Louis Vuitton Malletier, S.A. v. Akanoc Solutions, Inc. et al

Filing 270

Declaration of James A. Lowe in Support of 269 MOTION to Dismiss DEFENDANTS' MOTION TO DISMISS PURSUANT TO RULE 50 AND ALTERNATIVELY FOR NEW TRIAL OR OTHER RELIEF PURSUANT TO RULE 59 filed byAkanoc Solutions, Inc., Steven Chen, Managed Solutions Group, Inc.. (Attachments: # 1 Exhibit 74 to Lowe Decl, # 2 Exhibit 449 to Lowe Decl, # 3 Exhibit 450 to Lowe Decl, # 4 Exhibit 1559 to Lowe Decl, # 5 Exhibit 1598 to Lowe Decl, # 6 Exhibit 1613 to Lowe Decl, # 7 Exhibit 1620 to Lowe Decl, # 8 Exhibit 1621 to Lowe Decl, # 9 Exhibit 1622 to Lowe Decl, # 10 Exhibit 1623 to Lowe Decl, # 11 Exhibit 1624 to Lowe Decl)(Related document(s) 269 ) (Lowe, James) (Filed on 1/19/2010)

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Louis Vuitton Malletier, S.A. v. Akanoc Solutions, Inc. et al Doc. 270 Att. 6 Case5:07-cv-03952-JW Document270-7 Filed01/19/10 Page1 of 18 EXHIBIT 1620 Dockets.Justia.com Case5:07-cv-03952-JW Document270-7 Filed01/19/10 Page2 of 18 Case5:07-cv-03952-JW Document270-7 1 2 3 ALSO PRESENT: 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Filed01/19/10 Page3 of 18 A P P E A R A N C E S: (CONT' D) LAW OFFICES O F J . ANDREW COOMBS B Y: RUTH ADLER, PARALEGAL 5 1 7 E. WILSON AVENUE SUITE 202 GLENDALE, CALIFORNIA 91206 LVMH FASHION GROUP B Y: NIKOLAY LIVADKIN 2 R U E D U PONT -NEUF 75001 P A R I S, FRANCE AKANOC SOLUTIONS , I N C. B Y: STEVE CHEN, PRESIDENT 45535 NORTH PORT LOOP EAST FREMONT , CALIFORNIA 94538 2 U.S. COURT REPORTERS Case5:07-cv-03952-JW Document270-7 1 2 3 4 5 F O R T H E PLAINTIFF 'S: 6 7 8 9 10 NIKOLAY LIVADKIN Filed01/19/10 Page4 of 18 INDEX OF PROCEEDINGS PLAINTIFF'S OPENING STATEMENT P. 82 DEFENDANTS' OPENING STATEMENT P. 97 D I R E C T EXAMINATION P. 131 INDEX OF EXHIBITS I D E N T. EVIDENCE 145 170 177 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 PLAINTIFF'S : 451 74 75 3 U.S. COURT REPORTERS Case5:07-cv-03952-JW Document270-7 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 BY MR . C O O M B S: Q A T H E CLERK: RIGHT HAND. Filed01/19/10 Page5 of 18 WOULD YOU PLEASE RAISE YOUR NIKOLAY LIVADKIN , BEING C A L L E D A S A WITNESS ON BEHALF OF T H E PLAINTIFF, HAVING BEEN FIRST DULY S W O R N, WAS EXAMINED A N D TESTIFIED AS FOLLOWS: THE WITNESS: T H E CLERK: Y E S. WOULD YOU PLEASE STATE YOUR FULL NAME A N D SPELL YOUR LAST NAME FOR T H E R E C O R D. THE WITNESS: L- I-V -A- D-K -I- N. T H E COURT: W E'R E G O I N G T O A D J U S T THE NIKOLAY LIVADKIN, V O L U M E O N YOUR MICROPHONE SO WE CAN HEAR YOU B E T T E R, BUT L E T'S GO AHEAD A N D W E C A N DO IT AS WE GO . DIRECT EXAMINATION MR. LIVADKIN , B Y WHOM A R E Y O U EMPLOYED? I'M EMPLOYED BY LOUIS VUITTON IN JUST A F E W I APOLOGIZE FOR MY A C C E N T A N D PLEASE DO WORDS . INTERRUPT M E I F Y O U DON 'T UNDERSTAND WHAT I' M SAYING. Q FOR H O W LONG HAVE YOU BEEN EMPLOYED BY LOUIS VUITTON? A I HAVE BEEN EMPLOYED BY LOUIS VUITTON S I N C E 131 U.S. COURT REPORTERS Case5:07-cv-03952-JW Document270-7 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 EXAMPLES ? A Filed01/19/10 Page6 of 18 E-B A Y AS THE FIRST PLACE SPECIALIZING I N THERE WOULD ALSO B E AMAZON WHERE GOODS AUCTIONS . A R E SOLD AT FIXED P R I C E S. Q AND FOCUSSING ONLY ON YOUR ENFORCEMENT RESPONSIBILITIES AS IT RELATES T O S T A N D-A L O N E W E B SITES A N D E -COMMERCE PLATFORMS, CAN Y O U GIVE US AN IDEA OF HOW MANY NEW FILES A MONTH YOUR O F F I C E OPENS TO ADDRESS SUCH I S S U E S? A WE DEAL WITH SEVERAL HUNDREDS OF NEW MATTERS EVERY MONTH . Q AND C A N Y O U IDENTIFY OUT OF THOSE SEVERAL HUNDRED, APPROXIMATELY HOW MANY INVOLVE S T A N D-A L O N E W E B S I T E S? A AROUND 10 0 PLUS OF THESE N E W MATTERS A R E NEAR STAND -ALONE W E B S I T E S DEDICATED TO COUNTERFEIT SALES . Q AND WHEN YOU REFER TO STAND -ALONE W E B S I T E S Y O U'R E TALKING ABOUT DISTINCT TO D O M A I N N A M E S? A I W O U L D S A Y THAT THEY WERE MR. C O O M B S MENTIONED THAT WOULD BE W E B S I T E S THAT WE WOULD TYPICALLY DEAL WITH. Q AND H O W H A S YOUR E N F O R C E M E N T WITH T H E I N T E R N E T CONNECTION CHANGED S I N C E Y O U WERE H I R E D I N 2 002 ? A WHEN I W A S H I R E D I N 2 002 I WAS DEALING WITH 134 U.S. COURT REPORTERS Case5:07-cv-03952-JW Document270-7 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 THESE ISSUES A L O N E. Filed01/19/10 Page7 of 18 UNFORTUNATELY THE A M O U N T O F I S S U E S THAT COMPANIES WERE F A C I N G I N REGARDS TO VIOLATION O F I T S INTELLECTUAL PROPERTIES IS GROWING TREMENDOUSLY. SO WE SIZE UP THE TEAM AND CURRENTLY WE A R E FOUR P E O P L E F U L L Y DEDICATED ON THAT, AND I' M HEADING THIS TEAM . Q AND H A S T H E VOLUME OF ENFORCEMENT ACTIVITY THAT YOUR OFFICE HANDLED CHANGED DURING THAT TIME? A Q YES . AND C A N Y O U DESCRIBE IN THE W A Y I N W H I C H THAT HAS CHANGED ? A WELL, WE ARE SENDING -- WE ARE OPENING MORE WE ARE SENDING MORE AND MORE FILES EVERY MONTH . A N D MORE WARNING LETTERS, AND WE NEED TO DEAL WITH MORE AND MORE SOPHISTICATED I S S U E S WITH T H E DEVELOPMENT OF T H E TECHNOLOGY , WITH T H E N E W WAYS T O DISTRIBUTE THE N E W C O U N T E R F E I T P R O D U C T S A N D MORE AND MORE SOPHISTICATED ISSUES . Q IS THERE A D E V E L O P M E N T I N T H E AMOUNT OF E- COMMERCE ISSUES THAT YOUR OFFICE DEALS WITH SPECIFICALLY, E-C O M M E R C E P L A T F O R M ISSUES LIKE E -B A Y AND AMAZON? A YES . WELL, CONCERNING E -B A Y SPECIFICALLY UP TO 20 06 THE A M O U N T O F A U C T I O N S THAT WE H A D T O MONITOR AND SEND AND TAKE DOWN NOTICES TO E- BAY TO 135 U.S. COURT REPORTERS Case5:07-cv-03952-JW Document270-7 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 Filed01/19/10 Page8 of 18 R E M O V E C O U N T E R F E I T G O O D S, THE N U M B E R O F T H E S E AUCTIONS B E C A M E S O IMPORTANT AND IT W A S S O UNBEARABLE TO US THAT W E WERE F O R C E D T O FILE A LAWSUIT AGAINST E -B A Y A N D -M R. LOWE: EXCUSE M E. EXCUSE M E. YOUR HONOR , I WOULD OBJECT. THIS IS NOT RELEVANT A N D POTENTIALLY IT 'S PREJUDICIAL. T H E COURT: BY MR . C O O M B S: Q DOES LOUIS VUITTON COOPERATE WITH OTHER LUXURY SUSTAINED. B R A N D S I N CONNECTION WITH ITS O N L I N E E N F O R C E M E N T EFFORTS? A Q A YES , I T DOES . CAN Y O U I D E N T I F Y SOME OF THEM FOR US ? LOUIS VUITTON COOPERATES WITH MOST O F THE OTHER BRANDS O F THE LUXURY INDUSTRY WITH COMPANIES SUCH AS CHANNEL, CHRISTIAN DIOR, BURBERRY , P R A D A, GUICCI. Q AND W H Y DOES IT COOPERATE WITH THOSE COMPETING BRANDS I N T H E ENFORCEMENT ARENA? A WELL, COUNTERFEITING IS A G L O B A L ISSUE. ALL OF THESE COMPANIES A R E FACING T H E SAME I S S U E S A S W E DO A N D ALSO N O T ONLY FROM THE L U X U R Y I N D U S T R Y B U T FROM OTHER INDUSTRIES. WE ALSO COOPERATE WITH SUCH B R A N D S SUCH AS NIKE AND ALSO WITH B R A N D S FROM T H E 136 U.S. COURT REPORTERS Case5:07-cv-03952-JW Document270-7 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 Filed01/19/10 Page9 of 18 CORPORATE INDUSTRY WHICH I S MICROSOFT. I T'S A GLOBAL PHENOMENON, A N D I T R E Q U I R E S GLOBAL ACTION. OBVIOUSLY WORKING TOGETHER I T ALSO SAVES US COST BUT MORE COMPETITION. Q THAT. DOES LOUIS VUITTON PARTICIPATE IN ANY TRADE ASSOCIATIONS THAT ARE ALSO CONCERNED WITH ONLINE ENFORCEMENT? A LOUIS VUITTON DOES . WE ARE A MEMBER OF T H E DOES L O U I S VUITTON TAKE ANY INTERNET -- S T R I K E INTERNATIONAL TRADEMARK ASSOCIATION WHICH IS O N E O F T H E, I T H I N K I T'S T H E LARGEST , WITH T H E INTERNATIONAL ANTI-COUNTERFEITING COALITION; T H E EUROPEAN BRUSSELS BASED ASSOCIATION ; DENMARK ; A IM; WITH THE F R E N C H U N I O N; WITH T H E CHINESE QUALITY BRAND PROTECTION COALITION AND MANY OTHERS. Q NOW , Y O U MENTIONED EARLIER THAT Y O U WERE COULD YOU ENGAGED IN SOME L O B B Y I N G EFFORTS . BRIEFLY DESCRIBE THOSE LOBBYING EFFORTS F O R US? M R. LOWE: OBJECT T O THIS . EITHER. T H E COURT: BY MR . C O O M B S: Q DURING T H E C O U R S E OF YOUR EMPLOYMENT WITH 137 SUSTAINED. YOUR HONOR, I' M G O I N G T O I THINK THIS HAS N O RELEVANCE U.S. COURT REPORTERS Case5:07-cv-03952-JW Document270-7 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 Q Filed01/19/10 Page10 of 18 WHEN Y O U SAY THAT YOU VISITED SOME O F T H E FACTORIES W H E R E T H E NON GENUINE P R O D U C T S A R E MANUFACTURED, CAN Y O U D E S C R I B E THEM AS COMPARED WITH THE FACTORIES W H E R E GENUINE LOUIS VUITTON PRODUCTS A R E MANUFACTURED THAT Y O U' VE ALSO VISITED ? T H E COURT: THE WITNESS: P U T IT ON YOUR T I E. I' VE HAD T H E EXPERIENCE OF VISITING SEVERAL MANUFACTURING FACILITIES WAS VERY TRAUMATIZING. I HAVE SEEN ENTIRE FAMILIES AND EVEN UNDER AGED EMPLOYEES BEING LOCKED IN SWEAT SHOPS WORKING, EVEN BABIES WERE THERE. I HAVE TO SAY MY HEAD WAS SPINNING WITH THE SMELL OF CHEMICAL PRODUCTS THAT WERE USED . TRAUMATIZING. BY MR . C O O M B S: Q BY THE W A Y, IN THE MULTI -CO L O R E D DEVICE THAT IT WAS QUITE WE 'RE LOOKING AT THE PRODUCT THAT H A S THE COPYRIGHT WE WERE TALKING A B O U T B U T IT ALSO H A S SOME O F T H E TRADEMARKS; IS THAT RIGHT? A YES , M U L T I-C O L O R M O N O G R A M B L A C K A N D WHITE IS T H E SUBJECT OF T H E COPYRIGHT REGISTRATION CERTIFICATES 4 50 AND 44 9. Q A I WILL SHOW THE WITNESS EXHIBIT 8 2 A N D 82. 1. EXHIBIT 8 2.1 , THIS IS A TIKAL BAG , A PRODUCT EXHIBIT 82 IS A NON GENUINE 159 BY LOUIS VUITTON. U.S. COURT REPORTERS Case5:07-cv-03952-JW Document270-7 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 Filed01/19/10 Page11 of 18 T H E PARTICULAR OR PIECE OF E X O T I C LEATHER IS AVAILABLE C O U L D COME FROM -- IT' S DIFFICULT TO SOURCE. Q SO IF LOUIS VUITTON C A N COMMAND SUCH A PRICE FOR ITS PRODUCT WHY DOES I T CARE ABOUT THE N O NGENUINE PRODUCT THAT WE HAVE BEEN LOOKING AT ? A Q A WELL, I WASN 'T -I'M SORRY . DID I INTERRUPT ? WE ALSO M A N U F A C T U R E I N COUNTRIES WITH HIGH WE SHOULD BE PARTICULARLY I N E U R O P E. LABOR COSTS . WE 'RE PROBABLY AMONGST THE LAST COMPANIES THAT DO N O T O U TSOURCE PRODUCTION I N L O W COST PRODUCTION COUNTRIES PRECISELY BECAUSE W E NEED TO S O U R C E T H E BEST QUALITY PRODUCT . Q A SO -ALSO THE SALE O F LUXURY GOODS REQUIRES QUITE EXPENSIVE COMMUNICATION AND ADVERTISING CAMPAIGNS WHICH IS THIS ADDITIONA L COST GOES TO THE E N D P R I C E OF T H E PRODUCT . Q A Q SO A CONSIDERABLE EXPENSE O N MARKETING? YES . SO IF LOUIS VUITTON C A N COMMAND A PREMIUM PRICE FOR ITS PRODUCT, THEN WHY DOES I T CARE ABOUT T H E N O NGENUINE PRODUCT THAT Y O U' VE BEEN LOOKING AT ? A WELL, IT' S A B I G PROBLEM F O R U S. NOT ONLY 165 U.S. COURT REPORTERS Case5:07-cv-03952-JW Document270-7 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 PEOPLE. Q Filed01/19/10 Page12 of 18 BECAUSE IT' S A CUSTOMER W H O PURCHASES A N O NGENUINE PRODUCT WILL P R O B A B L Y N O T BUY O U R PRODUCT , B U T ALSO BECAUSE PEOPLE W H O HAVE -- W H O LOVE O U R PRODUCT SO MUCH THAT THEY WOULD SAVE MONEY FOR A LONG TIME TO B U Y A B A G THAT THEY DREAMED F O R A LONG TIME, THEY ARE GENUINELY DISGUSTED WHEN THEY SEE A CHEAP IMITATIONS OF THIS B A G ALL OVER THE PLACE . W E RECEIVE MANY, MANY COMPLAINTS O F SUCH SO HOW IS IT THAT LOUIS VUITTON I S H A R M E D BY THESE N O NGENUINE PRODUCTS. A THE IMAGE OF T H E COMPANY AS A LUXURY BRAND SUFFERS FROM THESE PRODUCTS. Q SO GIVEN THAT, WHAT DOES LOUIS VUITTON DO TO ADDRESS THE PROBLEM -- WHEN W E TALK ABOUT "N O NGENUINE SALES " W E'R E TALKING ABOUT MERCHANDISE THAT LOUIS VUITTON H A S NOT MADE; IS THAT CORRECT? A Q YES . AND SO WHAT DOES L O U I S VUITTON DO TO T R Y T O CURTAIL THE SALE OF SUCH M E R C H A N D I S E? A LOUIS VUITTON EMPLOYS WITHIN THE INTELLECTUAL PROPERTY DEPARTMENT 40 PEOPLE FULLY DEDICATED O N THIS KIND O F I S S U E S MAINTAINING OUR R I G H T S A N D ENFORCING THEM . THIS TEAM OF 40 PEOPLE IS M A I N L Y B A S E D I N 166 U.S. COURT REPORTERS Case5:07-cv-03952-JW Document270-7 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 Filed01/19/10 Page13 of 18 PARIS WITH LOCAL OFFICERS AROUND THE WORLD I N NEW YORK, BUENOS A I R E S, MULAN, DUBAI , HONG KONG, A N D TOKYO . Q AND WHAT KIND O F B U D G E T DOES L O U I S VUITTON ALLOCATE TO DEALING WITH THIS ISSUE ON AN A N N U A L BASIS ? A AROUND 15 MILLION EUROS PER YEAR WHICH WOULD BE MORE THAN $ 20 MILLION. Q TURNING T O YOUR OFFICES AND H O W D I D YOU LEARN ABOUT LOUIS VUITTON DISTRIBUTION OF COUNTERFEITS? A THERE ARE SEVERAL INFORMATION ABOUT LOUIS THE ONE VUITTON DISTRIBUTION OF COUNTERFEITS. S O U R C E W E G E T IS BY OUR CUSTOMERS. OUR CUSTOMERS CAN REACH OUR CUSTOMER SERVICE DEPARTMENTS B Y PHONE CALL OR AN E-MAIL A N D THEY ACTUALLY DO SO VERY OFTEN A N D R E P O R T COUNTERFEIT SALES TO US. W E ALSO EMPLOY A N EXTERNAL SERVICE PROVIDER SPECIFICALLY FOR ONLINE DISTRIBUTION O F COUNTERFEITS. THIS COMPANY MAINTAINS THE DATABASE F O R U S O F C O U N T E R F E I T W E B SITES AND THIS DATABASE IS UP DATED TWICE A M O N T H W H E R E N E W COUNTERFEIT WEB SITES A R E A D D E D. Q AND H O W D O CUSTOMERS COMPLAINTS A B O U T O N L I N E INFORMATION REACH YOUR OFFICE ? A THEY REACH OUR OFFICE VIA OUR CUSTOMER SERVICE 167 U.S. COURT REPORTERS Case5:07-cv-03952-JW Document270-7 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 DEPARTMENT. Filed01/19/10 Page14 of 18 F O R EXAMPLE, WHEN A N E -MAIL IS RECEIVED BY T H E C SD, T H E C SD WILL R E P L Y T O T H E CUSTOMER AND WILL COPY O U R INTELLECTUAL PROPERTY DEPARTMENT TO T H E E -MAIL. Q RESPONSE T O THE CUSTOMER. SO YOUR O F F I C E WOULD RECEIVE A COPY OF THE RESPONSE BEING SENT TO THE CONSUMER ? A Q YES . AND DOES YOUR O F F I C E RETAIN THOSE REPORTS IN THE NORMAL COURSE ? A Q A YES . DID Y O U TAKE -WE ALSO - - T H E R E A R E ALSO MANY CUSTOMERS W H O COME TO THE S T O R E S A N D COMPLAIN ABOUT IT, IN THIS CASE THE S T O R E S THAT WOULD TRANSFER INFORMATION TO US . W E ALSO RECEIVE INFORMATION FROM A WIDE NETWORK OF AGENTS A N D INVESTIGATORS A N D LAWYERS A R O U N D T H E WORLD WHO WORK WITH U S. Q AND W H Y D O CUSTOMERS COME INTO T H E L O U I S VUITTON STORES TO COMPLAIN ABOUT N O NGENUINE MERCHANDISE ? A WELL, THAT H A S HAPPENED ON SEVERAL OCCASIONS A N D I T'S BECOMING A REAL PROBLEM F O R L O U I S VUITTON BECAUSE IT ACTUALLY DIVER T S O U R STAFF FROM SELLING 168 U.S. COURT REPORTERS Case5:07-cv-03952-JW Document270-7 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 Filed01/19/10 Page15 of 18 PRODUCTS TO AUTHENTICATING GOODS . P E O P L E COME A N D MAKE PURCHASES ON THE INTERNET A N D T H I N K I N G THAT THEY HAVE PURCHASED AN AUTHENTIC L O U I S VUITTON ITEM AND ACTUALLY THEY RECEIVE A FAKE SO THEY COME I N T H E STORE AND THEY A S K O U R STAFF TO AUTHENTICATE T H E PRODUCT . VERY OFTEN T H E GOAL OF THIS AUTHENTICATION IS TO A S K L O U I S VUITTON TO PROVIDE A CERTIFICATE SO THAT THE CUSTOMER -- SO THAT THESE PEOPLE GET A REFUND FROM THEIR CREDIT CARD O R FROM COMPANIES SUCH AS P A Y P A L. Q I T H I N K B Y YOUR FEET THERE SHOULD BE A BINDER IF YOU COULD OF V O L U M E 1 A N D I N I T EXHIBIT 74 . TAKE A LOOK AT IT A N D I D E N T I F Y I T F O R US. A EXHIBIT 7 4 I S A RESPONSE V I A E -MAIL BY OUR CUSTOMER SERVICE DEPARTMENT T O A LOUIS VUITTON CUSTOMER , A N D WE HAVE BEEN BLIND C O P I E D O N THIS E- MAIL. I N T H E HISTORY O F T H E E-MAIL WE ACTUALLY SEE THE ACTUAL COMPLAINT RECEIVED B Y THE LOUIS VUITTON CUSTOMER. Q AND THIS IS THE TYPE OF CUSTOMER COMPLAINT THAT YOU WERE DESCRIBING EARLIER THAT IS ROUTINELY C O P I E D, THE RESPONSE IS ROUTINEL Y C O P I E D TO YOUR OFFICE? 169 U.S. COURT REPORTERS Case5:07-cv-03952-JW Document270-7 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 Filed01/19/10 Page16 of 18 H O W I S I T THAT Y O U C A N TELL FROM LOOKING AT A W E B SITE ONLINE WHETHER OR NOT T H E O F F E R S ARE VIOLATING LOUIS VUITTON' S INTELLECTUAL PROPERTY RIGHTS ? A WELL, IT' S Q U I T E EASY . ACTUALLY WITH THIS SPECIFICITY OF O U R P R O D U C T S, AS YOU C A N S E E MOST O F OUR PRODUCTS BEAR OUR TRADEMARKS . THEY'R E VISIBLE . A N D THESE COMBINED WITH T H E FACT THAT WE HAVE GONE THROUGH EXTENSIVE T R A I N I N G, WE' RE ABLE T O RECOGNIZE MOST OF T H E T I M E S FROM LOOKING AT THE PICTURE, BUT THERE ARE SEVERAL OTHER ELEMENTS THAT INDICATE THAT WE' RE IN THE PRESENCE OF COUNTERFEIT GOODS . THAT W O U L D B E T H E PRICE. THAT WOULD ALSO BE T H E QUANTITIES OFFERED FOR SALE. BECAUSE OF T H E T I G H T CONTROL THAT LOUIS VUITTON EXERCISES ON T H E DISTRIBUTION OF ITS PRODUCTS , I T'S VIRTUALLY IMPOSSIBLE THAT A W E B SITE WOULD HAVE THE POSSIBILITY OF OFFERING HIGH VOLUMES OF AUTHENTIC G O O D S. Q ANYTHING ELSE A B O U T T H E CONTENT O F T H E WEB SITE THAT H E L P S Y O U DETERMINE WHETHER OR NOT T H E O F F E R S A R E FOR GENUINE MERCHANDISE OR NOT ? A MOST O F THOSE WEB SITES ACTUALLY DISCLOSE THAT THEY DEAL WITH FAKES . Q A AND H O W D O THEY DO THAT? THEY E I T H E R REFER TO THE PRODUCTS AS A REPLICA 174 U.S. COURT REPORTERS Case5:07-cv-03952-JW Document270-7 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 Filed01/19/10 Page17 of 18 OR M I R R O R I M A G E O R FAKE OR THEY CLAIM THEY'R E N O T AFFILIATED IN ANY W A Y WITH T H E TRADEMARK OWNER. Q AND Y O U THEN SAID THAT Y O U WENT O N T O D O C U M E N T OR BUILD A FILE B Y D O C U M E N T I N G T H E INFRINGEMENT . C A N YOU DESCRIBE WHAT DOCUMENTING THE INFRINGEMENT INVOLVES? A WE WOULD PRINT OUT A L L O F T H E RELEVANT PAGES OF T H E W E B SITE. Q IS THIS SOMETHING THAT Y O U DO OR SOMETHING THAT YOUR STAFF DOES ? A IN THE BEGINNING WHEN I WAS HIRED , A S I SAID, I WAS ALONE SO I WAS DOING IT M Y S E L F. CURRENTLY MY ASSISTANTS A R E DOING THAT A N D EVERYTHING IS VERIFIED BY ME IN T H E E N D. Q AND IF Y O U W O U L D TAKE A -- I T H I N K T H E R E'S A B I N D E R U P T H E R E M A R K E D 2 THAT AS AN EXHIBIT 75, A N D I WOULD ASK T H E WITNESS TO TAKE A LOOK AT THAT. A Q I'M SORRY , T H E NUMBER AGAIN ? 75. I THINK IT 'S NEAR T H E FRONT OF THE BINDER. M R. LOWE: YOUR HONOR, BEFORE COUNSEL SHOWS THIS TO THE JURY, WE DO HAVE AN OBJECTION TO THIS. THE WITNESS: W E B SITE ESHOES99 .C O M. 175 THAT' S A PRINT OUT OF T H E U.S. COURT REPORTERS Case5:07-cv-03952-JW Document270-7 Filed01/19/10 Page18 of 18

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