My thoughts in [
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Shareholders are advised that the following is the only information that will be provided by Patriot Scientific Corporation regarding the resolution of the Texas (and California) litigation that had been pending regarding the MMP portfolio patents subject to the dispute:
PTSC is excited as we all are about the settlement, but needs to be cautious to avoid anything that could jeopardize the settlement reached with the Js. Why else would PTSC be pleased with the settlement if it is at a minimum not what their base negotiating position was?Patriot Scientific Corporation, its directors, officers and employees are obligated to observe the confidentiality provisions of the settlements and will limit any comments or statements solely to references to the wording of the joint press release or statements that matters between the parties to the litigation have been settled.
As many have pointed out, cultural differences in Japan places a high premium on face saving. My guess is that this premium translated into even higher settlement licensing rates than might have otherwise prevailed. http://www.jetro.org/content/391This settlement occurred during Patriot's current financial quarter, which ends February 28, 2008, and for which financial reports will be due for filing with the SEC by the second week of April, 2008. Information applicable to this settlement will be included in those reports to the extent required of the company, yet consistent with the confidentiality restrictions imposed by the settlement pursuant to guidance from Patriot's professional legal and accounting advisors.
I would also argue here that the gag/confidentiality has been in place as a precondition to the stay/negotiation settlement if one considers the cancellation of the presentations by JT band it is consistent with the face saving strategy of the Js.In addition, consistent with applicable securities laws and Patriot's insider-trading policy, the company's directors, officers, employees and consultants who have knowledge of the terms of settlement are restricted from trading in PTSC shares until after the company's quarterly financial reports are publicly filed next April.
I believe that JT is trying to signal that any “mischief” in the market price is just that and should not be attributed to S&L who are restricted by insider trading rules until April. Who then wants your shares and for what reasons? It may just be those that need to cover their butts or think they deserve your profits more then you do. As some say, know what you own.We realize that our shareholders may expect that the details of the settlement should be made available to them, or that Patriot's board and management might provide at least general comments or further press releases on the subject. We understand this and would do so if permitted, but in order to honor our legal commitments regarding confidentiality, we have said all we can say.
To me, this is a plea to let reason prevail and to desist from over analyzing the statement. PTSC must believe that they have done a good job on behalf of the shareholders and when all is said and done we will be thanking our leaders TPL, PTSC and their brilliant lawyers.
Yamfaal
