Talked to IR today about my lawsuit and other questions. Here's a rough Q&A summary of conversation.
Mitsubishi's countersuit had no money changing hands. Ampex won by not losing to them. Mitsu gets no $, AXC gets zip. Both are out lawyer fees, which Mitsu can easily afford, being such a huge deep pocketed company. their trial was mostly a knee jerk nuisance suit reaction to AXC's suit.
AXC's trial is a federal one, is being heard now before a JURY and judge (I didn't know a jury would decide)in Delaware, since that's where AXC is registered as a corp., over 3 patents. At this time don't know if they'll try one patent at a time or all 3 together.
They are NOT seeking a set sum of $ yet, since there are many unknown variables. At present they are only trying to prove Mitsu infringed. If they win, only then will the $ questions be solved. Some variables of that:
Will they get back lawyer fees? unknown
Will they get backlog of licensing fees? yes, but its determined by a complex system. Have to know how many units at what price for how long were sold by Mitsu with the infringed patents if they win. At this point Mitsu hasn't volunteered any of that info, so that essential equation is completely unknown at this time. AXC has spent about 9M (she thought that was in the 10K- is it accurate? I thought it was 4.9M for 96, with very little for 95 wasn't it?)so far on the suit, and she said that wasn't counting this Q spending either in that 9m figure. (actually, I thought the total to now would be about 9m, taking run rate of at least 3M per Q now that suits are underway.)
Don't know if jury will also award damages as well. It could be the judge, or it could be the jury decides, unclear at this time who it'll be. Don't know if punitive damages will be awarded. There are so many open ends at this time.
They're a couple weeks away at least from settling it.
Royalties are very hard to collect. Companies pay late, or refuse to pay, or stall. No one likes to pay royalties.
She doesn't know which 3 patents are being sued for.
If they win against this major manufacturer, smaller manufacturers will most likely, if they have any legal smarts at all, put up no or little fuss, since if Mitsu couldn't best AXC, how can they? So prospects of others fees coming in if there are other similar infringers is high. AXC can take the intransigent ones to court and show the judge the Mitsu results (provided they win) and settle quickly.
She didn't know if AOL's "Jubimer" comments that Mitsu paid royalties on these patents since 92 were correct.
VHS recorders and TV receivers royalties are more taken care of. However, 8mm camcorders are a larger untapped goldmine at this point. Many not paying AXC yet.
1Q will come out end of April, 1st of May. Usually takes them about 30days to report, tho they have 45.
Annual reports are ready, she was looking at one on her desk right then, and they were going out that day to transfer agent in NY, so we should be getting them in about 2 weeks, since they have to add proxy forms and voting cards.
Annual meeting usually only lasts 1/2 hour at most because last year only 10-15 people showed up, which was the most in several years! Business only takes 7-8 minutes, announcing shareholder ratifications of items put up for vote, and then can ask Bramson questions. He's gracious and will answer any he can. Many people say they're coming but don't show. Pretty unnecessary meeting.
BTW, who is going to the annual meeting??? I sure would like to send along a list of questions if anyone would volunteer that they'll be there! |
