Patriot Scientific

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

.....could it be that Acer and / or TPL would be interested in preventing the filings that are required in the next 14 days? Perhaps that could be an impetus to heat up a settlement negotiation.....

I'll probably get slammed for saying this, but, with one possible exception, I truly hope that such a settlement does not occur on those terms. The Markman rulings we have obtained to date, which certainly appear to be favorable to our position, are all well and good, but, as I have posted on other occasions, such rulings are nevertheless "second best" to an actual judgment of infringement.

Even favorable Markman rulings remain subject to arguable interpretation by the alleged infringers, and, as a result, any settlement based on such would likely be lower than a settlement entered into after a judicial declaration of infringement. Additionally, such a judgment, while not absolutely binding on companies not presently involved in the current litigation, would likely have a stronger effect on future negotiations with those companies than would prior Markman rulings. We have already seen this phenomenon to some extent with the J3 Markman in the EDoT.

IMO, especially in view of upcoming patent expiration(s) in the not too distant future, it is time to go "all or nothing" in seeking a judgment of infringement, and the continuance of the NDCA cases to September provides an excellent opportunity in the ITC to do just that. A decision to do otherwise will likely just lead to more of the relatively small settlements we have seen on nearly 100 occasions, which, in turn, will likely have little positive effect on PTSC's stock price. Personally, I would rather see the Company completely fail and go bankrupt rather than to experience the continued agony of nuisance value settlements that would simply prolong the suffering of most shareholders.

Of course, the exception I mentioned would be one in which the existing Markman rulings are perceived by the current infringers as being strong enough to produce settlements at least as high as those in early 2006. I believe that scenario is unlikely, but, as I've said many times, few things are absolutely impossible.

As always, we shall see. Best wishes to all.

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ronran
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