Atari 2011 Annual Report Download - page 112

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ANNUAL FINANCIAL REPORT – REGISTRATION DOCUMENT
112
24.4. Atari, Inc. vs. Zoo Publishing, Inc.
On March 2, 2011, Atari, Inc. filed suit against Zoo Publishing, Inc. in the federal court of the Southern District of New
York. Atari alleged that Zoo breached its contracts with Atari by failing to deliver games and make payments to Atari as
were appropriate under those agreements. Atari has alleged damages of $1.5 million. The parties commenced
settlement discussions and a settlement agreement and release wasexecuted. Zoo agreed to provide Atari with
approximately $1.5M in product that Atari expects to sell over the next 12 months.
24.5.Walker Digital v. Atari, Inc., Cryptic Studios, Inc. and others.
Atari, Inc. and Cryptic Studios, Inc. have been sued, along with 20 other video-game-industry entities by a company
known as Walker Digital LLC for patent infringement. The suit resides in federal court in the District of Delaware and was
filed on April 11, 2011. Atari has not yet been served. The patent at issue is numbered 5,970,143 and is titled “Remote
Auditing of Computer Generated Outcomes, Authenticated Billing and Access Control and Software Metering Systems
Using Cryptographic and other Protocols”. Walker Digital is operated out of Stamford, CT. Cryptic is being sued for
technology associated with the game known as Star Trek Online. The technology allegedly infringed is associated with
making and using systems for remote auditing of computer generated outcomes, allowing saving of game outcomes for
further use as well as monitoring the amount of time a player spends playing a game. Atari is being sued for technology
that is claimed to be utilized by Faries vs. Darklings in that the Atari system allows the saving of game outcomes for
further use, as well as monitoring the amount of time a player spends playing a game. The Company has entered into a
a joint defense.
24.6. Walker Digital v. Cryptic Studios, Inc. and others.
Cryptic Studios, Inc. has been sued, along with 8 other video-game-industry entities in a second suit patent infringement
initiated by Walker Digital LLC. In the second suit, also filed in federal court in the District of Delaware, the patent
involved is 6,527,638 and is titled “Secure Improved Remote Gaming System” and the technology is associated with pre-
paid cards for gaming credits associated with Champions Online and Star Trek Online. The suit was filed on April 11,
2011 and the company has entered into a joint defense.
25. CONSOLIDATING ENTITY
The Company publishes consolidated financial statements.