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Technology Stocks : e.Digital Corporation(EDIG) - Embedded Digital Technology -- Ignore unavailable to you. Want to Upgrade?

To: JimC1997 who wrote (5933)	6/18/1999 12:06:00 PM
From: JimC1997	Respond to of 18366

And my follow-up note to Wendy: Subject: Re: Product development Date: Mon, 07 Jun 1999 12:59:43 -0500 From: (JimC1997) To: Wendy Ravenel <wendy@edig.com> Dear Wendy, Thanks for getting back to me on my idea for a music storage device. I think that the product may have merit for an established audio component supplier (e.g. Sony, Panasonic) and that e.Digital may find that these companies would be receptive to your engineering assistance in such a device. The tie-in that I see to e.Digital is in the use of MicroOS and the compatibility that you could design in for the easy transfer of music files to and from your portable music player. Later that same type of device could be used for the storage of videos downloaded from the internet (once bandwidth increases sufficiently to support such applications.) Keep in mind that the use of cable modems will facilitate the development of the internet music delivery sector and that the outlet for the cable in the home is likely near the audio/visual equipment center. Therefore, a stand-alone device which can be used as the primary receptacle for the music (and later video) might be preferred to another PC-linked device. I expect that many consumers will want to have the option of converting their existing CD collections to a transferable digital format and to also be able to access that selection of music directly with their home audio equipment. The storage device could facilitate that conversion process. Obviously, you would design the conversion process to use Lucent's EPAC. This could be a huge market that you could capture with a properly engineered product sold through established audio manufacturers. The low margins in the hard disk market actually work in your favor, in my opinion, since they are merely a component in the device. The real margin comes from the fact that you can deliver a product that no one else will have (for a while) and further your quest to make MicroOS the standard operating system for audio and video files. I hope that your engineering and marketing staff find some merit in this concept. I would love to post the idea on the Silicon Investor message board for comments, since that forum has a number of thoughtful contributors. However, if you feel that this may have commercial potential, it might be best to let you take it a few steps further before discussing it publicly. Best regards, (I also sent Wendy another brief note:) I neglected to add in my prior message that if you like the idea, you might want to consider patenting it ASAP if possible. My feeling is that such devices will be essential audio equipment within a few years and I would like our company to have the rights to it. (Wendy voiced no objections to me posting any of these messages.)