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Case 1:16-cv-00453-RGA Document 585-1 Filed 10/09/18 Page 1 of 10 PageID #: 47121
`Case 1:16-cv-00453-RGA Document 585-1 Filed 10/09/18 Page 1 of 10 PagelD #: 47121
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`EXHIBIT 1
`EXHIBIT 1
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`Case 1:16-cv-00453-RGA Document 585-1 Filed 10/09/18 Page 2 of 10 PageID #: 47122
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`Barry, Kathleen B.
`Hlee@KramerLevin.com; jchoa@potteranderson.com; LKobialka@KRAMERLEVIN.com;
`PAndre@KRAMERLEVIN.com; provner@potteranderson.com; Afrankel@Kramerlevin.com;
`"JHannah@KRAMERLEVIN.com"; gtong@kramerlevin.com; sdennison@kramerlevin.com;
`CMartinez@KRAMERLEVIN.com; Rovner, Philip A.; Choa, Jonathan A.
`skraftschik@MNAT.com; JBlumenfeld@MNAT.com; Winston Video Game DE Team; Lin, David K.; Tomasulo,
`Mike; Hodgson, Alissa C; Enzminger, David P.; Barry, Kathleen B.; Netikosol, Joe; Hodgson, Alissa C; Webb,
`Trent (SHB); Hankel, Aaron (SHB)
`Acceleration Bay LLC v. Activision: Daubert Ruling
`Friday, August 31, 2018 12:15:00 PM
`
`From:
`To:
`
`Cc:
`
`Subject:
`Date:
`
`Aaron,
` 
`
`Based on the Court’s recent Daubert ruling (Dkt. 579), Acceleration Bay no longer has a
`damages case to be presented to the jury.  Please let us know if you agree and, if not, provide an
`explanation for the basis and amount of any damages claim you believe may have survived the
`Daubert ruling and are supported by Acceleration Bay’s expert reports.  Given the upcoming October
`trial date and all the preparations for that trial, we would appreciate your response by September 7,
`2018.   We are also available to meet and confer on this issue in the interim.  In the event that there
`is dispute, we would like to promptly raise this issue with the Court.
` 
`Regards,
`Kathleen
` 
`Kathleen Barry
`Winston & Strawn LLP
`D: +1 312-558-8046
`winston.com
`
` 
`
`

`

`Case 1:16-cv-00453-RGA Document 585-1 Filed 10/09/18 Page 3 of 10 PageID #: 47123
`Case 1:16-cv-00453-RGA Document 585-1 Filed 10/09/18 Page 3 of 10 PagelD #: 47123
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`EXHIBIT 2
`EXHIBIT 2
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`FULLY REDACTED
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`Case 1:16-cv-00453-RGA Document 585-1 Filed 10/09/18 Page 4 of 10 PageID #: 47124
`Case 1:16-cv-00453-RGA Document 585-1 Filed 10/09/18 Page 4 of 10 PagelD #: 47124
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`EXHIBIT 3
`EXHIBIT 3
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`FULLY REDACTED
`FULLY REDACTED
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`Case 1:16-cv-00453-RGA Document 585-1 Filed 10/09/18 Page 5 of 10 PageID #: 47125
`Case 1:16-cv-00453-RGA Document 585-1 Filed 10/09/18 Page 5 of 10 PagelD #: 47125
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`EXHIBIT 4
`EXHIBIT 4
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`Page 1 of 4
`Case 1:16-cv-00453-RGA Document 585-1 Filed 10/09/18 Page 6 of 10 PageID #: 47126
`Case 1:16-cv-00453-RGA Document 585-1 Filed 10/09/18 Page 6 of 10 PagelD
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`The Inventors Guide
`
`Royalty Rates
`
`Royalties are payments that areprovided to alicensor by a licenseein
`exchangefor the right to operate under youridea.
`
`
`
`One of the most important steps in licensing a patent or idea is
`establishing the royalty rate you will receive in return for granting a
`licensee the right to manufacture and sell your invention. In this article
`we will explain what royalty rates are, how to calculate the proper
`royalty rates, elements that effect royalty rates, protections to put in
`place, and other important things to consider when licensing an idea.
`
`#: 47126
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`___
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`|
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`Exclusive or Non-Exclusive
`If your intellectual property requires testing orcertification
`prior to being brought to market. having these milestones
`completedwill lead to higher royalty rates.
`
`Upfront Sum
`The higher the up-front sum being paid to the licensee,
`the lower royalty rate the licensor will likely receive asit
`is an element of the overall compensation.
`
`Industry Standard Royalty Rates
`Each industry tends to have an ‘industry standard’
`royalty rate. See the end of this article for a list of
`industries and their average royalty rates,
`
`Company Standard Rates
`Companies that have agood amount of experience in
`licensing ideas tend to have a standard package that
`they offer inventors. The larger the company is and the
`
`https://assets.entrepreneur.com/article/1406054592-one-stop-guide-royalty-rates-infographic.jpg?_g...
`AB-AB 004474
`
`6/6/2017
`
`

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`Page 2 of 4
`Case 1:16-cv-00453-RGA Document 585-1 Filed 10/09/18 Page 7 of 10 PageID #: 47127
`Case 1:16-cv-00453-RGA Document 585-1 Filed 10/09/18 Page 7 of 10 PagelD #: 47127
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`Ws bigger their track record, the more leverage they will
`have in negotiating your royalty rate.
`
`
`
`Intellectual Property Stage
`The further along the intellectual property is to
`commercialization, the less risk the licensee will face,
`and the higher the royalty will be paid to the licensor.
`
`Market Potential
`The royalty rate will heavily depend upon the market
`potential of the idea you are looking to license. This can
`be difficult when you are trying to license an invention
`that is developing a new marketor is part of a new
`market that has not yet shown it's full potential.
`
`
`
`Licensing to an Infringer
`Each industry tends to have an industry standard’
`royalty rate. See the end of this article for a list of
`industries and their average royalty rates.
`
`Related Intellectual Property Included
`Companies that have a good amount of experience in
`seee
`f Pfae licensing ideas tend to have a standard package that
`Yi a they offer inventors. The larger the companyis and the
`SS bigger their track record, the more leverage they will
`have in negotiating your royalty rate.
`
`BA
`
`Ae
`
`Testing/Certification
`The further along the intellectual property is to
`
`commercialization, the less risk the licensee will face,
`and the higher the royaltywill be paid to the licensor.
`
`Investment Required
`The royalty rate will heavily depend upon the market
`potential of the idea you are looking to license. This can
`Ps
`a be difficult when you are tryingto license an invention
`that is developing a new marketor is part of a new
`market that has not yet shown it’s full potential.
`
`Industry Standard Royalty Rates
`
`
`
`
`https: //assets. entrepreneur.com/article/1406054592-one-stop-guide-royalty-rates-infographic.jpg?g... 6/6/2017
`AB-AB 004475
`
`

`

`Page 3 of 4
`Case 1:16-cv-00453-RGA Document 585-1 Filed 10/09/18 Page 8 of 10 PageID #: 47128
`Case 1:16-cv-00453-RGA Document 585-1 Filed 10/09/18 Page 8 of 10 PagelD #: 47128
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`https: //assets. entrepreneur.com/article/1406054592-one-stop-guide-royalty-rates-infographic.jpg?g... 6/6/2017
`AB-AB 004476
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`

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`Page 4 of 4
`Case 1:16-cv-00453-RGA Document 585-1 Filed 10/09/18 Page 9 of 10 PageID #: 47129
`Case 1:16-cv-00453-RGA Document 585-1 Filed 10/09/18 Page 9 of 10 PagelD #: 47129
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`Patent Marketplace
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`IDEABUYER
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`Buy, sell, & License Patents
`
`https: //assets. entrepreneur.com/article/1406054592-one-stop-guide-royalty-rates-infographic.jpg?g... 6/6/2017
`AB-AB 004477
`
`

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`Case 1:16-cv-00453-RGA Document 585-1 Filed 10/09/18 Page 10 of 10 PageID #: 47130
`Case 1:16-cv-00453-RGA Document 585-1 Filed 10/09/18 Page 10 of 10 PagelD #: 47130
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`EXHIBIT 5
`EXHIBIT 5
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`FULLY REDACTED
`FULLY REDACTED
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