Apple Inc. v. Samsung Electronics Co. Ltd. et al

Filing 1415

Declaration of Mark Buckley in Support of 1414 JOINT MOTION 1408 Corrected Renewed Administrative Motion to File Under Seal filed by Apple Inc.. (Related document(s) 1414 , 1408 ) (Jacobs, Michael) (Filed on 7/27/2012) Modified text on 7/30/2012 (dhm, COURT STAFF).

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1 2 3 4 5 6 7 8 9 10 HAROLD J. MCELHINNY (CA SBN 66781) MICHAEL A. JACOBS (CA SBN 111664) RACHEL KREVANS (CA SBN 116421) JENNIFER LEE TAYLOR (CA SBN 161368) ALISON M. TUCHER (CA SBN 171363) RICHARD S.J. HUNG (CA SBN 197425) JASON R. BARTLETT (CA SBN 214530) MORRISON & FOERSTER LLP 425 Market Street San Francisco, California 94105-2482 Telephone: (415) 268-7000 Facsimile: (415) 268-7522 WILLIAM F. LEE WILMER CUTLER PICKERING HALE AND DORR LLP 60 State Street Boston, MA 02109 Telephone: (617) 526-6000 Facsimile: (617) 526-5000 MARK D. SELWYN (SBN 244180) WILMER CUTLER PICKERING HALE AND DORR LLP 950 Page Mill Road Palo Alto, California 94304 Telephone: (650) 858-6000 Facsimile: (650) 858-6100 11 12 13 Attorneys for Plaintiff and Counterclaim-Defendant APPLE INC. 14 UNITED STATES DISTRICT COURT 15 NORTHERN DISTRICT OF CALIFORNIA 16 SAN JOSE DIVISION 17 18 APPLE INC., a California corporation, Plaintiff, 19 20 21 22 23 24 v. SAMSUNG ELECTRONICS CO., LTD., a Korean corporation; SAMSUNG ELECTRONICS AMERICA, INC., a New York corporation; and SAMSUNG TELECOMMUNICATIONS AMERICA, LLC, a Delaware limited liability company, Defendants. 25 26 27 28 DECLARATION OF MARK BUCKLEY CASE NO. 11-CV-01846-LHK sf-3175960 Case No. 11-cv-01846-LHK DECLARATION OF MARK BUCKLEY IN SUPPORT OF APPLE’S MOTIONS TO SEAL 1 I, Mark Buckley, hereby declare as follows: 2 1. I am an employee of Apple Inc. (“Apple”). My title is Financial Analyst V. As 3 part of my role, I am very familiar with financial information and systems at Apple, and the 4 efforts Apple takes to ensure sensitive financial information is kept confidential. I submit this 5 declaration in support of Apple’s motions regarding sealing, filed contemporaneously herewith. I 6 have personal knowledge of the matters set forth below. If called as a witness I could and would 7 competently testify as follows. 8 9 2. Apple seeks to seal sensitive types of financial documents. These financial documents include cost data, product line details beyond the general “iPhone,” “iPad,” and “iPod 10 touch,” profit margins, and capacity data. Exposure of these categories of documents to the 11 public would cause Apple severe harm. 12 3. Apple’s highly sensitive financial data is among the most painstakingly protected 13 information at the company. Only a limited number of individuals are authorized to receive this 14 information, even within Apple. Apple does not share its nonpublic financial data—including 15 cost data, product line details, profit margins, and capacity data—with third parties. It does not 16 share this information with its vendors. In the rare instance it is required to share any nonpublic 17 financial data with third parties, Apple insists on very restrictive nondisclosure agreements. 18 4. If competitors gained access to Apple’s capacity data, they would learn when 19 Apple is stretched thinly and when it has excess capacity, and could alter their production timing 20 accordingly. With the addition of product line information, this data is even more critically 21 sensitive, as competitors will see what specific lines of products Apple is increasing its supply of 22 and what it is decreasing its supply of, giving a significant insight into Apple’s current and future 23 business plans. Product line sales and revenue information would similarly reveal to competitors 24 what precise products they need to counter, and how much they should invest in that specific 25 area. Competitors will know exactly what products they need to release in order to counter 26 Apple, and in what categories—for example, the specific size of phone or tablet that Apple is 27 focusing the majority of its attention on. 28 DECLARATION OF MARK BUCKLEY CASE NO. 11-CV-01846-LHK sf-3175960 1 1 5. Moreover, if contract manufacturers gain access to Apple’s capacity data, it would 2 harm Apple immensely. Success in Apple’s industry is in large part dependent upon 3 identification and selection of key contract manufacturers. If these entities are able to view 4 Apple’s historical and recent capacity data, and thereby gain insight into the patterns in the 5 fluctuations of Apple’s supply chain, they would be able to predict when Apple may be most 6 driven to increase supply and could negotiate exorbitant rates using their unfairly gained 7 knowledge. 8 9 6. Similarly, access to Apple’s cost and profit information would give competitors a substantial and unfair advantage over Apple. Competitors could tailor their product offerings and 10 pricing to undercut Apple. Competitors would be able to determine exactly what price level 11 would make a given product unprofitable to Apple, and target their product offerings at exactly 12 that price. Access to Apple’s cost information would also harm Apple with respect to component 13 suppliers. Apple’s suppliers could use this information to alter their pricing on components 14 Apple uses in its products, looking at the cost of goods for Apple’s related products and Apple’s 15 product margins on specific products. 16 7. None of the material above is disclosed publicly by Apple or any competitor of 17 whom I am aware. As a result, if Apple’s information were disclosed, it would not simply be 18 harmed—it would have no defense, as it has no access to similar data from the competitors that 19 would use the information against Apple. This is not a matter of Apple wanting to keep secret 20 information that most of the world shares—this type of information is generally understood in the 21 industry to be critically important to keep under lock and key. 22 23 24 25 26 27 28 DECLARATION OF MARK BUCKLEY CASE NO. 11-CV-01846-LHK sf-3175960 2 1 8. Apple also seeks to seal various license agreements and information derived from 2 license agreements. In all cases, these license agreements are subject to strict confidentiality 3 provisions. Even within Apple, very few employees have access to these agreements, and they 4 are maintained in a highly secure manner to prevent any inadvertent disclosure. 5 6 7 I declare under penalty of perjury that the foregoing is true and correct. Executed this 27th day of July, 2012 at Cupertino, California. 8 /s/ Mark Buckley Mark Buckley 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 DECLARATION OF MARK BUCKLEY CASE NO. 11-CV-01846-LHK sf-3175960 3 1 2 ATTESTATION OF E-FILED SIGNATURE I, Michael A. Jacobs, am the ECF User whose ID and password are being used to file this 3 Declaration. In compliance with General Order 45, X.B., I hereby attest that Mark Buckley has 4 concurred in this filing. 5 Dated: July 27, 2012 6 /s/ Michael A. Jacobs Michael A. Jacobs 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 DECLARATION OF MARK BUCKLEY CASE NO. 11-CV-01846-LHK sf-3175960 4

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