Disney Enterprises, Inc., et al v. VidAngel, Inc.

Filing 55

Submitted (ECF) supplemental excerpts of record. Submitted by Appellees Disney Enterprises, Inc., Lucasfilm Ltd. LLC, Twentieth Century Fox Film Corporation and Warner Brothers Entertainment, Inc.. Date of service: 02/08/2017. [10308111] [16-56843] (Verrilli, Donald) [Entered: 02/08/2017 08:31 PM]

Case No. 16-56843
IN THE UNITED STATES COURT OF APPEALS
FOR THE NINTH CIRCUIT

DISNEY ENTERPRISES, INC., ET AL.,
Plaintiffs-Appellees,
v.
VIDANGEL, INC.
Defendant-Appellant.

Appeal from The United States District Court
for the Central District of California
Case No. 16-cv-04109-AB (PLAx)
The Honorable André Birotte Jr., Presiding
APPELLEES’ SUPPLEMENTAL EXCERPTS OF RECORD
VOLUME 2
(Pages SER 1078 – SER 1224)

Glenn D. Pomerantz
Kelly M. Klaus
Rose Leda Ehler
Allyson R. Bennett
MUNGER, TOLLES & OLSON LLP
355 South Grand Avenue
Thirty-Fifth Floor
Los Angeles, California 90071-1560
Telephone: [phone]
Facsimile: [phone]

Donald B. Verrilli, Jr.
MUNGER, TOLLES & OLSON LLP
1155 F Street, N.W.
Washington, D.C. 20004
Telephone: [phone]
Facsimile: [phone]

February 8, 2017

Counsel for Appellees

TABLE OF CONTENTS
Date

Description

Page

Volume 1 (Public and Redacted):
1/6/17

Order to Show Cause Official Reporter’s Transcript of
Proceedings................................................................................ SER 849

12/20/16

[ECF No. 156 to 156-2] Supplemental Declaration of
Kelly M. Klaus and Exhibits A and B Regarding
VidAngel’s Continuing Violation of Preliminary
Injunction, Filed in Further Support of Plaintiffs’
Opposition to VidAngel’s Ex Parte Application for a
Stay ............................................................................................ SER 926

12/15/16

[ECF No. 154-1] Declaration of Rose Leda Ehler in
Support of Plaintiffs’ Opposition to VidAngel’s Ex
Parte Application to Stay Preliminary Injunction
Pending Appeal ......................................................................... SER 943

12/15/16

[ECF No. 154-8] Exhibit G to Declaration of Rose Leda
Ehler in Support of Plaintiffs’ Opposition to VidAngel’s
Ex Parte Application to Stay Preliminary Injunction
Pending Appeal ......................................................................... SER 947

12/15/16

[ECF No. 154-9] Exhibit H to Declaration of Rose Leda
Ehler in Support of Plaintiffs’ Opposition to VidAngel’s
Ex Parte Application to Stay Preliminary Injunction
Pending Appeal ......................................................................... SER 950

12/15/16

[ECF No. 154-10] Exhibit I to Declaration of Rose Leda
Ehler in Support of Plaintiffs’ Opposition to VidAngel’s
Ex Parte Application to Stay Preliminary Injunction
Pending Appeal ......................................................................... SER 952

10/27/16

[ECF No. 117-2] VidAngel Offering Circular, dated
October 19, 2016 ....................................................................... SER 954

10/3/16

[ECF No. 92] Redacted Version Sealed Supplemental
Declaration of Robert Schumann in Support of
Plaintiffs’ Motion for Preliminary Injunction......................... SER 1033

2

TABLE OF CONTENTS
Date

Description

Page

10/3/16

[ECF No. 91] Redacted Version of Sealed Declaration
of Allyson Bennett in Support of Plaintiffs’ Motion for
Preliminary Injunction ............................................................ SER 1046

10/3/16

[ECF No. 91-1] Exhibit A to Declaration of Allyson
Bennett in Support of Plaintiffs’ Motion for Preliminary
Injunction ................................................................................ SER 1051

10/3/16

[ECF No. 91-5] Exhibit E to Declaration of Allyson
Bennett in Support of Plaintiffs’ Motion for Preliminary
Injunction ................................................................................ SER 1058

10/3/16

[ECF No. 91-7] Exhibit G to Declaration of Allyson
Bennett in Support of Plaintiffs’ Motion for Preliminary
Injunction ................................................................................ SER 1062

10/3/16

[ECF No. 91-13] Redacted Version of Sealed Exhibit M
to Declaration of Allyson Bennett in Support of
Plaintiffs’ Motion for Preliminary Injunction ........................ SER 1064

Volume 2 (Public and Redacted):
8/22/16

[ECF No. 30] Redacted Version of Sealed Declaration
of Rose Leda Ehler in Support of Plaintiffs’ Motion for
Preliminary Injunction ............................................................ SER 1078

8/22/16

[ECF No. 30-1] Exhibit A to Declaration of Rose Leda
Ehler in Support of Plaintiffs’ Motion for Preliminary
Injunction ................................................................................ SER 1086

8/22/16

[ECF No. 30-2] Redacted Version of Sealed Exhibit B to
Declaration of Rose Leda Ehler in Support of Plaintiffs’
Motion for Preliminary Injunction ......................................... SER 1117

8/22/16

[ECF No. 30-7] Exhibit G to Declaration of Rose Leda
Ehler in Support of Plaintiffs’ Motion for Preliminary
Injunction ................................................................................ SER 1118

8/22/16

[ECF No. 30-9] Exhibit I to Declaration of Rose Leda
Ehler in Support of Plaintiffs’ Motion for Preliminary
Injunction ................................................................................ SER 1145
3

TABLE OF CONTENTS
Date

Description

Page

8/22/16

[ECF No. 30-11] Exhibit K to Declaration of Rose Leda
Ehler in Support of Plaintiffs’ Motion for Preliminary
Injunction ................................................................................ SER 1169

8/22/16

[ECF No. 30-16] Exhibit P to Declaration of Rose Leda
Ehler in Support of Plaintiffs’ Motion for Preliminary
Injunction ................................................................................ SER 1178

8/22/16

[ECF No. 30-19] Redacted Version of Sealed Exhibit S
to Declaration of Rose Leda Ehler in Support of
Plaintiffs’ Motion for Preliminary Injunction ........................ SER 1199

8/22/16

[ECF No. 30-22] Redacted Version of Sealed Exhibit V
to Declaration of Rose Leda Ehler in Support of
Plaintiffs’ Motion for Preliminary Injunction ........................ SER 1200

8/22/16

[ECF No. 30-23] Redacted Version of Sealed Exhibit W
to Declaration of Rose Leda Ehler in Support of
Plaintiffs’ Motion for Preliminary Injunction ........................ SER 1201

8/22/16

[ECF No. 30-24] Redacted Version of Sealed Exhibit X
to Declaration of Rose Leda Ehler in Support of
Plaintiffs’ Motion for Preliminary Injunction ........................ SER 1202

8/22/16

[ECF No. 30-25] Redacted Version of Sealed Exhibit Y
to Declaration of Rose Leda Ehler in Support of
Plaintiffs’ Motion for Preliminary Injunction ........................ SER 1203

8/22/16

[ECF No. 30-26] Redacted Version of Sealed Exhibit Z
to Declaration of Rose Leda Ehler in Support of
Plaintiffs’ Motion for Preliminary Injunction ........................ SER 1204

8/22/16

[ECF No. 30-27] Redacted Version of Sealed Exhibit
AA to Declaration of Rose Leda Ehler in Support of
Plaintiffs’ Motion for Preliminary Injunction ........................ SER 1205

8/22/16

[ECF No. 30-28] Redacted Version of Sealed Exhibit
BB to Declaration of Rose Leda Ehler in Support of
Plaintiffs’ Motion for Preliminary Injunction ........................ SER 1206
4

TABLE OF CONTENTS
Date

Description

Page

8/22/16

[ECF No. 30-30] Redacted Version of Sealed Exhibit
DD to Declaration of Rose Leda Ehler in Support of
Plaintiffs’ Motion for Preliminary Injunction......................... SER 1207

8/22/16

[ECF No. 30-31] Redacted Version of Sealed Exhibit
EE to Declaration of Rose Leda Ehler in Support of
Plaintiffs’ Motion for Preliminary Injunction......................... SER 1208

8/22/16

[ECF No. 29] Redacted Version of Sealed Declaration
of Robert Schumann in Support of Plaintiffs’ Motion for
Preliminary Injunction ............................................................ SER 1209

8/22/16

[ECF No. 29-3] Redacted Version of Sealed Exhibit C
to Declaration of Robert Schumann in Support of
Plaintiffs’ Motion for Preliminary Injunction......................... SER 1224

Volume 3 (Filed Under Seal):
10/3/16

Supplemental Declaration of Robert Schumann in
Support of Plaintiffs’ Motion for Preliminary Injunction ...... SER 1225

10/3/16

Declaration of Allyson Bennett in Support of Plaintiffs’
Motion for Preliminary Injunction ......................................... SER 1238

10/3/16

Exhibit M to Declaration of Allyson Bennett in Support
of Plaintiffs’ Motion for Preliminary Injunction .................... SER 1243

8/22/16

Declaration of Robert Schumann in Support of
Plaintiffs’ Motion for Preliminary Injunction......................... SER 1270

8/22/16

Exhibit C to Declaration of Robert Schumann in
Support of Plaintiffs’ Motion for Preliminary Injunction....... SER 1285

8/22/16

Declaration of Rose Leda Ehler in Support of Plaintiffs’
Motion for Preliminary Injunction .......................................... SER 1290

8/22/16

Exhibit B to Declaration of Rose Leda Ehler in Support
of Plaintiffs’ Motion for Preliminary Injunction .................... SER 1298
5

TABLE OF CONTENTS
Date

Description

Page

8/22/16

Exhibit S to Declaration of Rose Leda Ehler in Support
of Plaintiffs’ Motion for Preliminary Injunction .................... SER 1314

8/22/16

Exhibit V to Declaration of Rose Leda Ehler in Support
of Plaintiffs’ Motion for Preliminary Injunction .................... SER 1316

8/22/16

Exhibit W to Declaration of Rose Leda Ehler in Support
of Plaintiffs’ Motion for Preliminary Injunction .................... SER 1334

8/22/16

Exhibit X to Declaration of Rose Leda Ehler in Support
of Plaintiffs’ Motion for Preliminary Injunction .................... SER 1358

8/22/16

Exhibit Y to Declaration of Rose Leda Ehler in Support
of Plaintiffs’ Motion for Preliminary Injunction .................... SER 1366

8/22/16

Exhibit Z to Declaration of Rose Leda Ehler in Support
of Plaintiffs’ Motion for Preliminary Injunction .................... SER 1391

8/22/16

Exhibit AA to Declaration of Rose Leda Ehler in
Support of Plaintiffs’ Motion for Preliminary Injunction ...... SER 1414

8/22/16

Exhibit BB to Declaration of Rose Leda Ehler in
Support of Plaintiffs’ Motion for Preliminary Injunction ...... SER 1430

8/22/16

Exhibit DD to Declaration of Rose Leda Ehler in
Support of Plaintiffs’ Motion for Preliminary Injunction ...... SER 1464

8/22/16

Exhibit EE to Declaration of Rose Leda Ehler in
Support of Plaintiffs’ Motion for Preliminary Injunction ...... SER 1468

6

Case 2:16-cv-04109-AB-PLA Document 30 Filed 08/22/16 Page 1 of 8 Page ID #:669

1 GLENN D. POMERANTZ (SBN 112503)
[e-mail]
2 KELLY M. KLAUS (SBN 161091)
[e-mail]
3 ROSE LEDA EHLER (SBN 296523)
[e-mail]
4 ALLYSON R. BENNETT (SBN 302090)
[e-mail]
5 MUNGER, TOLLES & OLSON LLP
355 South Grand Avenue, Thirty-Fifth Floor
6 Los Angeles, California 90071-1560
Telephone: [phone]
7 Facsimile: [phone]
8 Attorneys for Plaintiffs
9
10

UNITED STATES DISTRICT COURT

11

CENTRAL DISTRICT OF CALIFORNIA

12

WESTERN DIVISION

13
14 DISNEY ENTERPRISES, INC.;
LUCASFILM LTD. LLC;
15 TWENTIETH CENTURY FOX FILM
CORPORATION and WARNER
16 BROS. ENTERTAINMENT INC.,
Plaintiffs and CounterDefendants,

17
18
19
20
21
22
23

vs.
VIDANGEL, INC.,
Defendant and CounterClaimant.

Case No. 16-cv-04109-AB (PLAx)
REDACTED VERSION OF
DOCUMENT PROPOSED TO BE
FILED UNDER SEAL
DECLARATION OF ROSE LEDA
EHLER IN SUPPORT OF
PLAINTIFFS’ MOTION FOR
PRELIMINARY INJUNCTION
__________________
Judge: Hon. André Birotte Jr.
Date: October 24, 2016
Time: 10:00 a.m.
Crtrm.: 4
Trial Date:

None Set

24
25
26
27
28
DECLARATION OF ROSE LEDA EHLER I/S/O MOTION FOR PRELIMINARY INJUNCTION
CASE NO. 16-CV-04109-AB (PLAX)

SER1078

Case 2:16-cv-04109-AB-PLA Document 30 Filed 08/22/16 Page 2 of 8 Page ID #:670

1 I, Rose Leda Ehler, hereby declare:
2

1.

I am an attorney with Munger, Tolles & Olson LLP, counsel for

3 Plaintiffs in this matter. I am a member of the California Bar and am admitted to
4 practice before this Court. I have knowledge of the matters set forth below based on
5 my direct involvement in this matter or the direct involvement of other lawyers at
6 my firm. If called as a witness, I could and would testify competently to the facts
7 stated herein.
8

2.

The parties agreed to exchange expedited discovery covering a number

9 of mutually agreed categories in advance of Plaintiffs’ Motion for Preliminary
10 Injunction. Attached as Exhibit A are true and correct copies of a VidAngel Press
11 Release and various advertisements produced by VidAngel. Also included within
12 this exhibit are true and correct copies of screenshot printouts from various sites,
13 including VidAngel’s website (www.vidangel.com), YouTube
14 (https://www.youtube.com/vidangel)1, Facebook
15 (https://www.facebook.com/VidAngel/) and Twitter
16 (https://twitter.com/VidAngel/with_replies), that contain VidAngel advertisements
17 and marketing messages. In these marketing materials, VidAngel compares its
18 service with licensed legitimate on-demand streaming services and/or offers titles
19 not available on on-demand streaming services and at a lower cost than such other
20 services charge.
21

3.

Attached as Exhibit B are true and correct copies of internal documents

22 produced by VidAngel that discuss its marketing strategy of comparing itself to
23 legitimate on-demand streaming services.
24
25

1

Plaintiffs have included a slipsheet with a true and correct copy of a screenshot
26 from “VidAngel ad with Matt Messe from Studio C” and hyperlink to
https://youtu.be/9XOjdARr87I (last visited Aug. 21, 2016). If the Court would
27 prefer, Plaintiffs will gladly submit DVDs containing copies of these videos for the
28 Court’s review.
-1DECLARATION OF ROSE LEDA EHLER I/S/O MOTION FOR PRELIMINARY INJUNCTION
CASE NO. 16-CV-04109-AB (PLAX)

SER1079

Case 2:16-cv-04109-AB-PLA Document 30 Filed 08/22/16 Page 3 of 8 Page ID #:671

1

4.

Attached hereto as Exhibit C is a true and correct copy of a screenshot

2 printout of VidAngel’s Blog (http://blog.vidangel.com) containing a user comment
3 that states: “I could watch Star Wars 7 on VidAngel (only filtering one small thing)
4 for $1 before any other video streaming service had it available. If you guys are
5 allowed to rip, stream and resell DVDs, the other streaming services will want to do
6 it too—it’s only fair.” This document bears the Bates number PL0000394.
7

5.

Attached hereto as Exhibit D is a true and correct copy of a document

8 produced by VidAngel in response to discovery requesting documents sufficient to
9 show VidAngel’s total number of users. This document bears the Bates number
10 D02374.
11

6.

Attached hereto as Exhibit E is a true and correct copy of an article

12 downloaded from the internet, titled “VidAngel Streaming Service: Don’t Like
13 Offensive Content in Movies? No Problem” by Jim Probasco of Benzinga. The
14 article features an interview with VidAngel CEO, Neal Harmon, in which he says
15 that, “if you charge people to use a filter, the market shrinks [from 47%] to less than
16 1% of Americans.” The document bears the Bates numbers PL0000531-33.
17

7.

Attached hereto as Exhibit F is a true and correct copy of a printout

18 from the RedFox.bz website that explains the company was started by “former
19 SlySoft developers and staff” and an article posted on TorrentFreak that explains
20 that the owner of SlySoft had been “found guilty of providing tools to circumvent
21 AACS encryption.”
22

8.

Attached as Exhibit G are true and correct copies of screenshot

23 printouts from various sites, including VidAngel’s Blog, Facebook and Twitter that
24 contain VidAngel marketing in which it highlights that it prices its service at $1 a
25
26
27
28
-2DECLARATION OF ROSE LEDA EHLER I/S/O MOTION FOR PRELIMINARY INJUNCTION
CASE NO. 16-CV-04109-AB (PLAX)

SER1080

Case 2:16-cv-04109-AB-PLA Document 30 Filed 08/22/16 Page 4 of 8 Page ID #:672

1 day. This low price is only because VidAngel does not pay licensing fees.
2 VidAngel has posted two videos to YouTube explaining its “buy-sellback” process.2
3

9.

Attached as Exhibit H is a true and correct copy of a screenshot

4 printout from VidAngel’s Twitter page containing a user comment, asking why
5 VidAngel prices individual episodes of television series the same price as individual
6 motion pictures. VidAngel responds that they are “[w]orking on Season pricing.”
7 The document bears the Bates number PL0000341.
8

10.

Attached as Exhibit I are true and correct copies of screenshot printouts

9 from various sites, including from Facebook, Twitter and YouTube3, containing
10 VidAngel user comments, in which the commenters extoll the benefits of VidAngel
11 as compared to other on-demand streaming services, including that VidAngel
12 streams new releases, that it has titles not available on other streaming services, and
13 that VidAngel charges a lower price than those services. Also included are press
14 and blog articles from USA Today, Benzinga and ArtofBeingCheap.com discussing
15 VidAngel as a competitor to licensed on-demand streaming services.
16

11.

Attached as Exhibit J are true and correct copies of screenshot printouts

17 from various sites, including Facebook, Twitter, and VidAngel’s website containing
18 marketing messages promoting VidAngel’s addition of Star Wars: The Force
19
20
21
22
23
24
25

2

Plaintiffs have included a slipsheet with true and correct copies of screenshots
from “How $1 Movies Work on VidAngel Sellback” and hyperlink to
https://youtu.be/wvcF4x1d0xo (last visited Aug. 21, 2016) as well as “How
VidAngel $1 Movies Work in 15 Seconds” and hyperlink to
https://youtu.be/map6EIP41bY (last visited Aug. 21, 2016). If the Court would
prefer, Plaintiffs will gladly submit DVDs containing copies of these videos for the
Court’s review.
3

Plaintiffs have included a slipsheet with a true and correct copy of a screenshot
26 from “VidAngel – An Honest Review” and hyperlink to
http://youtu.be/KG7xgmDHF40 (last visited Aug. 21, 2016). If the Court would
27 prefer, Plaintiffs will gladly submit DVDs containing copies of these videos for the
28 Court’s review.
-3DECLARATION OF ROSE LEDA EHLER I/S/O MOTION FOR PRELIMINARY INJUNCTION
CASE NO. 16-CV-04109-AB (PLAX)

SER1081

Case 2:16-cv-04109-AB-PLA Document 30 Filed 08/22/16 Page 5 of 8 Page ID #:673

1 Awakens to VidAngel’s list of available titles on April 5, 2016, and showing that it
2 was available for streaming that day.
3

12.

Attached as Exhibit K are true and correct copies of screenshot

4 printouts from VidAngel’s Facebook and Twitter pages, containing user comments
5 and VidAngel’s responses regarding VidAngel’s decision to remove the auto6 sellback feature and the credits filter.
7

13.

Attached as Exhibit L are true and correct copies of screenshot

8 printouts from VidAngel’s Twitter page, containing user comments complaining
9 about the quality of the viewing experience on VidAngel.
10

14.

Attached as Exhibit M is a true and correct copy of a VidAngel Blog

11 post, dated May 18, 2016, titled, “Is VidAngel’s service legal?” The document
12 bears the Bates numbers PL0000198-202.
13

15.

Attached as Exhibit N are true and correct copies of screenshot

14 printouts from various sites, including Facebook, Twitter, and VidAngel’s Blog,
15 showing VidAngel marketing new releases, including The Revenant (2015),
16 Zootopia (2016), Deadpool (2016), Kung Fu Panda 3 (2016), Batman v. Superman:
17 Dawn of Justice (2016) and Keanu (2016).
18

16.

Attached as Exhibit O are true and correct copies of VidAngel Blog

19 posts, setting forth VidAngel’s response to this lawsuit. The publications include
20 advertisements for t-shirts representing the Plaintiffs as “Darth Mickey with the fox21 tail on the broom.” Another VidAngel Blog post describes this lawsuit as letters
22 between “pen-pals.”
23

17.

Attached hereto as Exhibit P is a true and correct copy of a VidAngel

24 blog post and accompanying user comments that discuss the “buy-sellback”
25 transaction.
26

18.

Attached hereto as Exhibit Q is a true and correct copy of a screenshot

27 printout from Twitter, in which VidAngel posted that filtering “nudity/graphic
28
-4DECLARATION OF ROSE LEDA EHLER I/S/O MOTION FOR PRELIMINARY INJUNCTION
CASE NO. 16-CV-04109-AB (PLAX)

SER1082

Case 2:16-cv-04109-AB-PLA Document 30 Filed 08/22/16 Page 6 of 8 Page ID #:674

1 violence/f-bomb” from Fox’s Deadpool omits only 14 minutes of total running time
2 from that motion picture.
3

19.

Attached hereto as Exhibit R is a true and correct copy of deposition

4 exhibit 10 from the August 11, 2016, deposition of Defendants’ Rule 30(b)(6)
5 designee and CEO of VidAngel, Neal Harmon.
6

20.

Attached hereto as Exhibit S is a true and correct copy of deposition

7 exhibit 14 from the August 11, 2016, Rule 30(b)(6) deposition of Mr. Harmon.
8

21.

Attached hereto as Exhibit T is a true and correct copy of deposition

9 exhibit 17 from the August 11, 2016, Rule 30(b)(6) deposition of Mr. Harmon.
10

22.

Attached hereto as Exhibit U is a true and correct copy of deposition

11 exhibit 19 from the August 11, 2016, Rule 30(b)(6) deposition of Mr. Harmon.
12

23.

Attached hereto as Exhibit V is a true and correct copy of deposition

13 exhibit 21 from the August 11, 2016, Rule 30(b)(6) deposition of Mr. Harmon.
14

24.

Attached hereto as Exhibit W is a true and correct copy of deposition

15 exhibit 22 from the August 11, 2016, Rule 30(b)(6) deposition of Mr. Harmon.
16

25.

Attached hereto as Exhibit X is a true and correct copy of deposition

17 exhibit 23 from the August 11, 2016, Rule 30(b)(6) deposition of Mr. Harmon.
18

26.

Attached hereto as Exhibit Y is a true and correct copy of deposition

19 exhibit 26 from the August 11, 2016, Rule 30(b)(6) deposition of Mr. Harmon.
20

27.

Attached hereto as Exhibit Z is a true and correct copy of deposition

21 exhibit 27 from the August 11, 2016, Rule 30(b)(6) deposition of Mr. Harmon.
22

28.

Attached hereto as Exhibit AA is a true and correct copy of deposition

23 exhibit 30 from the August 11, 2016, Rule 30(b)(6) deposition of Mr. Harmon.
24

29.

Attached hereto as Exhibit BB is a true and correct copy of deposition

25 exhibit 33 from the August 11, 2016, Rule 30(b)(6) deposition of Mr. Harmon.
26

30.

Attached hereto as Exhibit CC is a true and correct copy of deposition

27 exhibit 37 from the August 11, 2016, Rule 30(b)(6) deposition of Mr. Harmon.
28
-5DECLARATION OF ROSE LEDA EHLER I/S/O MOTION FOR PRELIMINARY INJUNCTION
CASE NO. 16-CV-04109-AB (PLAX)

SER1083

Case 2:16-cv-04109-AB-PLA Document 30 Filed 08/22/16 Page 7 of 8 Page ID #:675

1

31.

Attached hereto as Exhibit DD is a true and correct copy of deposition

2 exhibit 38 from the August 11, 2016, Rule 30(b)(6) deposition of Mr. Harmon.
3

32.

Attached hereto as Exhibit EE are true and correct copies of excerpts

4 from the August 11, 2016, deposition of Defendants’ Rule 30(b)(6) designee and
5 CEO of VidAngel, Neal Harmon.
6

33.

Attached hereto as Exhibit FF is a true and correct copy of a screenshot

7 printout from Twitter, in which a user comments: “@VidAngel and you took away
8 censoring the end credits which was an easy choice if I didn’t really want to censor
9 anything!”
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
-6DECLARATION OF ROSE LEDA EHLER I/S/O MOTION FOR PRELIMINARY INJUNCTION
CASE NO. 16-CV-04109-AB (PLAX)

SER1084

Case 2:16-cv-04109-AB-PLA Document 30 Filed 08/22/16 Page 8 of 8 Page ID #:676

SER1085

Case 2:16-cv-04109-AB-PLA Document 30-1 Filed 08/22/16 Page 1 of 31 Page ID #:677

EXHIBIT A

EHLER-8

SER1086

Case 2:16-cv-04109-AB-PLA Document 30-1 Filed 08/22/16 Page 2 of 31 Page ID #:678

For Immediate Release
VidAngel Lets Customers Stream Filtered Movies for One BLEEPING Dollar
$2.5 Million Raised in Seed Funding
SALT LAKE CITY—October 1, 2015—VidAngel allows parents to cut violence, profanity and/or
nudity out of movies and TV shows for the net price of $1 (both filter and movie included). Unlike
Amazon, Google Play, and iTunes, which charge up to $4.99 for streaming, VidAngel costs only
$1 per movie, allowing viewers to watch 5 movies for the price of 1 (see how net $1 sell-back
works HERE). All filters are completely personalized, with customers selecting exactly what to
cut from the film. The company has already raised $2.5 million in seed funding.
VidAngel allows streaming on Apple TV, Roku, Chromecast, computer, tablet, or smartphone. It
requires no subscription, no custom hardware, and no additional purchase, thus eliminating any
need to run to the red-painted box at the grocery store. In addition to SD videos, HD videos are
available for net price of $2.
Over half of all movies produced are rated R or NC-17. Yet almost 3/4 of revenue is generated
by family-friendly movies (G, PG, PG-13), indicating that consumers want more family-friendly
content than Hollywood is currently producing. “Family-friendly films make almost 3 times the
revenue as mature films,” says Neal Harmon, CEO of VidAngel. “We bridge the gap between
what Hollywood wants to make and what families want to watch. The demand is incredibly high.
Our sales are doubling every couple of months because individuals and families choose to cut
out nudity, violence, and swearing to fit their personal preferences.”

D 14650
EXHIBIT A
EHLER-9

SER1087

Case 2:16-cv-04109-AB-PLA Document 30-1 Filed 08/22/16 Page 3 of 31 Page ID #:679

For years, Hollywood has created different cuts of their movies to reach different audiences: the
studio cut for theaters, the FCC cut for airlines, the director’s cut for film buffs, and the unrated
cut for prurient audiences. Now VidAngel lets you create “Your Cut.” But rather than unilaterally
deciding what is appropriate for customers, VidAngel allows each person to choose what he or
she wants to cut, according to personal preferences.
“People often ask if this is public censorship,” Harmon continues. “Absolutely not. Directors
have the right to create whatever kind of content they want to create. We don’t endorse
censorship of their content in the public sphere. But in the privacy of the home, it is the
individual’s legal right to watch that content in the way they choose. That right is protected by
law.” (Family Entertainment and Copyright Act of 2005)
VidAngel customers can choose exactly what they want to filter-—such as turning off only Fwords, nude scenes, or any other configuration. 50,000 users have already customized 100,000
movies, a number that will grow dramatically now that VidAngel is open for public use.
“Now you can watch movies with the kids without bad words, violence, nudity or sex scenes,”
states Russ Warner, past CEO for ContentWatch in Huffington Post. “Pick a movie… decide
which words and scenes to remove, and then hit play! It's very simple.” And setting VidAngel up
is so easy, anyone can do it.
The VidAngel seed financing of $2.5 million dollars came from institutional and angel investors
including TPP Capital Advisors, early backer of Omniture; Kickstart Seed Fund; Alta Ventures;
and high-profile angel investors Warren Osborn, Blu-ray packaging pioneer for Hollywood; and
John Richards, former CEO of CleanFilms. The $2.5 Million in seed funding has allowed the
company to launch its public BETA of its popular and unique movie viewing service.
About VidAngel
VidAngel is founded by the Harmon brothers, who believe strongly that everyone should have
the freedom to decide what to watch in their own home. Because the Harmons are movie lovers
with young children, they understand the high demand for content that is both high-quality and
family-friendly. They are best known for creating award winning YouTube sensations with tens
of millions of viewers. They launched award winning YouTube breakthroughs like Orabrush,
Orapup, and Poo~Pourri. www.VidAngel.com
Press Contact:
Dave Vance
VidAngel
208-313-7805
[e-mail]

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Case 2:16-cv-04109-AB-PLA Document 30-1 Filed 08/22/16 Page 4 of 31 Page ID #:680
From:
Subject:
Date:
To:

Dave Vance d vance09@gma .com
[B og Name] - He p Fam es Watch C ean Mov es for $1
October 13, 2015 at 12:05 PM
Jordan A en ja en@v dange .com

Hi [name],
As you are well aware, moms everywhere are constantly trying to nd clean, safe entertainment for their
families. We at VidAngel.com would like to team up with [blog name] to make this possible — and give you
some compensation in return.
What is VidAngel?
VidAngel.com is a streaming service similar to Net ix that allows parents to cut violence, language, and/or
sex/nudity out of movies and TV shows. It allows you, as the parent, to decide exactly what your family
should and should not be watching, in a totally legal way.
In addition to making movies clean, VidAngel also makes them cheap ($1 for SD, $2 for HD) using a sellback
option described in this video.Watching a movie on VidAngel is up to 80% cheaper than watching with
another service (iTunes, Amazon Video, Google Play).
What is the VidAngel Af liate Program?
A VidAngel Af liate creates an account at ShareASale.com, connects with VidAngel's pro le, and
uses the ads/links provided by VidAngel to send readers from their blog/site to VidAngel.com.
A VidAngel Af liate earns $7 for each new customer they send our way that watches a movie from
our service.
Visit our Af liate Program Page for more information.
And if that's not enough...
We would like to offer you $25 VidAngel credit so you can fully test the service before promoting it on [blog
name].
We would love to team up with you and give families the service they've wanted for so long!
Let us know what you think, and feel free to contact me with any questions!
Jordan Allen | Assistant Marketing Director
Email: [e-mail]
Phone: [phone]
Check out our new site!

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7/20/2016

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VidAngel ad with Matt Meese from Studio C
available at: https://youtu.be/9XOjdARr87I

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How $1 Movies Work on VidAngel Sellback
available at: https://youtu.be/wvcF4x1d0xo

PL0000234

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How VidAngel $1 Movies Work in 15 Seconds
available at: https://youtu.be/map6EIP41bY

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VidAngel - An Honest Review
available at: https://youtu.be/KG7xgmDHF40

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1 GLENN D. POMERANTZ (SBN 112503)
[e-mail]
2 KELLY M. KLAUS (SBN 161091)
[e-mail]
3 ROSE LEDA EHLER (SBN 296523)
[e-mail]
4 ALLYSON R. BENNETT (SBN 302090)
[e-mail]
5 MUNGER, TOLLES & OLSON LLP
355 South Grand Avenue, Thirty-Fifth Floor
6 Los Angeles, California 90071-1560
Telephone: [phone]
7 Facsimile: [phone]
8 Attorneys for Plaintiffs and
Counter-Defendants
9
10

UNITED STATES DISTRICT COURT

11

CENTRAL DISTRICT OF CALIFORNIA

12

WESTERN DIVISION

13
14 DISNEY ENTERPRISES, INC.;
LUCASFILM LTD. LLC;
15 TWENTIETH CENTURY FOX FILM
CORPORATION and WARNER
16 BROS. ENTERTAINMENT INC.,
Plaintiffs and CounterDefendants,

17
18
19
20
21
22

vs.
VIDANGEL, INC.,
Defendant and CounterClaimant.

Case No. 16-cv-04109-AB (PLAx)
REDACTED VERSION OF
DOCUMENT PROPOSED TO BE
FILED UNDER SEAL
DECLARATION OF ROBERT
SCHUMANN IN SUPPORT OF
PLAINTIFFS’ MOTION FOR
PRELIMINARY INJUNCTION
Judge: Hon. André Birotte Jr.
Date: October 24, 2016
Time: 10:00 a.m.
Crtrm.: 4
Trial Date:

None Set

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DECLARATION OF ROBERT SCHUMANN
CASE NO. 16-CV-04109-AB (PLAX)

SER1209

Case 2:16-cv-04109-AB-PLA Document 29 Filed 08/22/16 Page 2 of 15 Page ID #:647

DECLARATION OF ROBERT SCHUMANN

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I, Robert Schumann, declare as follows:

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1.

I have been retained by Plaintiffs as an expert in this litigation. I have

4 personal knowledge of the facts set forth herein, except as to those stated on
5 information and belief and, as to those, I am informed and believe them to be true.
6 If called as a witness, I could and would testify competently to the facts stated
7 herein.
8

2.

I have worked in the computer and technology industry for the past 31

9 years. In 1985, I received a Bachelor of Science in Computer Science from
10 Rochester Institute of Technology. Since that time, I have worked in various facets
11 of the computer industry, in connection with the design and development of
12 computer software, computer networking systems, computer automation, consumer
13 electronics, large-scale database processing, physical and electronic Audio/Video
14 distribution systems, digital security and other content-protection systems. During
15 this time, I have been personally involved in and overseen the development and
16 licensing of sophisticated technical specifications including work on industry17 standard specifications for digital content processing and security; the design and
18 development of software in a variety of computer languages, including C++; the
19 design and development of consumer electronics products and devices, including
20 hardware DVD players, web-based services and the integration and licensing of
21 third-party software packages, technologies and associated technical specifications.
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3.

I have seventeen issued and pending United States Patents, many of

23 which involve digital content protection and consumer products. I was a founding
24 member of the Digital Watermarking Alliance, an industry trade group for digital
25 watermarking, and have spoken extensively at trade shows and other professional
26 venues on content security.
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4.

From August of 1999 until October 2008, I was President and General

28 Manager of Cinea, Inc. Cinea specialized in developing and operating content
-2DECLARATION OF ROBERT SCHUMANN
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1 security solutions for digital content, particularly motion picture content. Among
2 other products, Cinea developed and sold the SView DVD player for use in
3 professional content production as well as distribution of screeners to highly
4 controlled audiences. This was an enhanced, DVD CCA-licensed DVD player that
5 incorporated a Cinea-proprietary content security system in addition to the Content
6 Scramble System (CSS).
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5.

I have previously testified in three cases regarding the Content

8 Scramble System and related technology: Universal City Studios, Inc. v. Reimerdes,
9 No. 00-Civ.-0277 (LAK) (S.D.N.Y. 2000), 321 Studios, Inc. v. Metro Goldwyn
10 Mayer Studios, Inc., No. C-02-1995-SI (N.D. Cal. 2004) and RealNetworks, Inc. v.
11 DVD Copy Control Association, Inc.,641 F. Supp. 2d 913 (N.D. Cal. 2009). I also
12 testified in an arbitration as an expert on the online video industry on behalf of
13 NBCUniversal and Hulu. Attached as Exhibit A is a copy of my resume.
14

6.

The following analysis is based upon my professional experience with

15 CSS, AACS and BD+, as well as my usage and testing of the VidAngel service. I
16 have also reviewed associated design and development documents, VidAngel’s
17 Answer and Counter Complaint, and the deposition testimony of Neal Harmon. I
18 have also reviewed the other documents identified in Exhibit B as well as any other
19 documents referenced in this Declaration.
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21

The VidAngel Service
7.

VidAngel is an online streaming service that allows customers to watch

22 film and television content via the Internet on a variety of devices, including
23 personal computers, iPads, mobile phones, and on their television through a device
24 like Apple TV, Roku, or Google Chromecast. It also requires users to set at least
25 one filter. The filters have the effect of muting audio content or skipping
26 audiovisual content in categories specified by VidAngel and selected by the users.
27 Based on my own investigation of the VidAngel service, documents provided by
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1 VidAngel and the deposition testimony of Neal Harmon, it is my professional
2 opinion that VidAngel operates as follows.
3

8.

VidAngel delivers content to users by streaming that content over the

4 Internet. In this context, “streaming” simply means the delivery of content to a
5 user’s device over the Internet. Here, VidAngel streams content to consumers
6 using, among other technologies, a video content delivery protocol called HTTP
7 Live Streaming, or HLS. Rather than using a single huge file, HLS divides the
8 content into many short media segments, with each segment generally lasting
9 between two and ten seconds and downloaded by the user’s device individually. At
10 the beginning of an HLS streaming session, the user’s device downloads an index
11 file, which provides the device a list of segment files that the device can then request
12 and play in order to watch the content.
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9.

VidAngel’s filtering technology allows it to

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Until the lawsuit was filed, one category of filterable content

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18 that VidAngel offered was skipping the opening or closing credits.
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10.

When a user streams a movie or television show from VidAngel, the

21 filtering technology
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-4DECLARATION OF ROBERT SCHUMANN
CASE NO. 16-CV-04109-AB (PLAX)

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Based on my review of VidAngel’s documents and the deposition

13 testimony of Neal Harmon, I believe that
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VidAngel Obtains Plaintiffs’ Content On DVDs And Blu-ray Discs

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13.

To implement its streaming service, VidAngel requires a digital copy of

24 Plaintiffs’ films and television content. To acquire the digital version of a particular
25 piece of content VidAngel purchases copies of Plaintiffs’ movies and television
26 shows on DVDs and Blu-ray discs, circumvents the digital content protection
27 associated with the Blu-ray and DVD content and then copies that content onto its
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-5DECLARATION OF ROBERT SCHUMANN
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Case 2:16-cv-04109-AB-PLA Document 29 Filed 08/22/16 Page 6 of 15 Page ID #:651

1 servers. This process of removing content protection then copying the unprotected
2 content is popularly referred to as “ripping.”
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14.

A DVD, or “Digital Versatile Disc,” is a high capacity digital storage

4 medium, which can store data such as personal files, emails, etc. Depending on its
5 configuration, a DVD can store up to a maximum of 18 gigabytes of data. By
6 comparison, a typical audio CD will store about 700 megabytes of data. Since one
7 gigabyte equals 1024 megabytes, a 9 gigabyte DVD holds many times more—more
8 than 12 times more—data than a 700 megabyte CD.
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15.

DVDs’ large capacities allow them to store motion pictures (movies).

10 DVDs used to store motion pictures will most often hold approximately 9 gigabytes
11 of data. Content on DVDs is stored in a Standard Definition format. This format is
12 a relatively low-resolution format (640x480 pixels per frame) and thus provides a
13 good picture but not a modern High Definition image.
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16.

Blu-ray discs are a newer high capacity storage medium. The term

15 “blu-ray” refers to the blue laser that is used to read the disc. Blu-ray discs can store
16 even more data than DVDs. A Blu-ray disc can store a maximum of 128 gigabytes
17 of data, and, when used for motion pictures, will most commonly hold about 50
18 gigabytes—more than five times the storage capacity of the typical DVD. Content
19 on Blu-ray discs is encoded in a high definition format, typically 1080P, which
20 represents an image of 1920x1280 pixels per frame. Blu-ray discs have a
21 significantly higher image quality than DVD discs due to their denser pixel count.
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17.

Subject to the security and encryption restrictions discussed below,

23 both DVDs and Blu-ray discs are viewable either on a television (using a stand24 alone DVD player or Blu-ray player) or on a computer with a DVD or Blu-ray drive
25 and specialized playback software.
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18.

DVDs and Blu-ray discs offer many advantages over VHS cassettes,

27 including a much better viewing experience, but they also make a more attractive
28 target for individuals to copy their content without authorization. When one copies
-6DECLARATION OF ROBERT SCHUMANN
CASE NO. 16-CV-04109-AB (PLAX)

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1 the contents from a VHS tape, the quality of the copy is less than that of the original.
2 The same is not true for digital formats like DVDs and Blu-ray discs. For those
3 formats, the copy and the original are of the same quality. Further, digital copies are
4 much easier to distribute than analog copies. Accordingly, a movie that has been
5 copied can easily be uploaded online and distributed around the world. There are,
6 therefore, security measures that can be used for both DVDs and Blu-ray discs to
7 protect their contents.
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19.

Based on my review of VidAngel’s documents, my own review of the

9 VidAngel service, and the deposition testimony of Neal Harmon, I believe that
10 VidAngel almost always uses
11 than

as the source of the digital copies rather

. This allows VidAngel to make higher quality copies of the movies and

12 television shows. VidAngel will use
13 only when

as the source for their ripped content

are unavailable

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See Ex. D.

16

CSS Is An Effective Access-Control System For DVDs

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20.

Plaintiffs in this case use the Content Scramble System (“CSS”) in

18 order to protect their copyrighted works on DVDs. CSS is a digital rights
19 management system that prevents access to—but not viewing of—digital copies of
20 works stored on DVDs in order to prevent effective copying. Both DVD player
21 manufacturers and DVD content distributors can obtained authorization to use CSS
22 only through a license from the DVD Copy Control Association (“DVD CCA”). A
23 license allows a DVD player manufacturer to obtain the necessary requirements and
24 specifications for building a CSS-compliant DVD player (i.e., one that is capable of
25 lawfully accessing and playing a DVD that is protected by CSS) and for obtaining
26 access to the necessary “keys” that enable the content on a CSS-protected DVD to
27 be lawfully unscrambled.
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CSS uses several layers of different types of protection mechanisms,

2 including authentication, encryption, secure storage of encryption keys, time3 variable session keys, and other technological measures. CSS works slightly
4 differently depending on whether the user is using a computer or a standalone DVD
5 player to access a DVD disc. Because I understand VidAngel to use a computer to
6 circumvent CSS protections from DVDs, this declaration focuses on the aspects of
7 CSS that control access to CSS-protected content with computers.
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22.

CSS has control measures that operate across three different mediums:

9 the DVD disc itself, software players (players that are implemented primarily as
10 software on computer systems) and the DVD drive (an optical DVD Disc reader that
11 is capable of operating as an internal or peripheral component of a personal
12 computer or other computing device). First, the data on the DVD disc is encrypted,
13 with decryption “keys” stored in areas of the disc that are inaccessible without
14 software that implements CSS. Second, the DVD drive provides an additional layer
15 of protection. It requires authentication, which requires that receiving software
16 programs are trustworthy, and uses other methods of encryption before it will
17 transmit certain types of information from the disc.
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23.

For example, CSS provides for a “locking” mechanism, whereby a

19 computer’s DVD Drive will not allow access to CSS-protected content on a DVD
20 disc unless and until the DVD Drive has confirmed that the software seeking access
21 is an authentic CSS-compliant DVD player that can be trusted. If the DVD player
22 software is unable to provide this authentication, indicating to the DVD drive that it
23 is “safe” to release the DVD data, then the protected contents of the DVD will
24 remain “locked” in the DVD drive.
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24.

CSS also utilizes encryption. Encryption selectively scrambles the

26 video stream. Only devices that have access to the “decryption keys” can
27 descramble the data. This encryption provides an additional layer of copy- and
28 access-protection to the protection provided by the “locking” mechanism. Thus,
-8DECLARATION OF ROBERT SCHUMANN
CASE NO. 16-CV-04109-AB (PLAX)

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Case 2:16-cv-04109-AB-PLA Document 29 Filed 08/22/16 Page 9 of 15 Page ID #:654

1 even if one were able to defeat the “locking” mechanism and gain unauthorized
2 access to the protected files on the DVD disc, the data would be scrambled and thus
3 neither viewable nor playable.
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25.

In addition to encryption, CSS utilizes an “authentication” mechanism,

5 which requires that an authorized player engage in a bi-directional dialogue with the
6 DVD Drive before playing back the video content of a DVD disc. This
7 authentication mechanism further ensures that the DVD content cannot be played
8 back unless such authentication with the DVD Drive is successful. Authentication
9 with the DVD Drive will fail if the DVD being played is not in the DVD Drive.
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26.

Notably, the process described above allows a licensed-DVD player to

11 enable the viewing of an authorized DVD’s contents. The DVD CCA license
12 prohibits DVD players from copying, or enabling the copying of, the content on a
13 CSS-protected DVD.
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AACS And BD+ Are Effective Access-Control Systems For Blu-ray Discs
27.

In order to protect the copyrighted content on Blu-ray discs, all

16 Plaintiffs use the Advanced Access Content System (“AACS”), and Twentieth
17 Century Fox Film Corporation (“Fox”) additionally uses BD+ protection for content
18 on Fox’s Blu-ray discs. Like CSS, both AACS and BD+ effectively prevent access
19 to the digital content on Blu-ray discs, while still allowing the viewing of that
20 content through the use of licensed Blu-ray players. Also similar to CSS, Blu-ray
21 player manufacturers and Blu-ray content distributors can obtain authorization to
22 use AACS and BD+ only through the authorized licensing organization.
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28.

Like CSS, AACS uses a combination of encryption and authentication

24 to protect the content on Blu-ray discs. The content on a Blu-ray disc is encrypted.
25 It can be decrypted only by using certain “keys,” called “Title Keys.” Each Title
26 Key is also encrypted, using a different key generated from the “Media Key” (which
27 is necessary to decrypt the encrypted Title Key) stored on the Blu-ray disc, along
28 with the encrypted Title Key. The place where the Media Key is stored is called the
-9DECLARATION OF ROBERT SCHUMANN
CASE NO. 16-CV-04109-AB (PLAX)

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Case 2:16-cv-04109-AB-PLA Document 29 Filed 08/22/16 Page 10 of 15 Page ID #:655

1 “Media Key Block.” In addition to storing Keys, the Media Key Block also
2 provides a mechanism whereby certain Blu-ray players can be prevented from being
3 able to play back content if the players become compromised.
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29.

The Blu-ray disc also contains a Volume ID, which is an identifier

5 stored on the disc.
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30.

In order to play content protected by AACS, licensed Blu-ray players

7 contain several “Device Keys” that allow the players to decrypt the content on the
8 Blu-ray disc. First, the Blu-ray player must decrypt the Media Key Block, which
9 provides the player with the Media Key. Second, the player must obtain the Volume
10 ID, which requires the player to have the correct certificate from the licensing body
11 that develops and licenses AACS (the Advanced Access Content System Licensing
12 Administrator (“AACS LA”)). Only by using both the Volume ID and the Media
13 Key can the player decrypt the Title Key, which is, in turn, used to decrypt the
14 encrypted content on the Blu-ray disc.
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31.

In the absence of the appropriate keys and certificate, even if one were

16 able to copy the contents off a Blu-ray disc onto another storage device, the content
17 would still be encrypted. Thus, the content would be neither viewable nor playable.
18 Nor would a user be able to manipulate this encrypted content, such as by editing
19 the content or changing the files from one format to another.
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32.

BD+ is a second, optional, layer of protection that can be used on top of

21 AACS. BD+ is a protection system that is implemented through the use of security
22 programs that are specific to a particular movie title (or a particular version of that
23 movie title) that are included on the Blu-ray disc. Those programs are then read and
24 executed by a special BD+ software module, known as a “virtual machine,” that is
25 included in licensed Blu-ray players. When executed by the Virtual Machine, the
26 BD+ security programs can perform various functions, including determining
27 whether the Blu-ray player has been compromised.
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-10DECLARATION OF ROBERT SCHUMANN
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33.

In addition, when a disc is protected by BD+, the files on the disc can

2 be scrambled in a way that is specific to the relevant title. The BD+ virtual machine
3 then obtains the title-specific code from the disc as well as a “fix-up” table that
4 allows the virtual machine to descramble the scrambled content. In the absence of a
5 licensed Blu-ray player, the content would remain scrambled and could not be
6 viewed or played.
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34.

A key feature of both the AACS and BD+ protection systems is the

8 ability to dynamically change, over time, components of the system and thus allow
9 content owners to continually update their security protocols. Thus, entities that
10 seek to illegally remove AACS and/or BD+ protections from Blu-ray discs can do
11 so only if they are also able to continually update their software.
12 VidAngel Removes The Encryption From CSS-Protected DVDs And BD+ And
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AACS-Protected Blu-ray Discs And Copies The Unencrypted Contents To Its

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Internal Computer System

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As noted above, in order to obtain digital copies of Plaintiffs’ content,

16 VidAngel must copy that content off of DVDs and Blu-ray discs. VidAngel does so
17 as follows:
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Regardless of whether VidAngel uses DVDs or Blu-ray discs,
. In the

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20 ordinary course, however, those files would remain encrypted by CSS, AACS
21 and/or BD+. Accordingly, even if VidAngel could copy the files, it could not view
22 them, play them, or manipulate them. VidAngel admits that it uses a product called
23 AnyDVD HD to remove CSS protection from DVDs and AACS and BD+
24 protection from Blu-ray discs.
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37.

VidAngel places the disc, whether it be a Blu-ray disc or a DVD
AnyDVD HD then runs in the background,

27 circumventing the encryption from the DVD or Blu-ray disc.
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-11DECLARATION OF ROBERT SCHUMANN
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AnyDVD HD is a well-known, windows-based circumvention software

4 that allows for read-access to DVDs protected by CSS and Blu-ray discs protected
5 by AACS and BD+, in the process removing those protections from the Blu-ray and
6 DVD discs.
39.

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AnyDVD is currently sold by RedFox. RedFox is based in Belize.

8 According to RedFox’s website, RedFox is run by developers and staff members of
9 the former company SlySoft,1 whose owner was previously convicted in a foreign
10 jurisdiction of providing tools to circumvent AACS encryption.2 SlySoft, whose
11 logo was a red fox, was shut down earlier this year due to “regulatory
12 requirements.”3
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VidAngel Prepares The Digital Files Obtained From The DVD And Blu-ray

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Discs For Filtering And Streaming
40.

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After obtaining the digital contents of DVDs and Blu-ray discs,

16 VidAngel prepares the content for filtering and streaming.
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1

See “About,” RedFox.bz available at https://www.redfox.bz/en/about.html (last
visited Aug. 21, 2016).

2

Slysoft DVD Ripper Owner Found Guilty in Criminal Action, TorrentFreek
24 available at https://torrentfreak.com/slysoft-dvd-ripper-owner-found-guilty-in25 criminal-action-140403/ (last visited Aug. 21, 2106).
3
26 See Eric Bangeman, “DRM Defeaters Defeated? SlySoft Ceases Operations”,
ArsTechnica.com, available at http://arstechnica.com/tech-policy/2016/02/drm27 defeaters-defeated-slysoft-ceases-operations/ (last visited Aug. 21, 2016); see also
28 SlySoft, available at http://www.slysoft.com/ (last visited Aug. 21, 2016).
-12DECLARATION OF ROBERT SCHUMANN
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By Removing The Encryption From DVDs And Blu-Ray Discs And Allowing

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The Digital Content Of The Discs To Be Copied Onto A Computer In A

22 Useable Format, VidAngel Circumvents The Technological Measures Designed
23 To Prevent The Accessing And Copying of Copyrighted Content On DVDs And
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Blu-ray Discs
43.

As described above, VidAngel not only accesses and copies files off of

26 DVDs and Blu-ray discs, but it does so in a way that allows the files to be viewed,
27 played, and edited. None of those functions would be possible if CSS, AACS or
28 BD+ protections remained in place. Rather, VidAngel uses the circumvention
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1 software, AnyDVD HD, to remove the encryption from DVDs and Blu-ray discs to
2 make a usable copy of the digital content on the discs.
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EXHIBIT C

REDACTED VERSION OF
DOCUMENT PROPOSED TO BE
FILED UNDER SEAL

SER1224

CERTIFICATION OF SERVICE
I hereby certify that I electronically filed the foregoing APPELLEES’
SUPPLEMENTAL EXCERPTS OF RECORD VOLUME 2 (Pages SER 1078SER 1224) with the Clerk of the Court for the United States Court of Appeals for
the Ninth Circuit by using the appellate CM/ECF system on February 8, 2017.
I certify that all the participants in the case are registered CM/ECF users and
that service will be accomplished by the appellate CM/ECF system.

DATED:

February 8, 2017

s/ Donald B. Verrilli, Jr.
DONALD B. VERRILLI, JR.