EDVA Group Damages Analysis WDDD vs ATVI

World of Warcraft
Call of Duty
Both Games
Total worldwide
US allocation
Revenue base apportionment

$7,100,000,000
$8,000,000,000
$6,000,000,000

2007-2012 actual
2007-2012 actual
2013-2014 estimate

$21,100,000,000
$10,550,000,000

50%

$4,747,500,000

45%

Royalty rate

$332,325,000

7%

Treble Damages

$996,975,000

Future Royalties:
2015
2016
2017
2018
2019
patents expire August 2020

Past Damages
Future Royalty
Total Award
Legal Fees
Award after legal fees
Net Operating Losses
Subtotal
Corporate Taxes
Net Yield
After tax add back

$3,090,000,000
$3,182,700,000
$3,278,181,000
$3,376,526,430
$3,477,822,223
$2,388,104,593

$996,975,000
$295,995,014
$1,292,970,014
$452,539,505
$840,430,509
$43,000,000
$797,430,509
$279,100,678
$518,329,831
$561,329,831
With Apportionment

Outstanding Shares
WDDD Share Price
Sensitivity Analysis
WDDD Share Price

83,000,000
$6.76
20%
$5.41

18-Jun-13

103%
103%
103%
103%
103%
103%

35%

35%

for willful infringement

US allocation
$1,545,000,000
$1,591,350,000
$1,639,090,500
$1,688,263,215
$1,738,911,111
$1,194,052,297
$9,396,667,123

apportionment Royalty Rate 7%

$695,250,000
$48,667,500
$716,107,500
$50,127,525
$737,590,725
$51,631,351
$759,718,447
$53,180,291
$782,510,000
$54,775,700
$537,323,533
$37,612,647
$4,228,500,205
$295,995,014

Invocation of EMVR (Entire Market Value Rule)

$2,215,500,000
$657,766,699
$2,873,266,699
$1,005,643,345
$1,867,623,354
$43,000,000
$1,824,623,354
$638,618,174
$1,186,005,180
$1,229,005,180
EMVR
83,000,000
$14.81
45% (discounted)
$8.14