Agoracom

Excellent post, Virt.

People keep posting theories on J3 settlement results. Why theories?
The simple answer is that we don't know what happened, because management cannot tell us under the restriction of NDA.

There are two camps of opinions on this board and other forums about PTSC. The first camp maybe called "don't know" camp; the second camp maybe called "know for certain" camp. The typical example, or a well known saying of the second camp is "total license revenues of the Js WERE accounted for" well back in early April.

Who could really belong to "know for certain" camp? Lawyers from PTSC/TPL and J3 who negotiated the 12/18 settlements, JW and his court clerks, PTSC/TPL and J3 insiders. Who else? ARM was out of the picture before 12/18; they should be outside this camp.

We are outsider of the second camp, but it is our interests to know what we don't know, because our money is down the line. Theories are products of our desire to use known facts and sound logic to analyze things so that we can get closer to solve the puzzle. Remember that once upon a time, earth orbiting around the sun was just a theory. The collective intelligence of many has the power to make the unknown to be known. Time is the only true enemy in this endeavor.

Do people in the first camp like theories. The answer is both yes and no. Yes for their liking of their own "know for certain" thing ( to us, it is just another theory, but they prefer not to call it "theory", maybe afraid of losing confidence from followers). No for not liking other theories beside their own. Any other theories are threat to "know for certain" or "you have to trust me" mentality.

Back to J3 settlement. We already know a few things that do not re-affirm that "total license revenues of the Js WERE accounted for" conclusion -

If J3 settlements are no difference to Sony, Fujishu, NEC (exclude NEC Electronics) settlements and other licenses signed by 40 plus corps, why NDA? Why grant of rights instead of saying J3 purchase MMP licenses outright? Why business resolutions? Why saying all parties were pleased? Why J3 is missing from licensees on PTSC website? Why PTSC website does not publish all licensees, instead using a partial list? And why MOU? Why Q3 revenue was recognized not at the end of Q3 through Feb. 29? All these subtle differences point one thing - the resolution/conclusion of Texas case was not a strait forward thing. There could be some arrangements we have never experienced before. So whatever money realized in Q3 from J3 may not be the end of story.

Speaking of licenses, the 10Q had this weired language "The
terms of the settlement included the grant by TPL of rights under the Moore Microprocessor Patent Portfolio to NEC Electronics America,
Toshiba, Matsushita and JVC and their respective subsidiaries in the form of license agreements." Why not just saying in a strait forward way as - "The terms of the settlement included purchase of Moore Microprocessor Patent Portfolio by Toshiba, Matsushita and JVC and their respective subsidiaries." If the later is used similar to many other licensing PR, plus Rick's disclosure that "all licensees to date have chosen lump sum front-end buy-outs", then we can easily conclude that no more money will be coming from J3. By not using a strait forward language, not listing J3 as licensees on PTSC website, and not using the word "license" in the 12/18 settlements PR, how can we believe 12/18 settlements are no differences than any other settlements/licenses, and J3 were paid in full by Q3?

Who should you believe, the one who is not a insider but claim to know for certain the insider information (j3 settlement accounting), or believer of other theories?

I tend to believe more to those who put logic and reasoning behind their theories and who admit they don't know things for certain. There is easy way out from this complicated picture, that is - following someone who declares: I know the truth, you just have to trust me. Life is much simpler/easier to go to another board instead reading theories on Agora board?!

Whatever one believes, I do wish everyone better luck.