Discontinued Operations

9 Months Ended

Sep. 30, 2012

Discontinued Operations [Abstract]

Discontinued Operations [Text Block]

17. Discontinued Operations

During the three-month period ended September 30, 2012, we reached settlement agreements that effectively ended all of our then on-going intellectual property litigation. With the settlement of all of our patent litigation activities we have ceased actively pursuing intellectual property litigation regarding our NES patents as an integral part of our strategy to fund our operations. Accordingly for all periods presented the results of operations and cash flows related to our former intellectual property segment has been segregated and reported as "Discontinued Operations". There was no revenue derived from our intellectual property litigation in either of the three or nine-month periods ended September 30, 2012 or 2011. During the nine-month period ended September 30, 2012 we incurred costs related to intellectual property litigation activities of $468,400, including one-time settlement fees, which aggregated $311,000.

We will continue to make significant investments in our intellectual property during the remainder of 2012 and throughout 2013. We believe such investments will be an asset that will leverage our product strategy and protect our long-term growth strategies. We do not intend to pursue intellectual property litigation as an integral part of our strategy to fund our future operations.

As of September 30, 2012 and 2011, all of our patents were fully amortized. Additionally, we have characterized the NES patents as "held for sales" and will be pursuing reasonable sales opportunities for such patents as they become known to us.