Interserve, Inc. et al v. Fusion Garage PTE. LTD

Filing 176

Declaration of Patrick C. Doolittle in Further Support of Memorandum in Opposition to Motion for Preliminary Injunction (Re-filed pursuant to order dated 9/10/2010) filed byFusion Garage PTE. LTD. (Attachments: # 1 Exhibit A, # 2 Exhibit B (with redactions), # 3 Exhibit C, # 4 Exhibit D)(Doolittle, Patrick) (Filed on 9/16/2010)

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Interserve, Inc. et al v. Fusion Garage PTE. LTD Doc. 176 Att. 2 Dockets.Justia.com Michael Arrington Highly Confidential - Attorneys ' Eyes Only I 2 in particular Judge Seeborg, will be interested in seeing what's going on. MR. BRIDGES: appropriately. MR. STERN: I hope you do. I hope you And we will respond do. 7 8' MR. BRIDGES: Now, are you doing this to try to set up avoidance of making your witness available on Thursday? Is that what's going on? 10 11 12 13 14 15 16 MR. STERN: that. This has nothing to do with I think we've sufficiently met and conferred The record reflects numerous attempts about this. to try to avoid -- the witness evading questions by providing long answers that are unresponsive to very specific yes or no questions. I think we've gone through this. BY MR. STERN: Q. Isn't it the case, Mr. Arrington, that 17 18 19 20 you spoke with your colleagues about poaching Fusion Garage employees? MR. BRIDGES: ambiguous. BY MR . STERN: Objection, vague and 21 22 23 24 25 Q. A. Do you understand the.question? Could you be more specific? 2,61 U.S. Legal Support 888-575-3376 Michael Arrington Highly Confidential - Attorneys' Eyes Only Q. No. The question stands. Dial you speak with your colleagues at CrunchPad and TechCrunch about poaching Fusion Garage employees? And I'm using the word "poaching" in the way that it would have been used with you. MR. BRIDGES: Objection, vague and ambiguous. you may answer. THE WITNESS: 10 There were -- there was one person on the team, ter. Cubrilovic, who made suggestions that we needed to move away from Fusion Garage, and he suggested some extremely inappropriate things.' By MR. STERN: 11 12 13 14 15 16 17 16 Q. A. Q. Did you ever send Mr. Cubri.lovic -Cubrilo"vic. -- Cubrilovic an email that rejected his suggestions about poaching? A. Q. I don't know. Didn't you in fact tell Mr. Cubrilovic 9 20 21 22 23 in response to his suggestion about poaching Fusion Garage employees, at a time that you contend there was a fiduciary or partnership relationship between the parties, that you want to discuss this option? 24 25 A. Can you show me what you're referring 252 Matirw c:TiMVa+ U.S. Legal Support 888-575-3376 Michael Arrington Highly Confidential - Attorneys ' Eyes Only to? Q. 3 4 5 No. I'm asking you a question.. You can tell me that you don't remember. It's entirely up to you. The question stands, A. Q. A. I have no recollection of that. Didn't you in fact tell Mr. In fact, I was disappointed that he 6 7 8 9 10 11 12 would even suggest that. I brought -- the next time Chandra was in our office, I brought both Nik and Chandra into our office -- those two clearly had an issue with each other -- and the three of us talked about this issue. .issues. And I was very specific about the 13 14 15 16 17 28 19 I said, "You guys need to work together." I was very open about this. QIn fact, on August 17th, 2009, Mr. x Cubrilovic suggested to you that you poach Fusion Garage employees , you asked to speak to him about the subject, and then on August 18th, a day later, i. 3 he repeated his suggestion to you; isn't that right? A. Q. A. I need to see what you're referring to. I'm just asking you, do you recall it? Absolutely not. MR. STERN : Next in Order. 20 21 22 23 24 25 (Deposition Exhibit 9 marked for identification.) 263 U.S. Legal Support 888-575-3376 Michael Arrington Highly Confidential - Attorneys' Eyes Only 1 BY MR. STERN: Q. This is a document that was produced to us by TechCrunch. It's an email that's been 4 authored in part by you and by Mr. Cubrilovic. MR. BRIDGES: Move to strike the 5 characterization of the document. 7 MR. STERN: BY MR. STERN: well -- 9 Q. Looking at the bottom of the page, the 10 11 lower 40 percent of the front page, do you see where it says August 17th, 2009 at 9:02 a.m.? A. Q. Yes. "Nik Cubrilovic wrote." Do you see 12 13 14 15 that? A. Yes. 16 17 18 Q. Now, you see that he's writing that to you; is that right? A. Q_ Yes. Okay. And in it, he says: 19 20 21 22 23 24 25 "Have you spoken to Chandra in the past few days? Just want you to know what he does doesn't know so far." Do you see that? Do you see what I'm reading? A. Yes. 264 U.S. Legal Support $88-575-3376 Michael A rrington Highly Confidential - attorneys' Eyes Only THE WITNESS: 2 3 What I read in the press. That's about it. BY MR. STERN; Q. 5 6 7 8 9 10 What do you read in the press? They said they raised, I think, a $2 And then I think they said we have A. million round. another big round coming. But, again, I don't know. That's about all I know about it. Q. Did you ever raise a $2 million round for the acquisition of Fusion Garage? ..MR. BRIDGES: ambiguous. THE WIT'NBSS; round that was offered. BY MR. STERN; We never closed on the 11 Objection, vague and 16 17 Q. A. Who offered the money? In the term sheet it was First Round Ron Conway I think had signed 1$ 19 20 21 22 Capital, SoftTech VC. up, maybe not formally, and they were going to put together the rest of the round as needed. Q. going to be? A. dollars, $2. Q. Do you remember what the total round was 23 24 25 We were targeting a couple of million But that round never closed; is that U.S. Legal Support 88$-575-3376 Michael Arrington Highly Confidential - Attorneys` Eyes Only ambiguous. EY MR. STERN: Q. A. well, you mentioned TechBase. We have events we sell tickets to and sell sponsorships to; we have an advertisingsupported. -- a number of advertising-supported websites; another website, CrunchBase, which is advertising and subscription supported. Q. 10 Do you sell a web tablet? We do not. Right now are you'in the pxocess of A. Q_ 11 12 13 developing a web tablet? MR. BRIDGES : Objection, vague and 14 15 16 17 ambiguous. THE WITNESS: We continue to have hopes of doing something in that regard and occasionally have discussions with people around opportunities. BY MR. STERN: zs 19 20 Q. When was the last time that you put together a proposal to any company about developing a web tablet? MR. BRIDGES: Objection, vague and 21 22 23 ambiguous. THE WITNESS: question, please? 351 Would you repeat the 24 25 U.S. Legal Support 888-575-3376 . Michael Arrington Highly Confidential - Attorneys' Eyes Only { 24 U.S. Legal Support 888-575-3376 Michael Arrington Highly Confidential - Attorneys' Eyes Only U.S. Legal Support SS&575-3376 Michael Arrington Highly Confidential - Attorneys' Eyes Only U.S. Legal Support 888-575-3376 Michael Arrington Highly Confidential - Attorneys' Eyes Only Garage sells a JooJoo to somebody, does that sale take any money out of the pocket of_TechCrunch? MR. BRIDGES: ambiguous, argumentative. BY MR.. STERN: Objection, vague and U.S. Legal Support 888-575-3376 Michael Arrington Highly Confidential - Attorneys ' Eyes Only (Brief recess.) THE VIDEOGRAPHER: record at 6:33 p.m. MR. BRIDGES: Sure. If the court We're back on the reporter could ask the question again or reread the question, I would appreciate it. (Record read.) SIR. BRIDGES: I just want to stress that we're designating the transcript as "Highly Confidential," but we'll sort the details out later, but this will be kept highly confidential. U.S. Legal Support 888-575-3376. Michael Arrington Highly Confidential - Attorneys` Eyes Only U.S. Legal Support 888-575-3376 Michael Arrington Highly Confidential - Attorneys' Eyes Only 1 2 3 7 a 9 10 11 12 13 14 19 20 21 22 ,23 24 25 U.S. Legal Support 888-575-3376 Michael Arrington Highly Confidential - Attorneys' Eyes Only Q. Well, you,swore to'Judge Seeborg or paragraph 36 of Exhibit 3: Judge weir the following, "Denial of the preliminary injunction would come at a heavy penalty to TechCrunch which has invested approximately $400,000 in this project." Now, when you got that number, did you just ask Ms. Harde to give you a number? A, Q. A. Which paragraph? Last paragraph, 36. Yes. Q. So you have no idea of what that number is made of; is that fair? MR. BRIDGES : THE WITNESS: Objection, argumentative. You asked me not to 362 U.S. Legal Support 888-575-3376 Michael Arrington Highly Confidential - Attorneys' Eyes Only the time that we had introduced the product to the public and it would be us being served with this theoretical patent infringement claim -- "us" being 4 all of the founders in the company. BY MR. STERN: Q. As of November of 2009, was Mr. Conway 5 .7 committed to providing capital into CrunchPad? ,8 9 10 11 12 13 14 A. "Committed" is a word I'm not willing to sign up to, but he seemed to remain interested until the end. Q_ Capital. And the same question.'for First Round Had -First Round Capital given you an unqualified commitment to put $100,000 into CrunchPad? 15 16 17 A. Q. They had not. Did SoftTech Ventures provide you an unqualified commitment to put $100,000 into SoftTech Ventures (sic)? 18 19 20 A. Q. They had not. h As of November 2009, do you know of any a 21 22 23 24 25 Singaporean investor who had committed to putting 1.2 million into CrunchPad? If' A. Q. No. As of November of 2009 -- withdraw that. When I say "as of," I mean any time up to November 37: U.S. Legal Support 888-$75-3376 Michael Arrington. Highly Confidential Attorneys' Eyes Only going to have a couple questions. THE VIpEOGRAPHER: at 6:46 p.m. We are off the record (Brief recess.) THE VIDEOGRAPHER: record at 6:55 p.m. We're back on the EXAMINATION BY MR. BRIDGES: 10 Q. Mr. Arrington, I'm going to ask you a 21 12 few questions briefly. Mr. Stern asked several questions about a communication from Mr. Cubrilovic to you that used the-word "poaching." A. Yes. Do you recall those questions? 9 3.3 s F i 14 15 16 17 Q. And he asked you a series of questions on whether you responded to his comment by email, Do you recall those questions? A. Yes. I I 19 24 21 Q. What communications, if any, did you have with Mr: Cibrilovic about that comment other than by email? A. I communicated with Nik at least once by 22 23 24 25 telephone in Singapore when I was able to get ahold of him and consistently in person when he returned 373 M U.S. Legal Support 888-575-3376 Michael Arrington Highly Confidential - Attorneys ' Eyes Only 1 to California and expressed outrage that he had gone beyond the charter of the trip as I sent him out there to do, which was to help with the software, understand where we were with the software, and to assist the team. 2 3 4 6 7 He had engaged in background checks. Clearly Chandra had complained directly about that. I responded to Chandra by email that that was not part of what Nik it was supposed to do; that the rest of what Nik was doing was inappropriate, completely inappropriate, and undermined our partnership. When Chandra came to our office, one of the first things I did was sat Chandra and Nik down in person in my office together at the same time and asked what the heck had gone on, why there was so much friction between the two -- clearly there was ill will between the two of them -- and demanded that they clear it up then and there so that we could continue to work together productive. And. they agreed to do that. 8 9 10 11 12 13 14 1s 16 17 1s 19 20 21 22 F And I also told Nik both privately and in front of Chandra that if I was forced to choose, that I would choose Chandra, that Chandra was crucial to the project. And Nik's involvement, if 374 23 24 25 U.S. Legal Support . 888-575-3376 Michael Arrington Highly Confidential - Attorneys' Eyes Only it became impossible for Nik and Chandra to work together, it would be Chandra that was chosen. And after that, from my perspective things had calmed down. Q. You were also asked whether TechCrunch or CrunchPad had secured firm commitments -- T believe that was the phrase -- for financing or 8 9 investment. A. Do you recall that line of questioning? Yes. 10 Q. Sorry. The question was whether you had . 11 12 13 14 1.5 received unqualified commitments regarding financing of CrunchPad or investments in CrunchPad. Do you remember that questioning? A. QYes. What obstacles were there, if any, to .16 17 18 19 .20 getting unqualified commitments to investing in CrunchPad? A. It was difficult to perform -- for firms 1 to perform background checks on Chandra. There were, some negative'things, random negative things about him out there in general. And being from Singapore instead of the U.S., it was difficult, and there were some issues around that. Chandra did not check out well. 21 22 23 24 25 That being said, with our involvement, we 375 U.S. Legal Support 888-575-3376 Michael Arrington Highly Confidential - Attorneys' Eyes Only And you know, as the product was delayed 2 3 and, you know, it wasn't necessarily urgent for me on a day-to-day basis to get it done on a day-to-day basis. I mean , it was always sort of just around the corner, but always very hard to nail him down on 6 just who we were talking about and just how much and what the relationships were between everyone. 9 NOR* 1.0 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 U.S. Legal Support 888575-3376 Michael Arrington Highly Confidential - Attorneys' Eyes Only U.S. Legal Support 888-575-3376 Michael Arrington Highly Confidential - Attorneys' Eyes Only I 3 4 5 6 7 9 10 11 12 13 14 1s 16 17 18 19 20 21 22 23 24 25 380 U.S. Legal Support 888-575-3376 Michael Arrington Highly Confidential - Attorneys' Eyes Only U.S. Legal Support 888-575-3375 Michael Arrington Nighty Confiden tial - Attorneys ' Eyes Only U.S. Legal Support 888-575-3376 Michael Arrington ]Highly Confidential - Attorneys' Eyes Only U.S. Legal Support 888-5 75-3376 Michael Arrington Highly Confidential - Attorneys' Eyes Only 1 2 5 6 7 8 9 Q. So it's your sworn testimony I want to make this clear, that it's your sworn testimony that prior to July of 2008 you had received no information regarding Apple developing some sort of web tablet; is that fair? MR. BRIDGES: Objection, vague and 10 11 12 13 14 ambiguous. THE WITNESS: BY MR, STERN: Yes. 15 16 17 0- Prior to July of 2008, had you heard of any other company that had developed or was i developing a web tablet? MR.. BRIDGES : Objection, vague and 18 19 20 21 ambiguous. THE WITNESS: product. market_ BY MR. STERN: I get excited about the There were a number of products on the 22 23 24 Q. July 2008 That was a yes no question. Prior to 25 U.S. Legal Support 888-5 '15-3376

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