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).

1
2
3
4
5
6
7
8
9
10

HAROLD J. MCELHINNY (CA SBN 66781)
[e-mail]
MICHAEL A. JACOBS (CA SBN 111664)
[e-mail]
RACHEL KREVANS (CA SBN 116421)
[e-mail]
JENNIFER LEE TAYLOR (CA SBN 161368)
[e-mail]
ALISON M. TUCHER (CA SBN 171363)
[e-mail]
RICHARD S.J. HUNG (CA SBN 197425)
[e-mail]
JASON R. BARTLETT (CA SBN 214530)
[e-mail]
MORRISON & FOERSTER LLP
425 Market Street
San Francisco, California 94105-2482
Telephone: [phone]
Facsimile: [phone]

WILLIAM F. LEE
[e-mail]
WILMER CUTLER PICKERING
HALE AND DORR LLP
60 State Street
Boston, MA 02109
Telephone: [phone]
Facsimile: [phone]
MARK D. SELWYN (SBN 244180)
[e-mail]
WILMER CUTLER PICKERING
HALE AND DORR LLP
950 Page Mill Road
Palo Alto, California 94304
Telephone: [phone]
Facsimile: [phone]

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