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


To: Richard Monahan who wrote (2942)4/24/1999 10:37:00 AM
From: bob  Read Replies (1) | Respond to of 18366
 
Folks I have come to the conclusion that eDIG has already licensed
their MicroOS to IBM. I can't find the link but if you look at the
eDIG patent for it and then look under patents for IBM the wording
is identical. How this could have gotten by me I don't know,
but this is big, big news IMO. Could mean that IBM will use the
MicroOS in all of their flash memory devices in the future.



To: Richard Monahan who wrote (2942)4/25/1999 4:30:00 PM
From: Evan Cohen  Read Replies (3) | Respond to of 18366
 
Let me know if I've got this straight.

I'm in the music business (as both a copyright lawyer and music publisher), so this sort of thing interests me. I'm new to this board, but I've read all the materials.

EDIG is developing a hand-held digital downloading device (for or with Lucent) which will have a rival (and, we hope, better) file format to MP3, EPAC, which will have the blessing of the RIAA through its SMDI efforts.

Am I missing something?

For EDIG's product to be successful (and I'm just focusing on the hand-held device at the moment; I realize they have other technologies they are developing), at least two things have to happen:

First, EPAC has to replace MP3 as the dominant platform for downloaded music. This will not happen soon, because MP3 has a big headstart. We all know this. MP3 is huge. However, it is musical copyright chaos. It will not be "replaced," unfortunately, because it's too popular already, and free. The most we can hope for is EPAC to become the standard for legitimate music sales over the internet. How long will that take?

Second, people have to want to buy portable file-playing musical devices. A walkman with a "memory stick," or maybe another home stereo component, or maybe for the car. Will they want to buy them? And, if so, how long will it take? Perhaps several years, perhaps several generations of product.

These are two big "ifs."

On the bright side, I've read the RIAA materials, and they seem to really want to get a secure platform established quickly. Like yesterday. In fact, I've never seen them attack a problem with this much force and resources since maybe the mid-80's, when they were going after record pirates. But you have to admit, the file-downloading issue alone is going to take at least another year to work out, maybe more.

I've taken a small position in this stock, which I intend to forget about for awhile while all of this is sorted out. This is definitely for the long term.

Evan Cohen