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Subject: Re: World championship titles

Author: Steven Schwartz

Date: 07:47:37 06/05/98

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On June 05, 1998 at 00:01:08, Fernando Villegas wrote:

>Hi Steve:
>Interesting history you have told to us, but now I would like to know,
>for the sake of my journalistic curiosity, how it was you or your lawyer
>convinced people in the jury about such a technical issue like Elo
>rating of a machine? How did you convinced them Fidelity was cheating?
>How you explained this thing a lot of chessic people does not know well?
>Fernando


In the United States a person is considered innocent until
proven guilty (although it does not ALWAYS appear that way).
Since Fidelity was doing the suing, it was their obligation
to furnish proof that our "Over 1700" claim was 1) wrong and
2) purposely wrong (malicious).

You are absolutely right. Talking to a jury about ELO points
is the equivalent of watching grass grow. And added to that,
was the fact that ELO is not an exact science AND their claim
of 2000 fell within the parameters our guarantee of "Over 1700".
I spent many weeks with my attorneys teaching them what the rating
system was all about.

Fidelity spent days in the courtroom showing that right after our
"Over 1700" claim their sales went down below what they has projected,
but since we had access to their records, we could see that it had
absolutely nothing to do with our ad. How could a magazine with
a subscription of 50,000 cause damage of 1.5 million especially
since they filed only about a month after the ad appeared? Basically,
in order for the claim to be true, EVERY member of the U.S. Chess
Federation would have had to have the intention of buying this chess
computer, and our ad would have to had convinced EVERY one of them
to change his mind. We sold A LOT of SC 9s and I am sure the Federation
did as well. The most popular question we had to answer was, "Are
you selling a slower/weaker machine than the Federation?" Of course, we
were selling the identical machine but people were puzzled by the
difference in rating estimates.


The strangest fact of all was that we received a warning from
Fidelity about 10 days BEFORE the magazine was about to be
released that if the ad appeared, it would likely cause them
a great amount of damage. How did they know what was in the
magazine BEFORE it was released??? Obviously someone at the
Chess Federation told them. The USCF was apparently concerned
that our "Over 1700" rating would conflict with their own
ads for the Sensory Challenger 9 which were following Fidelity's
2000 rating line. And that would hurt their SC 9 sales. Keep
in mind that this machine sold for about $180 and was stronger
than machines that sold for twice that much!!

About that time, the SC 9 was entered into an Open tournament in
Florida by Fidelity. However, they were running it at 8 MHz
instead of the 3 MHz that the commercial version ran at (at least
those are the numbers that I remember now). They, of course, did
not make this information public, but we had a couple of people
at the tournament who surrepticiously tested the machine that
was playing there. These people also reported the daily results
to us. On the day that we first placed the "Over 1700" ad, the
machine had completed perhaps 6 rounds and had a provisional rating
of about 1880. We deducted the points for the speed differential
and came up with "Over 1700". The computer actually finished the
tournament with a 2000 rating (so Fidelity should have known at
that point that their 2000 rating for the 3 MHz version was incorrect).

We had never been sued before (and only once since - by the company
that sued TASC over patent infringement involving the Smartboard -
a story for another post) and even though I knew we were 100% in the
right, I was VERY concerned because anything can happen in a jury
trial (just look at O.J.). My faith in the legal system was restored.
The judge was a tyrant. He allowed no nonsense. The jury did its job.
I was very pleased!

I was always very skeptical of the Fidelity/Federation connection
and I believe that the suit was meant to stop us from selling the
SC 9 to the betterment of the Federation. In fact, if we had gone
along with Fidelity's 2000 rating, we would be claiming now that
the Diamond II or Milano Pro or Atlanta are playing 2700 chess.

I will say it again... exaggerated ratings are for companies with
short term goals.
- Steve
P.S. Don't get me started on the Federation's decision
to allow Action Chess official ratings.



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