Sportvision, Inc et al v. MLB Advanced Media L.P.

Filing 26

FIRST AMENDED COMPLAINT amending 8 Complaint against MLB Advanced Media L.P. with JURY DEMAND.Document filed by Sportvision, Inc, SportsMedia Technology Corporation. Related document: 8 Complaint. (Attachments: # 1 Exhibit A - '530 Patent, # 2 Exhibit B - Endeavor Contract, # 3 Exhibit C - Amendment to Endeavor Contract, # 4 Exhibit D - Second Amendment to Endeavor Contract, # 5 Exhibit E - Third Amendment to Endeavor Contract, # 6 Exhibit F - Fourth Amendment to Endeavor Contract, # 7 Exhibit G - January 24, 2017 Letter, # 8 Exhibit H - February 24, 2017 E-mail)(Haveles, H.)

Exhibit H

Eichel, Benjamin J.
Subject:

FW: SMT and MLBAM - Next Steps

From: "Gersh, Kenny" <[e-mail]>
Date: February 24, 2017 at 4:16:23 PM EST
To: Gerard Hall <[e-mail]>
Subject: Re: SMT and MLBAM - Next Steps
Gerard,

Thank you for your email. We strongly disagree with your interpretation of the PITCHf/x agreement and
will not adopt your proposed amendment.

To be clear, MLBAM has not taken the position that it has terminated the current PITCHf/x agreement as
amended. Rather, MLBAM intends to cooperate and continue abiding by the ongoing portions of the
agreement and will hold SMT to doing the same. MLBAM does not waive the rights it has under the
agreement or otherwise. This includes MLBAM’s rights to enforce and/or terminate the agreement in
response to SMT violating any of its provisions, for instance by engaging in prohibited discussions with
MLB broadcasters.

I encourage SMT to reconsider its current unfounded posture so we can avoid spending valuable
resources on attorneys. If you think it would be productive, and to the extent SMT has anything
additional of value to offer, I am open to arranging a meeting between our product teams to discuss
ways we could work together in the future. Of course, this discussion would be separate and apart from
the PITCHf/x agreement and we would first need to receive assurance that SMT will not bring litigation
related to the agreement. Otherwise, I can have MLBAM’s attorneys reach out to SMT’s attorneys.

Regards,
Kenny

From: Gerard Hall <[e-mail]>
Date: Tuesday, February 21, 2017 at 4:59 PM
To: "Gersh, Kenny" <[e-mail]>
Subject: SMT and MLBAM - Next Steps
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Hello Kenny,
Thanks for making the time to meet with me in NYC recently. I wish our first meeting were under more
pleasant circumstances, but alas, we must play the hand we are dealt.
As agreed I have created a document that outlines SMT’s position and perspective vis-à-vis
the current contract status as between MLBAM and SMT.
In a nutshell, the document shows why and how SMT believes that the entirety of the Consolidated
Agreement (original Agreement plus four Amendments) remains in force until December 31, 2019 and thus why and how significant MLBAM Obligations are still in force under this Consolidated
Agreement.
As you will see I organized the document into five (5) sections for simplicity:
1. Situation Analysis
2. Statement of the Problem
3. Proposed Solution
4. The Ask
5. Next Steps.
While I appreciate what you shared with me in our meeting, i.e., that MLBAM’s position is that
the contract ended at the conclusion of the 2016 MLB season. I think any reasonable person, relying
on the four corners of the Consolidated Agreement only, will arrive at a different conclusion and see
that the Consolidated Agreement remains in force until December 31, 2019. I encourage you to read
with fresh eyes and an open mind so that you can understand how someone who has only recently been
privy to these documents – e.g., SMT’s attorneys and I – would view them.
You also mentioned during our meeting – for the point of academic argument - that even if SMT’s
position on the Consolidated Contract turns out to be accurate – there is nothing of any substance
left in the Consolidated Agreement, e.g., SMT has no rights to sell the PITCHf/x System Data or to
sell services around the rendering of PITCHf/x System Data; ergo, the Consolidated Contract really
is vacuous.
I think you will conclude after reviewing all of the attached that we are not in a vacuous contract
situation
at all. In fact, quite the opposite is true. In SMT’s view, the Consolidated Agreement clearly states that:
1. MLBAM is obligated to fund, operate, maintain, and promote the PITCHf/x System
through December 31. 2019; and,
2. MLBAM is obligated to grant SMT 24/7/365 access to PITCHf/x System Data;
3. While MLBAM is not obligated to allow SMT to provide rendering services on the PITCHf/x
System Data, MLBAM cannot unreasonably withhold approval;
4. MLBAM is precluded from contracting with any third party for the provision of data similar to
the
PITCHf/x System Data.
In addition, SMT has strong patent protection against any other entity providing Pitch Tracking
Rendering
services to broadcasters;
So what does all this mean or what does it amount to?
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Not to sound alarmist, but since the amount of revenue PITCHf/x means to SMT is significant – we’re
talking many
millions of dollars - it is a sad fiscal reality that if you and I do find common ground to solve this problem
– fast –
SMT attorneys will be forced to mobilize and as a consequence (per SMT’s patent protections) MLB
broadcasts in
2017 through 2022 could be devoid of live and replay pitch location relative to strike-zone
graphics. MLB broadcasts
will look very different without SMT’s pitch location and strike-zone graphics.
For the record, I hate litigation, I hate lawsuits, I hate productive capital going to non-productive
activities - particularly
when the situation is entirely avoidable. I also hate to think of the public relations mess that this would
create in the trades
and media. But more than all of that, I hate losing many millions of dollars of revenue when SMT is
poised to provide in mutual interest of all parties - valuable services to MLBAM and its broadcast partners. Filing a lawsuit
over this situation
is a terribly inefficient thing to contemplate – and not in either of our interests.
Obviously, this is a very time-sensitive situation given the imminent opening of the 2017 MLB Season in
five weeks.
I hope you find the attached documents helpful and enlightening. So much so, that you see the need for
us – the
cooler heads - to get together to solve this problem ASAP.
I look forward to hearing from you within 48 hours at the latest. SMT’s clients are barraging us with
inquiries.
Best regards,
Gerard
GERARD J. HALL
President & CEO
3511 University Dr, Durham, NC 27707
[e-mail] | www.smt.com
o: [phone] | m: [phone]

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The information transmitted in this e-mail and/or attachments is intended solely for the individual or entity to
which it is addressed and may contain confidential and/or privileged material that may not be shared. This
information and all attachments are for use only by the intended recipient. To the extent that the information
contained in this e-mail or any attachment is proprietary, copyrighted, patented or trademarked, all rights are
reserved. Any review, retransmission, dissemination or other use of or taking action in reliance upon this
information by persons or entities other than the intended recipient is strictly prohibited. If you have received
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