Contract analysis

I. EXECUTIVE SUMMARY The purpose of this memorandum is to document the successful resolution of Matter No. 1033-00004 and to recommend the formal closure of the file in accordance with Calderwood & Harkness LLP's standard matter management procedures. On October 22, 2024, the Honorable Rebecca W. Langford of the United States District Court for the District of Nevada granted Redstone Gaming Corp.'s Motion for Summary

II. PARTIES AND COUNSEL A. Defendant — Redstone Gaming Corp. Redstone Gaming Corp. ("Redstone") is a Delaware corporation publicly traded on the Nasdaq Stock Market under the ticker symbol RDST. Redstone is one of the leading interactive entertainment companies in the United States, specializing in the development, publishing, and live operation of multiplayer online gaming titles across console and personal computer

III. SUMMARY OF CLAIMS AND RELIEF SOUGHT A. Luminos's Complaint On March 18, 2024, Luminos Interactive LLC filed a Complaint for Copyright Infringement in the United States District Court for the District of Nevada, initiating this action against Redstone Gaming Corp. The Complaint was assigned Case No. 2:24-cv-00587-RWL and was assigned to the Honorable Rebecca W. Langford. The Complaint alleged that 37 specific vis

1. Injunctive Relief: Luminos sought an order requiring Redstone to remove all 37 allegedly infringing visual assets from Ironclad Dominion across all platforms and distribution channels, including any derivative works, updates, downloadable content, or marketing materials incorporating the challenged assets. Given that Ironclad Dominion is a live-service multiplayer title generating ongoing revenue, the injunctive r

2. Actual Damages: Luminos sought actual damages in the amount of $28,500,000. This figure was derived from an apportioned-profits theory, calculated as follows: Ironclad Dominion generated approximately $312 million in Year-1 revenue following its November 14, 2022 release. Luminos's damages expert, Dr. Calvin Yates, opined that the 37 allegedly infringing visual assets contributed approximately 9.13% of the game's

3. Statutory Damages in the Alternative: Luminos pleaded statutory damages under 17 U.S.C. § 504(c) as an alternative to actual damages, seeking up to $150,000 per work infringed in the event the Court found willful infringement.

4. Attorney's Fees and Costs: Luminos sought recovery of its reasonable attorney's fees and litigation costs under 17 U.S.C. § 505. C. Redstone's Defenses Redstone's defense strategy was organized around three principal pillars, each supported by substantial documentary and expert evidence: Pillar 1 — Independent Creation The independent-creation defense was anchored by the ironclad-main Git repository, which constit

IV. PROCEDURAL HISTORY A. Pre-Litigation and Complaint The factual timeline underlying this dispute is as follows: • Q1 2020: Redstone Gaming Corp. commences development of Ironclad Dominion. The ironclad-main Git repository is initialized with its first commit on February 12, 2020. The game is conceived as a AAA multiplayer online role-playing game set in a mechanized-steampunk fantasy world. • March 22, 2021: Lumin

V. SUMMARY OF THE COURT'S RULING A. Fair-Use Analysis Under 17 U.S.C. § 107 The Court's October 22, 2024 Order analyzed each of the four statutory fair-use factors set forth in 17 U.S.C. § 107 and concluded that, on the undisputed record before it, the balance of factors weighed decisively in favor of Redstone. Factor 1 — Purpose and Character of the Use. The Court examined whether Redstone's use of any allegedly sim

1. Non-Overlapping Market Segments: Ironclad Dominion and Shardfall Chronicles occupy fundamentally different market segments. Ironclad Dominion is a AAA multiplayer online RPG marketed to the mass-market console and PC gaming audience, with a premium price point and live-service revenue model. Shardfall Chronicles is a single-player indie RPG marketed to a niche audience of indie gaming enthusiasts, sold at a lower

2. Absence of Actual Market Harm: Contrary to Luminos's market-harm theory, Shardfall Chronicles unit sales actually increased by 18% in the six months following Ironclad Dominion's release — from approximately 8,400 units per month to approximately 9,912 units per month. The Court noted that this sales increase was likely attributable, at least in part, to the increased visibility that Shardfall Chronicles received

VI. FINANCIAL SUMMARY — DEFENSE COSTS A. Calderwood & Harkness LLP Fees The following table summarizes the professional fees incurred by Calderwood & Harkness LLP in connection with the defense of this matter: The distribution of hours across the litigation phases reflects the complexity and volume of the discovery process (which accounted for the largest share of attorney and paralegal time), the intensive expert-wi

VII. APPEAL DEADLINE ANALYSIS Under Federal Rule of Appellate Procedure 4(a)(1)(A), a party seeking to appeal a final judgment in a civil case must file a notice of appeal with the clerk of the district court within 30 days after entry of the judgment or order appealed from. The Court's Order granting Redstone's Motion for Summary Judgment and dismissing the case with prejudice was entered on October 22, 2024. Accord

VIII. DOCUMENT RETENTION AND FILE MANAGEMENT A. File Retention Schedule In accordance with Calderwood & Harkness LLP's standard document retention policy and the terms of the engagement letter executed by Redstone Gaming Corp. on April 3, 2024, all client files associated with Matter No. 1033-00004 will be retained for a minimum period of seven (7) years from the date of formal matter closure. Upon expiration of the

1. The Court's October 22, 2024 Order granting Redstone's Motion for Summary Judgment and dismissing the case with prejudice.

2. All filed pleadings and briefs, including the Complaint, Answer and Affirmative Defenses, Motion for Summary Judgment and supporting memorandum, Opposition, Reply, and all supporting declarations and exhibits.

3. Expert reports of Dr. Ingrid Lautner (initial report and rebuttal report, dated August 19, 2024 and September 3, 2024, respectively) and Dr. Calvin Yates (initial report dated August 19, 2024).

4. Brindoval Forensic Consulting LLC's metadata verification report, documenting the analysis and verification of the ironclad-main Git repository.

5. Evergreen Valuation Group LLC's rebuttal damages report, including the market-segment analysis and the Shardfall Chronicles sales-trend data.

6. Deposition transcripts of Tobias Crane (July 22, 2024), Elara Whitfield (July 29, 2024), Jordan Kessler (August 5, 2024), and Seo-Yeon Park (August 12, 2024).

7. Insurance correspondence and coverage confirmations with Pinnacle Mutual Insurance Co., including the tender letter dated April 8, 2024, coverage acceptance, and all claims correspondence under Claim No. PML-CLM-2024-3392. C. Privilege and Work-Product Materials All attorney work-product memoranda, litigation strategy documents, internal communications, mental impressions, and legal analyses prepared in connection

IX. RECOMMENDED NEXT STEPS A. Client Notification I recommend that Calderwood & Harkness LLP send a formal outcome letter to Priya Venkatesh, General Counsel, Redstone Gaming Corp., at 4100 Obsidian Tower Boulevard, Suite 2200, Las Vegas, Nevada 89109. The letter should confirm the dismissal of Case No. 2:24-cv-00587-RWL with prejudice on fair-use grounds, summarize the Court's ruling and the favorable result achieve

1. Formally close Matter No. 1033-00004 in the firm's matter management system, updating the matter status to "Closed — Favorable Disposition."

2. Generate a final billing statement reflecting all time entries and costs incurred throughout the engagement, including any final entries for matter-closure activities.

3. Reconcile all time and costs against Pinnacle Mutual Insurance Co. reimbursements to confirm that all amounts have been properly billed, submitted, and reimbursed, and that Redstone's net out-of-pocket exposure is limited to the $5,000 deductible.

4. Archive all electronic and hard-copy files in accordance with the retention schedule described in Section VIII above.

X. CONCLUSION Matter No. 1033-00004, Luminos Interactive LLC v. Redstone Gaming Corp., Case No. 2:24-cv-00587-RWL, has been resolved in a manner that represents a complete and unqualified defense victory for our client, Redstone Gaming Corp. The case was resolved on summary judgment without the need for trial. The Court's October 22, 2024 Order granted Redstone's Motion for Summary Judgment on fair-use grounds under