I'm reminded of another company involved in an Internet-related controversy. For almost two years now, I've followed the travails of a tiny company named E-Data (OTC:GIFT). E-Data, at this point, exists merely as mechanism for a savvy entrepreneur and a pit bull patent attorney to create enormous wealth out of a stack of paper.
That paper happens to be a U.S. patent issued in 1995, and E-Data asserts that the patent covers many forms of online commerce. While it may seem astounding that such a process could be patented, E-Data has reached licensing agreements with more than 20 companies and has sued more than 40 others. And while some of the defendants had hoped to see the case thrown out of court by now, E-Data's litigation is proceeding -- a federal judge in New York is expected to schedule oral arguments soon.
As one of the defense attorneys recently told me, an E-Data victory would bring it the ''wealth of Bill Gates,'' though I'm not sure if he was exaggerating just a bit to gain sympathy for his case. It would mean a lot of money, no doubt, and the potential windfall has over the past 24 months been the stuff of much stock speculation. I've seen the range go from pennies per share up to $10 and back down to its current level, in the 50-cent to $1 range.
It's purely all or nothing. E-Data wins, and the stock holders score big. E-Data loses in court, and the story has an unhappy ending. |
