CH79 - Conclusion

Perhaps because the leadership of Magnavox was eager to prove itself, early the next morning, attorneys from Sidley Austin appeared before Ethan once again. They informed him that Magnavox's representatives would arrive in San Francisco the next morning for negotiations at 10 a.m.

Ethan readily agreed and conveyed the messages to both parties. On one side was Professor Barbara Babcock, Ethan's proxy attorney, who needed to be present for the negotiations and assist in contract review—a lawyer who had been of great help to Ethan. On the other side was Atari, and Ethan's attitude towards them was quite harsh. The summarized message he passed on was straightforward: "Pay up!"

Facing Ethan's crude threat, Nolan Bushnell and Don Valentine were furious, but in order to smoothly sell the company and prevent their hard work from going to waste, they reluctantly came with two sets of documents around noon.

One was the early termination agreement for "Snake Game," and the other was a statement of infringement liability.

The former was mostly standard, with the only notable point being the sales figures for "Snake Game." After Atari's adjustments, the sales in the Midwest region changed from just under 3.5 million to over 8 million.

Thus, the total sales of "Snake Game" in North America surpassed 15 million.

Ethan and Evelyn bonuses skyrocketed from 1.3 million to 2.2 million.

The latter indicated that due to Atari's negligence, they had violated Magnavox's patent, and they would bear all compensation for it.

Of course, a limit was set at 1.5 million.

After Barbara reviewed the contracts and confirmed no issues, Ethan and Evelyn signed them. By 3 p.m. that afternoon, as Ethan checked his personal account at First National Bank, he found an additional real-time update of 1.1 million.

This number made him shake his head with a smile. "IRS is quite impressive!"

"As soon as the issue of reporting tax evasion was mentioned, Atari immediately caved!"

"They tried to keep a million for themselves?"

"It seems they never intended to compensate from their own pocket!"

Indeed, when Atari covered the shortfall in the Midwest and ZD regions, Ethan discovered a problem.

The money Atari withheld seemed to match Magnavox's claimed amount.

If it weren't for the previous incidents, Ethan would have thought it was a coincidence, but now...

HE...TUI!

After receiving the money, Ethan felt more confident. The negotiations with Magnavox the next day were even more relaxed.

Initially, Magnavox's representatives wanted to manipulate the ban agreement, creating a one-year limit similar to Atari's. However, when Ethan presented Atari's infringement statement to them, Magnavox's representatives quickly abandoned that idea.

"Mr. Jones, since Atari is covering the compensation, can we set the amount at two million directly?"

Magnavox's representatives showed their greed.

"Too much, not reasonable. I think 1.2 million is enough," Ethan shook his head.

Magnavox's representatives persisted, "This number is hard for me to explain to the general manager. So, 1.8 million?"

"I know your thoughts. You want Atari's money, so I'll give you a little extra. 1.3 million."

Ethan was generous.

However, the next moment, Magnavox's representative loudly declared, "Mr. Jones! Don't you hate Atari?"

How could Ethan tolerate such a statement?

"I agreed to a maximum compensation of 1.5 million with Atari, and I'll give it all to you. But I have one condition: after we reach a settlement, when you buy news releases, attribute all responsibility to Atari. Can you do that?"

"Are you sure?"

"Sure!"

"Sign the contract!"

"Sign the contract!"

This tug-of-war left the lawyers at Sidley Austin bewildered.

They had been in this profession for many years and had never seen an infringer voluntarily increase compensation.

And it seemed Atari was the one paying?

What was going on?

Although Professor Barbara had a slightly better understanding than them, after the matter concluded, while Ethan escorted her home, she curiously asked, "Ethan, did you sign the compensation contract with Magnavox according to the agreed limit? Aren't you afraid Atari can't afford it?"

"Why should I be afraid?" Ethan smiled. "I just made Atari spit out all the money they earned."

"The North American revenue of 'Snake Game' is now 15 million. Calculating at a 30% profit margin, Atari should have earned 4.5 million from this project. After Ethan and Evelyn split, they got 2.6 million. In other words, even after the split, Atari still had 1.9 million left."

"Even if they bear the 1.5 million compensation, they still have 400,000 in profit."

"Although this money can't cover Magnavox's subsequent claims, Atari has definitely manipulated their accounts."

"They must have hidden money, so they can afford to pay."

"Since we've already fallen out, why should I let them keep that income?"

"I admit I don't like Magnavox, but their legal actions are justified. They're acting within the law, and I respect that."

"So, in this situation, I'd rather see Magnavox get the money than let Atari hold onto the profit."

Barbara shook her head repeatedly at Ethan's words.

While she pondered, Ethan, seemingly not as amiable as imagined, threw another question at her while driving, "Professor Barbara, we do have one more thing to settle"

"What's that?"

"Your legal fees."

When the word 'legal fees' came up, Barbara was momentarily stunned, then smiled, "I also had some issues in this case, so just pay according to the minimum standard. Keep a record with the bar association, as long as they don't trouble me."

Practising attorneys in the United States had a minimum fee standard set by the Bar Association. They weren't allowed to charge arbitrarily.

However, the final amount was still up to the discretion of the lawyer.

For someone like Barbara Babcock, if she followed market rates, her hourly consultation fee would be sky-high, something the middle class couldn't afford these days. Charging the minimum was because she didn't take external cases; it was all favors for acquaintances to maintain relationships.

The amount set during the proxy agreement was done this way.

But if she didn't charge, Ethan wouldn't be able to avoid paying, right?

After dropping Barbara off at her home, through the car window, Ethan asked, "Professor Barbara, when will your collection of cases be released?"

"At the end of the year, why?"

"I want to buy a thousand copies and donate them to some universities and municipal libraries in the West, along with other books. Although I don't understand the law, I believe your case collection will have educational and exemplary significance, bringing enlightenment to the public."

This proposal made Barbara stare at Ethan for a long time before finally smiling, "Oh, Ethan, I like your gift."

"Since you're donating books, I won't be polite with you."

"After the book is released, I'll let you know."

"Okay, Professor Barbara, I'll wait for your message." Her smile earned Ethan a thumbs-up, and he waved before stepping on the gas, leaving for Aunt Linda's house.

Presenting the settlement agreement to Thomas and Linda, he declared loudly, "Thomas, Linda, the matter is resolved!"

He wanted the elderly who cared about him to feel at ease.

Then he picked up the home phone and contacted friends he had informed earlier and comforted them:

"Hey, Frank... the issue is resolved... really! Can't you tell from my tone? I'm happy now."

"Oh Chuck... thanks, thanks for your concern... it was a misunderstanding... yeah, yeah..."

"Hi, Steve... thank you for your help... yes! You helped me get out of trouble!"

He wanted his friends who had helped him to be reassured.

After reporting the safety and expressing gratitude, Ethan felt relaxed.

That night, he had a hearty appetite and devoured two chickens.

...

Magnavox's efficiency in handling matters was quite fast. On the morning of September 22nd, a settlement was reached with Ethan. On the morning of September 24th, while having breakfast at home and watching TV, Ethan heard a piece of news—

"According to our reporters, on September 23, 1975, Magnavox and Atari signed another settlement agreement, reaching a consensus on the infringement issue of 'Snake Game.' The infringement incident may have been caused by Atari, and the compensation amount involved may have exceeded two million. At the same time, after confirming the infringement, the two inventors of 'Snake Game' also terminated their cooperation with Atari. Since all three parties refused interviews, we don't have the specific details of this matter, but even so, we want to ask Nolan Bushnell why Atari repeatedly infringed within a short period?"

"Does Atari have to develop and grow by repeated infringement?"

"Does Atari only thrive on the edge of the law, plundering others' wealth to gain profit?"

"If so, we advise Nolan Bushnell to dissolve the company sooner!"

"While the United States is a country that advocates liberalism, and California has a comfortable atmosphere of freedom, this should not be the reason for Nolan Bushnell to repeatedly disregard the law!"

"If he leads Atari to trample the law again and again, then the inevitable result will be severe legal punishment!"

This report made Ethan look up with a smile.

Such targeted disses, it was clearly a paid press release by Magnavox.

If everything went as expected, this was still using Atari's compensation money?

Thinking that Atari would be very angry after seeing this news bought with their own compensation money, Ethan became even happier.

There was no way around it; he was just an ordinary person who liked this kind of retaliatory blow.

And when the time came to September 28, another shocking news spread throughout the United States—

According to ABC reports, Warner Bros. would acquire Atari for $15 million. After the acquisition, Warner Bros. would become the sole shareholder of Atari, and Nolan Bushnell would continue to serve as the company's CEO.

This fact made Ethan stretch and yawn lazily on the sofa.

The decline in Atari's valuation was the best gift for him.

The comfortable feeling from the soft sofa made him squint—

"It's finally over." He smiled.

"So, what's next..."

"It's my turn to roll over you all!"