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Message: note today from RP

Re: note today from RP-Sunpoop/LL

posted on Aug 14, 2007 07:59AM

When I read your scenario I get somewhat excited. (tempered by caution of course). I have always wondered the mindset of a company, large or small, when their "tit" gets caught in the wringer.

For instance, if a large company is found (or knows for sure it will be found) to be using anothers patent in one of their products what is their initial thought process...."We are going to fight this to death, or we know we got found out and lets pay"

The reason I ask is due to the cost of litigation being so expensive as you have pointed out so eloquenty.

I would assume the company's first thought would be to contest the suit, however at some point someone has to "run the numbers". If those numbers show equal costs, (pay or fight) would the tendency be to settle. If those numbers show it's "much cheaper" to pay than to fight does that company still want to continue the fight?

I find it quite interesting that most of these "patent infringers" that have been hit with large judgements against them should have known by the evidence presented to them that they were going to lose but "kept on truckin" Is there ego here? Unwilling to recognize what is arrayed against them or are they in an untenable position where they have to go forward.

In EDig's case DM obviously feels there is "much" here. If they approach company "A" with irrefutable evidence of patent infringement and company "A" knows it is doing so and the asking price to settle with a license to continue using EDig's patent is less than one percent of the company's yearly business and this lawsuit is filed by a highly rated, well respected, national law firm who will not be buffaloed (sorry for the run on sentence) WHY WOULD COMPANY A FIGHT????? What's the mindset????

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