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

Filing 2126

Declaration of Susan Estrich in Support of 2013 MOTION for Judgment as a Matter of Law, New Trial and/or Remittitur Pursuant to Federal Rules of Civil Procedure 50 and 59, 2054 Brief, 2053 Opposition/Response to Motion, filed bySamsung Electronics America, Inc.(a New York corporation), Samsung Electronics Co. Ltd., Samsung Telecommunications America, LLC. (Attachments: # 1 Exhibit 1 to the Estrich Declaration, # 2 Exhibit 2 to the Estrich Declaration, # 3 Exhibit 3 to the Estrich Declaration, # 4 Exhibit 4 to the Estrich Declaration, # 5 Exhibit 5 to the Estrich Declaration, # 6 Exhibit 6 to the Estrich Declaration, # 7 Exhibit 7 to the Estrich Declaration, # 8 Exhibit 8 to the Estrich Declaration, # 9 Exhibit 9 to the Estrich Declaration, # 10 Exhibit 10 to the Estrich Declaration, # 11 Exhibit 11 to the Estrich Declaration, # 12 Exhibit 12 to the Estrich Declaration, # 13 Exhibit 13 to the Estrich Declaration, # 14 Exhibit 14 to the Estrich Declaration, # 15 Exhibit 15 to the Estrich Declaration, # 16 Exhibit 16 to the Estrich Declaration, # 17 Exhibit 17 to the Estrich Declaration, # 18 Exhibit 18 to the Estrich Declaration, # 19 Exhibit 19 to the Estrich Declaration, # 20 Exhibit 20 to the Estrich Declaration, # 21 Exhibit 21 to the Estrich Declaration, # 22 Exhibit 22 to the Estrich Declaration, # 23 Exhibit 23 to the Estrich Declaration, # 24 Exhibit 24 to the Estrich Declaration, # 25 Exhibit 25 to the Estrich Declaration, # 26 Exhibit 26 to the Estrich Declaration, # 27 Exhibit 27 to the Estrich Declaration, # 28 Exhibit 28 to the Estrich Declaration, # 29 Exhibit 29 to the Estrich Declaration, # 30 Exhibit 30 to the Estrich Declaration, # 31 Exhibit 31 to the Estrich Declaration)(Related document(s) 2013 , 2054 , 2053 ) (Maroulis, Victoria) (Filed on 11/9/2012)

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Estrich Declaration Exhibit 15 HIGHLY CONFIDENTIAL - ATTORNEYS' EYES ONLY 1 UNITED STATES DISTRICT COURT 2 NORTHERN DISTRICT OF CALIFORNIA 3 SAN JOSE DIVISION 4 5 APPLE INC., a California 6 corporation, CASE NUMBER 7 Plaintiff, 8 vs 9 11-CV-01846-LHK (PSG) SAMSUNG ELECTRONICS CO., LTD., 10 a Korean business entity, 11 SAMSUNG ELECTRONICS AMERICA, 12 INC., a New York corporation, 13 et al., 14 Defendants. ______________________________________________________ 15 HIGHLY CONFIDENTIAL - ATTORNEYS' EYES ONLY 16 17 CONTINUED VIDEOTAPED DEPOSITION OF PHILIP W. 18 SCHILLER CUPERTINO, CALIFORNIA 19 FRIDAY, NOVEMBER 2, 2012 20 VOLUME II 21 REPORTED BY: 22 THOMAS J. FRASIK 23 RPR, CSR No. 6961 Job No. 1554045 24 25 PAGES 404 - 534 Page 404 Veritext National Deposition & Litigation Services 866 299-5127 HIGHLY CONFIDENTIAL - ATTORNEYS' EYES ONLY 1 UNITED STATES DISTRICT COURT 2 NORTHERN DISTRICT OF CALIFORNIA 3 SAN JOSE DIVISION 4 5 APPLE INC., a California 6 corporation, 7 CASE NUMBER Plaintiff, 8 vs 9 11-CV-01846-LHK (PSG) SAMSUNG ELECTRONICS CO., LTD., 10 a Korean business entity, 11 SAMSUNG ELECTRONICS AMERICA, 12 INC., a New York corporation, 13 SAMSUNG TELECOMMUNICATIONS 14 AMERICA, LLC, a Delaware limited 15 liability company, 16 17 Defendants. ______________________________________________________ 18 19 Confidential Videotaped Deposition of 20 PHILIP W. SCHILLER, VOLUME II, at 3 Infinite Loop, 21 Cupertino, California, beginning at 1:01 p.m., and 22 ending at 4:25 p.m., on Friday, November 2, 2012, 23 before THOMAS J. FRASIK, Registered Professional 24 Reporter, Certified Shorthand Reporter No. 6961. 25 Page 405 Veritext National Deposition & Litigation Services 866 299-5127 HIGHLY CONFIDENTIAL - ATTORNEYS' EYES ONLY 1 APPEARANCES OF COUNSEL: 2 3 FOR PLAINTIFF APPLE INC.: 4 5 MORRISON & FOERSTER LLP 6 BY: 7 425 Market Street 8 San Francisco, California 9 415-268-7000 10 MICHAEL A. JACOBS, ESQ. 94105 mjacobs@mofo.com 11 12 APPLE INC. 13 BY: 14 MS 3-PAT, 1 Infinite Loop 15 Cupertino, California 16 408-862-4884 CYNDI WHEELER, ESQ. 95014 17 18 FOR DEFENDANTS: 19 QUINN EMANUEL 20 BY: 21 865 South Figueroa, Tenth Floor 22 Los Angeles, California 23 213-443-3000 24 michaelzeller@quinnemanuel.com MICHAEL T. ZELLER, ESQ. 90017 25 Page 406 Veritext National Deposition & Litigation Services 866 299-5127 HIGHLY CONFIDENTIAL - ATTORNEYS' EYES ONLY 1 MR. JACOBS: 2 Objection. THE WITNESS: I was involved in the choice to 3 include a number of these documents. 4 BY MR. ZELLER: 5 Q. Do any of the attachments to Exhibit 1677, your 6 declaration, show any of the reasons why consumers 7 13:07:03 purchase Samsung devices? 8 MR. JACOBS: 9 THE WITNESS: 10 Objection. Let me look at them again, please. 11 13:07:20 I do not believe that any of the attachments 12 include any specific reasons directly why a Samsung user 13 may by a Samsung phone. 14 BY MR. ZELLER: 15 Q. Prior to the time that you prepared and signed 16 this declaration we've marked as Exhibit 1677, did you 17 undertake any investigation to determine whether or not 18 Apple has in its possession studies or research showing 19 the reasons why consumers purchase any Samsung 20 smartphone? 21 A. 13:08:58 13:09:14 I do not recall looking for Samsung research 22 performed by Apple. 23 created ourselves specifically of Samsung users. 24 25 Q. I'm not aware of any that we have I take it you didn't ask anyone to look into whether or not Apple had such studies or research; is 13:09:38 Page 414 Veritext National Deposition & Litigation Services 866 299-5127 HIGHLY CONFIDENTIAL - ATTORNEYS' EYES ONLY 1 Q. And so we'll just take these one at a time. 2 Focusing your attention on the Galaxy S II AT&T device 3 you refer to in your declaration, does Apple have any 4 tests or studies showing the reasons why consumers 5 purchased that device at any time? 6 7 8 9 10 A. 13:12:49 I am not aware of any study that we have on the reasons for purchase of a Galaxy S II AT&T customer. Q. Do you have any hard data or direct knowledge as to the reasons why consumers have ever purchased that product? 13:13:07 11 MR. JACOBS: 12 THE WITNESS: Objection. Form. I have a lot of knowledge of why 13 customers purchase smartphone products, yes. 14 BY MR. ZELLER: 15 Q. Do you know specifically why consumers purchase 16 the Galaxy SII AT&T? 17 13:13:20 5 of your declaration. 18 19 20 21 A. It's referenced here in paragraph Yes, I do believe I have some knowledge of why consumers may purchase a Galaxy SII AT&T. Q. Do you have hard data or hard information to 13:13:39 back up what you believe is that knowledge? 22 MR. JACOBS: 23 THE WITNESS: Objection. I'm sorry. Form. I don't know what you 24 mean by "hard data," "hard information." 25 BY MR. ZELLER: 13:13:51 Page 417 Veritext National Deposition & Litigation Services 866 299-5127 HIGHLY CONFIDENTIAL - ATTORNEYS' EYES ONLY 1 Q. Do you have specific empirical data that you 2 can point us to to support any beliefs that you have as 3 to the reasons why consumers have purchased the Galaxy 4 S II from AT&T? 5 MR. JACOBS: 6 THE WITNESS: Objection. Form. 13:14:03 I have a great deal of 7 information from my position over the years in marketing 8 and selling phones as to why people select cellphones, 9 smartphones, including the Galaxy phone, including 10 discussions with customers, with press, product 11 reviewers, people who sell them in the channel and in 12 the stores, and a great deal of information gathered 13 from all of my time working in this business. 14 BY MR. ZELLER: 15 Q. And those conversations pertain specifically to 16 13:14:39 the reasons consumers purchase the Galaxy S II from 17 13:14:26 AT&T, the AT&T version of it? 18 A. Certainly that was one of the products, 19 including many products that I've asked the people that 20 sell the products, you know, why people buy them, ask 21 customers. 22 Galaxy SIIs. 23 interfaces with people who either sell, market, review, 24 or use these products, including the Galaxy S II. 25 Q. 13:14:55 I've spoken with customers who have had And throughout my years I've had many Please tell me what is the most important 13:15:13 Page 418 Veritext National Deposition & Litigation Services 866 299-5127 HIGHLY CONFIDENTIAL - ATTORNEYS' EYES ONLY 1 feature that drives consumer demand for the Galaxy S II 2 AT&T version. 3 MR. JACOBS: 4 THE WITNESS: Objection. Form. I think there are a number of 5 features that go into a customer's reason for purchasing 6 products such as the Galaxy S II, and they include 7 design, ease of use, performance, price, to list a few. 8 BY MR. ZELLER: 9 Q. 13:15:29 Which is the most important of those with 10 respect to what drives consumer demand for the Galaxy 11 S II AT&T version? 12 MR. JACOBS: 13 THE WITNESS: 13:15:58 Objection. I don't understand your question. 14 Because, in my experience, customers have many -- 15 customers have a number of reasons they purchase a 16 product, not only solely one, and each person may have a 17 different primary reason. 18 BY MR. ZELLER: 19 Q. 13:16:12 It varies by customer. What percentage of consumers who purchase the 20 Galaxy S II, the AT&T version, purchased it because of 21 ease of use? 22 A. 23 24 25 13:16:29 I have not done a quantitative study of Galaxy S II users for the reasons for purchase. Q. What percentage of those consumers purchased it because of price? 13:16:45 Page 419 Veritext National Deposition & Litigation Services 866 299-5127 HIGHLY CONFIDENTIAL - ATTORNEYS' EYES ONLY 1 2 factors into the decision most all the time. Q. So what percentage is your testimony of the 3 number of consumers who purchased the Galaxy S II AT&T 4 version because of design, to use your term? 5 MR. JACOBS: 6 THE WITNESS: Objection. Form. 13:18:33 As I stated earlier, I think 7 customers don't purchase a product only solely on one 8 factor. 9 into your purchase decision, design is one of those I think there are a number of factors that go 10 factors. 11 a hundred percent, at least consider design in their 12 purchase. 13 others, I don't know. 14 study of that. 15 BY MR. ZELLER: 16 Q. And I think most everybody, which is close to 13:18:47 Whether what ranking it is relative to I've not done a quantitative 13:19:05 So it's true that with respect to these factors 17 that you mentioned, design, ease of use, performance, 18 price and any other factors, you can't put them into a 19 rank order in their importance to consumers? 20 MR. JACOBS: 21 THE WITNESS: Objection. Form. 13:19:20 Are we talking specifically only 22 about the Galaxy S II from AT&T? 23 BY MR. ZELLER: 24 Q. Correct. 25 A. I do not know the ranking of those elements to 13:19:28 Page 421 Veritext National Deposition & Litigation Services 866 299-5127 HIGHLY CONFIDENTIAL - ATTORNEYS' EYES ONLY 1 Galaxy S II users because I've not done a quantitative 2 study of that. 3 4 5 Q. And I take it you don't know which one is the most important among the ones you mentioned; correct? A. I do not know on average in a quantitative 6 study across all the users who purchased it what would 7 13:19:41 average out as the most important, no. 8 9 Q. One factor that you described was what you called "ease of use." 10 terminology? 11 A. What do you mean by that in your 13:20:02 Ease of use is a broad term that covers the 12 interface between the product and the user. This is my 13 lay personal definition. 14 what appears on the screen and how you interact with it 15 in the case of a phone, the features it has, and the 16 steps it takes to utilize those features all go into 17 ease of use. 18 Q. Anything else? 19 A. I'm sure there's a lot more that goes into it. That often is about the -- 20 If you'd like me to take some time, I can try to think 21 of every possible element that goes into ease of use. 22 13:20:25 It's a very broad topic. 23 Q. 13:20:41 Well, I'm trying to understand how you're using 24 the term so, I mean, is that a complete answer in terms 25 of how you're using it or is there more? 13:20:58 Page 422 Veritext National Deposition & Litigation Services 866 299-5127 HIGHLY CONFIDENTIAL - ATTORNEYS' EYES ONLY 1 A. Again, my -- as I described, it's a very broad 2 term that covers many things. Most commonly, it's known 3 for how you interact with a device. 4 began with computers, people talk about computers being 5 easy to use, and that meant how the user interacts with 6 the software but it can also include the input devices, 7 in case there's buttons and switches, the interaction 8 between hardware and software, the setup experience, the 9 ability to access advanced features and what are very 10 visible and exposed versus ones you have to study to 11 learn to use. 12 Q. And often -- it 13:21:21 13:21:41 It's, again, a very broad industry term. Another term that you used as a factor was 13 "performance." 14 "performance." 15 A. Please the tell me what do you mean by Performance, again, is a very broad term. It 16 can deal with the speed of a device, it can -- deals 17 with how fast it is to access and use features; it also 18 can relate to network performance, things outside of the 19 device that it interfaces to; deals with things such as 20 the time it takes to start up a device, the time it 21 takes to wake up the device, the time it takes to 22 perform actions. 23 you might not know anything of performance but actually 24 are related such as battery life are often considered 25 elements of performance to many users. 13:21:59 13:22:21 It can also deal with elements such as Those are a few 13:22:41 Page 423 Veritext National Deposition & Litigation Services 866 299-5127 HIGHLY CONFIDENTIAL - ATTORNEYS' EYES ONLY 1 examples. 2 3 Q. Then you used the term "design" as a factor. What do you mean by "design"? 4 A. 5 things. 6 shape of it, the color of it, the materials that are 7 used, the size, the weight. 8 other elements as well. 9 software. 10 Q. Design is a very broad term that covers many A few examples are how something looks, the 13:22:55 I'm sure there are many It includes both hardware and Focusing on the reasons why consumers purchased 11 at any time the Galaxy S II, this AT&T version that 12 we've been discussing, does the choice of carrier factor 13 13:23:14 into the decision of the consumer? 14 MR. JACOBS: 15 THE WITNESS: Objection. Form. Speaking specifically about the 16 Samsung Galaxy S II, I haven't done a study to say 17 exactly what -- the extent of what things all 18 contributed to users' decisions to purchase. 19 13:23:43 BY MR. ZELLER: 20 21 Q. Generally speaking, do consumers have certain 13:24:05 preferences for certain carriers? 22 A. I haven't done a study on carrier preference by 23 user so I can't speak quantitatively, specifically to 24 what may or may not be a study of that factor. 25 know. I don't 13:24:26 Page 424 Veritext National Deposition & Litigation Services 866 299-5127 HIGHLY CONFIDENTIAL - ATTORNEYS' EYES ONLY 1 Q. Do you have any knowledge or information as to 2 whether or not carrier preference has been a feature or 3 attribute that has driven consumer demand for that 4 product? 5 MR. JACOBS: Objection. Form. 6 Do you mean the S II AT&T? 7 MR. ZELLER: 8 THE WITNESS: 13:24:42 Correct. I haven't done a study 9 specifically of the Galaxy S II, so I do not know to 10 what extent carrier preference played any part in a 11 purchase decision. 12 BY MR. ZELLER: 13 Q. 13:24:51 Does Apple have any tests or studies showing 14 the reasons why consumers purchased the T-Mobile version 15 of the Galaxy S II? 16 A. 13:25:07 I'm not aware of any study that we have done 17 at Apple about the specific reasons for purchase of a 18 Galaxy S II by Galaxy S II customers for T-Mobile. 19 Q. Do you have any hard data on that subject? 20 MR. JACOBS: 21 THE WITNESS: Objection. Form. 13:25:24 Again, if you could please tell 22 me what you mean by "hard data." 23 BY MR. ZELLER: 24 25 Q. Do you have any kind of verifiable empirical information that would allow you to say with certainty, 13:25:36 Page 425 Veritext National Deposition & Litigation Services 866 299-5127 HIGHLY CONFIDENTIAL - ATTORNEYS' EYES ONLY 1 with confidence, what the reasons are that consumers 2 have purchased the AT -- excuse me -- the T-Mobile 3 version of the Galaxy S II? 4 MR. JACOBS: 5 THE WITNESS: Objection. Form. As I also explained with the AT&T 6 version, as with the T-Mobile, I have a great deal of 7 experience over the years speaking with customers of 8 these products, with channel partners who sell them, 9 13:25:51 with press who review them, and on and on, that have 10 given me some knowledge of why customers may purchase a 11 product or how they may look at the purchase process, 12 what they think about when they're purchasing a product 13 like the Galaxy S II at T-Mobile. 14 BY MR. ZELLER: 15 Q. What's the most important feature or reason why 16 13:26:29 consumers have purchased the T-Mobile version of the 17 13:26:13 Galaxy S II? 18 MR. JACOBS: 19 THE WITNESS: Objection. Form. I believe that there isn't one 20 singular, most important reason for all customers. 21 believe there's a mix of things that a customer looks at 22 and thinks about when they purchase a smartphone product 23 like the Galaxy S II at T-Mobile. 24 BY MR. ZELLER: 25 Q. I The reasons why or what the most important 13:26:46 13:27:07 Page 426 Veritext National Deposition & Litigation Services 866 299-5127 HIGHLY CONFIDENTIAL - ATTORNEYS' EYES ONLY 1 2 correct? A. We attached the studies to the declaration in 3 support of some of the statements that we make within 4 the declaration, yes. 5 Q. And I take it you didn't have any reason to 6 doubt or hesitate the veracity of the information that 7 you put forth and attached here to your declaration; 8 13:30:02 right? 9 A. Every study we do has a -- has a measure of 10 its estimated accuracy based on the percentage of the 11 population surveyed and the range of responses, and you 12 try to make sure that within an acceptable range of data 13 that it is representative of the larger population and 14 therefore likely very accurate for whatever topic you're 15 asking about. 16 well-done surveys, as we do at Apple. 17 Q. I think that's normal procedure for any 13:30:24 13:30:47 And certainly your intention in submitting this 18 declaration, along with these excerpts from the studies, 19 that the court rely on these materials; correct? 20 A. We believe these materials are accurate that 21 we've attached and that I believe that they're very 22 representative of what we think the population at large 23 that we were interviewing in the surveys believe and we 24 13:31:07 believe that is accurate and true. 25 Q. And why do you -- why do you have confidence in 13:31:20 Page 429 Veritext National Deposition & Litigation Services 866 299-5127 HIGHLY CONFIDENTIAL - ATTORNEYS' EYES ONLY 1 don't tell you and what they're not good for. 2 must be very mindful and careful when one does surveys. 3 BY MR. ZELLER: 4 Q. So one Do you have the authority, as part of your 5 position here at Apple, to ask others to conduct surveys 6 and studies as to the reasons why consumers purchase 7 particular products? 8 9 10 11 A. 13:32:52 Yes, I can ask our team to conduct surveys to ask questions about why customers may purchase a particular product. Q. 13:33:14 You could have done that in connection with the 12 reasons why it is that consumers purchase Samsung 13 devices; correct? 14 MR. JACOBS: 15 THE WITNESS: 16 No. Form. That wouldn't be very easy 13:33:24 for us to do. 17 Objection. BY MR. ZELLER: 18 Q. You don't have any authority to instruct others 19 to conduct surveys to determine the reasons why 20 consumers purchase Samsung devices? 21 A. 13:33:39 I have the authority to ask the research team 22 to conduct a survey. 23 nature done by Apple would be easy to do was the point 24 of my comment. 25 Q. I don't think a survey of that At any time here at Apple have you ever 13:33:59 Page 431 Veritext National Deposition & Litigation Services 866 299-5127 HIGHLY CONFIDENTIAL - ATTORNEYS' EYES ONLY 1 that are -- that are possible. 2 Increasingly, as you investigate those methods 3 coming from Apple to a competitor's products, those 4 methods may become less reliable and less sure in terms 5 of their potential results. 6 inclined to do that research because I would less trust 7 the veracity of them as being done from a competitor. 8 BY MR. ZELLER: 9 Q. So I would not be as 13:37:01 Was there in fact a specific reason why you did 10 not ask anyone to undertake a survey as to the reasons 11 why consumers purchased Samsung devices prior to the 12 time that you signed your declaration which we've marked 13 as Exhibit 1677? 14 15 MR. JACOBS: 17 Object and instruct not to answer on work product and attorney-client privilege grounds. 16 13:37:17 13:37:34 You can answer that to the extent there was some nonprivileged reason that you didn't do something. 18 THE WITNESS: 19 time. 20 None that I can think of at this BY MR. ZELLER: 21 Q. 13:37:49 Are you able to tell us what the five most 22 common and important reasons are for why consumers 23 purchased the T-Mobile version of the Galaxy S II? 24 MR. JACOBS: 25 THE WITNESS: Objection. Form. I can tell you based on my 13:38:15 Page 434 Veritext National Deposition & Litigation Services 866 299-5127 HIGHLY CONFIDENTIAL - ATTORNEYS' EYES ONLY 1 experience and discussions with customers, reviewers, 2 general partners and others what I believe some of the 3 most common reasons that a customer might purchase a 4 Samsung Galaxy II from T-Mobile, if you would like those 5 reasons. 6 BY MR. ZELLER: 7 8 Q. 13:38:41 Can you tell me the most important in rank order? 9 MR. JACOBS: 10 THE WITNESS: Objection. Form. I have not done a quantitative 11 study to rank order by percentage the reasons that a 12 customer purchases a Galaxy S II from T-Mobile. 13 13:38:51 BY MR. ZELLER: 14 Q. Beyond what you mentioned previously in 15 connection with the AT&T version of the Galaxy S II 16 where you named design, performance, ease of use and 17 price, do you know of any other factors that have gone 18 into the reasons why consumers have purchased the Galaxy 19 S II T-Mobile version specifically? 20 MR. JACOBS: 21 THE WITNESS: Objection. Form. 13:39:06 13:39:30 In addition -- I cannot think of 22 any other reasons off the top of my head at this moment 23 in addition to those. 24 25 Those are some of the most important reasons customers choose these products. 13:39:44 Page 435 Veritext National Deposition & Litigation Services 866 299-5127 HIGHLY CONFIDENTIAL - ATTORNEYS' EYES ONLY 1 2 BY MR. ZELLER: Q. Can you tell me what percentage of consumers 3 consider price to be an important factor in the purchase 4 of their T-Mobile version of the Galaxy S II? 5 A. I cannot tell you an exact percentage that 6 customers chose price when purchasing a Galaxy S II from 7 T-Mobile because we have not done a quantitative study 8 13:40:02 to give exact percentages of that. 9 Q. Well, you haven't done a qualitative study at 10 all on that subject; correct? 11 MR. JACOBS: 12 THE WITNESS: Objection. 13:40:26 Form. We have not done a quantitative 13 or qualitative study of Samsung Galaxy S II from 14 T-Mobile purchasers. 15 BY MR. ZELLER: 16 Q. 13:40:39 And I take it you can't provide for me any 17 information on a percentage basis as to the number of 18 consumers who purchased that product for a given reason; 19 is that true? 20 A. In order to provide a percentage, I would need 21 to do a quantitative study, which we have not done, of 22 13:41:01 Galaxy S II T-Mobile purchasers. 23 Q. Does Apple have any test or study showing the 24 reasons why consumers purchased the Galaxy S II Epic 4G 25 Touch, which is referenced there in paragraph 5 of your 13:41:26 Page 436 Veritext National Deposition & Litigation Services 866 299-5127 HIGHLY CONFIDENTIAL - ATTORNEYS' EYES ONLY 1 declaration? 2 A. I do not believe we have done a study of 3 reasons for purchase of a Galaxy S II Epic 4G Touch from 4 Sprint at Apple. 5 Q. Do you have any direct knowledge as to what the 6 most important reason is as to why consumers have 7 13:41:44 purchased that product? 8 9 A. I do not believe there was one simple most important reason. As stated before, I believe there are 10 a number of reasons that go into consumers purchase of 11 smartphones and I believe I already outlined a list of 12 many of those important factors that a customer 13 considers. 14 Q. 13:42:03 And those are the ones you mentioned previously 15 in connection with the AT&T version of the Galaxy S II; 16 right? 17 A. 13:42:21 I believe the reasons a customer purchases a 18 Galaxy S II and the factors they consider are similar 19 across all the carriers, including Sprint. 20 Q. Does Apple have any test or study showing the 21 reasons why consumers have purchased at any time the 22 Galaxy S II Skyrocket that's referenced there in 23 13:42:39 paragraph 5 of your declaration? 24 25 A. I'm not aware that Apple has done a study of Galaxy S II Skyrocket from AT&T customers' buying 13:43:10 Page 437 Veritext National Deposition & Litigation Services 866 299-5127 HIGHLY CONFIDENTIAL - ATTORNEYS' EYES ONLY 1 preferences. 2 Q. You address some additional phones in paragraph 3 6 of your declaration. 4 does Apple have any tests or studies showing the reasons 5 why consumers purchased the Droid Charge? 6 A. So focusing on those phones, 13:43:37 I'm not aware of a study that Apple has done 7 for the specific reasons for purchase for a Droid 8 Charge. 9 Q. Or the Galaxy Prevail? 10 A. I am not aware of a study that Apple has done 11 the reasons customers may have purchased a Samsung 12 13:43:57 Galaxy Prevail. 13 Q. Or the Galaxy S 4G? 14 A. I'm not aware of a study that Apple has done 15 for the specific reasons for purchase for a Samsung 16 Galaxy S 4G. 17 Q. Or for the Showcase? 18 A. I'm not aware of a study that Apple has done 19 for the specific reasons for purchase for a customer of 20 the Galaxy -- Samsung Galaxy Showcase. 13:44:11 21 Q. 13:44:27 By the way, from time to time Apple commissions 22 or engages third parties to do research on its behalf; 23 is that true? 24 A. 25 Apple works with third parties to often purchase research they have already done or to assist us 13:44:46 Page 438 Veritext National Deposition & Litigation Services 866 299-5127 HIGHLY CONFIDENTIAL - ATTORNEYS' EYES ONLY 1 THE WITNESS: There may be studies that Apple 2 has of why someone has ever purchased a Samsung device 3 of any kind. 4 have read one. 5 BY MR. ZELLER: 6 Q. I don't want to state either way. I may I do not recall at this moment. 13:47:32 I take it that in the declaration that you're 7 offering in this case you're not relying on such 8 studies; is that true? 9 A. The studies specifically in support of the 10 statements made in the declaration are the ones that are 11 provided and not others not provided to the best of my 12 knowledge, yes. 13 Q. 13:47:44 And the ones that are attached to your 14 declaration, as we talked about earlier, are studies 15 about the reasons why consumers purchase Apple products; 16 right? 17 A. 13:47:55 The studies attached to my declaration are 18 specifically studies about Apple customers and their 19 purchase of Apple products. 20 Q. Focusing on the phones that are mentioned 21 specifically in paragraphs 5 and 6 of your declaration, 22 are you aware of any third-party research or studies 23 that have been done into the reasons why consumers 24 13:48:09 purchased those products? 25 A. I can't speak to the world of studies that have 13:48:29 Page 441 Veritext National Deposition & Litigation Services 866 299-5127 HIGHLY CONFIDENTIAL - ATTORNEYS' EYES ONLY 1 been done. I'm not aware of a study that I can recall 2 at this moment specifically on these phones done by any 3 third party. 4 Q. Does Apple have in its possession, whether it's 5 a study that it's done or done by a third party, any 6 data showing the reasons why consumers purchase any 7 Galaxy Tab device? 8 9 10 11 A. 13:48:49 I do not recall any studies that Apple has in its possession for specific reasons a customer purchased a Galaxy Tab device. Q. 13:49:12 Does Apple have any test or studies showing 12 whether consumers who purchased the Galaxy S II 13 Skyrocket would have bought another Android device as 14 opposed to an Apple device if the Galaxy S II Skyrocket 15 product was not available? 16 MR. JACOBS: 17 THE WITNESS: Objection. 13:49:37 Form. I do not recall seeing any survey 18 that explained why the -- what a purchaser of a Galaxy 19 S II Skyrocket might have purchased had they not had -- 20 not purchased a Galaxy S II Skyrocket. 21 BY MR. ZELLER: 22 Q. 13:49:55 Do you have any surveys or consumer research 23 showing that if the Galaxy S II Skyrocket was not 24 available, those consumers would have purchased an Apple 25 iPhone instead? 13:50:14 Page 442 Veritext National Deposition & Litigation Services 866 299-5127 HIGHLY CONFIDENTIAL - ATTORNEYS' EYES ONLY 1 MR. JACOBS: 2 THE WITNESS: Objection. Form. I do not recall seeing a survey 3 that asked consumers of the Galaxy Skyrocket SII what 4 they would have purchased if it had not been in 5 existence. 6 BY MR. ZELLER: 7 Q. 13:50:33 Does Apple have any test or study showing 8 whether consumers who purchased the T-Mobile version of 9 the Galaxy S II would have purchased an Apple device as 10 opposed to some other Android device if the T-Mobile 11 version of the Galaxy S II was not available? 12 A. 13:50:50 I do not recall seeing or reading any survey 13 that Apple has where a Galaxy S II for a T-Mobile 14 customer was asked about what they would purchase if it 15 did not exist. 16 17 18 Q. 13:51:13 Is the same true with respect to the Galaxy S II Epic 4G Touch? A. I also do not recall reading any survey where 19 the user of the Galaxy S II Epic 4G Touch was asked what 20 they would have purchased had it not existed. 21 Q. Is the same true for the AT&T Galaxy S II? 22 A. 13:51:26 I also do not recall reading any survey where a 23 user of a Galaxy S II from AT&T was asked what they 24 would purchase if it did not exist. 25 Q. Is the same true for the Droid Charge? 13:51:43 Page 443 Veritext National Deposition & Litigation Services 866 299-5127 HIGHLY CONFIDENTIAL - ATTORNEYS' EYES ONLY 1 A. I also do not recall reading any survey that 2 Apple has where a customer of the Droid Charge was asked 3 what they would purchase if it did not exist. 4 Q. Is the same true of the Galaxy Prevail? 5 A. I also do not recall reading any survey that 6 Apple has where the customer of a Galaxy Prevail was 7 13:51:56 asked what they would purchase if it did not exist. 8 Q. Is the same true for the Galaxy S 4G? 9 A. I also do not recall reading any survey that 10 Apple has that asked customers of a Samsung Galaxy S 4G 11 what they would have purchased if it did not exist. 12 Q. Is the same true for the Showcase? 13 A. 13:52:13 I also do not recall reading any survey 14 where -- that Apple has where a customer of the Samsung 15 Showcase was asked what they would purchase if it did 16 not exist. 17 18 19 Q. 13:52:31 Is the same true for any Samsung Galaxy Tab devices? A. I do not recall seeing any Apple survey where 20 the customer of a Galaxy Tab was asked what they would 21 purchase if it did not exist. 22 Q. 13:52:47 Do you have any knowledge or information as to 23 what percentage of consumers who purchased the Galaxy 24 S II Skyrocket would have purchased an iPhone if the 25 Galaxy S II Skyrocket was not available? 13:53:09 Page 444 Veritext National Deposition & Litigation Services 866 299-5127 HIGHLY CONFIDENTIAL - ATTORNEYS' EYES ONLY 1 2 Q. And if I asked you the same question about any Galaxy Tab device, you'd give me the same answers? 3 A. Yes, I believe I would. 4 Q. And, in fact, if I asked you any questions 5 about any Samsung device, you'd give me the same 6 answers? 7 A. 14:08:45 With such a broad statement, could you please 8 restate the question in total just to be sure I get it 9 right? 10 Q. Sure, absolutely. Do you have a percentage of 11 consumers who purchased any Samsung device who would 12 have purchased an Apple device had that product not been 13 14:08:55 available? 14 A. We have not studied customers who have 15 purchased a Samsung device of any kind that I can recall 16 where we asked what they would have purchased from Apple 17 if that device did not exist. 18 MR. ZELLER: 19 Thank you. 20 THE VIDEOGRAPHER: 21 number one. Okay. 14:09:20 Now is a good time. This marks the end of disk 14:09:35 We are going off the record at 2:09 p.m. 22 (Recess held.) 23 THE VIDEOGRAPHER: This marks the beginning of 24 disk number two and we're going back on the record at 25 2:18 p.m. 14:18:11 Page 456 Veritext National Deposition & Litigation Services 866 299-5127 HIGHLY CONFIDENTIAL - ATTORNEYS' EYES ONLY 1 attributes? 2 MR. JACOBS: 3 THE WITNESS: Objection. Form. This question that we've 4 represented here on this chart is specifically only to 5 attractive appearance and design and how important that 6 was to the customer. 7 asked other features and where they could similarly rank 8 them, and those are comparable. 9 researcher, look at those, but that isn't what this 10 There were other questions that You can then, as a chart is. 11 14:25:49 BY MR. ZELLER: 12 Q. 14:26:07 Do you know what the relative ranking of 13 features was in terms of overall percentage of who said 14 a given attribute was very important? 15 A. In order to answer completely your question, I 16 would need to go back to the original survey, look at 17 each question, and then compile an answer. 18 recall off the top of my head that attractive appearance 19 and design was very high amongst all the questions that 20 were asked and responses they gave, it was one of the 21 highest. 22 14:26:21 their relative distribution of each. 23 Q. I simply 14:26:40 I don't recall exactly each one of them and Were the iPhone buyer respondents who were 24 surveyed in these surveys shown here in PDX 10.1 asked 25 verbatim the question about "importance of attractive 14:27:00 Page 462 Veritext National Deposition & Litigation Services 866 299-5127 HIGHLY CONFIDENTIAL - ATTORNEYS' EYES ONLY 1 appearance and design," are those the actual words that 2 were used in the questioning to the respondents? 3 A. I believe so, but I would have to look back at 4 the exact methodology report to verify that. 5 best of my knowledge, I believe that is the case. 6 7 8 9 Q. To the 14:27:20 Was this phrase "attractive appearance and design" defined to any of the survey respondents? A. I do not believe the terms "attractive appearance" or "design" were further defined for the 10 respondents. 11 Q. 12 13 14 15 14:27:43 Did these surveys define any more specifically what was meant by "attractive appearance and design"? A. I do not know if there was any more definition provided respondents around those terms. Q. In your view, does this study or group of 14:28:00 16 studies that are summarized here show the relative 17 importance of attractive appearance and design of the 18 hardware as opposed to iOS? 19 A. I believe the response customers provide to 20 this question regarding attractive appearance and design 21 is representative of the entire product, the iPhone in 22 this case, its combination of hardware and software. 23 Q. And nothing more specific than that? 24 A. That is my belief. 25 Q. I direct your attention to Attachment 2. 14:28:31 This 14:28:54 Page 463 Veritext National Deposition & Litigation Services 866 299-5127 HIGHLY CONFIDENTIAL - ATTORNEYS' EYES ONLY 1 pick, they're looking at the thickness and weight, a 2 number of factors all go into the appearance and design 3 that they consider. 4 Q. And do you have any hard data that would allow 5 you to say that any of those features of the design or 6 appearance is more important than others -- 7 8 9 MR. JACOBS: Objection. 14:43:58 Form. BY MR. ZELLER: Q. -- to the consumer in the purchasing decision, 10 or is it all such a mixture that there's no way of 11 separating them, in your view? 12 A. 14:44:14 I don't believe consumers only pick one 13 attribute of a product's appearance and design as most 14 important over some other elements. 15 combination of a few, the most visible and distinctive 16 ones, that often make the most impact on customers. 17 Q. I think it's a 14:44:31 Would you be able to tell me the percentage of 18 consumers who considered the flat glass front of the 19 iPhone 5 to be the factor that really drove their 20 purchasing decision? 21 A. 14:44:54 I don't believe that we have done a 22 quantitative study of the relative weighting of 23 different pieces of design with consumers. 24 25 Q. And is the same true of the other elements that you mentioned, the bezel, the overall shape, the 14:45:15 Page 473 Veritext National Deposition & Litigation Services 866 299-5127 HIGHLY CONFIDENTIAL - ATTORNEYS' EYES ONLY 1 materials, including aluminum and the thickness and 2 weight? 3 A. I don't believe we've done a study of iPhone 5 4 buyers to determine the individual elements of the 5 appearance and design and how they would rank them 6 relative to each other. 7 Q. 14:45:34 Has Apple done any studies or surveys of 8 iPhone 4 or 4S purchasers such that you would be able to 9 tell us from the consumer perspective which of these 10 features of the appearance and design that you mentioned 11 was the most important in their purchasing decision? 12 A. 14:46:00 I am not aware of a study that we have done of 13 iPhone 4 users asking them to weight the relative value 14 of different elements of our design of the iPhone 4. 15 Q. And is the same true of the iPhone 3G and 3GS? 16 A. I'm not aware of a study that we have done at 17 Apple to rank the relative importance of different 18 components of the design for iPhone 3GS or iPhone 4 19 14:46:23 customers. 20 Q. Is the same true of the first iPhone? 21 A. I don't recall us running a survey of iPhone -- 22 original iPhone buyers and what individual elements of 23 the design that customers might rank relative to each 24 14:46:44 other. 25 Q. So I take it with respect to these various 14:47:11 Page 474 Veritext National Deposition & Litigation Services 866 299-5127 HIGHLY CONFIDENTIAL - ATTORNEYS' EYES ONLY 1 factors -- I'm sorry. 2 Strike that. With respect to these various features that 3 you've identified that are part of the appearance and 4 design, I take it you can't tell me what percentage of 5 consumers bought an iPhone because of those features 6 individually. 7 A. 14:47:27 We, through our surveys, can tell the 8 importance of the design in total to those users, not 9 individual features of the design. 10 Q. And the studies that you're referring to that 11 show it at that level, the totality of the appearance 12 and design taken all together for the iPhones, include 13 14:47:49 the studies that are attached to your declaration? 14 15 A. 18 Could I have that question read back? 16 17 I'm sorry. 14:48:13 Q. Sure. I'll try to -- I think I can simplify it. Focusing on the studies that you have attached 19 to your declaration, that you refer to in your 20 declaration, do any of these studies break down and show 21 what features of the appearance and design of these 22 various iPhones drove consumer demand for those phones, 23 or as you understand it these surveys simply show what 24 the totality of all those features among everything else 25 that goes into appearance and design show? 14:48:22 14:48:53 Page 475 Veritext National Deposition & Litigation Services 866 299-5127 HIGHLY CONFIDENTIAL - ATTORNEYS' EYES ONLY 1 2 product? A. I don't think about those elements in terms of 3 having a ranked element of performance because they are 4 one product together that the user experiences and sees, 5 and I don't think I don't think of them as individual 6 components. 7 Q. 14:56:17 Are you able to separate out those features for 8 purposes of identifying which are the most important or 9 relatively the most important for purposes of reasons 10 11 why consumers purchase a given iPhone? A. 14:56:36 I could not easily break them out and don't 12 think that's appropriate for how customers look at a 13 product. 14 which is more important to your health, your heart, your 15 lungs or your brain, as a customer, I would say all of 16 them, they all make up me, and I wouldn't want to have 17 to pick between which one of those things I want, they 18 all make up me. 19 we're discussing all make up what customers identify as 20 the iPhone, and it's not a -- I wouldn't ask a customer 21 to break up what they in their own minds don't think of 22 as separate things. 23 Q. As a way of analogy, if I were to ask you 14:57:00 And, similarly, I think those elements 14:57:16 So I take it you can't identify specifically 24 what features that go into the appearance and design of 25 the iPhones is the most important one to consumers; is 14:57:38 Page 480 Veritext National Deposition & Litigation Services 866 299-5127 HIGHLY CONFIDENTIAL - ATTORNEYS' EYES ONLY 1 2 that true? A. It's my statement that these -- the ones -- 3 the elements I listed are all important and customers 4 consider them together in defining the design of the 5 iPhone, and they're not thought of as individual, 6 separable things to rank in importance. 7 Q. 14:57:57 So I take it that you're not able to tell me 8 what is the most important one from the consumer demand 9 perspective; is that true? 10 A. I don't believe that of the elements I've 11 spoken that there is one to be -- they could be ranked 12 14:58:15 by relative importance. 13 Q. And I take it from your answer you wouldn't be 14 able to rank the five most important features of the 15 appearance and design that drive consumer demand for any 16 iPhone product; correct? 17 A. 14:58:34 I believe I've provided the ones that I believe 18 are the most important. 19 themselves, but I gave them because they're much more 20 important than other things that are smaller and of less 21 importance. 22 screen, the overall shape of it, the iPhone with its 23 rounded corners, its icons on its dock as in the top 24 most important features of design and attractiveness. 25 And they are not ranked within 14:58:55 So, for example, I listed the large front I did not rank other elements of design 14:59:14 Page 481 Veritext National Deposition & Litigation Services 866 299-5127 HIGHLY CONFIDENTIAL - ATTORNEYS' EYES ONLY 1 attractiveness that are, in my belief, not as important. 2 The types of screws we use in the bottom of the iPhone 3 to attach it together are parts of design but I don't 4 think those are as important to customers. 5 the speaker grill holes on the bottom for your 6 microphone and speaker I don't think are as important as 7 the elements I've listed. 8 9 The shape of 14:59:31 So I did list elements that I think are very important, very visual, very influential to customers' 10 decision to purchase an iPhone and why they find it 11 attractive. 12 Q. 14:59:46 And what empirical data can you point us to 13 with respect to the relative importance of these 14 features of appearance and design that you testified to 15 are the most important? 16 A. 15:00:09 The data upon which I have formed my opinion on 17 some of the elements of attractive appearance and design 18 are based on our experience creating the product, 19 showing it to customers, providing it to reviewers and 20 press, talking to customers and hearing their input on 21 what they like about it and on and on, many actual 22 pieces of information that we provide -- that have been 23 provided to us. 24 Q. Is it supported by any consumer surveys? 25 A. I am not aware of any consumer survey that we 15:00:29 15:00:46 Page 482 Veritext National Deposition & Litigation Services 866 299-5127 HIGHLY CONFIDENTIAL - ATTORNEYS' EYES ONLY 1 have done at Apple that studies individual subcomponents 2 of the design for the relative ranking of importance. 3 Q. Focusing on the first iPhone, was the way that 4 the product worked more important to consumers as part 5 of their purchasing decision than the way it looked? 6 MR. JACOBS: 7 THE WITNESS: Objection. 15:01:14 Form. I believe that a number of 8 factors went into importance of the original iPhone and 9 its innovation to consumers when we launched it. 10 appearance and design, the way it, quote, looked, 11 certainly was an extremely important factor in what 12 customers thought about it, what it did for them and the 13 features it had was also of great importance to 14 customers as well. 15 BY MR. ZELLER: 16 Q. The 15:01:40 15:02:06 Do you have any empirical data or survey 17 information that would allow you to provide testimony as 18 to whether consumers considered the look of the first 19 iPhone to be more important than how it worked? 20 MR. JACOBS: 21 THE WITNESS: Object to the form. 15:02:31 I did not say that the look of 22 the iPhone was more important than how it worked. 23 said they were both important to consumers when we 24 launched the original iPhone. 25 I BY MR. ZELLER: 15:02:46 Page 483 Veritext National Deposition & Litigation Services 866 299-5127 HIGHLY CONFIDENTIAL - ATTORNEYS' EYES ONLY 1 specific to this context or go back and list out what I 2 said. 3 iPhone users said in this survey about rating ease of 4 use, and I don't recall the exact words previously in 5 this deposition. 6 Because now we're talking specifically about what Q. I'd have to hear them again. 15:08:07 Please tell me what is your understanding of 7 what "ease of use" means in the context of these surveys 8 that you're relying upon and discussing in your 9 declaration. 10 A. Sure. In this survey, we are asking recent 11 iPhone purchasers -- so in this time, in 2010, we're 12 asking iPhone purchasers of the iPhone 3GS and 13 iPhone 4 -- to tell us how ease of use -- what they 14 thought of ease of use relative to their purchase of 15 an iPhone and to rank it as very important, somewhat 16 important, neither important, somewhat unimportant, very 17 unimportant and don't know. 18 they were given in this question. 19 number of factors went into these customers' 20 consideration of ease of use. 15:08:20 21 15:08:46 Those are the categories And I believe a 15:09:01 First of all, specifically, this is ease of 22 use of an iPhone, so they're talking specifically about 23 their experience using an iPhone. 24 about the multi-touch experience, because that is one of 25 the key elements of owning an iPhone, is it's a So that means it's 15:09:15 Page 487 Veritext National Deposition & Litigation Services 866 299-5127 HIGHLY CONFIDENTIAL - ATTORNEYS' EYES ONLY 1 multi-touch smartphone. So they're talking about using 2 their fingers on the screen to access the applications 3 the iPhone comes with. 4 application on the iPhone is the Safari browser we were 5 just talking about, so using the Safari browser to tap 6 on web links to go to web pages, to use fingers to 7 scroll up and down on the webpage, to doubletap on a 8 story and have the text zoom up and fill the screen, on 9 and on, scroll to the end of the page and how it bumps. For example, a popular 10 Those are all elements of what creates the experience 11 that a customer might consider easy to use. 12 15:09:34 the context of an iPhone user using an iPhone. 13 14 15 Q. 15:09:51 It's all in Any other understanding of what "ease of use" means here, any other features? A. Well, there would be -- sure, there would 16 be many. 17 applications are and how they can have a home screen 18 and tap on it and swipe on it and launch applications. 19 It would be the integration of the hardware and the 20 software, to be able to hold an iPhone with one hand and 21 touch on an application in the dock and launch something 22 simply. It's about using an iPhone and not needing a 23 manual. Customers are always very impressed that you 24 don't need to use a manual to get a lot of functionality 25 out of your iPhone. 15:10:08 There's also our home screen and where There are many elements that go 15:10:24 15:10:44 Page 488 Veritext National Deposition & Litigation Services 866 299-5127 HIGHLY CONFIDENTIAL - ATTORNEYS' EYES ONLY 1 into the experience. 2 I do think the multi-touch user interface part 3 of it is probably among the most important of all the 4 elements of how customers perceive ease of use on an 5 iPhone. 6 Q. 7 8 9 15:10:59 Any other features that go into "ease of use" as you understand it's being used here? A. I'm sure there are many others. There's how you set up an iPhone right out of the box and start 10 using it. It is the range of applications that it 11 comes with and your mail application and all the other 12 software that's on there, how it all works seamlessly 13 together and how it's designed to work together, how you 14 answer a phone call and make a call. 15 features that go into ease of use. 15:11:14 There are many 16 Q. Any other features you can identify? 17 A. 15:11:33 I'm sure there are many more but, time 18 permitting, I don't -- at the moment I can't think of 19 any off the top of my head. 20 21 MR. JACOBS: Mike, at a convenient point for 15:11:49 you, could we take another short break? 22 MR. ZELLER: Sure. 23 MR. JACOBS: Do it now? 24 MR. ZELLER: Yes, now is fine. 25 THE VIDEOGRAPHER: We're going off the record 15:11:59 Page 489 Veritext National Deposition & Litigation Services 866 299-5127 HIGHLY CONFIDENTIAL - ATTORNEYS' EYES ONLY 1 2 3 You understand that some consumers have a preference for Android over iOS; right? A. I have not researched the preference users have 4 of Android versus iOS specifically. 5 research that we've done with that specific question. 6 Q. I don't recall a 15:48:22 So it's true that you're unable to tell me what 7 percentage of consumers purchase a given smartphone 8 because of the operating system that it uses? 9 A. Your question treated the purchase of a phone 10 because of the operating system in a singular as if 11 that's the only feature someone is considering. 12 stated earlier, I do not believe that is the only 13 feature someone considers when they purchase a device. 14 I think customers think of a number of features 15 altogether when they make a purchase decision. 16 Q. 15:48:47 As I 15:49:01 What percentage of consumers of smartphones 17 consider the choice of operating system to be the most 18 important factor in their purchasing decision? 19 A. I have not -- do not recall reading any survey 20 that tells what percent specifically a customer -- of 21 customers rate choice of operating system the number one 22 most important factor in purchasing a smartphone. 23 Q. 15:49:21 Do you have any empirical data or survey 24 evidence that would tell you what percentage of 25 consumers considered the operating system to be 15:49:52 Page 507 Veritext National Deposition & Litigation Services 866 299-5127 HIGHLY CONFIDENTIAL - ATTORNEYS' EYES ONLY 1 2 important in their smartphone purchasing decision? A. I do not recall reading survey -- any survey 3 data about the importance of one operating system versus 4 another in their purchase decision. 5 6 Q. 15:50:08 case, the "bounce patent"? 7 8 Did you review the '381 utility patent in this THE REPORTER: "Bounce"? BY MR. ZELLER: 9 Q. "Bounce." 10 A. I'm not sure what you mean by review the 11 patent. 12 Q. 15:50:32 In connection with your declaration, in 13 preparing your declaration, did you review any Apple 14 patents? 15 16 17 A. No, I did not read any patent documents or 15:50:43 filings. Q. Have you ever read a patent that's sometimes 18 called the '381 Patent? 19 Apple patent that describes a form of bounce-back. 20 A. It's the one that -- it's an I'm familiar with the multi-touch bounce 21 feature. 22 15:50:59 associated with that. 23 Q. I have not read the patent documents Focusing on the bounce feature then in iOS, 24 has Apple done any studies or surveys to determine what 25 percentage of consumers purchased an iPhone device 15:51:21 Page 508 Veritext National Deposition & Litigation Services 866 299-5127 HIGHLY CONFIDENTIAL - ATTORNEYS' EYES ONLY 1 2 because of that feature? A. I don't recall any Apple surveys that my team 3 did on the importance of an individual feature, such as 4 the bounce feature, to the purchase of the device. 5 believe in the trial there was other research 6 referenced, but nothing that I did with my team. 7 Q. I 15:51:46 Is there any survey data or research that 8 you're relying upon in your declaration to -- that 9 relates in any way to the -- whether or not the 10 bounce-back feature is a driver of consumer demand 11 for any iPhone? 12 MR. JACOBS: 13 THE WITNESS: Objection. 15:52:13 Form. I -- when talking about the 14 bounce interface feature in my statements, I am 15 referring to the data regarding ease of use and my 16 knowledge that the bounce feature is a contributor to 17 the overall ease of use experience the customer has with 18 an iPhone. 19 research provided in the declaration and its 20 attachments. 21 BY MR. ZELLER: 22 Q. 15:52:30 And there's a great deal of ease of use 15:52:49 Do you know or have any specific information as 23 to the extent to which the bounce-back feature is a 24 driver of consumer demand for any iPhone product? 25 A. Do I know? Yes, I know that the bounce-back 15:53:06 Page 509 Veritext National Deposition & Litigation Services 866 299-5127 HIGHLY CONFIDENTIAL - ATTORNEYS' EYES ONLY 1 bounce-back was created for the purpose of ease of use. 2 So it isn't separate of ease of use, it is about ease of 3 use. 4 5 Q. "Ease of use" as used in these surveys, as we discussed, include multiple features within it; right? 6 7 It isn't a separable concept. A. 15:58:13 Yes, there are multiple features of ease of use, one of which is bounce-back. 8 Q. So my question is of the specific feature of 9 bounce-back that is part of ease of use, what is the 10 extent to which the bounce-back feature specifically 11 and itself drives consumer demand for any of the 12 iPhone devices? 13 have that quantifies that percentage of consumers? 14 A. 15:58:27 Is there any information that you It is my belief that this percentage of ease of 15 use does quantify bounce-back as a -- one of the many 16 key features of ease of use of iOS in the iPhone and is 17 representative of that value. 18 Q. 15:58:49 Are there any features that are part of ease of 19 use that you've identified in your deposition that are 20 more important than other features in terms of ease of 21 use? 22 MR. JACOBS: 23 THE WITNESS: Objection. I'm sorry. 15:59:08 Form. I don't understand 24 the idea of features of ease of use that have different 25 relative importance. 15:59:24 Page 513 Veritext National Deposition & Litigation Services 866 299-5127 HIGHLY CONFIDENTIAL - ATTORNEYS' EYES ONLY 1 A customer doesn't use an iPhone feature in 2 isolation of the other features, so you can't separate 3 out one from another easily, it's one experience, and 4 the bounce-back feature being a very common one that you 5 run into many times throughout a single day of use. 6 So I feel it affects every user of the iPhone on a daily 7 basis and therefore is absolutely intrinsically tied 8 with the concept of ease of use. 9 BY MR. ZELLER: 10 11 12 Q. 15:59:41 And if I ask you the same questions about the 15:59:56 pinch-to-zoom gesture, you'd give me the same answer? A. I believe that pinch-to-zoom is a very 13 important feature that's intrinsically tied to ease of 14 use in the experience with the iPhone as well. 15 16 Q. And if I ask you the same question about the 16:00:15 doubletap-to-zoom, you'd give me the same answer? 17 A. 18 ease of use. 19 as we launched it, we demoed it, we showed it on TV. 20 think you can't now separate that from customers' minds 21 as a different feature of ease of use. 22 what makes up ease of use on the iPhone. 23 Q. Doubletap-to-zoom is extremely important in In fact, it was written about many times I 16:00:30 It's all part of And I take it that you can't separate out the 24 extent to which pinch-to-zoom or doubletap-to-zoom or 25 bounce-back are relatively important in relationship to 16:00:49 Page 514 Veritext National Deposition & Litigation Services 866 299-5127 HIGHLY CONFIDENTIAL - ATTORNEYS' EYES ONLY 1 one another in terms of what it is that drives consumer 2 demand for iPhone products? 3 A. I certainly haven't ever separated them out. 4 I know, again, through the trial some other research was 5 provided by other people who have, but I have never done 6 that in our research, separated out these individual 7 features. 8 9 10 11 Q. 16:01:09 Are you aware of any empirical data that shows the percentage of consumers who purchased an iPhone product specifically because of pinch-to-zoom? A. 16:01:27 I believe that all customers who purchase an 12 iPhone product in part value pinch-to-zoom in the total 13 experience that they want. 14 data that specifically attempts to quantify that. 15 Apple has done -- what percentage of that applies, I 16 don't recall seeing that kind of a question. 17 Q. I don't know of any survey But 16:01:54 Does Apple have any empirical data or survey 18 evidence that shows the extent to which consumers have 19 purchased any iPhone devices because of 20 doubletap-to-zoom? 21 A. 16:02:19 As with the other two features, I believe most 22 all iPhone users in part purchase the iPhone because of 23 one of the many features it has and has had from the 24 beginning is doubletap-to-zoom and that's critical for 25 their web-surfing experience. But what percent that 16:02:34 Page 515 Veritext National Deposition & Litigation Services 866 299-5127 HIGHLY CONFIDENTIAL - ATTORNEYS' EYES ONLY 1 makes up of their total desire to have an iPhone, I do 2 not know, do not recall a survey question from Apple 3 asking that. 4 Q. Would you consider the bounce-back feature to 5 be one of the five most important reasons why consumers 6 purchase iPhones? 7 A. 16:02:49 I don't think of these features individually 8 myself in terms of a relative importance. The 9 experience we create in iOS and in the user experience 10 of iPhone in total has made it extremely easy to use. 11 Among the many features that we've done that are very 12 important and influential I believe is bounce-back. 13 I recall when we were working on it that, 14 without it, the experience was not nearly as good. 15 when the engineering team created bounce-back, it made a 16 dramatic difference in our usability with iPhone for all 17 of us testing it in our use every single day. 18 it has a great importance. 19 of that importance because we have not researched it 20 that way. 16:03:13 21 Q. And 16:03:31 So I know I can't quantify the percent 16:03:49 So it's true that you can't tell me to what 22 degree the bounce-back feature is an affirmative driver 23 of consumer demand in any sort of quantifiable way, as 24 opposed to you believe it's -- you saw some evidence 25 that its absence made a dramatic difference; is that 16:04:04 Page 516 Veritext National Deposition & Litigation Services 866 299-5127 HIGHLY CONFIDENTIAL - ATTORNEYS' EYES ONLY 1 Of course, price is unique with cellphones in 2 the US because with the subsidized plan model that most 3 phones are sold on, they're really all within the same 4 price range, so it's really sort of neutralized between 5 competing products. 6 are important metrics. 7 I believe quality and performance 16:05:45 So as a customer, you look at this total 8 offering and you make a value decision on whether that's 9 the product you want in total and you consider all of 10 these factors. 11 representative list for what most people are looking at. 12 BY MR. ZELLER: 13 Q. And I think those are a pretty 16:06:01 Focusing on the features that Apple claims to 14 be patented in this case, can you tell me which of them, 15 if any, is the most important reason why consumers 16 purchase iPhones? 17 18 MR. JACOBS: Objection. Form. 16:06:18 Lacks foundation. 19 THE WITNESS: I have not done a survey of the 20 individual patent features to rank their relative 21 importance to consumers in their purchase process. 22 BY MR. ZELLER: 23 Q. 16:06:31 What percentage of consumers have purchased 24 iPhones because of the specific, individual patented 25 features that are at issue in this case? 16:06:53 Page 518 Veritext National Deposition & Litigation Services 866 299-5127 HIGHLY CONFIDENTIAL - ATTORNEYS' EYES ONLY 1 MR. JACOBS: 2 Objection. THE WITNESS: Form. I do not believe customers think 3 about only individual features when they purchase a 4 product like iPhone. 5 features together as one product. 6 customers make a purchase decision. I believe they consider all of the That's how I believe 7 MR. JACOBS: 8 16:07:11 Let me just ask how we doin' on the clock, 9 Excuse me just a second. what's the total time? 10 THE VIDEOGRAPHER: 11 MR. JACOBS: 12 THE VIDEOGRAPHER: 13 MR. JACOBS: 14 Time on the record? 16:07:28 Time on the record. Two hours 47 minutes. Okay. BY MR. ZELLER: 15 Q. So you can't give me percentage? 16 A. I'm sorry. Q. Can you tell me the percentage of consumers 17 18 16:07:36 Could you restate, percentage of what? 19 who have purchased any iPhone products because of the 20 patented features that are at issue in this case? 21 MR. JACOBS: 22 THE WITNESS: Objection. Form. 16:07:51 Foundation. I would estimate that a hundred 23 percent of the customers purchase an iPhone because the 24 patented features in this case are features of the 25 iPhone. I think these are features that matter to 16:08:11 Page 519 Veritext National Deposition & Litigation Services 866 299-5127 HIGHLY CONFIDENTIAL - ATTORNEYS' EYES ONLY 1 2 still being sold? A. I don't know which models are being sold with 3 what specific operating system. 4 the Samsung/Android world which operating system ships 5 with which phone. 6 Q. It's quite confusing in 16:18:41 Well, what percentage of consumers are 7 currently buying any kind of Samsung device because of 8 bounce-back? 9 A. As I stated earlier, I have not done a survey 10 of Samsung purchasers to ascertain what percentage of 11 individual Samsung Galaxy buyers are buying a product 12 for a feature. 13 Q. 16:18:48 Back during the time period when, according to 14 Apple, Samsung's devices had the bounce-back feature 15 with its various devices, do you believe that consumers 16 purchased those Samsung devices because it had the 17 bounce-back feature? 18 A. 16:19:12 I think -- the way I think of it is I believe 19 that if those Samsung devices did not implement 20 bounce-back in copying iOS, fewer customers may have 21 purchased them because they would have been dissatisfied 22 with the ease of use of the product. 23 customers would have chose not to buy it had it not used 24 bounce-back in combination with the other multi-touch 25 features as well. 16:19:34 So I think So I do think there's an impact on 16:19:52 Page 528 Veritext National Deposition & Litigation Services 866 299-5127 HIGHLY CONFIDENTIAL - ATTORNEYS' EYES ONLY 1 DEPOSITION REPORTER'S CERTIFICATION 2 3 4 5 I, the undersigned, a California Certified Shorthand Reporter, do hereby certify: That the foregoing proceedings were taken 6 before me at the time and place herein set forth, at 7 which time the witness was administered the oath; that 8 the testimony of the witness and all objections made by 9 counsel at the time of the proceedings were recorded 10 stenographically by me, and were thereafter transcribed 11 under my direction; that the foregoing transcript 12 contains a full, true, and accurate record of all 13 proceedings. 14 I further certify that I am neither financially 15 interested in the action nor a relative or employee of 16 any attorney or party to this action. 17 18 IN WITNESS WHEREOF, I have this date subscribed my name, dated this 5th day of November, 2012. 19 20 21 22 23 ______________________________ 24 THOMAS J. FRASIK, CSR No. 6961 25 Page 534 Veritext National Deposition & Litigation Services 866 299-5127

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