Patriot Scientific

Patriot Scientific Reports Profitable Quarter; Q3 FY '08 Net Income $6.3 Million or $0.02 Basic and Diluted Earnings Per Share.

I didn't read the forum much yesterday, so apologies if some of the following has already been said. Several of you have emailed or PMed to ask, so I thought I would provide one response.

First, I don't see how this settlement can be anything but good news, at least for the near term. The existing conflict between Moore and TPL was a potential hindrance on several fronts, including having been raised in the ITC proceedings --- therefore, its resolution removes that potential hindrance. Whether it will be a boon to the future is another question, but at least it''s no longer an anchor for the present.

Second, the issue of MMP ownership as between Moore and Leckrone/TPL appears to have been resolved. Although I would much prefer to actually read the settlement agreement, that ain't gonna happen, so we are left to deal with what has been announced. Note that PTSC and TPL continue to be described as "co-owners" of the MMP --- not only is Moore not given that designation, but GreenArrays has "received a license from PDS" (emphasis mine). It would seem that if Moore was still an owner of the MMP, no such grant from PDS would have been necessary.

Third, there seems to be a concern among some that Moore will now use MMP technology in Green Arrays products and that downstream users may be exempt from legal pusuit by TPL/PTSC. I can't reach a conclusion one way or the other on that at this time, but I'm not at all sure that, even if true, it would have any practical consequences. The '336 expires in about two years, and we have several hundred alleged infringers left to pursue anyway --- adding more might simply result in diminishing returns. Furthermore, I have no idea about the status of commercialization of any chips incorporating the MMP that GreenArrays might produce --- in other words, can such prodcuts really be brought to the markeplace en masse within two years? This entire issue seems to me to be an example of creating undue concern that hasn't yet materialized even if it exists in the first place. However, as I've said many times, I'm not a tech, so further comment by those who have such experience would be welcome.

Best wishes to all.

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ronran
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