributes the primary reason the eVU battery is able to achieve such superior power retention?

Or is it a compilation of both battery ability and MOS.

It says, ''This battery has smarter electronics and a fuel gauge to test the charge''

http://www.zbattery.com/Laptop-Battery-10-8V-Li-Ion-SH202-DR202-Replacement
http://www.edigital.com/evu8.htm

Respectfully,

Tim Scott, Paducah, Ky

From: Robert Putnam <[email protected]> View ContactAdd to Address Book HeaderReply To:
To:"[email protected]" <[email protected]>Cc:
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Sent: Mon, Apr 26, 2010 07:19 PM

Hi, Tim,

There are elements of MicroOS™ in the pending patent application. We achieve extended battery life in our portable products because of the optimization and customization of hardware and firmware with MicroOS.

Best regards,

Robert

Robert Putnam,
Sr. Vice President

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Dear Robert:

I want to thank you for answering my questions here-lately... again, Thank You.

*Is it possible that by utilizing elements of our MicroOS in the new Encription Patent; that then if applied within a network of portable devices it could further secure and enhance the DRMs of other companies?

*Since our TDL-dataloader is ethernet and eVU is a closed turn-key sysyem; can/is our OS working with a higher OS which can be coupled to a partners wireless network?

*Is an eVU Kiosks a possibility to target the general population for leisure?

Respectfully,

Tim Scott, Paducah, Ky

From: Robert Putnam <[email protected]> View ContactAdd to Address Book
HeaderReply To:
To:"[email protected]" <[email protected]>Cc:
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Sent: Wed, Apr 28, 2010 07:52 PMDownload All |

Hi, Tim,

Our encryption technology could work with other DRMs, but it would not provide enhanced security. We are researching wireless content loading incorporating our proprietary loading method. Delivering content-loaded eVUs through kiosks is one of the areas of interest we are exploring through partnering efforts.

Best regards,
Robert

Robert Putnam,
Sr. Vice President

Dear Robert

Sanjay Mehrotra, co-founder and president flash memory vendor SanDisk recently said this pertaining to NAND flash memory:

"From wireless handhelds to cameras, tablets and servers, NAND flash technology will be embedded in billions of devices over the next 10 years, says Sanjay Mehrotra, co-founder and president flash memory vendor SanDisk. And, as the number of devices using NAND technology increase, the functionality and security of applications embedded in flash chip controllers will significantly improve, he added."
http://www.computerworld.com/s/article/9176086/Flash_memory_set_to_benefit_from_mobile_Internet_explosion?source=rss_news

Is it possibly that MicroOS could have elements critical to the itiology of these flash chip-controler aspects of flash memory?

Respectfully,

Tim Scott, Paducah, Ky

Hi, Tim,

Yes, MicroOS™ could.

Best regards,
Robert

Robert Putnam,
Sr. Vice President

We see MicroOS is termed a software and hardware solution. Could the two be combined in the future to augment our own unique flash controler based microprocessor vs putting it on someone-elses chip; a solution which achieves superior functions over the current competition? Possibly with a partner?

Respectfully,

Tim Scott, Paducah, Ky

From: Robert Putnam <[email protected]> View ContactAdd to Address Book | Block SenderFull HeaderReply To:
To:"[email protected]" <[email protected]>Cc:
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Sent: Tue, May 04, 2010 06:19 PMDownload All

Hi, Tim,

MicroOS™ is a proprietary low level operating system that we developed and implemented in hardware designs based on our digital video/audio platform (DVAP). Even though MicroOS was originally developed for flash memory, it has proven to be very flexible and adaptable in enhancing devices that contain hard drives and require significant content file management. MicroOS can also support and manage multiple codecs and digital rights management systems on a single device. This flexibility could be built into a chip if hardware designers and manufacturers wanted to run their products on MicroOS.

Best regards,
Robert

Robert Putnam,
Sr. Vice President

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2

Dear Robert:

*Are the airlines that are currently using our eVUs able to input their own ancillary adds themselves, or is their material sent into edigital to be incorporate then sent-out with content updates?

*Are any of our customers using the credit-card swipe in any capasity?

*Do the airline passengers pay for eVU usage with cash, before boarding , or can they use the eVU card-swipe for this also?

*Do our eVUs now have 'Powered by e.Digital' or something similar displayed somewhere on them?

Respectfully,,

Tim Scott, Paduach, Ky

Dear Robert:

*When airlines test different portable-IFEs; is it conceivable they would test several different IFE brands during same time-span but perhaps on differing flights/routes?

Respectfully,,

Tim Scott, Paduach, Ky

Dear Robert:

I have a question about our 737 patent that I hope can clarify; it pertains to identifying and marking a bad segment to initiate the beginning point for a new message.

*Does the word segments of patent 737, claim 6, line (b)...represent an erase block, or a read/write block?

Respectfully,,

Tim Scott, Paduach, Ky

From: Robert Putnam <[email protected]> View ContactAdd to Address Book | Block SenderFull HeaderReply To:
To:"[email protected]" <[email protected]>Cc:
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Sent: Mon, May 10, 2010 05:35 PMDownload All

Hi, Tim,

We load all the content and ads for our airline customers. Our direct airline customers do not rent the eVUs; they supply them to their business and first class passengers. Many of Mezzo’s customers rent them to their passengers, however we are not aware of any eVU airline customer currently using the credit card feature. Most airlines don’t share their trial test procedures.

A stylized Powered by e.Digital is on the back of eVU.

The word, “segments” in the patent, claim and line in question is not limited to an erase block.

Best regards,

Robert Putnam,
Sr. Vice President

Dear Robert -

Please allow me to restructure this question... Trying to understand how we may differ and have advantages from other processes.

*Specifically, can claim 6 line (b) of patent 737 when marking bad segments under a read/write block logical format size....salvage the balance of the erase block(array) , or would the whole array be marked dead?

Respectfully,

Tim

Hi, Tim,

It's my understanding that the marking of defective memory segments is not
limited to the whole array.

Best regards,

Robert Putnam,
Sr. Vice President

posted on Jul 01, 10 07:16PM Use the IP Check tool [?]
Dear Robert

* Were all of our five flash patents utilized in the FlashBack Voice Recorder?

If not which was left out -

Respectully,

Tim Scott, Paducah Ky

From: Robert Putnam <[email protected]> View ContactAdd to Contacts | Invite Sender | Block SenderFull HeaderReply To:
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Sent: Thu, Jul 01, 2010 06:11 PMDownload All |

Yes

Best regards,
Robert

Robert Putnam,
Sr. Vice President

Dear Robert:

This statement from an IP blog has me confused. Will both sides have to agree on an independent 'expert' to exemplify the validity of the patents to present to and help the judge make a determination after all evidence is presented; or is it, to each-his-own; meaning we have our expert/s and they have theirs and both try to make best arguments then the judge rules on those.?

''My answer is , An intellectual property expert during Markman hearing as a consulting expert can evaluate the strength of the patents in question and assist the attorney in determining the best strategy for any license negotiations. This expert or experts will use various patent databases and patent files that detail the history of the patent prosecution to make a determination as to the validity of the patents, the likelihood of actual infringement, and suggest the strategy.''

Respectfully,

Tim

Each side has their own expert.

Best regards,
Robert

Robert Putnam,
Sr. Vice President

Dear Robert:

Will Ron Maltiel be one of our experts to help in discovery, or will he only be utilized if we go to trial?

Sincerely,

Tim

This is confidential information. Thank you for your understanding and continued support.

Best regards,

Robert Putnam,
Sr. Vice President

Dear Robert - sent 8-9-10

e.Digital told its shareholders that we would get more information 'later this year' on the new upgraded eVU system you were planning last Fall/Spring-10.

Now that you have changed directives and only plan a newer/sleeker eVU design with hardware-mods; will we still get to see-it in action or get more information in 2010?

Respectfully,

Tim

Hi, Tim,

Per our August 4th press release, should IFE business conditions improve or we partner outside of portable IFE, we can rapidly complete and release the next generation upgrade.

Best regards,

Robert Putnam,
Sr. Vice President

From: tim scott <[email protected]>Add to Contacts
To: Robert Putnam <[email protected]> 8-11-10

I remember a few years back our proxy materil stated how many applicable airlines there are in the world.

Do you remember the number?

respectfully,

tim

Hi Tim

Even though there are hundreds of airlines, including, cargo, transport, charter and other specialized air carriers, there are approximately 150 airlines that we consider prime potential eVU™ customers.

Best regards,

Robert Putnam,
Sr. Vice President

Dear Robert

Currently our MicroOS is specialized/based on 'Portable Entertainment Systems.'

As e.Digital stated, “In connection with our plans to expand our IP business beyond the Flash-R patent portfolio, we are collaborating with Dr. Pat Nunally on developing new technologies.''

Could these new technologies possibly go into areas other than entertainment?

Respectfully,

Tim Scott

Tue, August 31, 2010 6:08:14 PM
From: Robert Putnam<[email protected]>
View Contact
To: <[email protected]>

Hi, Tim,

We look forward to releasing more information about our collaboration with Dr. Nunally on developing new technologies in future Company communications. I can disclose that they are unrelated to IFE.

Best regards,
Robert Putnam,Sr. Vice Presidente.Digital Corporation

Morning Robert, Note: question sent @ 10:19 AM CA time, reply received @ 10:49 AM.

With reference to the recent Srilankan eVU order, as well as past such PR's of other customers, is the quantity sold, the unit price and profit margin per unit, considered company confidential, and if so, can you provide a brief reasoning why e.Digital does not make such information public?

Thank you,

EDIG JOE

Hi, Joe,

Two main reasons: 1) Our competitors don't provide any of this information and, 2) Most of our airline customers do not want the size of their orders (units ordered and dollar amounts) disclosed in our press releases.

Best regards,
Robert

Robert Putnam,
Sr. Vice President

sky56 - posted on Oct 23, 09 02:15PM
I asked this question in Aug.

Response from RP-

Cross licensing helps facilitate settlements and builds our base of intellectual property (IP). Due to the confidentiality terms in the licensing and settlement agreements, the only information we can provide has been/will be issued through press releases and our SEC filings. How we use the cross licensed IP will be made public when we utilize it in our business and/or product offerings.

DABOSS - Tier 1 vs Tier 2
posted on Mar 11, 10 07:57PM
A bit of clarity as we work through the process....

Per our earlier e-mail exchange, as we explained in the 2008 shareholders meeting, tier one filings are being directed at companies we believe infringe mainly on key claims within the '774 patent whereas tier two cases are expected to be filed against companies we believe infringe on specific claims within the Flash-R™ patent portfolio pertaining to fundamental techniques in utilizing flash memory (embedded or removable). The type of companies that we expect to file against in tier two suits will be different from our tier one suits.

Best regards,

Robert Putnam,
Sr. Vice President

northtocool - e-mail from RP
posted on Jan 05, 10 03:18PM

Thank you for your e-mail, Mark. The current round of filings are focused on our U.S. Patent 5.491,774 relating to the use of flash memory in portable recording devices. U.S. Patents 5,787,445 and 5,839,108 relate to MicroOS™ and flash memory and are expected to figure more prominently in future filings.

Best regards,

Robert Putnam,
Sr. Vice President

DABOSS - posted on Jul 01, 10 12:41PM
I asked if a Markman ruling carries over into the later rounds of lawsuits or does it have to be revisited with each group of subsequent filings.

Here is the response:

It is our understanding that the Markman process results in definitive rulings by a Federal Court regarding the meaning of specific claim terms within a patent (or patents). Once a Federal Court has issued its Markman rulings, it becomes difficult to vary from those meanings and in most cases there are no further claim constructions undertaken. Generally, the original rulings carry over to subsequent defendants.

Best regards,

Robert Putnam,
Sr. Vice President

DRVEN - Sent 4-28-09
Dear Robert,
Let me congratulate you and the others in the management team for the recent court victory. We all have been hoping for a favorable outcome. I have a number of questions and I would be very obliged if you would answer them, or at least as many as you feel you are able to without compromising the plans of the company.

1. The recently acquired EFB by IMS reminds us all that competition never sleeps. This acquisition provided them with a new product and a new channel of placing their products in the airline industry. Do we in Edig have an answer to such moves?

2. Does this mean that we lose our ranking in the industry?

3. How does the quality of our product measure up against the competition?

4. How does Edig’s sale efforts compare to that of our competition?

5. How many people are involved in sales? Whatever the number might be, do we have an adequate number to do the required job? If not, why not since now the company seems to have adequate resources to hire more people? Who has replaced Mr. Falk?

6. Why does IMS appear to be so successful in placing its products even under the most trying circumstances of the present economic environment?

7. How does Edig plan on using the increased revenues?

8. Is our engineering personnel adequate to stay competitive in the business of technological innovation? How many engineers do we have at this time?

9. Does the management have any plans to revise the business plan and become a technology firm living thereby on fees derived from licensing its technology? Ranbo has done this much but their engineering department has far more engineers than we do.

10. Could you please guide us shareholders in regard to future projected sales?

11. Is there any conflict of interest between DM and Edig in view of the fact that their goals might be diverging? More explicitly: In the short-run both companies would like easy and fast settlements; Edig needs working capital and MD would like inexpensive settlements. But in the long run Edig would like big settlements that might entail large outlays of time and money and DM might not want to engage in protracted and expensive court battles. In this case what is management’s strategy?

I will be grateful if you try to answer any (preferably all) questions.

Thank you very much in advance

Sincerely Yours

RP's reply

posted on Apr 29, 09 08:08AM
Thank you for your e-mail, Dr. Per our press releases and SEC filings, our business strategy is to market our eVU™ products and services to U.S. and international airlines, other companies in the travel and leisure industry, and to healthcare organizations. We employ both direct sales to customers and sales through value added resellers that provide marketing, logistic and/or content services to customers. We are also commercializing our Flash-R™ patent portfolio through licensing and we are pursuing enforcement by litigating against those who may be infringing our patents. Our international legal firm, Duane Morris LLP, is handling our patent enforcement matters on a contingent fee basis. We’re pleased to have favorably licensed and settled six of the eight cases that initiated our intellectual property monetization efforts, with more filings being prepared. Since comments we make (either in company communications, SEC filings, or individual e-mail responses that get posted on Internet chat boards) are scrutinized by opposing attorneys and the companies they represent, we believe it is in the best interest of e.Digital and its shareholders that we keep our IP monetization strategies confidential so that our words are not used against us during settlement discussions and/or litigation. The same holds true regarding providing greater detail to our competition on growing our eVU business.

We believe our eVU system is the best dedicated portable IFE device in the industry. As to our “ranking” in the portable IFE industry, none of our competitors provide financial results other than unverified claims of “doubling” their business, etc. Suffice it to say, we believe we’re one of the leaders. As we stated in our press release of January 21, 2009, with the recent and expected influx of new licensing revenues, we are in a better position to pursue business opportunities and partnerships in the medical industry, and in other segments of the travel and leisure industry. Fred Falk’s experience in building and managing partnering and licensing relationships align with the Company’s strategy to grow its business through mutually beneficial partnering arrangements rather than through building and paying for an internal sales team. We also anticipate a successful resolution of the digEcor lawsuit will greatly benefit our efforts to grow the eVU business.

We have a creative, dedicated engineering team that has successfully designed several products based on our proprietary digital video/audio platform, and we believe they will continue to keep us ahead of the technological innovation curve.

Thank you for your continued support.

Best regards,

Robert Putnam,
Sr. Vice President

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