"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).

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Exhibit 9 Page 1 1 UNITED STATES DISTRICT COURT 2 NORTHERN DISTRICT OF CALIFORNIA 3 OAKLAND DIVISION 4 5 ____________________________________ ) 6 ) THE APPLE IPOD ITUNES ANTI-TRUST 7 ) LITIGATION No. C-05-0037 YGR ) ) 8 ____________________________________) 9 10 11 12 VIDEOTAPED DEPOSITION OF ROGER G. NOLL 13 San Francisco, California 14 Thursday, May 16, 2013 15 Volume 1 16 17 18 19 20 21 Reported by: 22 JENNIFER L. FURIA, RPR, CSR 23 CA License No. 8394 24 Job No. 1663538 25 PAGES 1 - 262 Sarnoff, A VERITEXT COMPANY 877-955-3855 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 on them? A Yeah, I think -- I think I do. Remember that at the time I'm doing this I'm base -- I'm -- my mindset is that I'm believing what's in Fruggia's declaration. That it's everything. All new products after September. 10:16:06 First of all, he said October, then he changed it to September. So my mindset at the time is this is a distinction without meaning. I now realize it's not true, all right. That is to say, that what he said 10:16:19 isn't actually correct, so. But what I asked them to do, I just don't remember. I -- I do remember believing that every new product that was brought on the market after September 2006 had 7.0 loaded on it, because that's what was in 10:16:37 Fruggia's deposition. MR. MITTELSTAEDT: Let's a take a break. THE VIDEOGRAPHER: This is the end of disc number one. The time is 10:17 a.m. And we are now going off the record. 10:16:50 (Recess.) THE VIDEOGRAPHER: This is the beginning of disc number two. The time is 10:31 a.m. And we are now going back on the record. BY MR. MITTELSTAEDT: 10:31:03 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 Page 50 1 2 3 4 5 6 7 Q Okay. If you would open the report to Exhibit 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 16.1 again, please. A Okay. Q And let's go to -- yeah, let's go to actually 16.2. This is on the direct sales. A Okay. 10:31:30 Q So this is the same approach as 16.1 except 8 instead of for the resellers, it's for the direct 9 sales? A That's correct. 10 11 12 10:31:41 Q Where did the average price come from? How 13 did -- how did you derive that? A It's just -- just derived from taking the 14 average of all the transactions of that product during 15 the -- during the damage period. Page 52 10:32:03 16 17 18 19 20 21 22 10:32:39 Page 51 10:35:12 Page 53 Pages 50 to 53 Sarnoff, A VERITEXT COMPANY 877-955-3855 1 1 2 2 3 3 4 4 5 5 6 6 7 7 8 8 9 9 10 10 11 11 12 12 13 13 14 14 15 15 16 16 17 17 18 18 19 19 20 20 21 21 22 22 23 23 24 10:36:49 Page 54 Page 56 1 1 2 2 3 3 4 4 5 5 6 6 7 7 8 8 9 9 10 10 11 11 12 12 13 13 14 14 15 15 16 16 17 17 18 18 19 19 20 20 21 21 22 22 10:37:55 Page 55 10:40:16 Page 57 Pages 54 to 57 Sarnoff, A VERITEXT COMPANY 877-955-3855 1 1 2 2 3 3 4 4 5 5 6 6 7 7 8 8 9 9 10 10 11 11 12 12 13 13 14 14 15 15 16 16 17 17 18 18 19 19 20 20 21 21 22 22 23 23 24 Page 58 1 Page 60 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 10:44:56 Page 59 Page 61 Pages 58 to 61 Sarnoff, A VERITEXT COMPANY 877-955-3855 1 1 variable, what you'd get is a change in the coefficient 2 2 on Harmony and on 4.7, but that -- that's not relevant 3 3 for what we're interested in in the damages period. 4 4 5 5 6 6 7 7 8 8 9 9 10 10 11 11 But we don't care about 4.7 anymore, the -- so, you 12 12 know -- yes, if we were trying to estimate damages for 13 13 4.7 then it would be worthwhile to do that, but given 14 14 that it's no longer in the case it's not worthwhile. 15 15 16 16 coefficient for 4.7 if you included a variable for the 17 17 Harmony relaunch? 18 18 19 19 larger and then Harmony relaunch to offset some of it, 20 20 so I would expect that the net effect of 4.7 will be 21 21 larger during the first period than during the second 22 22 period. 23 24 10:45:48 25 Q Did you ever ask Econ, Inc. to run this with Harmony relaunch as a variable? 10:47:47 A No. It's pointless. It would not change the results we're interested in. Q Well, would it change the coefficient on Harmony blocked? A It would if -- if we cared about 4.7 it would. 10:48:00 Q Okay. What would you expect to happen to the 10:48:19 A I'd expect the coefficient for 4.7 to be 10:48:36 Q By second period what do you mean? A After the Harmony relaunch. In March of 2005 or whenever it was. 10:48:48 Page 62 Page 64 Q So you would expect the coefficient for 4.7 to 1 Q Okay. While we're still on 13.2 or if you'd 1 2 reopen 13.2. I just want to walk down the variables. 2 be lower if you add a variable for the Harmony relaunch 3 For Harmony when did you turn on -- what date is the 3 4 Harmony variable turned on? 4 than if you didn't? A Well, it depends on how you -- it would depend A The day -- the date that it's released, which 10:46:28 5 on how you specified it. The coefficient for 4.7, are 6 is, you know, July -- sometime in July or August of 6 you going to turn it on or turn it -- are you going to 7 2004. I don't remember the exact date. 7 leave it on or turn it off with the Harmony relaunch. 5 8 9 8 blocked. What date is that turned on? A That's the -- the date of 4.7, which is fall 10:46:43 If you keep 4.7 on during the entire period 9 Q Okay. And then the next variable is Harmony 10:49:04 between its initial launch until the launch of 7.0, and 10 then you add a Harmony relaunch, the coefficient for 4.7 10:49:24 11 of 2000 -- wait a minute. No, wait a minute. When is 11 is going to be the same during the whole period, but 12 it? I -- I can't remember. It's the date at which 4.7 12 then you're going to subtract something off of that that 13 is released and I can't remember. It's in the report. 13 would be the coefficient on Harmony, so the net effect 14 A few months later, a few months after the Harmony is 14 of 4.7 would be less after Harmony was relaunched than 15 released. 15 before. 10 16 17 18 10:47:06 Q At an earlier deposition we talked about the 16 10:49:39 Q But why would you leave 4.7 variable on after 18 Harmony is relaunched? A Because 4.7 is still the operating system and 19 relaunch of Harmony. you would test the hypothesis whether the Harmony 17 A Right. 19 Q Did you consider for this regression having a 20 variable for the relaunch of Harmony which was early 21 2005? 10:47:15 20 21 A You know, I didn't -- I didn't bother, because relaunch completely offset it or not. 10:49:56 Q But why would you expect -- what would be the 22 circumstance in which you would expect 4.7 to continue 23 by the time we get to this the 4.7 issue is out of the 23 to have an impact on iPod prices after Harmony is 24 case, so I didn't bother. 24 relaunched and anybody who wants to can use it? A Because the -- the issue that's going on in 10:50:12 22 25 If you -- if you stuck in the relaunch 10:47:26 25 Page 63 Page 65 Pages 62 to 65 Sarnoff, A VERITEXT COMPANY 877-955-3855

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