c.s. 868 ",I"' P1~r VIA FEDERAL EXPRESS May 16, 16J4

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1 ~,,.... ","' P1~r VA FEDERAL EXPRESS May 16, 16J4 James T. Williams, Esq. Neuman, Williams, Anderson & Olson 77 West Washington St. Chicago, llinois Dear Jim: Enclosed herewith are copies of the documents which may not have been previously supplied to you concerning Sanders' looking into the validity of the '480 patent in view of Spiegel for the prtiod prior to the filing of the '480 Reissue Application. Because of the time constraint, did not make copies of these documents and am sending you the originals. would appreciate it if, when you are through with them, you would return them to me or, if you need them for any lengthy time period, send me copies. Very truly yours, SANQERS ASSOCATES, NC. j ;6d ;r Richard. Seligman Assistant Corporate Director Patents and Licensing RS:nd Enclosures c.s. 868 XX} ol-0868

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2 ~ 2 1 SHPMENT FORM DO 250 REQURED TYPE SHPMENT NUMBER ASB:JOATES roc 3 CONTROL j4 SERAL ~SANDERS SHP~NG RECORD ~ s TO veso NO[] s,z - COL 6 SHPPED DATE_/ 7 CARRER NAME j; 8 G~~. fre ~ uc~ PAlO J est..illl s,. q. 1,....-1,... fi... Jeuman, 1111.RS, del' SOD Olson, -~ est ashington St.. 9 BLL OF LADNG NUMBER 10 NO OF CARTONS 11 GROSS WEGHT 12 ~fc Chicago. ll ~ 13 CUSTOMER CONTRACT ORDLR NO NFORMATON BELOW APPEARS ON NTERNAL COPES ONLY ~ 14 COMPLETE WHEN RETURNNG REJECTED TEMS PRODUCED ON A WORK ORDER 15 WORK ORDER NO 16 TASK CODE -= RECV N PROC f"sp NSP -~ --~-.r REJECTED AT 0 0 " - / ~ TEM QUANTTY DESCRPTON PART NUMBER REV TOBE WORK QAD WORK OR 21 ORG NE~o l - --= REWORKED ON 0 0 _., RECEVER NO 1 nvelop DSCAEP APT NO 22 COMPLETE FOR TYPE 5 SHPMENTS SHPMENT S PROPERTY OF SANDERS ~ GOVERNMENT D 0 D(NirFY OTHER OW,.lR 23 REASON FOR SHPMENT NOTES / NSTRUCTONS SHPMENT S BENG RHO TO O OWNER N C sowo 0 APPROX DATE LENT Of RHUR>< OTHER 0 EXPLAN RETOlD D OW"LR CHG GtV[N [] AWAY ~ j - rrtttrtej, 125 spm~m~n~i~ss NFORMATON BELOW THS LNE APPEARS ON NTERNAL COPES ONLY 26 SHPPNG ~M S 27 APPROX VALUE 128 TRANSPORTATON CHG SANDERS CO,.SGNH 0 EXPENSE EXPENSE ll~ R/,~TO'gei'TURFan 130~0~~71.f ' Dyt!~forf 132 TE~ri~ EXT 1 f :p~~1u1lnere 13 4 r6a~rporate Uli'CC~l~ OfPARTMfN! NO Patents :G Lice!\s ng SA A N OBSOLETES All PREVOUS REVSONS ORGNATOR 90708

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3 BEJSANOEAS s TO A880CATES.t«:: SHPPNG V tfcem.' P. PMG.\N, JR., ESQU RE RECORD 1 FORM DD 250 REQURED Z SHPMENT TYPE SHPMENT NUMBER 3 CONTROL 14 SERAL veso NO lij s % - 6 SHPPED DATE 7 CARRER NAME 8 COl- GOVT PRE LECT 8/L PAD 0 D 0 BROBECJC, PBLEGER fl BAUSO~ 9 BLL OF LADNG NUMBER 10 NO OF CARTONS GROSS WEGHT 12~c SPEAJl STJt 1' TOWER one MAUET P..J\ZA 13 CUSTOMER CONTRACT ORDER NO NFORMATON BELOW APPEARS ON NTERNAL COPES ONLY SAN FRANCSCO, CAL POUlA 9Cl05 14 COMPLETE WHEN RETURNNG REJECTED TEMS PRODUCED ON A WORK ORDER QUANTTY 15 WORK ORDER NO. 16 TASK CODE RECV NSP N-POC NSP REJECTED AT ORG DESCRPTON PART NUMBER REV TO BE WORK ORO TEM REWORKED ON. 0 0 wo~~r0 1 Let. tor RECEVER NO 1 suppl eaental Uaponae DSCREP APT NO 22 COMPLETE FOR TYPE 5 SHPMENTS SHPMENT S PROPERTY OF SANDERS [j GOVERNMENT 0 23 REASON FOR SHPMENT NOTES / NSTRUCTONS 0 DENTifY OTHER OWMR. SHPMENT S BENG RETD TO OW~ER N fc 0 SOLDO R tdto OWNER CHG 0 GVEN [il AWAY G' 0 APPROX DATE LENT OF RET\JRN OTHER 0 EXPLAN DATE PREPARED 125 SPECAL SHPPNG NSTRUCTONS 5/, / 8<1 Federa l F.xpreaa NFORMATON BELOW THS LNE APPEARS ON NTERNAL COPES ONLY 26 SHPPNG TERMS 27 APPROX VALUE 128 TRANSPORTATON CHG SANDERS ii CONSGNEE 0 EXPENSE EXPENSE 29 ORGNATORS SGNATURE 130 MAL ADDRESS 131 DEPARTMENT NO 132 TELEPHONE EXT 133 APPROVER'S SGNATURE \34 TTLe Cor p. D1recto~43s oepartmentno Anne tiar ie Cashman NHO S-26~1 Louia Etlinger Patent. ',Licenain SA A (10 80 OBSOLETES ALL PREVOUS REVSONS """

NEUMAN, WLLAMS, ANDERSON & OLSON 77 WEST WASHNGTON STREET CHCAGO, LLNOS 60602 COPY May 14, 1984 Algy ~amoshunas, Esquire North American Philips Corporation 580 White Plains Road Tarrytown, New York

4 NEUMAN, WLLAMS, ANDERSON & OLSON 77 WEST WASHNGTON STREET CHCAGO, LLNOS COPY May 14, 1984 Algy ~amoshunas, Esquire North American Philips Corporation 580 White Plains Road Tarrytown, New York Dear Algy: Re: Magnavox v. Activiaion Enclosed are copies of Actlvision's reply memorandum supporting its motion to cotnpel and ~he accompanying declaration of Ed Wright. Also enclosed is another copy of the supplemental responses to plaintiffs' interrogatories which were filed earlier this week. Very truly yours, NEUMAN, WLLAMS, ANDERSON & OLSON By Ja~as T. Williams JT~:de Enclosures cc: T. A. Briody - w/o encls. L. Etlinger - w/reply Memo ~ T. w. Anderson - w/o enola.

5 FLEHR, HOHBACH, TEST, ALBRTTON & HERBERT ALDO J. TEST THOMAS 0. HERBERT EDWARD S. WRGHT Suite 3400, Four Embarcadero Center San Francisco, CA Telephone: ( WLSON, SONSN, GOODRCH & ROSAT HARRY B. BREMOND MCHAEL A. LADRA Two Palo Alto Square Palo Alto, CA Telephone : ( , Attorneys for Defendant N THE UNTED STATES DSTRCT COURT FOR THE NORTHERN DSTRCT OF CALFORNA THE MAGNAVOX COMPANY, a Corporation, and SANDERS ASSOCATES, NC., a Corporation, v. ACTVSON, NC., a Corporation, Plaintiffs, Defendant. Civil Action C JPV(FSL REPLY TO MEHORANDUM N OPPOSTON TO MOTON FOR ORDER COMPELLNG DSCOVERY Hearing Date : May 11, 1984 Time : 1:30 p.m. 21 For the most part, plaintiffs do not deny that defendant ' 22 ~ is entitled to the information requested by the interrogatories 23 which are the subject of the motion to compel. The only question seems to be when this information will be provided. All of these 25 interrogatories have been outstanding for over a year, and some 26 have been outstanding for almost 15 months. Whenever defendant 27 has requested proper responses, plaintiffs have said they would 28 Page 1 - REPLY MEMORANDUM

6 , l 1 provide f urther information, but the interrogatories still remain 2 unanswered. 3 From the outset, plaintiffs have attempted to frustrate 4 defendant's discovery by procrastination and delay. These tactics are perhaps best exemplified by plaintiffs ' failure to supplement their answers to defendant ' s first set of interrogatories until September 1, 1983, almost six months after they agreed to do so at 8 a Rule 230-4(a conference in March, t has now been 9 approximately six weeks since defendant ' s letter of March 22, and 10 notwithstanding repeated promises of further responses by 11 plaintiffs ' counsel, no such responses have been received. At 12 plaintiffs ' request, defendant's counsel spent considerable time. 13 j preparing the letter of April 6, 1984 (Exhibit F to defendant ' s 14 supporting memorandum in an effort to reduce the number of ~ ' outstanding issues and thereby facilitate plaintiffs' response. 16 That letter went totally unanswered. Finally, with the impending 17 ~ ~ ~ ~ wl 21 ~ l ' close of discovery, defendant had no chance but to proceed with its motion to compel. Even then, rather than answering the interrogatories which plaintiffs admit should be answered, plaintiffs waited until the day before a response to the motion was due and requested a further extension of two weeks. Even though this request was accompanied by another of plaintiffs ' promises to provide the missing answers, past experience indicated that this was simply another delaying tactic on plaintiffs ' part, 25 and consequently defendant could not agr ee to the ext ension. At 26 about 4 p.m. on April 27, the day the response to t he motion was 27 due, defendant ' s counsel received a telephone call from plaintiffs ' ~ ll Page 2 - REPLY MEMORANDUM

7 1 local counsel requesting an extension of three days for filing and serving an opposition to the motion. Defendant's counsel agreed to this extension on the express understanding that the opposing memorandum would be served by hand first thing in the morning of 5 April 30. Plaintiffs failed to meet this commitment, and the 6 opposing memorandum was not served until after noon and then only 7 after defendant's counsel called plaintiffs' local counsel around 8 noon to find out why the memorandum had not been served. 9 Contrary to the suggestion in plaintiffs' memorandum, 10 not all of plaintiffs' interrogatory responses have been signed 11 and verified as required by Rule 33(a of the Federal Rules of 12 Civil Procedure. Defendant has never received a signed and ~ 15 ~~ verified copy of either PLANTFFS' SUPPLEMENTAL RESPONSE TO DEFENDANT'S FRST SET OF NTERROGATORES (NOS or PLANTFFS' SUPPLEMENTAL RESPONSE TO DEFENDANT'S NTERROGATORES 38 AND 39. Likewise, defendant has not received a signed and verified copy of PLANTFFS' RESPONSE TO DEFENDANT'S THRD SET OF NTERROGATORES (NOS Plaintiffs' complaint about the number of interrogatories served upon them by defendant is not well-founded. Prior to the 20 motion to compel, plaintiffs never objected to the number of 21 interrogatories, and this objection is not timely now. Moreover, 22 the number of interrogatories was necessitated largely by plaintiffs' own conduct. n this regard, it will be noted that the two 23 patents in suit contain a total of 110 claims. n addition, 25 plaintiffs' charge of infringement is directed to 13 of defendant's 26 approximately 40 video game programs. The interrogatories are Page 3 - REPLY MEMORANDUM

8 ij 1 concerned largely with an identification of the allegedly infringed 2 claims and the manner in which they are infringed. As plaintiffs ' 3 memorandum indicates, plaintiffs own approximately 27 U.S. patents 4 relating to television games and approximately 108. such patents in 5 other countries. Plaintiffs' memorandum also indicates that the 6 Re. 28,507 patent itself has been the subject matter of approxi- 7 mately 13 previous civil actions, two of which went through trial. 8 Extensive discovery was taken in a number of these previous 9 actions, and plaintiffs have a large amount of information relating 10 to the issues in the present case. Plaintiffs cannot conceal pertinent information on the basis of the amount of information involved. Assuming that the motion to compel has finally motivated plaintiffs to respond to the interrogatories they have indicated 15 ' they will answer, the remainder of this reply memorandum is 16 ' limited to the relatively few interrogatories for which plaintiffs' ~ 19 ~ ~ 21 ~ memorandum has indicated any reluctance to answer fully. NTERROGATORES AND 78 Plaintiffs have indicated that they will provide " substantially" all the information requested by nterrogatories with respect to the two patents in suit. These interrogatories relate directly to the validity and/or enforceability of the patents in suit, and they should be answered in full, not just "substantially". n their memorandum, plaintiffs have for the first time objected to nterrogat ory 78 as not being limited as to time. This interrogatory concer ns plaintiffs' knowledge of certain items Page 4 - REPLY MEMORANDUM

9 l 1 entitled to know which of the claimed elements were actually 2 contributed by the named inventor and which elements were 3 contributed by someone else. Plaintiffs cannot conceal this 4 information by their semantic gymnastics and attempts to limit 5 defendant's inquiries to the overall combinations of elements 6 defined by the claims. 7 Moreover, it is not a proper response to these 8 interrogatories for plaintiffs to suggest that defendant can 9 ascertain the information from the transcripts of depositions 10 taken in previous lawsuits. By plaintiffs' own count, there are days of relevant deposition testimony, and it is not reasonable 12 for plaintiffs to suggest that defendant search through 39 days of 13 testimony for answers to specific questions which may or may not 14 be found in the transcripts. Moreover, defendant has not as yet 15 been provided with copies of the exhibits to the depositions. 16 Finally, plaintiffs have offered no authority to support their v suggestion that deposition transcripts are business records of the 18 type contemplated by Rule 33(c of the Federal Rules of Civil 19 Procedure for identification in response to an interrogatory. w NTERROGATORES AND 154 Plaintiffs argue that they should not have to respond to these interrogatories because they relate to matters about which the relevant witnesses have already been deposed in previous litigation. That litigation involved different parties and different issues. Activision was not a party to that litigation, and it has never deposed the witnesses identified by plaintiffs as being relevant. This case is fully distinguishable from the Page 6 - REPLY MEMORANDUM

10 sll Breeland and Schotthofer cases cited in plaintiffs' memorandum, where the depositions and the interrogatories took. place in the same case and were employed by the same party. Moreover, it would be unduly and unreasonably burdensome for defendant to have to search through the multitude of deposition transcripts looking for the answers to specific questions when the information sought is within the personal knowledge of plaintiffs' attorneys. Plaintiffs also argue that they do not need to respond to these interrogatories because two courts have concluded that the Re. '507 patent is valid over the '480 patent and the Spacewar game prior art. n the Chicago Dynamic case, the court found that neither side had proved whether the Patent Office Examiner was 13 really aware of what was in the '480 patent, and on the bas~s of the evidence which was presented to him, he went on to say that he did not believe that the '480 patent was material in the sense that it would have changed the Examiner's mind. There is no discussion of either the Spacewar game or the Examiner's knowledge of this game in the Chicago Dynamic decision, and the validity of there. '507 patent was not contested at the trial of the Mattel case. By the interrogatories in question, defendant seeks to ascertain the facts which were missing from the Chicago Dynamic case, and plaintiffs cannot continue to suppress these facts on the basis of two prior cases which were decided without them ATTORNEY'S FEES To the extent that plaintiffs may yet voluntarily respond to some of the interrogatories which are the subject of this motion, both defendant and the Court have been put to the Page 7 - REPLY MEMORANDUM ~

11 ..., "' s t j 18 i ! r FLEHR, HOHBACH, TEST, ALBRTTON & HERBERT ALDO J. TEST THOMAS 0. HERBERT EDWARD S. WRGHT Suite 3400, Four Embarcadero Center San Francisco, CA Telephone: ( WLSON, SONSN, GOODRCH & ROSAT HARRY B. BREMOND MCHAEL A. LADRA Two Palo Alto Square Palo Alto, CA Telephone: ( Attorneys for Defendant N THE UNTED STATES DSTRCT COURT FOR THE NORTHERN DSTRCT OF CALFORNA THE MAGNAVOX COMPANY, a Corporation, and SANDERS ASSOCATES, NC., a Corporation, Plaintiffs, v. ACTVSON, NC., a Corporation, Defendant. Civil Action C JPV(FSL DECLARATON OF EDWARD S. WRGHT Hearing Date: May 11, 1984 Time: 1:30 p.m., EDWARD S. WRGHT, declare and state as follows: 1. am a partner in the firm of Flehr, Hohbach, Test, Albritton & Herbert, attorneys for defendant in this action, and have been directly involved in substantially all of defendant's efforts to obtain discovery in this matter. 2. prepared the Reply to Memorandum in Opposition To Moti.on For Order Compelling Discovery, and am personally familiar with all of the factual matters discussed in in it. To the best Page 1 - DECLARATON OF EDWARD S. WRGHT

12 : 6 i 7 r 8! 9 : 1: of my knowledge and belief, those factual matters are truly and correctly set forth in the aforesaid memorandum. declare under the penalty of perjury that the foregoing is true and correct to the best of my knowledge and belief. Date: May 4, ' li 19 1: Page 2 - DECLARATON OF EDWARD S. WRGHT

PATENTS, TRADEMARKS AN D COP YRIGHTS SU ITE 3400 F"OUR EMBARCADERO CENTER SAN FRANC ISCO. CA LI F"ORNIA ( 41S)

PATENTS, TRADEMARKS AN D COP YRIGHTS SU ITE 3400 FOUR EMBARCADERO CENTER SAN FRANC ISCO. CA LI FORNIA ( 41S) HAROLD C. HOHBAC H ALOO J. TEST ELMER S. ALBRTTON THOMAS 0. HERBERT M LTO N W. SCHLE:MMER DONALD N. MACNTO S H.J ERRY G. WRG HT EDWARD S. WRGHT DAVD J. BREZ NER R C HARD E. BACKUS $T :PHEN E. BALDW N STEPH