from rb:By: nvnt_1
Reply To: 211255 by soloinvester Saturday, 12 Feb 2000 at 3:33 PM EST
Post # of 211733
Soloinvestor, you are half right about the patent statement you made. While I agree you can obtain a new patent for any improvement to an old one, it does not now also mean that you are free and unencumbered to practice that patent. For example if a patent has three key elements in its independent claim(s), we'll label those elements a,b and c. If someone improves upon that patent by having elements a,b, and c and then adding element "d", it is true that they can receive a new patent. However they are not free to practice that patent. The original patent having elements a,b, and c is dominant over the new patent containing elements a,b,c, and d, primarily because the new patent cannot work without infringing the old fewer element patent. In other words, the new patent holder must negotiate the rights to practice their invention from the original dominant patent holder, usually this takes place as a royalty arrangement.
If however the new patent contains elements a,b, and d and does not hold element "c" for example then the new patent holder has a new position that is not dominated by the old patent. Thus, no need for a negotiation. The new patent must contain all elements of the old to infringe.
IMO, the EDIG patents appear to be quite simple and thus very powerful. The elements contained therein look like they would be required by all to accomplish their objective. So if MSFT, INTC, or others want a new patent they would likely have to contain the elements of the EDIG patents, thus making EDIG the dominant patent and due some form of payment. If those companies can accomplish the same thing in a wholly different way then it is likely they will, no one like to pay royalties.
So far though, no one has challenged EDIG's patent position and the biggies are still involved with them. It spoke volumes to me when we saw EDIG in the IBM booth at the CES. You have to ask yourself, why would they be fooling around with this BB company if they weren't real? And the reason they are real is because of their patent position.
The true test of course is a challenge in the courts. QCOM shot up last year when the patent litigation was settled between Q and Erickson. This was tantamount to ERICY agreeing to QCOM's position.
IMO, EDIG's patent position is less important today then announced partner agreements with INTC,TXN, LU, MSFT, IBM, etc. If any of these players announce their strategic relationship with EDIG then they are in effect agreeing to EDIG's proprietary position. Those announcements will propel this stock upward in dramatic fashion. Some day, some one will challenge those patents and then the lawyers and the courts will take over. Then, and only then will we know the real strength of their patent position.
I am here because I believe the EDIG patents are sufficiently strong and time to market is such an acute problem for large players that it will be easier to sign up with EDIG now, then to risk getting caught in a bad position. I expect those announcement to begin in the next few weeks and that's why I hold EDIG.
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