It's not often that interesting financial news comes out of the courtroom, but such was the case in the first week of November when San Diego-based technology innovator e.Digital Corp. (OTCBB: EDIG) filed a lawsuit in a Colorado court against 19 different companies for infringement of its patent on a number of its products.
In its complaint, EDIG claims products made by such luminary firms as Canon, Kyocera, Nokia and Panasonic infringed on a patent comprising important techniques in the utilization of flash memory technology in recording products. The products in question, made by the accused companies, range from digital cameras and camcorders to voice recorders and mobile phones.
Founded in 1988, EDIG is a leading innovator of dedicated portable in-flight entertainment systems. More than 30 airlines have made dedicated portable systems powered by e.Digital technology their in flight entertainment choice. EDIG also owns and is monetizing its Flash-R™ portfolio of flash memory-related patents. Among its customer base are such airline leaders as Alitalia, Air France, Lufthansa and Malaysia Airlines.
Since it came to be, the company has pioneered a number of products which technofiles and others have come to take for granted.
In 1990, the company released the first commercial ear telephone that located both the speaker and microphone in the same ear without feedback. In 1993 came the first digital voice recorder with removable flash memory, powered by EDIG's newly-developed MicroOS®. Three years later, e.Digital produced the first interface for a digital voice recorder for downloading and managing voice on the PC.
Starting three years ago, the company initiated efforts to monetize its flash-memory related patent portfolio with intellectual property consulting veterans and legal heavyweights, now supporting the company in its legal battles with some of the larger corporations mentioned above.
A few short weeks ago, EDIG entered into a cross licensing and settlement agreement with Samsung, under which Samsung obtained a license and release on e.Digital's foreign and domestic patent rights, including the Company's Flash-R patent portfolio, and e.Digital obtained a license and release on certain Samsung patents.
It should be interesting over the next few days to discover what effect the shakings in the courtroom should have on the price of EDIG stock. The price dipped to eight cents a share early last December, before flourishing to 22.5 cents soon after Columbus Day. The price is near the top of that range, around the 17-cent mark.
Disclosure: The author has not been compensated nor does he/she own a position in the above mentioned Company.
