Perhaps it was because Magnavox's leadership wanted to assert themselves early, but the next morning, Sidley Austin's lawyers appeared in front of Ethan again. They informed him that Magnavox's representatives would arrive in San Francisco the next day and wanted to start negotiations at ten o'clock.
Ethan agreed wholeheartedly and then sent a message to both parties.
On one side was Professor Barbara Babcock. As Ethan's attorney, she needed to attend the negotiations and help review the contract. Ethan was extremely polite to this capable and helpful ally.
On the other side was Atari. Facing them, Ethan's attitude was far less courteous.
Faced with Ethan's blunt threat, Nolan Bushnell and Don Valentine were furious, but to sell the company smoothly and protect their hard work, they decided to show up at ten o'clock with two documents.
One was an early termination agreement regarding Snake Game, and the other was a statement of infringement liability.
The first document was mostly standard, except for the sales figures of Snake Game. After Atari revised it, the sales volume in the central and western regions of the United States rose from less than 3.5 million to over 8 million. Overall, total sales in North America had surpassed 15 million. Consequently, the dividends Ethan Jones and Evelyn Johnson would receive soared from 1.3 million to 2.2 million.
The second document stated that because Atari had infringed Magnavox's patent due to its own negligence, they would bear all compensation—capped at 1.5 million.
Barbara reviewed the contracts and found no issues, so Ethan and Evelyn signed them. By three o'clock that afternoon, when Ethan went to Wells Fargo Bank to check his account, he saw a real-time update: an addition of 1.1 million to his personal account.
The number made him smile and shake his head. The IRS is still awesome!
"As soon as the issue of reporting tax evasion came up, Atari immediately moved! Were they unaware of our little one million? It seems they never intended to pay the compensation themselves in the first place!"
Indeed, when Atari adjusted the sales figures between the Midwest and central regions, Ethan noticed a pattern: the amount they "lost" roughly equaled the compensation claimed by Magnavox. If it hadn't been for prior suspicious events, Ethan might have dismissed it as coincidence. But now… he knew better.
After receiving the money, Ethan straightened his posture, smiling as he prepared for negotiations with Magnavox the next day.
At first, Magnavox's representatives tried to fuss over the lock-up agreement, suggesting a one-year term similar to Atari's. But when Ethan showed them a photo of Atari's infringement liability statement, their objections immediately ceased.
"Mr. Jones, since Atari will bear the compensation, can we set the amount to two million?"
Magnavox's representatives were clearly greedy.
"That's too much, it's unreasonable. I think 1.2 million is enough," Ethan replied, shaking his head.
The representatives pressed further. "I can't explain this number to our general manager. How about 1.8 million?"
"I know what you're thinking—you just want to take Atari's money. I'll give you a little more: 1.3 million."
Ethan was being generous. But the next second, one of Magnavox's representatives shouted loudly, "Mr. Jones! Don't you hate Atari?"
When Ethan heard this, how could he bear it? "The upper limit of compensation agreed between Atari and me is 1.5 million, all of which will be given to you. But I have one request: after we reach a settlement, when you issue the press release, you must shift all responsibilities to Atari. On Dali's body. Is that okay?"
"You sure?"
"Sure!"
"Sign the contract!"
"Sign the contract!"
This tug-of-war stunned the lawyers at Sidley Austin. They had been in the industry for years and had never seen infringers take the initiative to pay compensation. And yet, here it was—would Atari even pay? What was happening? They couldn't figure it out.
Although Professor Barbara was better informed than they were, she was still puzzled. After the matter was over, when Ethan sent her home, she asked curiously:
"Ethan, you just followed the agreed upper limit and had Magnavox sign the compensation contract? Aren't you afraid Atari won't be able to afford it?"
"Why be afraid?" Ethan said with a smile. "I just asked Atari to spit out all the money it earned. The North American revenue of Snake Game is now 15 million. Based on a 30% profit margin, Atari should have earned 4.5 million from this project. Evelyn and I received 2.6 million, which means that after deducting our share, Atari still has 1.9 million left.
Even if they bear 1.5 million in compensation, they still have 400,000 in profit. Although this money cannot offset Magnavox's subsequent claims, Atari has tampered with its accounts—they must have hidden money. So they can definitely afford the compensation.
Since everyone has already lost their skin, why should I help them keep that income? I admit I don't like Magnavox, but their rights-protection behavior is correct and lawful. I accept it. In this case, I'd rather Magnavox get the money than let Atari keep the profits because Atari is disgusting."
Barbara shook her head after hearing Ethan's words. She pursed her lips and lamented that the young man Ethan didn't seem as kind as she had thought.
Ethan, who was driving, asked another question: "prof. Barbara, do we still have one more thing to solve?"
"What's the matter?" she asked.
"Your attorney's fees."
When the words attorney's fees appeared, Barbara was momentarily stunned, then smiled: "I also have a problem with this matter, so I'll pay according to the minimum standard set by the Lawyers Association. As long as they don't ask for more, it's fine."
Practicing lawyers in the United States have minimum fee standards; the association does not allow them to file claims arbitrarily. Ultimately, however, it is up to the lawyer to decide whether to charge more or less.
Barbara Babcock, for instance, could charge extremely high hourly consulting fees based on market rates—rates even today's middle class could barely afford. She, however, charged the lowest price because she didn't take outside clients, only helping acquaintances to maintain relationships. This minimum fee was agreed upon when signing the agency agreement.
And if she hadn't accepted it? Ethan Jones would have ensured she got it anyway.
After sending Barbara home, Ethan leaned out of the car window and asked, "Professor Barbara, when will your case collection book be launched?"
"What do you mean, at the end of the year?" she replied.
"I want to buy a thousand copies and donate them, along with other books, to some universities and municipal libraries in the West. Although I don't understand the law fully, I think the case collection you wrote will have educational and demonstrative significance, and it will bring enlightenment to the public."
Barbara stared at Ethan for a long moment before finally smiling. "Oh Ethan, I love this gift from you. Since you want to donate books, I won't be polite—I'll let you know when the book comes out."
"Okay, prof. Barbara, I'll wait for your news." Ethan gave a thumbs-up and waved. Then he stepped on the accelerator and hurried back to his aunt's house.
He photographed the settlement agreement in front of Thomas and Linda and announced loudly, "Thomas, Linda, the matter has been resolved!" He wanted to reassure the elderly who cared about him.
Then he picked up the phone and called the friends who had inquired about the matter before, comfortingly saying:
"Hey Frank… things have been resolved… really. Didn't you hear it from me? I'm very happy now!"
"Oh Chuck… thank you, thank you for caring… it was all a misunderstanding… right, right…"
"Hi Steve… thank you so much for your help… yes! You really helped me out!"
Ethan wanted to reassure all the friends who had been supporting him. After confirming he was safe and expressing his thanks, he felt completely relaxed. That night, he had a huge appetite and ate chicken leg.
Magnavox's work efficiency was impressive. On the morning of September 22nd, they had reached a settlement. By the morning of September 24th, while eating breakfast at home and turning on the TV, Ethan saw a news report:
"According to information obtained by our reporter, on September 23, 1975, Magnavox and Atari signed a settlement agreement. The two parties reached a consensus on the infringement issue of Snake Game. The infringement, caused by Atari, involved compensation that may have exceeded 2 million dollars.
At the same time, after the infringement was confirmed, the two inventors of Snake Game also terminated their cooperation with Atari. Since the three parties were unwilling to be interviewed, the specific details remain unknown. Nevertheless, we ask Nolan Bushnell: why did Atari infringe multiple times in such a short period?
Does Atari need to infringe repeatedly to grow? Can Atari only gain profits by skirting the law and plundering others' wealth?
If so, we advise Nolan Bushnell to consider Stepaside from the company immediately. Although the United States pursues liberalism, and California enjoys a comfortable atmosphere of freedom, this does not justify ignoring the law. If Atari continues to trample the law, it will ultimately face severe punishment."
This report made Ethan look up with a smile. The directional diss was so obvious that it seemed, at first glance, as if Magnavox had drafted it themselves.
If nothing else, would Atari's compensation be used for this?
Ethan's smile grew wider as he imagined how furious Atari would be upon seeing that he had used their own compensation to pay for it.
There was no other way—he was just a common man, and he liked this kind of revenge.
By September 28, another shocking piece of news spread across the United States—
According to ABC reports, Warner Bros. would acquire Atari for $15 million. Once the acquisition was complete, Warner Bros. would become the sole shareholder of Atari, while Nolan Bushnell would continue to serve as the company's CEO.
Ethan, sitting on the sofa, stretched. The decline in Atari's valuation was the best gift he could have received. The comfort of the soft sofa made him squint his eyes.
"It's finally over," he said with a smile.
Then what happens next…"It's my turn to trap you