CH67 - Atari Response

As they parted ways, Barbara specifically instructed Ethan to find out whether Atari had filed a lawsuit against Magnavox.

Because in cases of patent infringement, there are generally two entities involved in legal terms.

The first entity is the patent infringer, referring to the person or entity directly or indirectly involved in the infringement of technical features and content.

The second entity is the actual operator, referring to the person or entity with control or involvement in the infringing activities, such as the seller of the infringing product, the distributor with production and sales rights.

Of course, sometimes, the same person or entity may be involved in both aspects of the infringement, leading to only one entity being mentioned in the lawsuit, which is also a possibility.

However, "Snake Game" clearly does not fit the latter situation. It was invented by Ethan and Evelyn, and Atari was the one selling it. Therefore, Ethan and Evelyn are the patent infringers, and Atari is the actual operator.

In this situation, when Ethan and Evelyn were sued by Magnavox, how could Atari escape legal consequences? In most cases, when dealing with straightforward infringement cases, the plaintiff combines the patent infringer and the actual operator in the same lawsuit, allowing the court to review both.

But now, the lawsuit received by Ethan and Evelyn doesn't mention Atari's name. This could only prove one thing...

Magnavox's demands on both parties are different.

"Smack!"

On the night of September 16, 1975, Atari, which should have closed for the day, was brightly lit.

Nolan Bushnell angrily slammed the lawsuit he received in front of Ethan.

His hand, with bulging veins, expressed his dissatisfaction, and his bloodshot eyes spewed anger.

"Ethan Jones!!!"

"Why did things turn out like this???"

Nolan Bushnell stared at Ethan with a gaze that could split rocks, crazily shouting, "As a former employee of Magnavox, don't you know that Magnavox holds the patent for TV games and training devices? Why did you sell the 'Snake Game' arcade machines everywhere without authorization? Do you know that your actions could kill our Atari?!"

"Huh?"

The hysterical voice made Ethan's ears ring.

If it were a few hours ago, just after receiving the subpoena from the court and Magnavox's lawsuit, Ethan, facing Nolan Bushnell's angry accusations, would have definitely argued logically. But after Barbara had them look through Magnavox's patent, all Ethan could do now was calmly pick up the lawsuit sent by Magnavox to Atari and read its contents.

He didn't have to read it to know Barbara was right.

In the lawsuit received by Ethan and Evelyn, Magnavox demanded they stop infringement and pay a million in damages. In the lawsuit received by Atari, Magnavox not only demanded they stop infringement and pay a million but also required Atari to recall and destroy all infringing products in the market.

Among these three conditions, damages were the most normal and unavoidable. Stopping infringement was expected, but for the defendants, it was impossible because games were meant to be sold. But recalling and destroying all infringing products from the market?

That was ridiculous.

How many units of "Snake Game" were sold in total? Including circuit boards, it was no less than eight thousand!

With such a massive shipment spread across America, did Magnavox think Atari would agree to recall and destroy all these arcade machines and circuit boards? It was not just about whether the customers who paid for the games would agree, but the businesses that bought the arcade machines would never agree!

They were making a fortune with "Snake Game," and now they wanted to pull off this stunt?

They might as well be signing Atari's death sentence!

Though Ethan already understood the seriousness of the situation, he never expected Magnavox to propose such conditions.

At this moment, he wanted to curse loudly, but after biting his lip, he restrained himself.

He was in Atari now, not by Evelyn's side. His true thoughts couldn't be rashly expressed.

So, he looked at the lawsuit in his hand with a puzzled expression, as if he had just received the news.

"Nolan, what's going on? Why did Magnavox sue us? I went to San Francisco today, attended the electronic exhibition organized by the IEEE there, and was busy all day, so I don't know about these things."

After scanning the lawsuit, he raised his head slightly, looking at Nolan with a puzzled expression. "I need to consult a lawyer about the contents of this lawsuit. Please give me some time to see if there's any misunderstanding."

Yes, Ethan intended to buy time.

He needed to inform Barbara about the contents of the lawsuit received by Atari.

He wouldn't make any response before the mage gave guidance.

However, just as Ethan was contemplating whether Magnavox's people had lost their minds, another document landed in front of him with a "smack," accompanied by another figure.

"M*therf*ck! — Ethan! What are you pretending to be stupid here for!"

"The lawyer appointed by Magnavox mentioned when delivering the subpoena and a copy of the lawsuit to us. They have also sued you guys together!"

"You've received the court's subpoena, and now you're telling me you don't know what's going on?"

"Do you think we're idiots?"

Don Valentine clenched his fists, pounding on the table.

The thunderous roar made Ethan silently curse in his heart.

'These idiot lawyers are really too much, aren't they?'

But on his face, he remained unmoved.

"I said, there might be a misunderstanding." Ethan said in a calm tone.

However, this attitude only infuriated Don Valentine more.

Bending forward, hands on the table, he stared at Ethan like a hungry wolf.

"Ethan Jones!!!"

"Why are you saying there's a misunderstanding as a former Magnavox employee?"

"Do you think I'll believe that?"

Raising his right hand slightly, his index finger pointed forcefully at the document he had just thrown out.

"Here's Magnavox's patent copy!"

"The copy of the lawsuit they gave us is also here!"

"If you say you don't understand these things, I'll give you time now to take a good look!"

"I hope you can find the word 'misunderstanding' in this black-and-white contract!"

With a swift and forceful voice, Don Valentine's eyes glanced down.

When he saw the patent copy labeled 'US3728480 A,' Ethan understood that Atari might have already sorted out the entire case.

But what could be done about it?

Ethan knew that Don Valentine and Nolan Bushnell were annoyed, but he was more annoyed!

Shifting his gaze away, Ethan sighed softly. "I know you're anxious, but I can't answer your questions right now. I haven't studied law, so I need to find my lawyer, communicate with him, and then give a possible answer."

Ethan thought his response was reasonable.

Although he knew he had violated Magnavox's rights, admitting it recklessly wasn't the right move, right?

Because these things would entail legal consequences!

Being honest at this point wasn't honesty; it was just being foolish! It was seeking trouble!

However, Ethan's calm attitude seemed to be a matchstick, completely igniting Don Valentine, the powder keg.

With a loud "bang," he slammed his hands on the table, and his whole person jumped up.

"Okay! Okay! Okay!"

Don Valentine's chest heaved, and he panted heavily.

"Ethan Jones—"

He crossed his arms, looking at Ethan.

"You're sure this is your choice, right?"

"We want to negotiate with you! But you keep evading! Wanting to find a lawyer! Resolve the issue through legal means!"

"Fine!"

"I'll satisfy you!"

Saying this, his words came to a halt.

Then, he forcefully extended his right hand, pointing his index finger at Ethan, and shouted, "I'm telling you! Atari will sue you tomorrow! We will sue you for deliberately concealing product infringement facts! We will sue you for deliberately selling infringing products to us, Atari! This is business fraud! You must take responsibility for this! Bear all the losses of our Atari!"

"I, Don Valentine, as the actual controller of Atari, hereby inform you! We will reach a settlement with Magnavox! Fulfill all their demands! Stop selling 'Snake Game' as per their request! Compensate them for the million-dollar loss! And recall all 'Snake Game' arcade machines and circuit boards from the market! And the money related to these matters—"

"Will all be borne by you!"

Shouting this, Don Valentine elongated his voice, his face turning crimson, his bloodthirsty eyes showing ruthlessness.

"Ethan Jones—"

"You wanted to talk about the law, right?"

"Then get ready to go to jail!"