Transcription of Telephone Conference

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"Conducted July 31, 2000
Participants:
Simon Bernstein, Eliot Bernstein, Maurice Buchsbaum,
Brian Utley, Doug Boehm, Chris Wheeler

Utley The purpose of this meeting is to review the facts and I think
there are two particular points that are
...that are important to moving ahead. The first is: “Given that the filings
are what they are, and given what we know about the filing
which is scheduled to take place this week on Wednesday,
what means do we have to correct the situation; and given
whatever corrections we find, what then is the impact or
exposure to iviewit based upon what actions we can take.
Then, lastly, what, if any, recourse might iviewit have vi
sa vi the omissions in the original filings Are there any
other issues, Doug?

Bernstein: Yeah, just correcting back to Ray Joao's work of the formal
filing that he filed. Do we have a copy of that


Utley: I do have that.

Bernstein: I don’t. I’ve got the provisional and I’ve got...

Boehm: Everything is on the table

Utley: you should have...the formal.

Bernstein: This one?

Utley: Yes, that’s the formal.

Bernstein: Okay.

Simon Bernstein: I just have one question. Does anybody have, or are
we allowed to get, the files of Ray Joao?

Boehm: I have them.

Wheeler: Do you have all of the work that he had?

Bernstein: No, not all of it.

Utley: What was purported to be in the files?

Bernstein: And he also claimed to us that he destroyed part of his files.

Boehm: And I have some of his files. I have what was purported to
be all of the firms’ files.

Utley: Well, there’s a whole history, then, because I tried to get
complete copies of the files originally, and found out
later that not only did he not send us all the files, he
didn’t even mention that there was an extra filing out
there that we didn’t even know about.

Bernstein: This one that’s in question.

Boehm: Yep

Simon Bernstein: You have no notes, no data on...?
Boehm: No, I have the application. I have things that you could
get from the US patent office—that I could get from the US
patent office. I have very few notes. I do have some
scribbled Ray Joao’s notes, but I think you gave me those
notes.

Utley: I did. I gave you Bill Dick after Bill yourself[ ] the
notes that I had.

Bernstein: And Ray’s made disclosures to us that he destroyed the documents
to protect us, which I don’t know what he was thinking.

Simon Bernstein: Destroyed what documents?

Bernstein: Whatever he had in his files. Other patent copies, copies of the
drafts as they proceeded...all that he destroyed to protect
us from something I asked him to explain, and his
reasoning...because I said to him, you know, usually you
destroy documents when you are protecting somebody from
something illegal or something. Have I done something that
would force you to hurt me possibly? He said it was
typical, normal, that all lawyers destroy their records.

Simon Bernstein: If that, in fact, is the case—I’ve never heard of a
lawyer you know other than Nixon destroying anything the
work is ours. Am I right Chris when we pay for a lawyer and
we pay for the work, the work is ours.

Wheeler: The work product is yours. He may maintain copies of his
files and everything; or his confidential notes to himself
are not necessarily yours. But the work “product” is...

Simon Bernstein: Would you say that anything germane to the issue
belongs to him?

Wheeler: Well, I mean if he wrote notes...in sidebars...yeah.

Bernstein: How about revised patents[ ]. How about copies? Works in progress

Wheeler: But things which would reinforce your patent, obviously,
that is germane to the strength of your patent yes, you
would be entitled to copies I don’t think we disagree.

Bernstein: He’s claiming He destroyed all faxes.

Wheeler: Can I ask you a question?

Bernstein: Yes.

Wheeler: Just so both of us understand...was this patent done prior
to his flying down here, or was this patent done as a
result of his flying down here and having discussions with
you? I was under the impression that when he flew down
here—this was before Brian came—I was under the impression
that followed our meeting with Reel 3-D. I was under the
impression that he was coming down to discuss, at the very
least, the video aspect so that you could complete that;
but were you also completing the imaging patent?

Bernstein: Correct.

Wheeler: So he went to your [kitchen]?

Bernstein: Right. And we spent days there

Wheeler: And the two of you spent all the days...

Bernstein: Correct.

Wheeler: And did he, in front of you, write notes?

Bernstein: Tons. Hundreds

Wheeler: And did he then produce them on his computer and type out
certain things?

Bernstein: Yes.

Wheeler: I was under the impression he was doing that with you.
Bernstein: He did.

Wheeler: And did you read those?

Bernstein: I did. I did - now going to that same nature, that’s the
provisional I think we’re talking about...

Wheeler: Right.

Bernstein: But he flew out here again with me and Brian and went through
this as he went to file this—this is a 3/23/2000 file—that
also fails to make mention of.

Wheeler: So that’s the formal file...the formal one?

Bernstein: The formal file. So both also missed the point.

Wheeler: I just wanted to know and to put things in proportion, when
you read the provisionals, because Brian wasn’t with the
company right now and then, and when there were all those
drafts, because obviously we didn’t see them...

Bernstein: Well, you saw because we gave you all the documents. I’d get a
document from Ray and bring it to you so you would have
records of everything up to that point because I didn’t
want to keep them at my house.

Wheeler: The final...the final...but I’m not reviewing the patent. I
was keep maintaining it as...

Bernstein: Okay, but you have every record...

Wheeler: Everything you gave me we maintain. We don’t...

Simon Bernstein: Any notes should be produced...

Wheeler: We don’t throw away anything.

Bernstein: Yeah, I know.

Simon Bernstein: I know you don’t you’re very thorough.

Wheeler: So, I’d file it away; so if you gave it to me, it’s in our
archives.

Bernstein: Right.

Wheeler: I wanted to know, when you read those drafts...

Bernstein: Oh, it was...it was clear

Wheeler: Answer my question...when you read the drafts, did you see
the panning and scanning elements?

Bernstein: Yeah, and zooming, up to 1,000 times we thought it was. That was
the big...you know, we had it in there...as a matter of
fact, he just said it...somewhere it’s in there up to 1,000
times, isn’t it?

Utley: 1,700.

Bernstein: Right. That was our old mistaken a number of times. So, yeah, for
him to miss that, Chris, would be the essence of stupidity.

Wheeler: So it was in there?

Bernstein: Absolutely.

Utley: The zooming, it was in the body, but not in the claim.

Boehm: But a provisional doesn’t really...doesn’t have to have
claims.

Utley: It doesn’t have claims.

Bernstein: But then in our claims of our patent, it’s not there. This is
what you’re representing, correct?

Wheeler: So you’re saying that it wasn’t put in the file, but it was
put in the provisional.

Boehm: No, I could see where he’s going to argue that it’s there.

Bernstein: Let’s see. Let’s take a look.
Wheeler: ...what the language of the patent claims are that he
filed.

Bernstein: Okay, let’s see what he...

Wheeler: And this isn’t the final decision because I can go back
right now and amend those claims.

Bernstein: Wow, yes, but we have elements of exposure that creep in correct?
Wheeler: I’m just telling you the whole thing, then we’ll go back.
So you did look it over, and there are no claims in the
provisional?

Boehm: There are no claims in a provisional. You can file them,
but they are never examined.
Joao
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