splithappens Thursday, 08/31/17 12:08:53 PM

splithappens Thursday, 08/31/17 12:08:53 PM

Duo has recorded $118,000,000 in revs. since it started in business through 2016.

At a bare minimum SFOR should should be entitled to 10% which equals $11.8 M. Treble damages would put them at a minimum of $35.4M. So the fact that Duo is fighting back so aggressively means they are spending $3-5 million to fight this. Why would they fight and spend up to $5 million and most likely still lose (MSFT already set precedence). Because they probably already tried to settle but R&G having the monster history of bringing companies to their knees and is probably shooting for a higher royalty than 10% and treble damages and future licensing.

Bottom line, IMO, I do not see $100 million nor do I see $10 million as settlements from Duo alone. Each company sold a certain amount of product, and that is what will most likely establish a settlement amount for each company. Duo sold/sells mostly OOBA products.

R&G, IMO, are on contingency for a 40%-45% cut of any settlement amount. Why? Because between the 4 companies there could be a potential for a total of $60-$100 in total settlements which means as much as $40-$45 million for R&G. At a max of approx. $5 million X 4 infringers = $20 million. So which is better for R&G? R&G have been playing this game for over 100 years. And they are aware of SFOR financial situation.

So my belief is that up to 2016 a minimum of $35 million is the settlement target for Duo. Plus what ever they negotiate for 2017 (Duo's est. revs. should be at $125+ million for 2017). IMO Duo is the biggest fish out of the 7 current infringers. Most of their revs. are from OOBA. while other infringers are not as popular with theOOBA, AND also carry many other products, like Trustwave is a good example of this.

The reason Duo and the other 6 infringers would have a higher payout than MSFT is because phonefactor didn't do much business so SFOR was limited. And MSFT with a quick settlement may be proven to provide much more value now by setting precedence for all the existing and future cases.

THE ABOVE IS ALL SPECULATION.

DO YOUR OWN DD

IMO

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