NEMEROVSKI BOBERTSON &FALK HOWARD CANADY RICE HAND DELIVERY

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1 Law Offices Of HOWARD RCE NEMEROVSK CANADY BOBERTSON &FALK A Professional Co,.,oratzon HENRY W HOWAJtO DEN S T RCE HOWARD N NEMEitOVSK RC HARD W C ANA O"'' A A'1.1ES ROBERTSON UO"-"E 8 FALK fr RAY... to,._d P HAAS HOBERT E COOO'G 1M '1.1 "-RT"'- R CliCK l.o\\'\ RE,CE:. 8 RABK' ""'ll "-"1 T HL 'TTO' ')fl:\ E'- l "tayer 8AR8AR.A COROO:\ JA\ES l. LOPES DRK :\. C,CHE'-K._ '\:"'... HOMAj A l "RSE'-o: 'ti(hael 0 fac"' ST VF' E.:;( HO~! " ' ".,PEAR') Jr.. ''-E"':'H C HAL'i\otA~ 1-f fo'jeph ESCHER ll f>..za!eth S SAlVEc;.o' H VATH~ 'toore PFTER 8LSCH RO... A LO H 'STAR DA,._it.l \,.lk'jr.. E EFfRE'Y l SCHAFFER l.y'l'l P HART.,ARAH K HOF'iTA OT[R MARLA "flt.t.et \.\ARK 0 WHATlEY A LAN W SPARER T HERESE M $T;WART CHARLES p ORTME Y R Jt..:LJA P crus PETU COH' '1"RTHA Jr.. Ct.'"'~CH"'-1 0"'\1 COOO\'\l' '-'CHAU OA.'--"HER A'-ET A '\E\0' CHARLOTTE \... A \0' Tl~tOTHY ~ \t. C A "o'\ /O,A THA' H Hl.l BFH /AMES C '00'-A"" LAt...Rf\,C[ fo rt..'lcra' E:THA"' P ~CitLl'~'- 8ER'\AR0 A!JL R.._ rooo E rho,u ~., <. -4.-HER'[ \.1 1\TE -'' HORACE;,.. '-ASH ROBERT H '1'-0C'"-" "'' BRC<. \'.-4.'1''\E H Cll.BERT OF COt..S~EL THREE EMBARCADERO CENTER SEVEl\'TH FLOOR SAN FRANCSCO CA / 434-loOO TELEX & TWX TELECOPY February 27, 186 HAND DELVERY Deborah Weissman, Esq. Law Clerk Judge Legge's Chambers U.S. District Court 450 Golden Gate Avenue, 1th Floor San Francisco, CA 42 Re : Magnavox v. Activision Case No.: C CAL Dear Ms. Weissman: enclose a revised proposed o rder in connection with Activision's Motion for Stay of Accounting Pend ing Appeal and a revised proposed Judgment. The revised proposed order reflects t hat the motion for stay was heard on February 5, 186 rather than February 28, 186; the revised proposed J udgment reflects Judge Legge's statement at the Status Conference regarding the entry o f f o rmal conclusions of law. will appreciate it if you would suc stitute these revised documents for the ones we filed earlie r. Thank you for your help. S incerely ycurs, MJM:cal Encl. MARLA J. M:...LER Attorneys for ACT VSON, NC. cc: Robert L. Ebe, Esq. (by hand) Theodore W. Anderson, Esq.

2 1, 2 : j 1 UNTED STATES DSTRCT COURT 'LmRTH ERN DSTRCT OF CALFOR.'HA 11 THE MAGNAVOX COMPANY, a corporation, No. C CAL and SANDERS ASSOCATES, NC., a corporation, ORDER STAY NG ACCOUNTNG PENDNG APPEAL Plaintiffs, vs. ACTV SON, NC., a corporation, Defendant. AND RELATED CROSS- ACTON. 2 : 2w lj 24 :1 25 il 26 q This matter came on for hearing o n February 5, 186, the parties appearing through their respe c tive attorneys of record. Based on the written and oral ar; uments presented, and for good cause sho\-.rn, T S HEREBY ORDERED that 1. Activision, nc.'s ;lotion for Stay of Accounting Pending Appeal is g ranted. This action is stayed pending the

3 1 outcome 2 :! Appeals of Activision's interlocutory appeal to the Court o f for the Federal Circuit, provided that Activisio n s hall 3 post a bond in the amount o f!;; Dated: ' CHARLES A. LEGGE U. S. DSTRCT J UDGE ' 18 il 1 il J il 20!, 21,, 22 j! 23!' lj 24 ij !' ORDER - 2- STAYNG ACCOUNTNG PENDNG APPEAL

4 ,, i ~ a) 1 1 UNTED STATES DSTRCT COURT NORTHERN DSTRCT OF CALFORNA THE MAG&~AVOX COMPANY, a corporation, and SANDERS ASSOCATES, NC., a corporation, Plaintiffs, ~o. C CAL JUDGUENT (EXCEPT FOR ACCOUNTNG ) ACTVSON, NC. a corporatio n, 18 i: ' 1 ' , 21 'l!' ! Defendant. AND RELATED CROSS-ACTON The issues ~n this case, other t han damages, were tri e d t o this Court sitting without a jur y and were submitted. The court has reviewed all of the exhibits admitted into evidence, and has heard and reviewed the testimony o f the witnesses. On December 27, 185 the Court made and e ntered Findings of Fac t,

5 1 i and on 2 of Law., 186 the Court ~ade and entered Conclusions The Findings of Fact and Conclusions o f Law are the basis of this Judgment. 31 t is hereby adjudged that: l. Activision, nc. ( " Activision" ) has not sustained 6 its bur den of proving that any of claims 25, 26, 51, 52, or of U.S. Patent Re. 28, 507 ("the '507 patent" ) is invalid. 8 i Activisio n has c ontributed t o the infringement, and induced infringement, of the ' 507 patent by the manufacture and sale of its Tennis, ce Hockey, Boxi ng, Fishing De rby, Stampede, Pressure Cooker, Grand Prix, Barnstorming, Sky Jinks, Enduro, and Decathlon television game cartridges. 3. Activision has directly infringed the '507 patent by use and display of tho se television game cartridges. 4. Activision did not willfully infringe the '507 patent and proceeded at all relevant times in the good faith 17 18!i,, 1 il,, ::>Q! - 21! li belief that its products did not infringe any app l icable patent. DATED: 5. This Judgment is final except for an accounting ' JUDGMENT (EXCEPT FOR ACCOUNT NG) CHARLES A. LEGGE U. S. DSTR CT COURT JUDGE

Enclosed are copies of the following documents which were recently received: PP.E'l'RIAL STATEMENT OP DEFENDANT ACTIVISION 1 INC.

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