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To: Pat Hughes who wrote (49871)8/15/2000 2:48:24 PM
From: gnuman  Read Replies (2) | Respond to of 93625
 
Pat, re: At the conference call Tate did say to expect a large increase in legal fees with no off-setting revenues.
I'd suggest that if this results in validation of the IP, there will eventually be significant off-setting revenues.



To: Pat Hughes who wrote (49871)8/15/2000 2:58:17 PM
From: Don Green  Respond to of 93625
 
Pat

I do remember that issue being addressed. But wonder if they had this many suits in mind. Between Legal and warrants/options obligations it's got to be a big hit on the bottom in some upcoming qtr.

Don



To: Pat Hughes who wrote (49871)8/15/2000 8:36:21 PM
From: Dan3  Read Replies (2) | Respond to of 93625
 
Re: Tate did say to expect a large increase in legal fees with no off-setting revenues

Huh. As though he expects those costs to materially affect the stock.

How much could a law suit cost?

Let's run some numbers...

3 Senior partners at $650/hour.
8 Parnters at 450/hour.
20 Associates at 200/hour.

Billing an average of 4 hours per day on the case.

With an overhead charge rate of 1.25 to cover secretarial, lexis, westlaw, etc.

Is $3.1 million per quarter + air fare, hotel, and misc. expenses for the inevitable meetings - maybe another 400K/quarter.

Call it $3.5 million per quarter in costs.

Infineon should be able to drag this out for several years, at least.

:-)

Dan