please help improve it or discuss these issues on the talk page . learn how and when to remove these template messages this article needs additional citations for verification . please help improve this article by adding citations to reliable sources . unsourced material may be challenged and removed . october 2016 learn how and when to remove this template message this article relies too much on references to primary sources . please improve this by adding secondary or tertiary sources . october 2016 learn how and when to remove this template message this article needs to be updated . please update this article to reflect recent events or newly available information . october 2016 learn how and when to remove this template message e.digital corporation type public otcqb edig industry patent monetization and inflight entertainment founded 1988 founder woody norris headquarters san diego california u.s. key people alfred h. fred falk president and ceo allen cocumelli board chairman products evu portable media player revenue 2 553 869 fy 2010 1 operating income 878 586 fy 2010 1 net income 984 589 fy 2010 1 number of employees 12 6 2010 1 website www.edigital.com e.digital corporation is a public company based in san diego california that focuses on enforcing patents primarily for a flash file system . founded in 1988 as norris communications it is one of the publicly traded companies started by inventor entrepreneur elwood woody norris . its stock trades over the counter on the otcbb under the ticker symbol edig . contents 1 corporate history 2 financial status 2.1 growing concern warnings 3 products 4 services 5 intellectual property 5.1 patent infringement litigation 5.1.1 settlements 6 legal disputes 6.1 digecor v. e.digital corporation 7 investor information 7.1 shares outstanding 7.2 annual meetings of shareholders 8 key people 9 notoriety 10 references 11 external links corporate history edit the company was incorporated under the company act in the province of british columbia canada on february 11 1988 under the name 340520 b.c. ltd. and changed its name to norris communications corp. on april 7 1988 . on november 22 1994 the company changed its jurisdiction to the yukon territory . in august 1996 jurisdiction was changed to the state of wyoming . 2 the company was reincorporated in the state of delaware in september 1996 as norris communications inc. in january 1999 stockholders approved a name change to e.digital corporation . 3 financial status edit throughout its over 22 year history e.digital norris communications continuously lost money . the accumulated deficit at march 31 2010 was 80 million . 1 although the company reported its first annual profit for its fiscal year ending march 31 2009 due to settlements with six of eight defendants of its patent infringement lawsuits which resulted in one time licensing fees totalling 10.1 million 4 the company returned to an unprofitable status in fiscal year 2010 posting a net loss of 985 000 . revenue for products totalled 205 000 with service revenue totalling 749 000 . patent infringement settlement income totalled 1 600 000 for total revenue of 2 554 000 . 1 growing concern warnings edit e.digital s accountants singer lewak greenbaum & goldstein llp of santa ana california state the following in their opinion letter dated june 15 2009 attached to the company s 10 k annual report for fy 2009 5 as discussed in note 1 to the consolidated financial statements the company has historically suffered recurring losses from operations and has a substantial accumulated deficit . this raises substantial doubt about the company s ability to continue as a going concern . in its 10 k annual statement filed on june 16 2009 e.digital made additional disclosures regarding doubt about the company s ability to continue as a going concern 6 until the fiscal year ended march 31 2009 fiscal 2009 we incurred significant losses and negative cash flow from operations . our recent profitability has resulted from one time patent licensing revenues and there is no assurance of future licensing revenues from new licensees . accordingly we could incur losses in the future until product service and or licensing revenues are sufficient to sustain continued profitability . our ability to continue as a going concern is in doubt and is dependent upon achieving a profitable level of operations . products edit 1988 1993 no products . most income came from a manufacturing subsidiary of norris called american surface mounted devices . 1994 1996 norris communications unveiled and marketed its flashback claimed to be the first portable digital voice recorder with removable flash memory . the device employed the then newly developed norris flash file system nffs later renamed microos . 1997 2000 e.digital s sole paying customer was lanier for which it developed and manufactured through eltech electronics inc. a portable digital dictation device and docking station named cquence mobile to interface with lanier s existing cquence digital dictation system for hospitals . 2001 2003 the company sold rebranded digitalway digital audio players as well as developing and marketing its own branded players some of which included a speech recognition feature licensed from lucent which e.digital trademarked as voicenav . 7 the rebranded and e.digital developed products were not widely accepted and resulted in gross losses of over 100 % of direct product costs . during this time e.digital also operated a free music website at domain www.wedigmusic.com . 8 2003 2006 e.digital s only customer was aps digecor for which it provided custom product design and manufacturing oversight of the digeplayer 5500 originally through south korean oem digitalway and subsequently south korean oem maycom . 2006 2015 e.digital s last product its evu portable media player offered to airlines for use as a portable in flight entertainment device was discontinued in 2015 . 9 services edit throughout most of its history norris communications e.digital corporation offered engineering services mp3 player reference designs and custom prototype and product design . from 2006 until 2015 service offerings were exclusively tied to the evu product including warranty service media content procurement refreshing and hardware repair . citation needed intellectual property edit e.digital owns five patents which it refers to as its flash r patent portfolio . 10 the company has made licensing of its patented microos flash file system originally called the norris flash file system or nffs 11 12 13 a priority since 1997 . the company says it believes that its patent holdings relating to flash memory are fundamental and valuable particularly in the areas of content file management optimal flash memory management and in removable flash applications . citation needed in february 2006 e.digital announced that it was pursuing monetization of its patent portfolio . 14 on december 21 2006 the company stated to shareholders that it had identified 174 companies with 1 372 products that appear to employ our patent portfolio . 15 on december 20 2007 it further expanded its claim by stating to date we have identified annual u.s. revenues of more than 20 billion from what we believe are infringing products from such companies . 16 in march 2007 the company engaged the law firm of duane morris llp to pursue patent infringement claims on a contingent fee basis . the agreement grants duane morris 40 50 % of all settlements and awards after full reimbursement for expenses incurred . 17 the contigency fee agreement also provides a lien resulting in e.digital s patents being officially assigned to duane morris . 18 patent infringement litigation edit the company filed its first lawsuit for infringement of its patents on august 1 1996 in the u.s. district court for the southern district of california for infringement of patent number 5 491 774 . defendants were taiwanese corporations simate corp. and leading accessories inc. and their north american distributors james h. rochel and j.t.l. enterprises inc. 19 outcome of that lawsuit is unknown . on december 6 1996 the company announced a letter of intent to create a strategic and tactical alliance with competing company voice it worldwide inc. 20 despite the fact that voice it also claimed to be the first to use removable memory in a digital recorder 21 the company did not sue for infringement of its patent . on september 7 2007 e.digital filed its second lawsuit for patent infringement against vivitar corporation this time in the marshall division eastern district of texas on 4 of its 5 patents . 22 23 vivitar responded by denying the infringement claims and filing counterclaims seeking declaratory relief summary judgement that the patents are non infringed and invalid . in march 2009 the court administratively closed the case due to vivitar s bankruptcy . on march 4 2008 e.digital filed an almost identical lawsuit also in the marshall division eastern district of texas against casio america inc. avid technology inc. lg electronics usa inc. nikon incorporated olympus america inc. samsung electronics america inc. and sanyo north america corporation . 24 25 as of march 31 2009 settlements had been reached with 6 defendants leaving samsung as the sole remaining defendant . on april 2 2009 e.digital dismissed all claims for 2 of the 4 patents it had alleged samsung infringed . e.digital and samsung executed a settlement agreement in september 2009 . citation needed on november 2 2009 e.digital filed a lawsuit alleging infringement of patent number 5 491 774 in the federal district court for colorado against pentax of america inc. hoya corporation hoya corporation usa canon usa inc. canon inc. coby electronics corporation dxg technology u.s.a. inc. dxg technology inc. htc america inc. htc corporation ikegami electronics usa inc. imation corporation kyocera communications inc. kyocera wireless inc. kyocera international inc. kyocera corporation leica camera inc. leica camera ag marantz america inc. d & m holdings u.s. inc. d & m holdings inc. nokia inc. nokia corporation panasonic corporation of north america panasonic corporation summit global group llc roland systems group u.s. roland corporation sakar international inc. samson technologies corp. teac america inc. vtech electronics north america llc and tic computer inc. dba wolverine data . 26 settlements edit on september 25 2008 e.digital announced the first settlement of its patent infringement lawsuits . a subsequent court filing releasing lg electronics usa inc. as a defendant identified it as the settling party . the gross settlement amount reported in form 10 q was 1.6 million . 27 on december 2 2008 e.digital announced a settlement and cross licensing agreement with casio . 28 the gross settlement fee as calculated from data in the quarterly report was 1.65 million . 29 on december 17 2008 e.digital and nikon inc. filed a joint motion with the court stating they had reached a settlement of their dispute . the gross settlement fee as calculated from data in the quarterly report was 2.0 million . 29 in february 2009 e.digital reached settlements with avid technology olympus america inc. and sanyo north america according to court filings . financial terms were not disclosed but e.digital booked 4 865 350 in gross settlement fees from the 3 companies in the quarter ended march 31 2009 . 30 in september 2009 e.digital executed a settlement agreement with samsung according to court filings . the gross settlement amount reported in the 10 q quarterly report for the period ended september 30 2009 was 1.25 million . 31 on december 10 2009 e.digital announced a settlement agreement with tic computer inc. dba as wolverine data which included an undisclosed lump sum payment and an undisclosed royalty for any on going sales of products that practice e.digital s u.s. patent 5 491 774 . 32 according to e.digital s quarterly report the lump sum payment is not due to be paid until november 2010 . 33 in march 2010 e.digital announced a settlement agreement with ikegami electronics usa which provided an undisclosed on going royalty 34 as well as a settlement agreement with the two roland entities which included an undisclosed one time