Patriot Scientific

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

Obviously, this is great news. But, as some have already contacted me to ask, now what?

As good as this news is, it was the expected result. An analogy would be the #1 team in the NFL (pick your sport if you don't like football) playing a much lower-ranked team --- a win by the former wouldn't generate much other than passing news, but a win by the latter would raise a few eyebrows and generate significant buzz.

So, will HTC now appeal to the Federal Circuit? I certainly don't know for sure, and, as always, there are various considerations. Obviously, if HTC is one of those companies that appeals everything on a "no matter what" basis, then the answer is "yes". But if other considerations come into play, perhaps not.

HTC has its own host of other problems, having become a "weak sister" in the marketplace. On top of that, the dollar value of the judgment in the NDCA is relatively small. Yes, there is a judgment of infringement in place, but it is merely a district court finding by a jury (albeit now supported by Judge Grewal), and thus doesn't have the corresponding influence of a "stamp of approval" by the Federal Circuit. So, is the risk/reward ratio really there to support the decision to appeal? None of us can know the answer because we're not involved behind the scenes, and there may well be other factors and influences in play --- but just based on the bare facts, a lawyer giving objective advice would have a difficult time supporting further action.

Personally, it seems to me that HTC is indeed in the "no matter what" category, so an appeal may be likely. But IMO, the real value that has come out of the post-trial judgment as a matter of law is the very thorough and well-reasoned opinion by Judge Grewal. In other words, the Federal Circuit would not simply be reviewing the case based on a jury verdict for which no written opinion was generated --- instead, we now have a complete opinion written by a very competent Judge.

Of course, HTC might point to the contrary ITC opinion, so, as I have mentioned to some of you in the past, it will be interesting to see if the ITC ruling is appealed. For now, however, that remains to be seen.

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

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