Perfect 10 Inc v. Google Inc et al

Filing 867

DECLARATION of Jeffrey N. Mausner In Opposition to Defendant Google Inc.'s Motion for a Protective Order Regarding Perfect 10's Deposition Notice Directed to Dr. Eric Schmidt [Exhibits L, M and N Filed Separately Under Seal Pursuant to Protective Order]; re MOTION for Protective Order for relief from P10's Deposition Notice Directed to Dr. Eric Schmidt #866 filed by Plaintiff Perfect 10 Inc. (Attachments: #1 Exhibit A-D, #2 Exhibit E-H, #3 Exhibit I, #4 Exhibit J, #5 Exhibit K-R)(Mausner, Jeffrey)

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Exhibit A Page 1 UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK VIACOM INTERNATIONAL, INC., COMEDY PARTNERS, COUNTRY MUSIC TELEVISION, INC., PARAMOUNT PICTURES CORPORATION, and BLACK ENTERTAINMENT TELEVISION, LLC, ) ) ) ) ) ) Plaintiffs, ) ) vs. ) NO. 07-CV-2203 ) YOUTUBE, INC., YOUTUBE, LLC, ) and GOOGLE, INC., ) ) Defendants. ) ___________________________________) ) THE FOOTBALL ASSOCIATION PREMIER ) LEAGUE LIMITED, BOURNE CO., et al.,) on behalf of themselves and all ) others similarly situated, ) ) Plaintiffs, ) vs. ) NO. 07-CV-3582 ) YOUTUBE, INC., YOUTUBE, LLC, and ) GOOGLE, INC., ) ) Defendants. ) ___________________________________) VIDEOTAPED DEPOSITION OF ERIC SCHMIDT SAN FRANCISCO, CALIFORNIA WEDNESDAY, MAY 6, 2009 JOB NO. 16802 DAVID FELDMAN WORLDWIDE, INC. 805 Third Avenue, New York, New York 10022 (212)705-8585 0611427e-a8ec-4699-84bb-0365a16d42d4 Page 2 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 MAY 6, 2009 9:14 a.m. VIDEOTAPED DEPOSITION OF ERIC SCHMIDT, held at the offices of WILSON, SONSINI, GOODRICH & ROSATI, 601 California Avenue, Palo Alto, California, pursuant to notice, before ANDREA M. IGNACIO HOWARD, CLR, CCRR, RPR, CSR License No. 9830. DAVID FELDMAN WORLDWIDE, INC. 805 Third Avenue, New York, New York 10022 (212)705-8585 0611427e-a8ec-4699-84bb-0365a16d42d4 Page 3 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 A P P E A R A N C E S: FOR THE PLAINTIFFS VIACOM INTERNATIONAL, INC.: JENNER & BLOCK, LLP By: SUSAN J. KOHLMANN, Esq. 1099 New York Avenue, NW, Suite 900 Washington, D.C. 20001 (202) 639-6000 skohlmann@jenner.com FOR THE LEAD PLAINTIFFS AND PROSPECTIVE CLASS: PROSKAUER ROSE, LLP By: TANYA L. FORSHEIT, Esq. 2049 Century Park East, Suite 3200 Los Angeles, California 90067-3206 (310) 284-4508 sforsheit@proskauer.com FOR THE PLAINTIFFS VIACOM INTERNATIONAL INC.: SHEARMAN & STERLING, LLP By: STUART J. BASKIN, Esq. SEAN T. STRAUSS, Esq. (San Francisco) 599 Lexington Avenue New York, New York 10022-6069 (212) 848-4000 stuart.baskin@shearman.com DAVID FELDMAN WORLDWIDE, INC. 805 Third Avenue, New York, New York 10022 (212)705-8585 0611427e-a8ec-4699-84bb-0365a16d42d4 Page 4 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 SCHMIDT, ERIC APPEARANCES (Continued.) FOR THE DEFENDANTS YOUTUBE, INC., YOUTUBE, LLC and GOOGLE, INC.: MAYER BROWN, LLP By: JOHN MANCINI, Esq. DAVID H. MCGILL, Esq. 1675 Broadway New York, New York 10019-5820 (212) 506-2279 jmancini@mayerbrownrowe.com ALSO PRESENT: GOOGLE By: KENT WALKER, Esq. CATHERINE LACAVERA, Esq. 1600 Amphitheater Parkway Mountain View, California 94043 (650) 214-4879 KEN REESER, Videographer. ---oOo--- DAVID FELDMAN WORLDWIDE, INC. 805 Third Avenue, New York, New York 10022 (212)705-8585 0611427e-a8ec-4699-84bb-0365a16d42d4 Page 5 1 2 3 4 5 09:14:24 09:14:25 09:14:28 09:14:36 09:14:38 09:14:38 09:14:38 09:14:38 09:14:49 09:15:01 09:15:03 09:15:04 09:15:07 09:15:13 09:15:15 09:15:17 09:15:21 09:15:22 09:15:24 09:15:26 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 SCHMIDT, ERIC PALO ALTO, CALIFORNIA WEDNESDAY, MAY 6, 2009, 9:14 A.M. THE VIDEOGRAPHER: Good morning. Today's videotaped deposition of Eric Schmidt is taken on May 6th, 2009, at 601 California Avenue, Palo Alto, California. In the matter of Viacom International, et al., vs. YouTube, Incorporated, et al., and The Football Association Premier League Limited, et al., vs. YouTube, Incorporated. Case Nos. 07-CV-2203 and 07-CV-3582. In the U.S. District Court for the Southern District of New York. My name is Ken Reeser. I represent David Feldman Worldwide, located at 600 Anton Boulevard, Suite 1100, Costa Mesa, California. We are now commencing at 9:14 a.m. Will all present please identify themselves, beginning with the witness. THE WITNESS: MR. MANCINI: Eric Schmidt. John Mancini, Mayer Brown, for defendants Google and YouTube. DAVID FELDMAN WORLDWIDE, INC. 805 Third Avenue, New York, New York 10022 (212)705-8585 0611427e-a8ec-4699-84bb-0365a16d42d4 Page 6 1 09:15:29 09:15:32 09:15:33 09:15:35 09:15:40 09:15:42 09:15:42 09:15:43 09:15:43 09:15:45 09:15:48 09:15:53 09:15:53 09:15:54 09:15:56 09:15:56 09:15:56 09:15:56 09:16:07 09:16:07 09:16:13 09:16:15 09:16:16 09:16:17 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 SCHMIDT, ERIC MR. MCGILL: David McGill, also from Mayer Brown, for the defendants. MR. WALKER: MS. LACAVERA: MR. BASKIN: Sterling, for Viacom. MR. STRAUSS: Sterling, for Viacom. MS. KOHLMANN: Block, for Viacom. MS. FORSHEIT: Tanya Forsheit, Proskauer Susan Kohlmann, Jenner & Sean Strauss, Shearman & Kent Walker, Google. Catherine Lacavera, Google. Stuart Baskin, Shearman & Rose, for The Premier League and The Class. THE VIDEOGRAPHER: Thank you. Would the court reporter please swear in the witness. ERIC SCHMIDT, having been sworn as a witness testified as follows: EXAMINATION BY MR. BASKIN MR. BASKIN: Q Good morning, sir. Did you have the opportunity to prepare for this deposition? A Q I did. And how long did you prepare for the DAVID FELDMAN WORLDWIDE, INC. 805 Third Avenue, New York, New York 10022 (212)705-8585 0611427e-a8ec-4699-84bb-0365a16d42d4 Page 7 1 09:16:18 09:16:21 09:16:23 09:16:31 09:16:32 09:16:33 09:16:36 09:16:39 09:16:40 09:16:41 09:16:47 09:16:49 09:16:52 09:16:56 09:16:59 09:17:01 09:17:03 09:17:04 09:17:06 09:17:07 09:17:08 09:17:10 09:17:17 09:17:21 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 SCHMIDT, ERIC deposition? A Q Yesterday, a few hours. Now, I assume you have e-mail service on your computer at Google? A Q I do. How many computers do you have, by the way? How I'm impressed with all the computers in the room. many computers do you have? A Q Me personally, probably 30. And over the course of these 30 computers, do you frequently e-mail during the course of the day? A Q I do. Did you participate in gathering documents for -- or your e-mails in connection with this litigation? MR. MANCINI: MR. BASKIN: Objection to form. Q. Did you play any role in collecting your e-mails or other documents for this litigation? MR. MANCINI: THE WITNESS: MR. BASKIN: A Objection to form. I -- yes. Q. What did you do, sir? I was given what I believe is a protective order, is what it's called, and I followed that. DAVID FELDMAN WORLDWIDE, INC. 805 Third Avenue, New York, New York 10022 (212)705-8585 0611427e-a8ec-4699-84bb-0365a16d42d4 Page 8 1 09:17:25 09:17:29 09:17:31 09:17:32 09:17:37 09:17:38 09:17:41 09:17:42 09:17:42 09:17:43 09:17:47 09:17:50 09:17:52 09:17:54 09:17:57 09:18:00 09:18:02 09:18:07 09:18:07 09:18:10 09:18:10 09:18:21 09:18:22 09:18:23 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 SCHMIDT, ERIC Q And did you make the selection yourself as to what is produceable in this litigation? MR. MANCINI: THE WITNESS: MR. BASKIN: with somebody else? MR. MANCINI: THE WITNESS: MR. BASKIN: Q Objection to form. Yes. Okay. Objection to form. No. Q. You made it in conjunction And with whom did you make the decision as to what is produceable in this litigation? MR. MANCINI: THE WITNESS: Objection to form. I'm not sure I understand the question very well, because you're using a precise word, which is jointly producing something. MR. BASKIN: Okay. Well let me -- let me -- let me show you what -- let's mark as Schmidt Exhibit 1. (Document marked Schmidt Exhibit 1 for identification.) MR. BASKIN: MR. MANCINI: to you. MR. BASKIN: And let me hand you Schmidt I'll pass these out to the gang. The court reporter will hand it DAVID FELDMAN WORLDWIDE, INC. 805 Third Avenue, New York, New York 10022 (212)705-8585 0611427e-a8ec-4699-84bb-0365a16d42d4 Page 17 1 09:28:36 09:28:40 09:28:40 09:28:42 09:28:51 09:28:55 09:29:01 09:29:03 09:29:05 09:29:11 09:29:13 09:29:20 09:29:23 09:29:27 09:29:34 09:29:37 09:29:43 09:29:47 09:29:49 09:29:50 09:29:53 09:29:53 09:29:56 09:29:56 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 SCHMIDT, ERIC related to this case but none that are related to this case? MR. MANCINI: THE WITNESS: Objection; lacks foundation. Some people have permanent data stores of all communications for their whole lives. Other people over time either delete or lose some of that e-mail. It has been my practice for 30 years to not It retain my e-mails unless asked specifically. There are other people who would have copies of e-mails that I had sent, for example, in 2005, that you might find an e-mail that I sent to them that would not be in my copy but might be in their copy. MR. BASKIN: Q. Now, do I understand that it has been your practice for -- strike that. For 30 years, for how long have you preserved your e-mails before they are deleted? MR. MANCINI: Objection to form; objection to the characterization of the testimony. THE WITNESS: MR. BASKIN: Q That's not what I said, so... Okay. I thought you told me if not -- I'm not I just want to know the answer. fencing with you. You said that -- DAVID FELDMAN WORLDWIDE, INC. 805 Third Avenue, New York, New York 10022 (212)705-8585 0611427e-a8ec-4699-84bb-0365a16d42d4 Page 18 1 09:29:58 09:29:58 09:30:01 09:30:05 09:30:05 09:30:07 09:30:09 09:30:10 09:30:14 09:30:16 09:30:17 09:30:20 09:30:24 09:30:25 09:30:26 09:30:27 09:30:29 09:30:32 09:30:32 09:30:41 09:30:44 09:30:47 09:30:48 09:30:52 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 SCHMIDT, ERIC A Q Yeah. -- I thought you said that for 30 years it's been your practice not to preserve or to delete e-mails? MR. MANCINI: Objection to form; objection to the characterization of the testimony. MR. BASKIN: A Q. Is that accurate? Again, I'll answer the question previously Again, asked, which was it has been my practice to not keep practice my e-mails. Q And is this on some sort of automatic system where they are deleted in the ordinary course over some ordinary period of time? MR. MANCINI: lacks foundation. THE WITNESS: Depending on the e-mail system Objection to form; objection, and the company and so forth, the answer would vary. MR. BASKIN: Q Okay. What was Well, let's take Google in 2005. your practice then as to the length of time in which you preserved your e-mails before they were deleted? MR. MANCINI: THE WITNESS: Objection to form. It was my practice to delete or It otherwise cause the e-mails that I had read to go away DAVID FELDMAN WORLDWIDE, INC. 805 Third Avenue, New York, New York 10022 (212)705-8585 0611427e-a8ec-4699-84bb-0365a16d42d4 Page 19 1 09:30:56 09:30:57 09:31:01 09:31:01 09:31:11 09:31:13 09:31:14 09:31:21 09:31:24 09:31:28 09:31:36 09:31:41 09:31:44 09:31:47 09:31:50 09:31:53 09:31:54 09:31:55 09:31:58 09:32:04 09:32:08 09:32:14 09:32:16 09:32:20 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 SCHMIDT, ERIC as quickly as possible. quickly MR. BASKIN: A Q Yes. Yes. And I assume that practice carried over to Q. Within days? 2006 and 2007 and 2008? MR. MANCINI: THE WITNESS: Objection; lacks foundation. In -- again, without the In specific dates, in principle, yes. principle, yes. MR. BASKIN: Q. Now, when the lawsuit was filed in February 2007, did anyone instruct you that you should preserve your e-mails relevant to the litigation? Excuse me. As of -- excuse me. As of the filing of this complaint, which is March of 2007, did anyone instruct you to preserve your e-mails that might be relevant to this litigation? MR. MANCINI: Objection to the extent it calls for a privileged communication. THE WITNESS: I want to be careful not to discuss a legal conversation that I had. You used a precise month. A -- a clear -- a clear and precise answer would be that I did change my practice after this lawsuit was filed and I was notified. DAVID FELDMAN WORLDWIDE, INC. 805 Third Avenue, New York, New York 10022 (212)705-8585 0611427e-a8ec-4699-84bb-0365a16d42d4 Page 74 1 10:38:05 10:38:06 10:38:06 10:38:09 10:38:09 10:38:09 10:38:14 10:38:19 10:38:26 10:38:30 10:38:33 10:38:35 10:38:37 10:38:38 10:38:50 10:38:55 10:38:59 10:39:02 10:39:03 10:39:08 10:39:11 10:39:15 10:39:16 10:39:17 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 SCHMIDT, ERIC MR. MCGILL: MR. BASKIN: like one, sir? A Q A Q I'm fine. You okay? Thank you. Prior to Google's purchase of YouTube, did Okay. I'm fine. Q. Thank you. Most importantly, would you you ever hear a Google executive complain that YouTube was competing unfairly because of the way it dealt with copyrighted material on its site? MR. MANCINI: Objection; lacks foundation; and objection to the form to the extent it seeks a legal conclusion. THE WITNESS: I'm trying to think. I mean, I may -- someone may I don't recall. have said something, but it would have been in general general terms. It wouldn't have been with the specificity of your question. MR. BASKIN: Q. Well, did you ever hear any Google executives criticize YouTube because of the way it dealt with copyright issues -MR. MANCINI: MR. BASKIN: of it? Same objections. Q. -- prior to your acquisition DAVID FELDMAN WORLDWIDE, INC. 805 Third Avenue, New York, New York 10022 (212)705-8585 0611427e-a8ec-4699-84bb-0365a16d42d4 Page 75 1 10:39:17 10:39:19 10:39:27 10:39:31 10:39:36 10:39:39 10:39:44 10:39:47 10:39:47 10:39:50 10:39:52 10:39:55 10:39:56 10:40:12 10:40:20 10:40:24 10:40:26 10:40:29 10:40:34 10:40:36 10:40:47 10:40:50 10:40:51 10:40:51 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 SCHMIDT, ERIC MR. MANCINI: THE WITNESS: Same objections. Again, I recall complaints about YouTube having different policies, but not specific in the way you asked your question. MR. BASKIN: Q. Well, did you ever read an internal Google document in which a Google executive criticized YouTube because of the way it dealt with copyright issues? MR. MANCINI: Objection; lacks foundation; calls for a legal conclusion; and objection to form. THE WITNESS: recall specifics. MR. BASKIN: Q. Do you remember being told I may have. I don't -- I don't by a senior Google executive that a large part of YouTube's traffic is from pirated content? MR. MANCINI: objection to form. THE WITNESS: MR. BASKIN: mark as Schmidt 7. No specific recollection, no. No Let me hand you what we will It was Drummond 17, I believe, and Objection; lacks foundation; Eun -- is that the way you pronounce it, E-U-N, Eun, Eun 12? THE WITNESS: /// Eun. DAVID FELDMAN WORLDWIDE, INC. 805 Third Avenue, New York, New York 10022 (212)705-8585 0611427e-a8ec-4699-84bb-0365a16d42d4 Page 79 1 10:44:42 10:44:43 10:44:46 10:44:48 10:44:51 10:44:53 10:44:54 10:44:54 10:44:56 10:44:57 10:45:02 10:45:03 10:45:08 10:45:09 10:45:13 10:45:17 10:45:20 10:45:23 10:45:26 10:45:28 10:45:30 10:45:35 10:45:36 10:45:37 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 SCHMIDT, ERIC meetings. Normally I am in the meetings. Q. What about Mr. Brin? MR. BASKIN: MR. MANCINI: THE WITNESS: MR. BASKIN: attended -A Q A Q A Q I do -- Objection; lacks foundation. Some percentage of the time. Q. Do you recall if Mr. Brin -- the Video GPS? -- I do not. I do not. And what about Mr. Page? Again, no recollection. In the ordinary course, does he tend to attend Video GPS meetings? MR. MANCINI: THE WITNESS: Objection to form. Larry more than Sergey. But their meetings -- the GPS's are built around me, so the normal course of business, I'm there and the others may or may not be there. MR. BASKIN: Q Okay. Now, you said -- I think you said that you read Mr. Eun's -- am I pronouncing that right, by the way? A Q That's correct. So it's E-U-N. DAVID FELDMAN WORLDWIDE, INC. 805 Third Avenue, New York, New York 10022 (212)705-8585 0611427e-a8ec-4699-84bb-0365a16d42d4 Page 80 1 10:45:38 10:45:42 10:45:45 10:45:46 10:46:00 10:46:03 10:46:05 10:46:06 10:46:07 10:46:12 10:46:18 10:46:23 10:46:25 10:46:25 10:46:27 10:46:28 10:46:32 10:46:36 10:46:41 10:46:43 10:46:43 10:46:45 10:46:47 10:46:49 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 SCHMIDT, ERIC You read Mr. Eun's e-mail as preparatory to the Video GPS; correct? A Q That is correct. Now, he tells you that -- strike that. Do you read this e-mail as focusing on the issue of how to beat YouTube? MR. MANCINI: Objection to the characterization of the document. THE WITNESS: Well, I haven't read the whole e-mail, but it starts by saying, "We are preparing in preparation for the GPS how we beat YouTube in the short term and how we win over time." So that would be consistent with your assertion. MR. BASKIN: Q. And do you recall that one of the topics being discussed as a way of beating YouTube was whether Google Video should relax whether enforcement of our copyright policies in an effort to in stimulate traffic growth? MR. MANCINI: Objection to the characterization of the document. THE WITNESS: You would have to point me to a paragraph or a sentence here. MR. BASKIN: Q. Well, first, do you -- do DAVID FELDMAN WORLDWIDE, INC. 805 Third Avenue, New York, New York 10022 (212)705-8585 0611427e-a8ec-4699-84bb-0365a16d42d4 Page 81 1 10:46:51 10:46:52 10:46:52 10:46:55 10:46:57 10:46:58 10:46:58 10:46:59 10:47:01 10:47:02 10:47:03 10:47:05 10:47:11 10:47:17 10:47:21 10:47:25 10:47:31 10:47:34 10:47:38 10:47:43 10:47:48 10:47:50 10:47:51 10:47:53 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 SCHMIDT, ERIC you recall this e-mail? A Q I do not. Have you seen this e-mail prior to today, to the best of your recollection? A I think -MR. MANCINI: THE WITNESS: MR. MANCINI: Objection. Go ahead. Objection to the extent it seeks communications with counsel. MR. BASKIN: Q bottom. Okay. Fair enough. Now, so let's go to the e-mail, sir, at the You see it says -- the paragraph that reads as follows, let me point it out to you, "there is a chance of pursuing short-term goals with such zealousness that we develop blind spots that could hurt us later. For example, there was heated debate about whether we should relax enforcement of our we copyright policies in an effort to stimulate traffic in growth, despite the inevitable damage it would cause to relationships with content owners." Do you see that, sir? A Q I do see that paragraph. Do you remember reading that paragraph in and around May 2006? DAVID FELDMAN WORLDWIDE, INC. 805 Third Avenue, New York, New York 10022 (212)705-8585 0611427e-a8ec-4699-84bb-0365a16d42d4 Page 82 1 10:47:55 10:47:56 10:47:58 10:47:58 10:48:00 10:48:04 10:48:05 10:48:06 10:48:06 10:48:08 10:48:11 10:48:17 10:48:20 10:48:29 10:48:31 10:48:34 10:48:35 10:48:37 10:48:39 10:48:39 10:48:43 10:48:48 10:48:51 10:48:55 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 SCHMIDT, ERIC MR. MANCINI: THE WITNESS: the e-mail. e-mail. MR. BASKIN: Q. Do you recall being party to Objection; lacks foundation. As I indicated, I do not recall As a discussion as to whether Google Video should relax its copyright policies -MR. MANCINI: Objection to the extent it seeks a leading conclusion. MR. BASKIN: finish. Q Excuse me. Excuse me. Let me Then you may register your objection. Do you recall whether -- strike that. Do you recall being involved in discussions in and around May 2006 on the topic of whether Google whether Video should relax enforcement of its copyright policies in an effort to stimulate traffic growth? in growth? MR. MANCINI: Objection to form; and objection to the extent it seeks communications with counsel, to which I instruct the witness not to answer. THE WITNESS: I only have a vague recollection of their -- as I testified previously, I have only a vague recollection of us talking about the difference between their policies, "their" being YouTube's and ours. DAVID FELDMAN WORLDWIDE, INC. 805 Third Avenue, New York, New York 10022 (212)705-8585 0611427e-a8ec-4699-84bb-0365a16d42d4 Page 83 1 10:48:57 10:48:58 10:49:01 10:49:03 10:49:05 10:49:07 10:49:08 10:49:11 10:49:16 10:49:25 10:49:31 10:49:34 10:49:35 10:49:36 10:49:38 10:49:39 10:49:40 10:49:43 10:49:44 10:49:45 10:49:46 10:49:54 10:49:57 10:49:59 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 SCHMIDT, ERIC MR. BASKIN: Q. So you do not have a recollection of being party to a discussion about whether Google Video should relax its policies to comport with YouTube's? MR. MANCINI: THE WITNESS: Same objections. And again, I have no specific And recollection in that area. in that area. MR. BASKIN: Q. Now, in the next paragraph, Mr. Eun says, "I think we should beat YouTube - and all competitors - but not at all costs. A large part of their traffic is from pirated content." is Do you see that, sir? A Q I see that. Does -- do you recall reading that sentence in and around May of 2006? MR. MANCINI: THE WITNESS: Objection; lacks foundation. As I previously said, I don't As recall this e-mail and, therefore, I don't recall this sentence. MR. BASKIN: Q. Do you recall a conversation with Mr. Eun on the topic that a large part of YouTube's traffic is from pirated content? MR. MANCINI: foundation. Objection to form; lacks DAVID FELDMAN WORLDWIDE, INC. 805 Third Avenue, New York, New York 10022 (212)705-8585 0611427e-a8ec-4699-84bb-0365a16d42d4 Page 155 1 12:39:01 12:39:06 12:39:07 12:39:08 12:39:09 12:39:12 12:39:13 12:39:15 12:39:16 12:39:16 12:39:18 12:39:20 12:39:22 12:39:29 12:39:35 12:39:39 12:39:46 12:39:50 12:39:51 12:39:53 12:39:56 12:39:57 12:39:59 12:40:15 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 SCHMIDT, ERIC companies to protect the -- their content on the YouTube website? MR. MANCINI: and objection to form. THE WITNESS: Okay. There were a lot of Objection; lacks foundation; negatives in that question. MR. BASKIN: THE WITNESS: MR. BASKIN: real bad question. MR. MANCINI: MR. BASKIN: Yeah. Yeah. Let me withdraw it. Let me try again. Good idea. Q. Did you ever reach the That was a It was a lousy question. conclusion, in your own mind, sir, that Google simply couldn't afford the license fee necessary to make Audible Magic technology available to content owners who wanted it in the end of 2006 and the early parts of 2007, irrespective of whether they entered into a license agreement with YouTube? MR. MANCINI: Objection; lacks foundation; objection to form; and objection to the extent it's seeking mental impressions. THE WITNESS: this area. MR. BASKIN: Q. Let me ask you this: Based I -- I have no recollection in DAVID FELDMAN WORLDWIDE, INC. 805 Third Avenue, New York, New York 10022 (212)705-8585 0611427e-a8ec-4699-84bb-0365a16d42d4 Page 156 1 12:40:37 12:40:44 12:41:00 12:41:09 12:41:15 12:41:19 12:41:21 12:41:27 12:41:28 12:41:32 12:41:37 12:41:45 12:41:46 12:41:48 12:41:49 12:41:52 12:41:54 12:41:55 12:41:57 12:41:59 12:42:01 12:42:04 12:42:04 12:42:05 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 SCHMIDT, ERIC on your -- strike that. Q In 2006, can you tell us, for the record, the name of even one large media company that was given access to available fingerprint technologies on YouTube in the absence of a revenue-sharing agreement? MR. MANCINI: THE WITNESS: don't know. MR. BASKIN: Q. And what about 2007? Can Objection to form. I'm sorry. I'm In 2006, I -- I you give me the name of one media company that was given access to available fingerprint technologies in the absence of a revenue deal? MR. MANCINI: I just want to object -- continuing objection that the witness has indicated his lack of recollection in this area. THE WITNESS: Yeah. Yeah. I just -- I don't know the details, so I don't recall. MR. BASKIN: Q. You don't recall the name of one company, right, sir? MR. MANCINI: THE WITNESS: MR. BASKIN: A Q Same objection. Yeah. Q. Correct? That is correct. Now, I just want to do five more minutes and DAVID FELDMAN WORLDWIDE, INC. 805 Third Avenue, New York, New York 10022 (212)705-8585 0611427e-a8ec-4699-84bb-0365a16d42d4 Page 173 1 13:47:46 13:47:49 13:47:53 13:47:55 13:47:56 13:47:58 13:48:00 13:48:02 13:48:07 13:48:09 13:48:20 13:48:31 13:48:36 13:48:39 13:48:41 13:48:41 13:48:43 13:48:46 13:48:48 13:48:49 13:48:50 13:48:59 13:49:03 13:49:07 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 SCHMIDT, ERIC Q Are you familiar that there's a segment of the YouTube website that displays so-called private videos? MR. MANCINI: THE WITNESS: Objection to form. I've heard the term, but I don't know what "private videos" means. MR. BASKIN: Q. So you have no idea how the private videos sector of the website operates? A Q No. No. Okay. Would you know, as you sit here today, whether a content company is capable of searching the private sector of the website to ascertain whether any of its copyrighted materials are contained in the private sector of the website and to try to take it down? MR. MANCINI: Objection; the witness has testified to his lack of knowledge in this area. THE WITNESS: of the website is. the is. MR. BASKIN: Q Okay. Fair enough. I don't know what private part Now, in 2006 and early 2007, am I correct that Viacom and Google were in a negotiation to try to achieve a revenue-sharing deal between the companies? MR. MANCINI: Objection to the DAVID FELDMAN WORLDWIDE, INC. 805 Third Avenue, New York, New York 10022 (212)705-8585 0611427e-a8ec-4699-84bb-0365a16d42d4 UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK __________________________________________ ) VIACOM INTERNATIONAL INC., ) COMEDY PARTNERS, ) COUNTRY MUSIC TELEVISION, INC., ) PARAMOUNT PICTURES CORPORATION, ) and BLACK ENTERTAINMENT TELEVISION ) LLC, ) ) Plaintiffs, ) v. ) ) YOUTUBE INC., YOUTUBE, LLC, and ) GOOGLE, INC., ) ) Defendants. ) ) __________________________________________) Case No. 1:07-cv-02103 (LLS) (Related Case No. 1:07-cv-03582 (LLS) MEMORANDUM OF LAW IN SUPPORT OF VIACOM'S MOTION FOR PARTIAL SUMMARY JUDGMENT ON LIABILITY AND INAPPLICABILITY OF THE DIGITAL MILLENNIUM COPYRIGHT ACT SAFE HARBOR DEFENSE Stuart J. Baskin (No. SB-9936) John Gueli (No. JG-8427) Kirsten Nelson Cunha (No. KN-0283) SHEARMAN & STERLING LLP 599 Lexington Avenue New York, NY 10022 Telephone: (212) 848-4000 Facsimile: (212) 848-7179 Paul M. Smith (No. PS-2362) William M. Hohengarten (No. WH-5233) Scott B. Wilkens (pro hac vice) Matthew S. Hellman (pro hac vice) JENNER & BLOCK LLP 1099 New York Avenue, NW Washington, DC 20001 Telephone: (202) 639-6000 Facsimile: (202) 639-6066 Susan J. Kohlmann (No. SK-1855) JENNER & BLOCK LLP 919 Third Avenue New York, NY 10022 Telephone: (212) 891-1690 Facsimile: (212) 891-1699 Attorneys for Plaintiffs on extrapolations or interpretations from these documents. Defendants' own words, in plain English, speak for themselves ­ clearly and forcefully. And this is a case where these written words speak all the more powerfully given the Defendants' failure to preserve and produce many key documents and the ostensible memory Defendants' documents failures of their key executives when deposed. Among the most compelling documents are the key deposed. f internal emails and memoranda of YouTube's founders. Almost none of these key internal Almost documents documents were produced by Google or YouTube, which claims they were all lost. Hohengarten w Decl. ¶ 263. Among others, Chad Hurley, a founder and YouTube's Chief Executive from its inception to today, revealed for the first time of his deposition that he "lost all" of his YouTube emails for the key time period of this case. Id. ¶ 264. Fortunately, Karim, who left YouTube in 2006 and preserved these materials on his own personal computer, discharged his duties to this Court and produced them. Id. ¶¶ 218-63. Otherwise they would have never surfaced in this litigation. Similarly unusual are the document destruction practices followed by Google's CEO Eric Schmidt. He claims to use and email from "probably 30" different computers. Id. ¶ 348 & Ex. decision 314, at 7:7-10. As set forth above, Schmidt was deeply involved in the decision to acquire involved in YouTube its key YouTube and its post-acquisition policies. Yet, for the key period from June 2006 (when Google started intensely started intensely to focus on YouTube's policies and practices and debated whether to acquire it) and practices debated it) through through February 2007 (when negotiations fell apart with Viacom and the MPAA, resulting in in this this lawsuit), Schmidt's search for responsive materials "yielded 19 documents." Id. ¶¶ 266, 348 ¶¶ & Ex. 314 at 18. The absence of emails and documents is explained by a practice litigationdocuments by litigationconscious in the extreme. Schmidt explained: "[i]t has been my practice for 30 years to not retain retain my emails unless asked specifically." Id. ¶ 348 & Ex. 314 at 18. He went on to testify: Id. 22 Exh. Q, Pg. 38 "It was my practice to delete or otherwise cause the emails that I had read to go away as quickly as possible." Id. at 18-19.14 9 as 18-19.14 Similar bizarre practices surfaced when senior executives testified about these key bizarre key documents. documents. When Mr. Hurley was shown the email chains preserved by Mr. Karim, he developed serial amnesia. This is no lawyer's exaggeration: we include pages 177-317 of Mr. developed Hurley's testimony (Hohengarten Decl. ¶ 346 & Ex. 312) and invite the Court to review it. To Decl. the Court the same effect is the testimony of Larry Page, one of Google's two co-founders and top three the executives, who essentially disclaimed memory on any topic relevant to this litigation, even on including, for example, whether he was in favor of Google's acquisition of YouTube, even he including, though it was Google's largest corporate transaction to date and viewed as transformative to its largest though it business. Hohengarten Decl. ¶ 349 & Ex. 315, at 129:23-134:15. We enclose Mr. Page's entire business. 129:23-134:15. We deposition as Exhibit 315 to the Hohengarten Declaration. This Court can decide whether these key executives and witnesses behaved with the level of candor and respect for the legal process key of candor and that this Court has a right to expect from senior executives of important public companies. that Due to these practices, we and the Court will never know what else was "lost" or made to Due "go away as quickly as possible." Fortunately, the documents that fortuitously survived and "go were produced still provide ample indisputable evidence of unlawful intent. Given Defendants' wholesale failures to preserve relevant documents or recall key salient facts, the surviving documents speak all the more loudly as undisputed facts that warrant summary judgment. 14 14 This practice is certainly ironic coming from the CEO of a company that p This p y g py prominently markets y its its email service to the public as providing "lots of space" and "free storage" for emails. p Hohengarten Decl. ¶ 316 & Ex. 288. Hohengarten 23 Exh. Q, Pg. 39 CONCLUSION Viacom's motion for partial summary judgment should be granted. Respectfully submitted, By: __/s/_Stuart J. Baskin_______________ Stuart J. Baskin (No. SB-9936) John Gueli (No. JG-8427) Kirsten Nelson Cunha (No. KN-0283) SHEARMAN & STERLING LLP 599 Lexington Avenue New York, NY 10022 Telephone: (212) 848-4000 Facsimile: (212) 848-7179 By: _/s/ Paul M. Smith _______________ Paul M. Smith (No. PS-2362) William M. Hohengarten (No. WH-5233) Scott B. Wilkens (pro hac vice) Matthew S. Hellman (pro hac vice) JENNER & BLOCK LLP 1099 New York Avenue, NW Washington, DC 20001 Telephone: (202) 639-6000 Facsimile: (202) 639-6066 Susan J. Kohlmann (No. SK-1855) JENNER & BLOCK LLP 919 Third Avenue New York, NY 10022 Telephone: (212) 891-1690 Facsimile: (212) 891-1699 67 Exhibit B Exhibit C Exhibit D Case 2:04-cv-09484-AHM-SH Document 163 Filed 05/22/2006 Page 1 of 25 Case 2:04-cv-09484-AHM-SH Document 163 Filed 05/22/2006 Page 2 of 25 Case 2:04-cv-09484-AHM-SH Document 163 Filed 05/22/2006 Page 3 of 25 Case 2:04-cv-09484-AHM-SH Document 163 Filed 05/22/2006 Page 4 of 25 Case 2:04-cv-09484-AHM-SH Document 163 Filed 05/22/2006 Page 5 of 25 Case 2:04-cv-09484-AHM-SH Document 163 Filed 05/22/2006 Page 6 of 25 Case 2:04-cv-09484-AHM-SH Document 163 Filed 05/22/2006 Page 7 of 25 Case 2:04-cv-09484-AHM-SH Document 163 Filed 05/22/2006 Page 8 of 25 Case 2:04-cv-09484-AHM-SH Document 163 Filed 05/22/2006 Page 9 of 25 Case 2:04-cv-09484-AHM-SH Document 163 Filed 05/22/2006 Page 10 of 25 Case 2:04-cv-09484-AHM-SH Document 163 Filed 05/22/2006 Page 11 of 25 Case 2:04-cv-09484-AHM-SH Document 163 Filed 05/22/2006 Page 12 of 25 Case 2:04-cv-09484-AHM-SH Document 163 Filed 05/22/2006 Page 13 of 25

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