Disney Enterprises, Inc. et al v. Hotfile Corp. et al

Filing 301

MOTION for Summary Judgment >WARNER BROS. ENTERTAINMENT INC.'S MOTION FOR SUMMARY JUDGMENT AND MEMORANDUM OF LAW IN SUPPORT OF MOTION (PUBLIC REDACTED VERSION)< by Warner Bros. Entertainment Inc.. Responses due by 3/15/2012 (Attachments: # 1 Affidavit Declaration of Scott A. Zebrak in Support of Warner's Motion for Summary Judgment (public redacted version), # 2 Exhibit A to Declaration of S. Zebrak, # 3 Exhibit B to Declaration of S. Zebrak, # 4 Affidavit Declaration of Dr. Ian Foster in Support of Warner's Motion for Summary Judgment (public redacted version), # 5 Exhibit A to Declaration of I. Foster, # 6 Affidavit Declaration of david Kaplan in Support of Warner's Motion for Summary Judgment (public redacted version), # 7 Affidavit Declaration of Kerry Hopkins in Support of Warner's Motion for Summary Judgment (public redacted version), # 8 Exhibit A to Declaration of K. Hopkins, # 9 Affidavit Declaration of Jennifer Yeh in Support of Warner's Motion for Summary Judgment (public redacted version), # 10 Exhibit A to Declaration of J. Yeh, # 11 Exhibit B to Declaration of J. Yeh, # 12 Exhibit C to Declaration of J. Yeh, # 13 Exhibit D to Declaration of J. Yeh, # 14 Exhibit E to Declaration of J. Yeh, # 15 Exhibit F to Declaration of J. Yeh, # 16 Exhibit G to Declaration of J. Yeh, # 17 Exhibit H to Declaration of J. Yeh, # 18 Exhibit I to Declaration of J. Yeh, # 19 Exhibit J to Declaration of J. Yeh, # 20 Exhibit K to Declaration of J. Yeh, # 21 Exhibit L to Declaration of J. yeh, # 22 Exhibit M to Declaraton of J. Yeh, # 23 Exhibit N to Declaration of J. Yeh, # 24 Exhibit O to Declaration of J. Yeh, # 25 Exhibit P to declaration of J. Yeh, # 26 Exhibit Q to Declaration of J. Yeh, # 27 Text of Proposed Order)(Stetson, Karen)

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EXHIBIT B Highly Confidential Page 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF FLORIDA CASE NO. 11-20427-WILLIAMS/TURNOFF - - - - - - - - - - - - - - - - - - - - - - - - - DISNEY ENTERPRISES, INC., TWENTIETH CENTURY FOX FILM CORPORATION, UNIVERSAL CITY STUDIOS PRODUCTIONS LLLP, COLUMBIA PICTURES INDUSTRIES, INC., and WARNER BROS. ENTERTAINMENT, INC., Plaintiff, v. HOTFILE CORP., ANTON TITOV, and DOES 1-10, Defendants. HOTFILE CORP., Counterclaimant, v. WARNER BROS ENTERTAINMENT INC., Counterdefendant. - - - - - - - - - - - - - - - - - - - - - - - - VOLUME I H I G H L Y C O N F I D E N T I A L (Pursuant to protective order, the following transcript has been designated highly confidential) 30(b)(6) DEPOSITION OF ANTON TITOV Radisson Blu Hotel Sofia, Bulgaria Monday, December 5, 2011 Job Number: 44174 TSG Reporting - Worldwide 800-702-9580 Highly Confidential Page 2 1 2 3 4 5 A P P E A R A N C E S ATTORNEY FOR THE PLAINTIFFS: JENNER & BLOCK BY: STEVEN B. FABRIZIO, ESQ. 1099 New York Avenue, NW Washington, DC 20001 6 7 8 9 10 11 12 ATTORNEY FOR THE DEFENDANTS HOTFILE CORP., AND ANTON TITOV: FARELLA, BRAUN & MARTEL BY: RODERICK M. THOMPSON, ESQ. 235 Montgomery Street San Francisco, California 94104 13 14 15 16 BOSTON LAW GROUP VALENTIN GURVITS 825 Beacon Street Newton Center, MA 02459 17 18 19 20 21 22 23 24 25 TSG Reporting - Worldwide 800-702-9580 Highly Confidential Page 3 1 2 3 4 5 6 7 8 9 10 Also present: Court reporter: Fiona Farson TSG Reporting Videographer: Simon Rutson TSG Reporting Interpreter: Assist. Prof. Boris Naimushin, Ph.D. 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 TSG Reporting - Worldwide 800-702-9580 Highly Confidential Page 156 4 A. The counterclaim against Warner reflects the fact that 5 we've given Warner a powerful tool to be able to take 6 down and block content on the Hotfile website, and that 7 this tool, in our opinion, was misused to take down 8 files for which Warner doesn't hold the copyright. 9 That's the substance, without the legal part. 10 BY MR. FABRIZIO: 11 Q. 12 And do you believe Warner took down material that it didn't own on purpose? 13 MR. THOMPSON: 14 A. 15 BY MR. FABRIZIO: 16 Q. Objection, vague. I don't know about the motives of Warner doing so. Would you believe Warner saw a file, recognized that it 17 wasn't one of their properties, but sent a notice 18 through the special rights holder's account, knowing 19 that it wasn't their property? 20 MR. THOMPSON: 21 22 23 Objection. Hypothetical, calls for speculation. A. I don't know what was Warner's goal or policy, so I don't know. TSG Reporting - Worldwide 800-702-9580 Highly Confidential Page 157 1 2 process to send DMCA notices? A. 3 4 I am not ruling out this possibility, but I don't have any proof of this, I guess. Q. Okay. So do you have any knowledge of the process 5 Warner uses to identify content it believes to be 6 infringing and to send notices about that content to 7 Hotfile? 8 A. 9 lawyers may know more, because some of the information 10 11 I know -- I don't know the actual process, and my is classified in a way that I don't have access to. Q. 12 Fair enough. Hotfile, in its operations, uses processes that are fully automated, do they not? 13 MR. THOMPSON: 14 A. 15 BY MR. FABRIZIO: 16 Q. 17 Objection. Vague and overbroad. Yes, it does. Okay. Is it Hotfile's position that -- that an automated system of sending notices is never acceptable? 18 MR. THOMPSON: 22 Q. Okay. Objection. As someone who helps operate a very large-scale 23 system, do you agree that any system will yield some 24 errors? 25 MR. THOMPSON: Objection. Overbroad and vague. TSG Reporting - Worldwide 800-702-9580 Highly Confidential Page 158 1 A. I don't want to say that, and probably somebody 2 operating an online banking account won't agree to you, 3 but mistakes happen. 4 BY MR. FABRIZIO: 5 Q. But mistakes do happen? 6 A. Yes, they do. TSG Reporting - Worldwide 800-702-9580 Highly Confidential Page 159 1 a large scale? 2 MR. THOMPSON: 3 A. I don't know. 6 Q. Is it true, is it not, that Hotfile began looking for Objection, calls for a legal conclusion. 7 a basis for a counterclaim almost immediately upon being 8 sued by plaintiffs? 9 MR. THOMPSON: Objection, assumes facts. 10 A. 11 BY MR. FABRIZIO: 12 Q. Yes, I think so. And prior to the filing of the complaint in this action, 13 Hotfile never investigated any Warner takedown notices 14 before that? 15 MR. THOMPSON: 16 A. 17 MR. FABRIZIO: Objection, overbroad and vague. I'm not aware of such an investigation. I don't believe this needs to be marked, 18 since it's a pleading in the case, but I just want to 19 make sure the witness has in front of him the second 20 amended answer and counterclaim. 21 22 23 Do you believe it needs to be marked? I'm happy to do whatever you like. MR. THOMPSON: If you're representing that it's filed, TSG Reporting - Worldwide 800-702-9580 Highly Confidential Page 162 1 BY MR. FABRIZIO: 2 Q. 3 MR. THOMPSON: 5 Q. I realize -Excuse me for interrupting. Mr. Titov, you personally participated in the process of 6 Hotfile looking for mistakes among the takedown notices 7 Warner sent, correct? 8 A. That is correct. 9 Q. Okay. And do you understand the files listed on 10 exhibits A through D of the counterclaim to reflect 11 files that Hotfile located that they believed to have 12 been sent in error? 13 A. Hotfile itself identified a small number of files, and 14 further research was performed by counsels and experts. 15 I -- I don't really know. 16 Q. Okay. And all of the files that are identified on 17 exhibits A through D, is it fair to say that the first 18 time Hotfile formed the belief that these files were 19 sent in error was after the complaint in this case had 20 been filed? 21 A. Yes, I believe so. 22 Q. And is it also fair to say that within Hotfile, the 23 process of identifying potential mistaken takedowns sent 24 by Warner was a high priority? 25 MR. THOMPSON: Objection, vague. TSG Reporting - Worldwide 800-702-9580 Highly Confidential Page 163 1 A. I don't know. It might be, for a certain period of 2 time. 6 of three pages: 7 translation, and the certification of the translator. 8 9 (Titov exhibit 26 marked for identification.) MR. FABRIZIO: 10 11 12 13 14 A Bulgarian original, an English This is off the record. (Discussion off the record.) MR. THOMPSON: Mr. Fabrizio, just from looking at this, it doesn't appear to me to match. MR. FABRIZIO: May I see? That may explain something else I'm looking at. 15 16 I was looking at. 17 going to adjust this exhibit; my apologies. 18 I'll take this exhibit back, so we're And now I will impress you all with my mastery of 19 Bulgarian. 20 the exhibit 26 that had been previously marked, and I'm 21 going to re-mark as exhibit 26 -- is that acceptable? All right. So we have withdrawn exhibit -- 22 MR. THOMPSON: Sure. 23 MR. FABRIZIO: A one-page document -- darn, hold on 24 a second. 25 A one-page document bearing Bates number HF02303232. TSG Reporting - Worldwide 800-702-9580 Highly Confidential Page 164 1 (Exhibit Titov 26 re-marked for identification.) 2 BY MR. FABRIZIO: 3 Q. 4 Mr. Titov, I take it that you have no issues reading this document in Bulgarian? 5 A. 6 MR. THOMPSON: 7 No, I don't. His counsel does. Mr. Fabrizio, let me also just state while he's 8 reading that, we have become aware in the last week or 9 two or some inadvertent produced documents that were 10 written in Bulgarian that contained work product 11 information. 12 return. 13 being able to read the Bulgarian. And I'd ask -- have asked for their I don't know if this is among them or not, not 14 MR. FABRIZIO: Well, then, we can deal with that afterwards. 15 MR. THOMPSON: And I'd just like to -- I'll allow this to 16 continue, but I want to reserve a potential objection to 17 the extent this has any work product. 18 MR. FABRIZIO: Okay. Fair enough. 19 objection. 20 You preserve the say whether we agree or not. Obviously, until we see what it is, I can't 21 TSG Reporting - Worldwide 800-702-9580 REDACTED REDACTED REDACTED REDACTED REDACTED REDACTED REDACTED REDACTED Highly Confidential Page 184 to "mistakenly" as vague and ambiguous. 1 You can answer. 2 3 A. To my belief, Hotfile doesn't have information about 4 each and every file and part of information about each 5 and every file is classified to a level of 6 confidentiality that won't allow Hotfile access to it. (Reporter clarification.) 7 Confidentiality that won't allow Hotfile access to 8 it. 9 10 BY MR. FABRIZIO: 11 Q. Well, I'm asking about your contention, not information 12 that's confidential. And I don't know how this would 13 qualify anyway, but is it Hotfile's belief that the 14 files on which it is suing Warner were mistakenly taken 15 down by Warner? 16 MR. THOMPSON: Objection, vague and ambiguous. 17 A. To the extent we believe everybody who worked on Q. Did you assign the users that uploaded those files on 18 21 22 exhibits A through D a strike pursuant to your post 23 complaint repeat infringer policy? 24 MR. THOMPSON: 25 A. Objection. Vague and overbroad. I don't know about every and each file, but it is my TSG Reporting - Worldwide 800-702-9580 Highly Confidential Page 185 1 belief that there were strikes assigned with -- 2 connected to these deletions. 3 BY MR. FABRIZIO: 4 Q. So my question is, why did you assign a strike to the 5 users who uploaded those files if you believed that 6 Warner's notices were in error? 7 MR. THOMPSON: 8 A. 9 Objection, overbroad. The strike was probably assigned quite earlier in time quite earlier in time than Hotfile became -- Hotfile 10 started to believe that these files are mistakenly 11 removed. 12 BY MR. FABRIZIO: 13 Q. 14 When did you start assigning strikes? It was only after the complaint was filed, correct? 15 A. Correct. 16 Q. Okay. And shortly after the complaint was filed, you 17 began investigating filing a claim against Warner, 18 correct? 19 MR. THOMPSON: 20 A. 21 BY MR. FABRIZIO: 22 Q. Objection. Vague, asked and answered. Correct. So I believe it's the case that every single one of the 23 files on exhibits A through D are -- were taken down 24 after the filing of this, or -- I shouldn't say that; 25 either within a week of or -- the filing or after the TSG Reporting - Worldwide 800-702-9580 Highly Confidential Page 186 1 filing of this complaint, but you didn't start assigning 2 it strikes until afterwards -- let me do this 3 a different way. 4 I'm going to stop. Strike that. At some point before you were assigning strikes, you 5 believe that Warner -- some of the Warner notices were 6 mistaken, correct? 7 MR. THOMPSON: 8 A. 9 BY MR. FABRIZIO: 10 Q. Objection, misstates prior testimony. I don't know about the exact timeline. All right. Let me just ask it this way: Why didn't you 11 just go back and remove the strikes you had given the 12 users that uploaded the files on exhibits A through D of 13 the counterclaim, if you believed that those files were 14 taken down in error? 15 MR. THOMPSON: 16 A. 17 BY MR. FABRIZIO: 18 Q. 19 Objection. Overbroad, and vague as to time. I don't know. There's no technical reason why you couldn't have removed a strike, is there? 20 MR. THOMPSON: 21 A. Same objections. Yeah, there is no technical reason not to remove 22 a strike, but it might be too late after months or -- 23 generally, this investigation, it takes time. 24 BY MR. FABRIZIO: 25 Q. Did you go back and remove any strikes? TSG Reporting - Worldwide 800-702-9580 Highly Confidential Page 187 1 A. I did not. 2 Q. Did anyone in Hotfile, to your knowledge? 3 A. To my knowledge, no. 4 Q. Why not? 5 A. I don't know. 6 MR. THOMPSON: Are we ready for -- to stop? 7 MR. FABRIZIO: Unless you're prepared to indulge me starting 8 on a new line of questions, which I imagine not. 9 MR. THOMPSON: I think we should start in the morning. 10 MR. FABRIZIO: Okay. 11 MR. THOMPSON: At the right location. 12 MR. FABRIZIO: I was going to say: 13 Here, in this very room. It will be easier for you guys. 14 MR. THOMPSON: Next time please give us notice; that's all. 15 MR. FABRIZIO: Off the record. 16 VIDEOGRAPHER: Off the record. 21 22 23 24 25 TSG Reporting - Worldwide 800-702-9580 Highly Confidential Page 189 1 HIGHLY CONFIDENTIAL CERTIFICATE OF COURT REPORTER 2 3 4 5 6 7 8 9 10 I, Fiona Farson, with TSG Reporting, hereby certify that the testimony of the witness Anton Titov in the foregoing transcript, taken on Monday, December 5, 2011 was reported by me in machine shorthand and was thereafter transcribed by me; and that the foregoing transcript is a true and accurate verbatim record of the said testimony. I further certify that I am not a relative, employee, counsel or financially involved with any of the parties to the within cause, nor am I an employee or relative of any counsel for the parties, nor am I in any way interested in the outcome of the within cause. 11 12 13 14 15 16 17 Signed: ........................ Fiona Farson Dated: December 15th, 2011 18 19 20 21 22 23 24 25 TSG Reporting - Worldwide 800-702-9580 Highly Confidential Page 191 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF FLORIDA CASE NO. 11-20427-WILLIAMS/TURNOFF - - - - - - - - - - - - - - - - - - - - - - - - - DISNEY ENTERPRISES, INC., TWENTIETH CENTURY FOX FILM CORPORATION, UNIVERSAL CITY STUDIOS PRODUCTIONS LLLP, COLUMBIA PICTURES INDUSTRIES, INC., and WARNER BROS. ENTERTAINMENT, INC., Plaintiff, v. HOTFILE CORP., ANTON TITOV, and DOES 1-10, Defendants. HOTFILE CORP., Counterclaimant, v. WARNER BROS ENTERTAINMENT INC., Counterdefendant. - - - - - - - - - - - - - - - - - - - - - - - - VOLUME II H I G H L Y C O N F I D E N T I A L (Pursuant to protective order, the following transcript has been designated highly confidential) 30(b)(6) DEPOSITION OF ANTON TITOV Radisson Blu Hotel Sofia, Bulgaria Tuesday, December 6, 2011 AT: 9:10 a.m. Job No: 44175 TSG Reporting - Worldwide (877) 702-9580 Highly Confidential Page 192 1 2 3 4 5 6 A P P E A R A N C E S ATTORNEY FOR THE PLAINTIFFS: JENNER & BLOCK BY: STEVEN B. FABRIZIO, ESQ. 1099 New York Avenue, NW Washington, DC 20001 7 8 9 10 11 12 13 14 15 ATTORNEY FOR THE DEFENDANTS HOTFILE CORP., AND ANTON TITOV: FARELLA, BRAUN & MARTEL BY: RODERICK M. THOMPSON, ESQ. 235 Montgomery Street San Francisco, California 94104 BOSTON LAW GROUP VALENTIN GURVITS 825 Beacon Street Newton Center, MA 02459 16 17 18 19 20 21 22 23 24 25 TSG Reporting - Worldwide (877) 702-9580 Highly Confidential Page 193 1 2 3 4 5 6 7 8 9 10 11 12 13 Also present: Court reporter: Fiona Farson TSG Reporting Videographer: Simon Rutson TSG Reporting Interpreter: Assist. Prof. Boris Naimushin, Ph.D. Technical expert: Kelly Truelove 14 15 16 17 18 19 20 21 22 23 24 25 TSG Reporting - Worldwide (877) 702-9580 Highly Confidential Page 210 1 2 notices; is that correct? MR. THOMPSON: 3 5 Objection, vague. Just so -- are you asking him if that's what he said, or if that's the policy? Q. Is it the case that currently Hotfile terminates users 6 who have received three strikes based on Hotfile's 7 receipt of DMCA notices? 8 A. That is correct, to my knowledge, yes. 15 A. I don't know. 16 BY MR. FABRIZIO: 17 Q. You don't know? 18 A. It's a very broad topic. 19 20 I don't have any factual information. Q. Okay. Let me ask it this way: Does Hotfile consider 21 itself entitled to revenue from users who are repeat 22 copyright infringers by Hotfile's own standard? 23 MR. THOMPSON: 24 25 Objection. Vague and ambiguous, calls for a legal conclusion, and argumentative. A. I don't think so. TSG Reporting - Worldwide (877) 702-9580 Highly Confidential Page 211 1 BY MR. FABRIZIO: 2 Q. Okay, let me make sure I understand your answer. 3 Is it correct that Hotfile does not consider itself 4 entitled to revenue from users who are repeat copyright 5 infringers by Hotfile's own standard? 6 MR. THOMPSON: 7 A. Same objections, and also it's overbroad. Well, I've said that our standards expect, of course, 8 copyright owners to co-operate; it means to issue right 9 and correct taking-down notices. So I don't think 10 Hotfile considers income from confirmed copyright 11 infringers -- Hotfile doesn't consider to be entitled 12 for income from repeated copyright infringers. 13 Q. In Hotfile's counterclaim against Warner, does Hotfile 14 claim damages based on users who were properly 15 terminated by Hotfile's repeat infringer policy pursuant 16 to Hotfile's own three-strikes policy? 17 MR. THOMPSON: 18 19 Objection. Calls for a legal conclusion, vague and ambiguous as to "properly." A. 20 My belief is that we called for damages that are for users that terminated based on wrongful takedown. 21 BY MR. FABRIZIO: 22 Q. 23 MR. THOMPSON: 24 25 Okay, let me put it a different way. Excuse me, the last word, I think the reporter didn't hear him correctly. MR. FABRIZIO: It's a rough, but I'm sure she'll correct it. TSG Reporting - Worldwide (877) 702-9580 Highly Confidential Page 212 1 It says "wrongful data"; it should say "wrongful 2 takedowns." 3 MR. THOMPSON: 4 BY MR. FABRIZIO: 5 Q. Thank you. Hotfile's current policy is that users who are the 6 subject of three DMCA notices from copyright owners 7 should be terminated, correct? 8 A. Yes. 9 Q. Okay. To my belief, it's the current policy. If a user had received more than three notices 10 before a Warner notice that was in error, should that 11 user have been terminated irrespective of the Warner 12 notice? 13 MR. THOMPSON: 14 15 Objection. Vague and ambiguous, incomplete hypothetical. A. 16 If you assume that other notices were correct, then I believe so. 17 BY MR. FABRIZIO: 18 Q. Okay. So in that case, if Warner was -- if the Warner 19 notice that was in error was the fourth, fifth, sixth or 20 tenth strike, Hotfile would not consider that Warner 21 notice to be the cause of that user termination because 22 the user already should have been terminated based on 23 having three previous strikes. 24 25 MR. THOMPSON: Objection. Is that correct? Hypothetical, calls for speculation. TSG Reporting - Worldwide (877) 702-9580 Highly Confidential Page 213 1 A. 2 BY MR. FABRIZIO: 3 Q. Yeah, you may say so. And so we are clear, Hotfile does not know whether any 4 users were terminated as a result of an erroneous Warner 5 takedown; is that correct? 6 MR. THOMPSON: 7 revealing attorney work product information. 8 I instruct you not to reveal any attorney work 9 10 Objection, to the extent it calls for product information in answering. A. Again, I will repeat that Hotfile didn't perform -- 11 I believe that Hotfile didn't ever perform such an 12 investigation for its own use. 13 BY MR. FABRIZIO: 14 Q. All right, I want to draw a distinction between 15 a takedown of a file and a termination of a user. 16 understand that those are two distinct concepts, 17 correct? 18 MR. THOMPSON: 19 A. 20 BY MR. FABRIZIO: 21 Q. You 22 23 24 Objection, vague. They are two different actions, I would say. Okay. I just want to make sure we understand the distinction. Has Hotfile ever received a complaint from a user about a mistaken takedown of a file? 25 TSG Reporting - Worldwide (877) 702-9580 Highly Confidential Page 214 1 A. 2 My understanding is that you are asking for any file, and with that in mind, I'm aware of such situations. 3 BY MR. FABRIZIO: 4 Q. 5 Do such complaints by users typically get forwarded to you? 6 MR. THOMPSON: 7 A. 8 9 10 Objection, vague. I remember seeing some of those, but I can't say whether it's typically or occasionally. BY MR. FABRIZIO: Q. Okay. So has Hotfile ever received a complaint from 11 a user based on the takedowns of the files listed on 12 exhibits A through D of your counterclaim? 13 MR. THOMPSON: 14 Objection, vague. Again I instruct the witness not to reveal any work product information. 15 MR. FABRIZIO: I don't think that's possible. 16 MR. THOMPSON: I don't really care what you think is 17 possible. 18 MR. FABRIZIO: 23 Q. That's the instruction. But your instructions are -- can confuse Has Hotfile ever received a complaint from a Hotfile 24 user regarding one of the files in exhibits A through D 25 of the counterclaim that Hotfile contends were wrongly TSG Reporting - Worldwide (877) 702-9580 Highly Confidential Page 215 taken down? 1 2 MR. THOMPSON: I'm instructing Mr. Titov not to reveal the 3 results of any work product investigation. 4 extent he can answer without doing so, he's free to do 5 so. 6 A. 7 BY MR. FABRIZIO: 8 Q. To the A. No, I -- I don't know if Hotfile ever received such a complaint. 11 12 You don't know whether Hotfile has ever received such a complaint? 9 10 I don't know. Q. So as you sit here today, you are unaware of any 13 complaint Hotfile received from a user based on the 14 Warner takedowns in exhibits A through D of the 15 counterclaim, correct? 16 A. Yes, that is correct. 17 Q. Have you had any communications with anyone outside of 18 Hotfile, excluding your counsel, regarding any of the 19 Warner Brothers takedowns that you consider to be 20 mistaken? 21 MR. THOMPSON: Mr. Fabrizio would include by that any working for counsel. 22 23 MR. FABRIZIO: 24 A. Yes, of course. Nothing that I can remember particularly. TSG Reporting - Worldwide (877) 702-9580 Highly Confidential Page 216 1 Q. Okay, let me be more specific: Have you had discussions 2 or communications with any Hotfile affiliates about 3 Warner takedowns that Hotfile believes to be erroneous? 4 A. I'm not aware of any. 5 Q. Have you had discussions or communications with any site 6 operator regarding Warner takedowns that Hotfile 7 believes to be erroneous? 8 A. As I sit here today, I can't think of any. 9 Q. Are you aware that anyone else at Hotfile having had 10 such conversations or discussions? 11 A. No, I'm not. 12 Q. Have you had communications with any user who was I don't think so. 13 terminated by Hotfile about any Warner takedowns that 14 Hotfile believes to have been erroneously made? 15 A. I don't know. 16 Q. Have you identified a single Hotfile user who was 17 terminated where a Warner takedown was that user's third 18 strike? 19 MR. THOMPSON: Again, Mr. Titov I instruct you to exclude 20 the results from any attorney work product 21 investigation. If you can answer and do that, you're 22 TSG Reporting - Worldwide (877) 702-9580 Highly Confidential Page 223 3 Q. I didn't ask you whether it was possible to do. I asked 4 you whether, as you sit here today, you can identify 5 a single user who terminated a premium account as 6 a result of a Warner notice that Hotfile beliefs was 7 mistakenly sent. 8 MR. THOMPSON: 9 A. Objection, asked and answered. No, I believe I cannot. 10 BY MR. FABRIZIO: 11 Q. Can you identify a single user who failed to sign up for 12 a premium account because of a Warner notice that 13 Hotfile believes was mistakenly sent? 14 A. 15 No, I don't think I can, but I'm not an expert in lost revenues. 16 (Reporter clarification.) 19 revenues. 20 you can identify any user who failed to sign up for a 21 premium account because of a Warner Brothers takedown 22 notice that you believe was mistakenly sent. 23 MR. THOMPSON: 24 25 I'm asking you, as a factual matter, whether Objection. Asked and answered, argumentative. A. I don't believe I can. TSG Reporting - Worldwide (877) 702-9580 Highly Confidential Page 224 1 BY MR. FABRIZIO: 2 Q. 3 If you look back at paragraph 38, Mr. Titov, under subparagraph 3, it refers to "damage to its reputation 4 6 Q. Can you explain to us what damage to Hotfile's 7 reputation and goodwill you believe resulted from 8 Warner's sending the takedown notices on exhibits A 9 through D of the counterclaim? 10 A. Users had their files suspended, or even received 11 strikes, and been terminated without a reason for that. 12 That -- normally that will -- it's my opinion that that 13 will damage the reputation. 14 Q. That's your opinion? 15 A. It is. 16 Q. But you previously testified that you can't identify any 17 user who complained about having one of their files 18 taken down as a result of one of the exhibit A through D 19 takedowns, correct? 20 MR. THOMPSON: 21 Objection. The testimony speaks for itself. Asked and answered. 22 A. 23 BY MR. FABRIZIO: 24 Q. 25 I'm currently not aware of any. Okay. And you also testified that you're not aware of a single user who was terminated as a result of one of the TSG Reporting - Worldwide (877) 702-9580 Highly Confidential Page 225 1 takedown notices sent by Warner that are on exhibits A 2 through D of your counterclaim, correct? 3 MR. THOMPSON: 4 A. 5 Same objections. I think my testimony was that Hotfile never performed such analysis for its own use and enjoyment. 6 BY MR. FABRIZIO: 7 Q. Is there any other basis for the contention that 8 Hotfile's reputation and goodwill was injured, other 9 than what you perceived to be wrongly taken down files 10 and wrongly terminated users? 11 MR. THOMPSON: 12 A. 13 Objection. Misstates prior testimony. As of now, I can't think of any, but there might be others. 14 BY MR. FABRIZIO: 15 Q. 16 17 Hotfile's reputation and goodwill? MR. THOMPSON: 18 19 In what way does having a user's file removed impact removed? A. Objection, vague. Do you mean wrongfully Overbroad. I think that when user receives -- a user -- user's file 20 are being wrongfully take down, he will lose trust and 21 respect for the company who he expected to host him -- 22 his file. 23 BY MR. FABRIZIO: 24 Q. Anything else? 25 A. Nothing that I think of -- can think of now. TSG Reporting - Worldwide (877) 702-9580 Remind me. Highly Confidential Page 226 1 Q. Does Hotfile, in your view, lose the trust and respect 2 of its users when it takes down a file that is in fact 3 copyright infringing? 4 A. I don't believe so. 5 Q. Why not? 6 A. Because the user is infringing. TSG Reporting - Worldwide (877) 702-9580 Highly Confidential Page 227 hypothetical. 1 2 A. If the strikes are based on wrongful takedowns, I think so, can lose trust. 3 4 BY MR. FABRIZIO: 5 Q. absolutely correct notices? 6 7 11 And what if at least three of the strikes are based on MR. THOMPSON: Q. And does Hotfile, in your view, lose the trust and 12 respect of its users when it terminates a user who is 13 a repeat infringer under Hotfile's post complaint 14 policies? 15 MR. THOMPSON: 16 A. 17 BY MR. FABRIZIO: 18 Q. 19 MR. THOMPSON: 20 A. Objection, overbroad. I don't know if Hotfile is concerned about this. What do you mean by that? Objection, vague. I mean that if the user is confirmed as copyright 21 infringer, it's not Hotfile's concern what the user 22 thinks about Hotfile. TSG Reporting - Worldwide (877) 702-9580 Highly Confidential Page 233 1 2 question, when excluding what we know from our counsel. MR. FABRIZIO: Okay. Rod, if -- I'm trying to figure out 3 how you're conveying to your client a fact that I 4 conveyed to you or Warner conveyed to you, but you're 5 telling him to exclude that knowledge from his answer. 6 MR. THOMPSON: Because our selection of what facts to -- or 7 information we know to share with our client is 8 obviously attorney/client communication. 9 MR. FABRIZIO: Well, you're just conveying what I told you. 10 MR. THOMPSON: Whether or not I choose to convey that to the 11 client is my subjective work product and attorney/client 12 communications. 13 MR. FABRIZIO: 17 Q. All right. Mr. Titov, I will tell you that all or substantially all 18 of the files listed in exhibit A consist of works for 19 which the games maker EA owns the copyright, and EA has 20 authorized Warner to issue the takedown notices that 21 resulted in their takedown upon learning after the fact, 22 after Warner -- after Warner learned of this instance. 23 24 25 Does Hotfile still contend that the exhibit A works are wrongful takedowns? MR. THOMPSON: Objection, to the extent the preamble is TSG Reporting - Worldwide (877) 702-9580 Highly Confidential Page 234 1 2 confusing and incomplete. A. Also incomplete hypothetical. Since you are presenting me the facts and I don't have 3 the opportunity to confer with anybody else at Hotfile 4 now, I can only ask -- answer for myself, but I won't -- 5 I don't think I would consider takedowns of the games 6 you mentioned wrongful. 7 BY MR. FABRIZIO: 8 Q. 9 Is there -- you and I may refer to this differently, so let me just say how I refer to it: 10 Is there something that -- on Hotfile that you refer to as "list pages"? 11 A. Yeah, I believe so. 12 Q. Can you describe what they are? 13 A. It is a page that consists of a number of links, to cut 14 15 Hotfile down on pages. Q. 16 And is a list page a page that is hosted on the hotfile.com servers? 17 A. Yes, it's fair to say that. 18 Q. For what purpose does Hotfile offer users list pages, or TSG Reporting - Worldwide (877) 702-9580 REDACTED REDACTED Highly Confidential Page 335 1 address to prevent that user from continuing to download 2 files from hotfile.com? 3 MR. THOMPSON: 4 A. 5 BY MR. FABRIZIO: 6 Q. Same objection. No, it does not. All right. At what specific point in the processing of 7 a notice, whether it's an email notice or an SRA notice, 8 is a strike recorded? 9 A. When the notice is processed. 10 Q. Is the strike recorded when the processing begins, or 11 12 only when the processing has completed? A. I would say completed. Q. And forgive me, we may have covered this last time, 13 15 16 but -- I know it was following the filing of this 17 action, but when after the filing of this action did 18 Hotfile adopt the strike system? 19 A. I think it was towards the end of February. 20 Q. If a user uploads an item that is -- that has already 21 been blocked -- well, strike that. 22 Currently, if Hotfile gets a notice about a file, in 23 addition to deleting the file, Hotfile take the MB5 hash 24 and prevents -- prevents other users from uploading 25 TSG Reporting - Worldwide (877) 702-9580 Highly Confidential Page 372 1 HIGHLY CONFIDENTIAL CERTIFICATE OF COURT REPORTER 2 3 4 5 6 7 8 9 10 I, Fiona Farson, with TSG Reporting, hereby certify that the testimony of the witness Anton Titov in the foregoing transcript, taken on Tuesday, December 6, 2011 was reported by me in machine shorthand and was thereafter transcribed by me; and that the foregoing transcript is a true and accurate verbatim record of the said testimony. I further certify that I am not a relative, employee, counsel or financially involved with any of the parties to the within cause, nor am I an employee or relative of any counsel for the parties, nor am I in any way interested in the outcome of the within cause. 11 12 13 14 15 16 17 Signed: ........................ Fiona Farson Dated: 12/17/2011 18 19 20 21 22 23 24 25 TSG Reporting - Worldwide (877) 702-9580

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