"The Apple iPod iTunes Anti-Trust Litigation"

Filing 753

***ERRONEOUS ENTRY, PLEASE REFER TO DOCUMENT NO. 754 *** EXHIBITS re 752 Opposition/Response to Motion, filed byApple Inc.. (Attachments: # 1 Exhibit 2, # 2 Exhibit 3, # 3 Exhibit 4, # 4 Exhibit 5, # 5 Exhibit 6, # 6 Exhibit 7, # 7 Exhibit 8, # 8 Exhibit 9, # 9 Exhibit 11, # 10 Exhibit 12, # 11 Proposed Order)(Related document(s) 752 ) (Kiernan, David) (Filed on 1/14/2014) Modified on 1/14/2014 (jlmS, COURT STAFF).

Exhibit 2

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·1· · · · · · · · ·UNITED STATES DISTRICT COURT

·1· · · · · · · · · ·A P P E A R A N C E S

·2· · · · · · · ·NORTHERN DISTRICT OF CALIFORNIA

·2
·3· For the Plaintiffs:· · Bonny Sweeney, Esq.

·3· · · · · · · · · · · OAKLAND DIVISION

· · · · · · · · · · · · · ·ROBBINS GELLER RUDMAN & DOWD, LLP

·4

·4· · · · · · · · · · · · ·655 West Broadway

· · THE APPLE iPOD iTUNES· · · · · )· · Lead Case No. C 05-00037

· · · · · · · · · · · · · ·Suite 1900

·5· ANTI-TRUST LITIGATION· · · · · )

·5· · · · · · · · · · · · ·San Diego, CA· 92101
· · · · · · · · · · · · · ·619.231.1058

·6· · · · · · · · · · · · · · · · ·)

·6· · · · · · · · · · · · ·[e-mail]

·7· ____________________________· ·)

·7

·8· This Document Relates To:· · · )

·8

·9· ALL ACTIONS· · · · · · · · · · )

·9

10· · · · · · · · · · · · · · · · ·)

· · For the Defendant Apple, Inc.:
10· · · · · · · · · · · · ·David C. Kiernan, Esq.

11· ____________________________· ·)

· · · · · · · · · · · · · ·JONES DAY

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11· · · · · · · · · · · · ·555 California Street

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· · · · · · · · · · · · · ·26th Floor

14· · · · · · · CONFIDENTIAL - ATTORNEYS' EYES ONLY

12· · · · · · · · · · · · ·San Francisco, CA· 94104

15· · · · VIDEOTAPED DEPOSITION OF ROBERT H. TOPEL, Ph.D.
16· · · · · · · · · · · · VOLUME II

· · · · · · · · · · · · · ·415.626.3939
13· · · · · · · · · · · · ·[e-mail]
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17· · · · · · · · · · ·January 08, 2014

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18· · · · · · · · · · ·Phoenix, Arizona

16· Also Present:· · · · · Thomas C. Tracy, videographer
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22· Reported By:

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23· Cathy A. Miccolis

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24· RPR, CRR, CSR No. 50068

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25· Job No. 10009199

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·1· · · · · · · · · · · · ·I N D E X
·2· Witness· · · · · · · · · · · · · · · · · · · · · · Page
·3· · · ·ROBERT TOPEL, Ph.D.
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· · · · · · ·EXAMINATION BY MS. SWEENEY· · · · · · · · · 198
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·9· Exhibit· · Description· · · · · · · · · · · · · · · Page
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· · · · · ·THE VIDEOTAPED DEPOSITION OF ROBERT TOPEL,
Ph.D., VOLUME II, was continued on January 8, 2014,
commencing at 12:56 p.m. at the offices of BONNETT,
FAIRBOURN, FRIEDMAN & BALINT, P.C., 2325 East Camelback
Road, Suite 300, Phoenix, Arizona, before CATHY MICCOLIS,
a Certified Reporter in the State of Arizona.
· · · · · ·THE VIDEOGRAPHER:· We are now on the record.
The time is approximately 12:56 p.m.· Today's date is
January 8, 2014.· My name is Tom Tracy of Aptus Court
Reporting.· The court reporter is Cathy Miccolis of Aptus
Court Reporting, located at 600 West Broadway, Suite 300,
San Diego, California 92101.
· · · · · ·This begins the videotaped deposition of Robert
Topel, Volume II, testifying in the matter of the Apple
iPod iTunes Antitrust Litigation pending in the District
Court of California, Division of Oakland, Case Number C
05-00037 YGR, taken at 2325 East Camelback, Suite 300,
Phoenix, Arizona 85016.
· · · · · ·Counsel, will you please identify yourself and
whom you represent for the record at this time, starting
with the plaintiffs' counsel.
· · · · · ·MS. SWEENEY:· Bonny Sweeney for the plaintiffs.
· · · · · ·MR. KIERNAN:· David Kiernan for Apple.
· · · · · ·THE VIDEOGRAPHER:· Thank you, Counsel.· The

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·1· · · · Q.· ·Yeah.

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· · · Q.· ·Okay.· Another question, I asked you if you'd
looked at the percentages of iPod buyers who were
first-time versus repeat buyers during other periods, and
you mentioned your recollection.· Did you look at all at
the percentages in the period more than five months after
September 2005?
· · · · · ·THE WITNESS:· Could you read back the question?
· · · · · ·(Record read.)
· · · · · ·THE WITNESS:· Yes.
BY MS. SWEENEY:
· · · Q.· ·And what did you find?
· · · A.· ·I found that more than five months after that I
found that 14 percent number.
· · · · · ·MR. KIERNAN:· Can you take maybe a short break?
This thing is forcing a shutdown.
· · · · · ·MS. SWEENEY:· Let's take a break.· I wouldn't
mind a break anyway.
· · · · · ·THE VIDEOGRAPHER:· We are going off the record.
The time is approximately 2:07 p.m.
· · · · · ·(Recess taken at 2:07 p.m.; resumed at
2:16 p.m.)
· · · · · ·THE VIDEOGRAPHER:· We are going back on the

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· · · A.· ·Two months.· No.
· · · Q.· ·Maybe I didn't -- I don't think my question was
clear.· I think you testified about those instances in
your last deposition, and I'm just asking whether you did
anything in addition to the ones that you've already
described.
· · · A.· ·Well, I don't recall what I described in my
last deposition, but it's certainly possible that in
another matter I clustered on a characteristic.
· · · Q.· ·Okay.· What would that be?
· · · A.· ·Well, I have to be careful.· I think this is
filed under seal, so I can't describe all the details of
the case, but it involved earnings and whether certain
things had statistically significant impacts in an
earnings regression, and oddly enough, the other side
thought that I had not taken into account the correlation
in the residuals for people from -- for group people, and
so they had a statistician say that I should, and in fact
I had.· So they thought I had made the mistake that
Professor Noll made and I hadn't.
· · · Q.· ·And that you said was an entire population of
data?
· · · A.· ·Yes.
· · · Q.· ·But I know you can't tell me details about the
case, but it involved wages?

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record.· The time is approximately 2:16 p.m.
BY MS. SWEENEY:
· · · Q.· ·You said that you read Professor Wooldridge's
declaration?
· · · A.· ·Yes.
· · · Q.· ·And were you familiar with his work before
reading the declaration?
· · · A.· ·I had probably read something that he had done
before the declaration, yeah.
· · · Q.· ·And do you consider yourself an expert in
cluster samples?
· · · · · ·MR. KIERNAN:· Object to form.
· · · · · ·THE WITNESS:· Yes, as an applied econometrician
I do.
BY MS. SWEENEY:
· · · Q.· ·Have you published any articles or books about
cluster samples?
· · · A.· ·No.· It's mainly in my teaching and using it in
my research and using it in my empirical analysis.
· · · Q.· ·And have you in your own work used a cluster
adjustment in the case where you have a whole population
instead of a sample?
· · · A.· ·Yes.
· · · Q.· ·And are those just the instances that you
described in your last deposition?

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· · · A.· ·Compensation, yeah.
· · · Q.· ·Compensation.· So is it fair to say that you
disagree with Professor Wooldridge that clustering is not
appropriate either in the case of a randomly drawn sample
or a total population?
· · · · · ·MR. KIERNAN:· Object to form.
· · · · · ·THE WITNESS:· That's fair to say, yes.
BY MS. SWEENEY:
· · · Q.· ·And can you identify for me the bases for that
statement, for your opinion?
· · · A.· ·Well, sure.· For one thing when Professor
Wooldridge had a population in at least two instances
where he had a population, he clustered his -- he
clustered.· He based his opinion that -- on the fact that
common factors would be affecting people in different
groups in a similar way, and so he clustered on those
groups, and so now he is -- that stuff is in his written
teaching and in his research, and now he has turned 180
degrees in saying he wouldn't do that because he is
testifying in this case.· I just think it's very odd and
totally inconsistent.
· · · Q.· ·I'm going to move to strike as nonresponsive.
· · · · · ·MR. KIERNAN:· Oppose the motion.
BY MS. SWEENEY:
· · · Q.· ·Is it your view that one must cluster in every

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·1· · · · · · ·DECLARATION UNDER PENALTY OF PERJURY

·1· · · · · · · · ·DEPOSITION ERRATA SHEET

·2· Case Name:· The Apple iPod iTunes Anti-Trust Litigation

·2· Page No. ____ Line No. ____

·3· Date of Deposition:· 1/8/2014

·3· Change: ________________________________________________

·4· Job No:· 10009199

·4· Reason for change: _____________________________________

·5

·5· Page No. ____ Line No. ____

·6· · · · · I, ROBERT TOPEL, Ph.D., the witness herein,

·6· Change: ________________________________________________

·7· declare under penalty of perjury that I have read the

·7· Reason for change: _____________________________________

·8· foregoing in its entirety; and that the testimony

·8· Page No. ____ Line No. ____

·9· contained therein, as corrected by me, is a true and

·9· Change: ________________________________________________

10· accurate transcription of my testimony elicited at said

10· Reason for change: _____________________________________

11· time and place.

11· Page No. ____ Line No. ____

12· · · · · Executed this ____ day of ___________________,

12· Change: ________________________________________________

13· 2014, at ________________________________.

13· Reason for change: _____________________________________

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15· _______________________· · · · · · · · __________________

15· Change: ________________________________________________

· · ROBERT TOPEL, Ph.D.· · · · · · · · · · · · · Date

16· Reason for change: _____________________________________

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24· _________________________· · · · · _____________________

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· · ROBERT TOPEL, Ph.D.· · · · · · · · · · · · Dated

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Page 264
·1· STATE OF ARIZONA· · · ·)
· · · · · · · · · · · · · ·)· ss.
·2· COUNTY OF MARICOPA· · ·)
·3· · · · · · ·BE IT KNOWN that the foregoing deposition was
·4· taken before me, Cathy A. Miccolis, RPR, a Certified
·5· Reporter, Certificate #50068, for the State of Arizona,
·6· and by virtue thereof authorized to administer an oath;
·7· that the witness before testifying was duly sworn by me to
·8· testify to the whole truth; that the questions propounded
·9· to the witness and the answers of the witness thereto were
10· taken down by me in shorthand and thereafter reduced to
11· print by computer-aided transcription under my direction;
12· that pursuant to request, notification was provided that
13· the deposition is available for review and signature; that
14· the transcript consisting of pages 194 through 264 is a
15· full, true and accurate transcript of all proceedings and
16· testimony had and adduced upon the taking of said
17· deposition, all done to the best of my skill and ability.
18· · · · · I FURTHER CERTIFY that I am in no way related to
19· nor employed by any of the parties hereto nor am I in any
20· way interested in the outcome hereof.
21· · · · · DATED at Phoenix, Arizona, January 9, 2014.
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23· · · · · · · · · · · · · · _____________________________
· · · · · · · · · · · · · · · Cathy A. Miccolis, RPR, CRR
24· · · · · · · · · · · · · · Certified Reporter #50068
25