Patriot Scientific

Is there something they're scared of if they were to respond to this e-mail that's now been sent 3 times with no response?! Perhaps it's too disrespectful and offensive to them. Hmmm.....

Mr. Flowers and Board of Directors,

As a long time shareholder, I wanted to congratulate the company on the recent court win in the HTC case and for the MMP team's courageous willingness to take the risk and force the issue all the way to a verdict, rather than settle the case out of court. While the award is obviously less than anticipated or desired, I hope, and would expect, the ability to point to a litigated verdict as the likely result for future challenges will aid in expediting future licensing efforts. With that being said, I assume and hope that the first order of business right now is to sign HTC to an overarching MMP license to cover their broad product offering thus cementing the court verdict and eliminating the prospect of any appeal of the verdict from HTC. While I realize you probably can't comment on the status of such negotiations, if you can, please do so, and at least please comment on whether HTC would still need a full MMP license to protect them and if we are indeed actively seeking such?

Additionally, now that we have a litigated court verdict in our favor, to go along with positive re-exam results from the USPTO, the path forward would seem to be generally more "license friendly". While I realize there are still significant obstacles at the ITC and the stayed Northern District of California proceedings with the other unlicensed litigants, and that any other infringer can still resist licensing and understand the risks that entails, I have the following questions to which I would like responses from the company in order to assess my investment in the company.

1. What is the estimated number of potential unlicensed infringers as far as PTSC understands it?
2. How many potential infringers have officially been put on notice by our licensing team?
3. Based on no. 2 above, what is the total claimed potential exposure from infringers in possible licensing dollars?
4. What is the maximum licensing capacity of the licensing operation on a monthly basis? For example, based on the current staff, operationally, is it possible to close 10 licenses in a month?, 20? 50? etc. or is there no practical limit?
5. Does PTSC (or through PTSC's representative in PDS) have access to all of the licensing team's documentation and operations upon its request or demand such as:
   1. initial infringement notice letters
   2. dollar amounts of initial infringement exposure claims
   3. current status of negotiations including potential settlement amounts being offered by our side / their side
   4. assessment of likelihood that infringing party will sign versus fight / litigate
   5. key threshold triggers that need to be overcome for each infringer to consummate a license, eg. specific monetary threshold, proven litigation victory, additional reverse engineering evidence, etc.?
   6. reverse engineering evidence for each noticed infringer

I realize you may view some of these questions to be too sensitive with respect to the licensing efforts, but in those cases would ask that you be as responsive as you can and provide as much info as you can on the subject even if you have to omit the specific numbers.

I know all of the shareholders are eagerly anticipating additional announcements with respect to HTC, the ITC, the NDoC, and overall licensing progress. While I realize the current ITC status remains in question, and that HTC might still appeal the verdict, I hope that as soon as we get some clarity with respect to those issues, ie. HTC licenses or appeals, or declines to appeal, the verdict, or the ITC agrees to review the Initial Determination, that PTSC will begin communicating more openly with shareholders with respect to the path forward. We need to understand what the company sees as its potentials, maximum and minimum, its plans to achieve that maximum potential, and the establishment of some metrics that investors can gauge the company's progress toward reaching those goals. Shareholders have been immensely patient with you, and it's time for you to be forthcoming in return.

Thank you for your anticipated prompt and informative response.