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KoolGames.com was founded in 2004 by three recently graduated Northeastern Computer Science majors. For many years, these students had been avid online gamers. Throughout their college years, these same students teamed up to fine-tune their programming skills and to develop a business plan for their own gaming software company. Shortly after graduation the founders of KoolGames.com presented three game prototypes and their business plan to the venture capital company Almost-Angels Investments, Inc. The venture folks were so impressed that the principals of Almost-Angels extended to KoolGames.com a line of credit totaling $1 million to both complete product development and launch the company. In return Almost-Angels obtained a 36% stake for themselves in the new company. Prior to the formal launch of KoolGames in 2006, Almost-Angels assisted the founders in obtaining copyright ownership for all three of the new games as well as a patent application (still pending) for the unique Web technologies that enable the firm’s electronic gaming environment.

That Christmas season (November/December, 2006), Koolgames.com took the market by storm, generating quite a buzz as well as a significant level of initial sales. Within sixty-days of launch, all three of KoolGames’ products were widely available in the People’s Republic of China, Japan and elsewhere in Asia under the Hot-Damn.china label for about 25% of the market price of the U.S.-based product line. Hot-Dame, which has no software development or gaming design expertise of its own, has never contacted KoolGames for re-sale rights and has in no way acknowledged the original ownership of these products. It should be noted that KoolGames.com has no marketing presence in the Far East except to the extent that its brand is known via its Web site in such places as Japan, China and Australia. When Almost-Angels

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