Loggerhead Tools, LLC v. Sears Holdings Corporation

Filing 456

MOTION by Defendants Apex Tool Group, LLC, Sears Holdings Corporation, Counter Claimants Apex Tool Group, LLC, Sears Holdings Corporation for judgment as a Matter of Law (Attachments: # 1 Table of Appendices, # 2 Appendix 1, # 3 Appe ndix 2-1, # 4 Appendix 2-2, # 5 Appendix 2-3, # 6 Appendix 2-4, # 7 Appendix 2-5, # 8 Appendix 2-6, # 9 Appendix 2-7, # 10 Appendix 2-8, # 11 Appendix 2-9, # 12 Appendix 2-10, # 13 Appendix 3 - PTX 1, # 14 Appendix 3 - PTX 3, # 15 Appendix 3 - PTX 4, # 16 Appendix 3 - PTX 51, # 17 Appendix 3 - PTX 119, # 18 Appendix 3 - PTX 157, # 19 Appendix 3 - PTX 175, # 20 Appendix 3 - PTX 467, # 21 Appendix 3 - PTX 503, # 22 Appendix 4 - DTX 1, # 23 Appendix 4 - DTX 2 , # 24 Appendix 4 - DTX 3, # 25 Appendix 4 - DTX 5, # 26 Appendix 4 - DTX 7, # 27 Appendix 4 - DTX 8R, # 28 Appendix 4 - DTX 9, # 29 Appendix 4 - DTX 9R, # 30 Appendix 4 - DTX 11, # 31 Appendix 4 - DTX 11R, # 32 Appendix 4 - DTX 23, # 33 Appendix 4 - DTX 24, # 34 Appendix 4 - DTX 74, # 35 Appendix 4 - DTX 75, # 36 Appendix 4 - DTX 212, # 37 Appendix 4 - DTX 213, # 38 Appendix 5)(Sernel, Marcus)

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APPENDIX 2-2 Pope B PLAYED on 5_4 20151007 PA DC on 5-1-17 Pope B PLAYED on 5_4 20151007 PA DC on 5-1-17 Scene 1 Designation 7:23 -7:25 Source Tx Duration Elapsed Pope, Barry 2015-10-07 00:00:04 00:00:00 Pope_B-100715-1of2 M4.1 00:45:15 Pope_B-100715-1of2 M4.2 00:45:11 Pope_B-100715-1of2 M4.3 00:44:40 Pope_B-100715-1of2 M4.4 00:00:59 00:44:20 Pope_B-100715-1of2 M4.5 00:01:04 00:44:15 Pope_B-100715-1of2 M4.6 the record. 7:25 A. Barry William Pope. Pope, Barry 2015-10-07 00:00:04 00:00:04 9:15 under oath today? 9:17 11:2 -11:14 Q. And you understand that you are testifying 9:16 3 A. I do. Pope, Barry 2015-10-07 11:2 11:3 00:00:31 00:00:08 Could you please give just a general overview of your educational background post high 11:4 school? 11:5 A. I graduated from -- do you want from high 11:6 school? 11:7 Q. After high school. 11:8 A. After high school. Okay. 11:9 I graduated from Michigan State in 1984 as 11:10 a packaging engineer, and then I also have a 11:11 master's from DePaul University. I think it's 11:12 Q. What is your master's in? 11:14 22:10 -22:16 1995. 11:13 4 A. MBA with marketing emphasis. Pope, Barry 2015-10-07 00:00:20 00:00:39 22:10 you started with Sears? 22:12 A. I'm thinking it was 2010. 22:13 Q. And what was your initial position at 22:14 Sears? 22:15 A. Initial and only. I was the product 22:16 24:10 -24:13 Q. Do you remember approximately what year 22:11 5 manager for Craftsman hand tools. Pope, Barry 2015-10-07 00:00:05 24:10 A. I do not. 24:12 Q. When did you leave Sears? 24:13 25:7 -25:20 Q. Do you currently work for Sears? 24:11 6 A. In 2014. Pope, Barry 2015-10-07 00:00:50 25:7 were? 25:10 11:14:33PM overview of what your general responsibilities 25:9 5/4/2017 Q. What were your -- can you give me an 25:8 Printed: Barcode Q. Could you please state your full name for 7:24 9:15 -9:17 Media File 00:45:19 7:23 2 Remains A. So this was a great position. It would Page 1 of 22 Pope B PLAYED on 5_4 20151007 PA DC on 5-1-17 25:11 25:12 operating kind of as a buyer, working with our 25:14 vendors. Sears does not manufacture anything, and 25:15 yet we have a whole engineering team, and we do our 25:16 design and development and features. We may take 25:17 products and improve on them, and -- but, 25:18 otherwise, too, we would have vendors come to us, 25:19 and we'll say show us and try to convince us that 25:20 28:14 -28:21 product development, but here we were actually 25:13 7 have the traditional product management, new we could take their product on. Pope, Barry 2015-10-07 28:14 00:00:22 00:01:54 28:15 Pope, Barry 2015-10-07 00:00:10 00:02:16 Pope, Barry 2015-10-07 00:00:21 00:02:26 M4.10 00:42:28 Pope_B-100715-1of2 M4.11 Q. Did you review any documents yesterday in 29:11 preparation for today's deposition? 29:12 A. We went over e-mails. 29:13 Q. Did those e-mails refresh your 29:14 recollection about past events? 29:15 A. It helped a little bit. Pope, Barry 2015-10-07 00:00:04 00:02:47 30:11 Q. Did you sign any type of representation 30:12 agreement with Mr. Hilmert's firm? 30:13 A. Yes. Pope, Barry 2015-10-07 00:00:39 00:02:51 30:25 Q. Are you paying Mr. Hilmert or his firm for 31:1 their representation today? 31:2 A. I am not. 31:3 Q. Do you know who is? 31:4 A. It would be speculation, but since you 31:5 have these gentlemen here and the introductory 31:6 comments said Sears and Apex. 31:7 Q. Are you being compensated for your 31:8 11:14:33PM Pope_B-100715-1of2 A. Five hours, six hours. 29:10 5/4/2017 00:42:32 last? 29:5 Printed: M4.9 Q. Approximately how long did this meeting 29:4 30:25 -31:11 Pope_B-100715-1of2 A. That is correct. 29:3 11 00:42:53 Q. That would be Mr. Hilmert and Mr. Lenihan? 28:21 30:11 -30:13 M4.8 A. The two gentlemen that are sitting here. 28:20 10 Pope_B-100715-1of2 Q. Who is "we"? 28:19 29:10 -29:15 00:43:03 refresh my memory yesterday. 28:18 9 M4.7 A. We had meeting where we just went over to 28:17 29:3 -29:5 Pope_B-100715-1of2 deposition? 28:16 8 00:43:25 What did you do to prepare for today's testimony today? Page 2 of 22 Pope B PLAYED on 5_4 20151007 PA DC on 5-1-17 31:9 A. I am being compensated for the time lost. 31:10 12 31:12 -31:21 Q. How much are you being compensated? 31:11 A. $125 an hour. Pope, Barry 2015-10-07 31:12 00:00:29 00:03:30 00:40:07 Pope_B-100715-1of2 M4.15 yesterday's preparation time? 31:21 A. Just travel time to and from. Pope, Barry 2015-10-07 00:00:24 00:03:59 36:13 Q. Mr. Pope, you've just been handed 36:14 Exhibit 3. At the bottom of this document is what 36:15 we call a Bates stamp. That's where it says 36:16 SEARS_003129. 36:17 A. Yes. 36:18 Q. The top of this document, it says from Dan 36:19 Brown, and it says to Barry Pope; do you see that? 36:20 A. Yes. Pope, Barry 2015-10-07 00:00:49 00:04:23 36:23 Q. And this e-mail is dated November 1, 2010; 36:24 is that correct? 36:25 A. Yes. 37:1 Q. Do you see where it says "Barry, It was 37:2 great meeting you at the ACE show"? 37:3 A. That would be the "ACE show." 37:4 Q. What is the "ACE show"? 37:5 A. Ace Hardware. 37:6 Q. Is this an annual show? 37:7 A. I think they have it a couple of times. 37:8 They have what we call a spring show and a fall 37:9 show. 37:10 Q. Do you recall if this was the first time 37:11 that you ever met Mr. Brown? 37:12 37:13 And feel free to review the e-mail. A. I would believe, yes. Pope, Barry 2015-10-07 00:00:39 00:05:12 38:11 Q. Do you recall anything else about your 38:12 conversation with Mr. Brown related to the Ace 38:13 11:14:33PM M4.14 compensated for other than today's time and 31:20 5/4/2017 Pope_B-100715-1of2 Q. Is there any other time that you're being 31:19 Printed: 00:40:56 A. Yes. 31:18 38:11 -38:24 M4.13 yesterday preparing? 31:17 15 Pope_B-100715-1of2 Q. Does that include the time that you spent 31:16 36:23 -37:13 00:41:20 A. Yes. 31:15 14 M4.12 today's deposition? 31:14 36:13 -36:20 Pope_B-100715-1of2 Q. And is that for the time you spend at 31:13 13 00:41:49 show? Page 3 of 22 Pope B PLAYED on 5_4 20151007 PA DC on 5-1-17 38:14 A. I only recall a total of like, I think, 38:15 two conversations with him. 38:16 What was interesting on this one, where he 38:17 38:18 Northwestern. And the intrigue on my part was I 38:20 always wanted to teach at the college level in the 38:21 product management realm, but I didn't know that 38:22 even existed. So it was more focused on, we'll 38:23 say, outside work communication and opportunities 38:24 39:25 -40:11 about him being an inventor and then teaching at 38:19 16 intrigued me was in the conversation here we talked versus even this here. Pope, Barry 2015-10-07 39:25 00:00:40 00:05:51 00:37:55 Pope_B-100715-1of2 M4.19 locking pliers, and then from that standpoint, too, 40:9 is you don't have to -- when you lock it, you don't 40:10 have to keep releasing and changing. You can lock 40:11 it once and keep moving on. Pope, Barry 2015-10-07 00:00:09 00:06:31 40:12 Q. Do you recall when Sears first started 40:13 development of the Max Axess Locking Wrench? 40:14 A. Yes. Pope, Barry 2015-10-07 00:00:44 00:06:40 41:3 Q. Can you describe what your involvement was 41:4 with the Max Axess Locking Wrench and its 41:5 development? 41:6 A. So I am the product manager, and as the 41:7 product manager, one of the main functions is 41:8 project management. As we talked earlier, I don't 41:9 have people directly reporting to me, but I'm the 41:10 leader of a cross-functional team. My 41:11 responsibility is to make sure everything is done 41:12 in a timely fashion to appease the customer and to 41:13 make sure that it is designed and functions 41:14 properly, to make sure that from a project 41:15 management standpoint, that we'll say the Is are 41:16 11:14:33PM M4.18 standpoint, which is similar to the vice grip 40:8 5/4/2017 Pope_B-100715-1of2 to give a lot more torque from an application 40:7 Printed: 00:38:39 the locking mechanism, which, in turn, allows you 40:6 41:21 -42:12 M4.17 will tighten, and then it brings in the feature of 40:5 19 Pope_B-100715-1of2 of a wrench that as you squeeze the handles, it 40:4 41:3 -41:16 00:38:48 A. Max Axess Locking Wrench is a combination 40:3 18 M4.16 Axess Locking Wrench is? 40:2 40:12 -40:14 Pope_B-100715-1of2 Q. Mr. Pope, can you tell me what the Max 40:1 17 00:39:28 dotted and the Ts are crossed. Pope, Barry 2015-10-07 00:00:52 00:07:24 Page 4 of 22 Pope B PLAYED on 5_4 20151007 PA DC on 5-1-17 41:21 Q. Why did Sears become interested in 41:22 developing the Max Axess Locking Wrench? 41:23 A. So when we develop a product, our main 41:24 customer from the group that I worked in is Sears 41:25 Holdings -- excuse me -- I worked for Sears 42:1 Holdings Company. The group that I worked for is 42:2 called KCD, which stands for Kenmore, Craftsman and 42:3 Diehard, which are their main brands that Sears 42:4 owns. 42:5 Our No. 1 customer is Sears. So Sears 42:6 approached us and said "We may have an opportunity 42:7 for you. Would you be interested?" 42:8 42:9 And the answer is "Of course." Always interested in any opportunity that is presented to 42:10 42:16 -42:21 Q. Who approached you? 42:12 20 us. 42:11 A. It would be Stephanie Kaleta. Pope, Barry 2015-10-07 00:00:16 00:08:16 42:16 42:21 43:5 -43:11 Pope, Barry 2015-10-07 00:00:15 00:08:32 new wrench; is that correct? A. Yes. 43:9 Q. Did you approach Apex in actually 43:10 designing and manufacturing the wrench? 43:11 A. Yes. Pope, Barry 2015-10-07 00:01:32 00:08:47 43:12 Q. You personally? 43:13 A. So when you look at it -- I mentioned I 43:14 have 120 plus vendors. In reality, it's like an 43:15 inverted triangle. Out of those 120 vendors, maybe 43:16 20 of them, I did a lot of business with; that is, 43:17 you come down to the point, I probably had six 43:18 vendors that I would entrust to develop a product 43:19 for me. And by "entrust" I mean they, in turn, 43:20 would have the capability to do something. 43:21 43:22 11:14:33PM M4.22 approached you with this opportunity to develop a 43:8 5/4/2017 Pope_B-100715-1of2 Q. So is it correct then that Ms. Kaleta 43:7 Printed: 00:36:32 and we'll say had a big need to be filled. 43:6 43:12 -44:8 M4.21 She was having potential vendor issues, 43:5 22 Pope_B-100715-1of2 A. Yes, I do. 42:20 21 00:36:47 opportunity? 42:19 M4.20 gave for this -- for having this development 42:18 Pope_B-100715-1of2 Q. Do you recall any particular reasons she 42:17 00:37:03 My key vendor was a company called Western Forge out of Colorado. They made my pliers, and Page 5 of 22 Pope B PLAYED on 5_4 20151007 PA DC on 5-1-17 43:23 they made my screwdrivers. And in the same token 43:24 is Apex made our mechanic's tools. When you look 43:25 at these two companies, they are very different. 44:1 Apex is a very dynamic company, a lot of 44:2 traditional forging manufacturing company, high 44:5 quality, next to no, in fact, no innovation or no 44:6 design and development standpoint. So two very 44:7 different companies. So that would be why we 44:8 45:15 -45:17 creative; where Western Forge is an older, 44:4 23 brands, an excellent engineering group and 44:3 approached Apex. Pope, Barry 2015-10-07 00:00:14 00:10:19 45:15 24 45:20 -46:1 Link > P347.2 Pope, Barry 2015-10-07 00:00:23 00:10:33 Pope_B-100715-1of2 M4.25 dated March 9, 2012, at 12:16 p.m., and you see 45:24 it's sent to you and Mr. McDonnell; is that 45:25 correct. 46:1 A. That is correct. Pope, Barry 2015-10-07 00:02:03 00:10:56 46:21 Q. The next item, it says Bionic Wrench; do 46:22 you see that? 46:23 A. I do, yes. 46:24 Q. What does Bionic Wrench refer to in this 46:25 case? 47:1 A. Well, I mean it was no surprise to anybody 47:2 that we were looking at it that the Bionic Wrench 47:3 was a potential competitive tool that we could win 47:4 some business from. 47:5 Q. When you say "it was no surprise to 47:6 anybody," what do you mean by that? 47:7 A. I mean the opportunity that had been 47:8 Link > Hide 00:34:23 first e-mail in time. It's from Jill Lowe. It's 45:23 Link > P347.2.2 M4.24 This is an e-mail string. So it's going to be the 45:22 46:21 -48:5 Pope_B-100715-1of2 I'd like to start on the second page. 45:21 25 00:34:46 bearing Bates label SEARS_0000305 through 306. 45:20 Link > P347.2.1 M4.23 are marking as Exhibit 4. This is a document 45:17 Pope_B-100715-1of2 Q. Mr. Pope, you've just been handed what we 45:16 Link > P347.1 00:35:00 presented was that she had issue and then our 47:9 opportunity was targeted towards the Bionic Wrench. 47:10 Q. Do you know if the opportunity was driven, 47:11 in part, by the sales of the Bionic Wrench in the 47:12 11:14:33PM Q. Could you elaborate? 47:15 5/4/2017 A. Yes. 47:14 Printed: prior years? 47:13 A. So in 2011, you know, I know that that was Page 6 of 22 Pope B PLAYED on 5_4 20151007 PA DC on 5-1-17 47:16 a very successful thing for Sears. Along those 47:17 lines is, as we progress each year, we're given 47:18 objectives to achieve, sales objectives or 47:19 whatever. So when -- Stephanie's objectives, you 47:20 know, are based on sales. Mine are based on sales 47:21 and meeting dates and launches. It was a big 47:22 number, I guess, you know, a million or more. 47:23 47:24 And so that would already -- I mean, unfortunately, you don't go backwards. A company 47:25 them, and I hope they want to grow them for future 48:3 successes. So I mean we did have an inkling, and 48:4 we'll say knowledge that they had had a successful 48:5 48:6 -48:10 They want to either keep them the same or grow 48:2 26 does not make any money when the sales decline. 48:1 year. Pope, Barry 2015-10-07 00:00:14 00:12:59 48:6 48:13 -49:9 00:32:06 Pope_B-100715-1of2 M4.27 greater margins on the sale of that tool as opposed 48:10 27 basically they could potentially, you know, have 48:9 M4.26 kind of wanted to develop their own tools so 48:8 Pope_B-100715-1of2 Q. So would it be fair to say that Sears just 48:7 00:32:20 to, you know, working with an outside vendor? Pope, Barry 2015-10-07 48:13 00:01:20 00:13:13 THE WITNESS: So when we choose a vendor, we 48:14 qualify the vendors to make sure, you know, there 48:15 is no human right issue or if they are manufactured 48:16 overseas or we pool -- like I said, I had 120 48:17 existing vendors. 48:18 But the key thing, too, is if you go in a Sears 48:19 store, you will see what I'll call national brands, 48:20 and you'll see Craftsman. And Craftsman, you know, 48:21 is the key, I'll guess, almost a private label 48:22 brand of Sears. 48:23 48:24 design the tools, you know, we have the engineering 49:2 team in place. We utilize our vendor's engineering 49:3 team to come up with a tool that surpasses even the 49:4 national brand tool, whether it be superior 49:5 function, additional functionality, and then we 49:6 also incorporate what we call our VBL, which is 49:7 visual brand language. And what that is is the 49:8 look, the feel of Craftsman tools. It's the 49:9 11:14:33PM unconditional warranty. The other one is when we 49:1 5/4/2017 we sell to the consumer, one is, in hand tools, the 48:25 Printed: The benefit that we have of Craftsman or that branding. Page 7 of 22 Pope B PLAYED on 5_4 20151007 PA DC on 5-1-17 28 50:1 -50:5 Pope, Barry 2015-10-07 00:00:19 00:14:33 50:1 50:17 -51:11 00:30:27 Pope_B-100715-1of2 M4.29 Pope_B-100715-1of2 M4.30 Pope_B-100715-1of2 M4.31 March 12, 2012, at 9:24 a.m.; do you see that? 50:5 29 e-mail from Eric Broadaway. It's dated Monday, 50:4 M4.28 Exhibit 4. The second e-mail string, there is an 50:3 Pope_B-100715-1of2 Q. If you could turn to the first page of 50:2 Link > P347.1.3 00:30:46 A. I do, yes. Pope, Barry 2015-10-07 00:01:06 00:14:52 50:17 Q. Do you see the subject line? It says 50:18 "Craftsman replacement for Bionic Wrench"; do you 50:19 see that? 50:20 A. I do see that, yes. 50:21 Q. I'd like to go to the e-mail above that. Link > P347.1.4 50:22 It's dated March 12 at 8:32 a.m.; do you see that? Link > P347.1 50:23 A. I do, yes. 50:24 Q. Do you see the picture there? 50:25 A. Yes. 51:1 Q. Can you tell me what that is? 51:2 A. That is, it looks like, when I say "a 51:3 picture," it looks like a rendering of potential 51:4 mechanism for our Max Axess. This would have been, 51:5 I'm assuming, based on the e-mail here, a very 51:6 initial look at it. 51:7 Q. And based on the date of this e-mail, does 51:8 that refresh your recollection at all as to when 51:9 the development of the Max Axess Locking Wrench Link > Hide 51:10 30 52:24 -53:2 began? 51:11 A. It would be around this time period. Pope, Barry 2015-10-07 00:00:16 00:15:58 00:29:21 52:24 52:25 through 406. Take a moment, if you'd like, to skim 53:2 53:4 -54:14 Bates number for this document is SEARS_0000405 53:1 31 Q. Mr. Pope, we just handed you Exhibit 5, over this e-mail. Pope, Barry 2015-10-07 00:01:48 00:16:14 53:4 Q. At the very top of this e-mail, it says 53:5 from Barry Pope to Jill Lowe, Matt McDonnell, and 53:6 it's dated March 9, 2012, at 1:57 p.m.; do you see 53:7 Q. And do you see you wrote "Updates in red 53:10 below"; do you see that? 53:11 A. Yes. 53:12 Q. If we look at No. 4, under Bionic Wrench. 53:13 A. Correct. 53:14 11:14:33PM A. I do, yes. 53:9 5/4/2017 that? 53:8 Printed: 00:29:05 Q. Do you see where you included comments Page 8 of 22 Pope B PLAYED on 5_4 20151007 PA DC on 5-1-17 53:15 below that where it says "Huge interest. Can you 53:16 work miracles and get this in time for Q4? It's 53:17 good to reach for the stars"? 53:18 A. Correct. 53:19 Q. Could you elaborate on what you meant by 53:20 "huge interest"? 53:21 A. Again, based on what we knew from prior 53:22 years in the sales, that this was, you know, a big 53:23 dollar volume potential. 53:24 Q. And what did you mean when you wrote "Can 53:25 you work miracles and get this in time for Q4"? 54:1 A. So I think I had alluded to that a little 54:2 bit prior when I said I had my two vendors. These 54:3 are the monster vendors for the hand tools. You 54:4 had -- excuse me -- Western Forge and Apex. When 54:5 you develop the products, you go through a whole 54:6 variety of different steps from design to 54:7 development to prototypes to production to shipping 54:8 and everything, and there is lots of in between, 54:9 and that's what I mean by project management. 54:10 54:11 This would have been one to hit Q4 that a lot of extra effort and prioritization had to be 54:12 55:13 -55:22 Q. What sort of extra effort was needed? 54:14 32 done to be able to meet a ship time of Q4. 54:13 A. Just prioritization. Maybe resources. Pope, Barry 2015-10-07 00:00:50 00:18:02 00:27:17 55:13 this document. 55:17 If you look at the second e-mail on the 55:18 string on page 249, this is an e-mail from 55:19 Mr. McDonnell. It's dated March 16, 2012, at 55:20 2:07 p.m., and it's to a number of people, 55:21 55:23 -57:1 Link > P345.1.1 including you; is that correct? 55:22 33 A. That is correct. Pope, Barry 2015-10-07 00:01:45 00:18:52 00:26:27 55:23 A. Yes. 56:2 Q. What can you tell me about the style of 56:3 virtual brainstorming. 56:4 A. One of the things Sears likes to do is to 56:5 11:14:33PM virtual brainstorming"; do you see that? 56:1 5/4/2017 have had luck in the past with this style of 55:25 Printed: Q. And it says "Hello, creative giants. We 55:24 Link > Hide M4.33 SEARS_0000249 through 250. Take a moment to review 55:16 Pope_B-100715-1of2 marked as Exhibit 6. It bears Bates No. 55:15 M4.32 Q. Mr. Hope, you've just been handed what's 55:14 Link > P345.1 Pope_B-100715-1of2 give names to the product. Some companies do; some Page 9 of 22 Pope B PLAYED on 5_4 20151007 PA DC on 5-1-17 56:6 companies don't. A lot of times a name to a 56:7 product in a retail environment is important. It 56:8 gives you a different way to identify the product. 56:9 Here, what we do as a group -- and these are all -- 56:10 for the most part, these are engineers, product 56:11 managers, and when I'm saying engineers -- let me 56:12 just scan this. These are industrial engineers. 56:13 So these are the ones who are working on that VBL. 56:14 And then we have -- we include the buying 56:15 team, and that buying team on here was Adam 56:16 Whitney, Stephanie Kaleta and Stephanie Cromer, and 56:17 the rest, like behind that are the product -- it's 56:18 the product team. So you have industrial 56:19 designers, the product team. Colin Knight is an 56:20 engineer. He's in charge of engineering. 56:21 And so what we are doing is with this 56:22 56:23 you can see from above is they'll throw out a whole 56:25 variety of names, and you know, then, ultimately, 57:1 57:22 -58:1 we just have internal competition per se, and as 56:24 34 being part of your creative team and working on it, usually, we'll pick one. Pope, Barry 2015-10-07 00:00:12 00:20:37 00:24:42 57:22 57:23 58:2 -59:4 Pope, Barry 2015-10-07 00:01:35 00:20:49 were aware of? 58:4 A. So when you do product development, of 58:5 course you have -- we'll say you do research on or 58:6 the engineers do, I should say, we'll go back and 58:7 look at patents. Whether it be patents for the 58:8 existing item that we're competing against or going 58:9 to compete against, which would come out, or for, 58:10 I'll call it, prior artwork, and so in this case, 58:11 obviously, that was done. 58:12 It was done by both Apex, and then our 58:13 group of engineers review that. And so the 58:14 mechanism or the way that we were conducting the 58:15 clamping and everything was done entirely 58:16 different. Engineers will say it's part of their 58:17 task, I guess, to do design-arounds. That's what 58:18 11:14:33PM 00:24:30 Q. What were the other differences that you 58:3 5/4/2017 M4.35 A. Nope. 58:2 Printed: Pope_B-100715-1of2 in the market? 58:1 35 that Sears and Apex were developing versus what was 57:25 M4.34 mechanism is the only difference between the tool 57:24 Pope_B-100715-1of2 Q. Is it your understanding that the locking competition is, to look at something and figure out Page 10 of 22 Pope B PLAYED on 5_4 20151007 PA DC on 5-1-17 58:19 a different way to do it. We'll say create a 58:20 better mouse trap. 58:21 And so the locking feature, like I said, 58:22 was an add that we had. We knew that it brought it 58:23 benefit. Part of that, too, I mean I knew 58:24 firsthand of the benefit, having dealt with locking 58:25 then, you know, again, the way we were achieving 59:3 our mechanism was different, the gripping 59:4 59:9 -60:3 grip. They are called locking wrench pliers. And 59:2 36 wrenches, which has the synonymous name of vice 59:1 mechanism. Pope, Barry 2015-10-07 59:9 00:01:06 00:22:24 00:22:55 Pope_B-100715-1of2 M4.36 00:21:49 Pope_B-100715-1of2 M4.37 00:21:39 Pope_B-100715-1of2 M4.38 00:21:36 Pope_B-100715-1of2 M4.39 Q. Do you know if the patents -- if 59:10 Loggerhead's patents were reviewed in connection 59:11 with any design-around or the designing of the Max 59:12 Axess Locking Wrench? 59:13 A. That would have been included in the 59:14 patents. So, again, as the project manager portion 59:15 of a product manager, my job is to make sure that 59:16 we are not infringing on patents, and by that 59:17 I don't personally look at that. I rely on the 59:18 resources and those much more talented than I, 59:19 which would be the engineers. 59:20 In this case, the engineers, the group was 59:21 engineering manager who acts more as a manager in 59:24 the sense may not necessarily have to do, I'll call 59:25 it, the ground work. That would be Iqbal Singh. 60:1 But I mean that's done on whether it be on the 60:2 LoggerHead project or any project. That's basic 60:3 66:5 -66:7 manufacture this, and then I also utilize my 59:23 37 from Apex that we had hired on to help design and 59:22 product development. Pope, Barry 2015-10-07 00:00:10 00:23:30 66:5 66:9 -66:9 we're marking as Exhibit 8. It's a document, 66:7 38 Q. Mr. Pope, you've just been handed what 66:6 Link > P360.1 single-page document SEARS_000048. Pope, Barry 2015-10-07 66:9 39 66:13 -66:19 00:00:03 00:23:40 MR. HILMERT: 00408 for the record, not 48. Pope, Barry 2015-10-07 00:00:21 00:23:43 66:13 Q. The second e-mail in the middle of the 66:14 page is from Kimberly Flanagan. It's dated 66:15 5/4/2017 11:14:33PM A. I do, yes. 66:17 Printed: April 17, 2012, at 9:36 a.m.; do you see that? 66:16 Q. Ms. Flanagan is national account manager Page 11 of 22 Pope B PLAYED on 5_4 20151007 PA DC on 5-1-17 66:18 66:19 40 67:2 -67:11 for Apex Tool Group; is that correct? A. Correct. Pope, Barry 2015-10-07 00:00:22 00:24:04 67:2 67:3 Pope_B-100715-1of2 M4.42 A. I do, yes. 67:9 Q. Do you recall if Ms. Flanagan actually 67:10 brought a prototype? 67:11 A. She did bring a prototype, yes. Pope, Barry 2015-10-07 00:00:48 00:24:26 70:15 Q. Perhaps this will help. I am handing you 70:16 a document that's being marked as Exhibit 10. It 70:17 Link > P349.1 M4.41 2:00 o'clock"; do you see that? 67:8 70:15 -71:4 Pope_B-100715-1of2 Bionic Wrench prototype by for your meeting at 67:7 41 00:20:53 Q. And it says "I'm going to be bringing the 67:6 M4.40 A. It was sent to myself and Matt, yes. 67:5 Pope_B-100715-1of2 is that correct? 67:4 Link > P360.1.1 00:21:15 Q. And this e-mail was sent to you as well; bears Bates No. 00000309. 70:18 This document was produced to us by Sears 70:19 70:20 A. I do, yes. 70:24 Q. Do you recall having seen this document 70:25 before? 71:1 A. Sure, yes. 71:2 Q. And this wrench was intended to be a 71:3 version of LoggerHead Bionic Wrench; is that 71:4 71:6 -71:19 Bionic 2.0 Wrench"; do you see that? 70:23 Link > Hide see it says "Product Design and Intent Proposal 70:22 42 native document is the second page. At the top you 70:21 Link > P349.1.1 natively, hence the placeholder, and the actual correct? Pope, Barry 2015-10-07 00:00:51 00:25:14 71:6 71:7 Loggerhead's. Again, as I said, from a product 71:8 standpoint, we looked at the competitive landscape 71:9 00:20:05 THE WITNESS: Absolutely not a version of that was out there of which, of course, the bionic 71:10 Ts in regard to patent reviews. The mechanism on 71:14 here is different and then, again, adding features, 71:15 which would be the locking mechanism, calling out 71:16 the size, that little window that you see here and 71:17 then adding what I'll call is Craftsman VBL, which 71:18 is handle design, the graphics, the color, all of 71:19 11:14:33PM done all of the dotting of the Is, crossing of the 71:13 5/4/2017 but this was designed in such a manner that we had 71:12 Printed: was part of that. The opportunity was presented, 71:11 those different elements. Page 12 of 22 Pope B PLAYED on 5_4 20151007 PA DC on 5-1-17 43 71:21 -72:6 Pope, Barry 2015-10-07 71:21 00:00:34 00:26:05 Pope, Barry 2015-10-07 00:00:11 00:26:39 Pope_B-100715-2of2 M4.47 marked as Exhibit 12. It's a document Bates 77:19 numbered SEARS_0000314. Pope, Barry 2015-10-07 77:20 00:01:08 00:26:50 Once again, this document was produced to 77:21 us natively. So the first page is a placeholder, 77:22 and the following two pages are the actual native 77:23 file. Do you see the first page where it says "Max 77:24 Axess Adjustable Wrench"? 77:25 A. I do, yes. 78:1 Q. Can you tell me what this program summary 78:2 is? 78:3 A. So Apex, as a vendor, when they would put 78:4 together a program for us, would do exactly what 78:5 you see here, the description. This is kind of a 78:6 quick overview of what the product is 78:7 accomplishing, and then below you see the items 78:8 that are included in that. They would give them a 78:9 couple different ways of pricing, give estimated 78:10 margin, their suggested retail price, and then also 78:11 on here we'll see where they aren't listed though 78:12 is pack quantities. Pope, Barry 2015-10-07 00:00:08 00:27:58 79:11 Q. And everyday retail price, is this what 79:12 Apex suggested this sell for? 79:13 A. This is what they suggested it sells for. Pope, Barry 2015-10-07 79:16 00:00:30 00:28:06 Do you know what factors go into 79:17 determining the everyday retail price? 79:18 A. So they have, with the amount of business 79:19 11:14:33PM 00:17:13 Q. Mr. Pope, we've just handed you what we 77:18 5/4/2017 M4.46 A. This looks pretty darn close, yeah. 77:17 Printed: Pope_B-100715-2of2 Axess Locking Wrench is what's pictured here? 72:6 79:16 -80:1 00:17:21 Q. So would it be correct to say that the Max 72:5 47 M4.45 that. 72:4 79:11 -79:13 Pope_B-100715-2of2 and 2.0, I don't know what they are referring to 72:3 46 00:18:29 competition. I mean there is no secret to that, 72:2 Link > Hide M4.44 obviously, is coming from -- that was the 72:1 Link > P350R.3 Pope_B-100715-2of2 always give them different names, and bionic, 71:25 77:20 -78:12 00:18:40 A. So when you label a project, I mean, we'll 71:24 45 M4.43 "Bionic 2.0 Wrench" in the title? 71:23 77:17 -77:19 Pope_B-100715-1of2 Q. What is your understanding of why it says 71:22 44 00:19:14 they do with us, they know, we'll say, what we Page 13 of 22 Pope B PLAYED on 5_4 20151007 PA DC on 5-1-17 79:20 79:21 on any product development part of what you're 79:23 doing is a competitive analysis or what we call 79:24 landscape where you will look and see what the 79:25 competition is selling their product for so that 80:1 80:18 -80:20 acceptable margin ranges. The other thing, again, 79:22 48 consider or what Sears, in this instance, considers you're competitive with that. Pope, Barry 2015-10-07 00:00:10 00:28:36 80:18 49 80:23 -81:1 M4.48 00:16:33 Pope_B-100715-2of2 M4.49 Pope_B-100715-2of2 M4.50 00:15:55 Pope_B-100715-2of2 M4.51 00:15:38 Pope_B-100715-2of2 M4.52 00:15:22 Pope_B-100715-2of2 M4.53 00:15:15 Pope_B-100715-2of2 M4.54 margin would need to be in terms of developing a 80:20 Pope_B-100715-2of2 Q. Are there guidelines for what the ultimate 80:19 00:16:43 tool? Pope, Barry 2015-10-07 80:23 00:00:13 00:28:46 THE WITNESS: Not that I, you know, not that 80:24 80:25 81:3 -81:10 in a whole range depending on the product. There 81:1 50 I know of, I mean, because margins themselves come is so many factors that go into it, you know. Pope, Barry 2015-10-07 81:3 81:4 00:00:25 00:28:59 00:16:20 Q. Let me try to narrow it a little bit. For hand tools, is there any type of 81:5 general guideline that Sears requires? For 81:6 example, hand tools need to be between 30 percent 81:7 want to make as much money as you can, but you need 81:10 81:11 -81:17 A. On a general basis, no. Obviously, you 81:9 51 or higher? Anything like that? 81:8 to be competitive. Pope, Barry 2015-10-07 00:00:17 00:29:24 81:11 Q. Do you know if the estimated landed 81:12 margin, if that was the ultimate -- strike that. 81:13 Did these estimates wind up being 81:14 81:15 Q. Who would know that? 81:17 81:21 -81:24 A. I don't know. 81:16 52 accurate, to your knowledge? A. That would be Stephanie. Pope, Barry 2015-10-07 00:00:16 00:29:41 81:21 81:22 81:25 -82:2 through 321. Take a moment, if you need to, to 81:24 53 marked as Exhibit 13. It's Bates No. 00000318 81:23 Link > P352.1 Q. Mr. Pope, we just handed you what's been review the document. Pope, Barry 2015-10-07 81:25 Printed: 5/4/2017 11:14:33PM first page. 82:2 82:3 -82:9 00:29:57 I only want to ask questions about the 82:1 54 00:00:07 A. I'm good on the first page. Pope, Barry 2015-10-07 00:00:21 00:30:04 Page 14 of 22 Pope B PLAYED on 5_4 20151007 PA DC on 5-1-17 82:3 82:4 A. So, again, I guess just for clarification, 82:7 it's really -- yes, I am one of those, but this is 82:8 -- the primary people on this are the two 82:9 Link > P352.1.1 that correct? 82:6 83:4 -83:19 was sent to you on May 16, 2012, at 9:59 a.m.; is 82:5 55 Q. This is an e-mail from Jill Lowe, which Stephanies, the buyers, again. Pope, Barry 2015-10-07 00:00:44 00:30:25 83:4 83:13 So a function of any buyer, as soon as they get a price, to beat the hell out of them and 83:14 Q. The last sentence in subpart (b) says "You understand the CM version is upgraded from the 83:17 bionic version -- locking feature and cushion grip 83:18 handles"; do you see that? 83:19 83:22 -84:7 get the best price that they can. 83:15 83:16 56 A. Yes. Pope, Barry 2015-10-07 00:00:47 00:31:09 83:22 Q. And, again, the only two distinguishing 83:23 features that are in this e-mail are the locking 83:24 features and the cushion grip handles; is that 83:25 been added. The other thing -- and I just wanted 84:3 to see if it's on here where we talk about the grip 84:4 strength. Those are the ones that are mentioned 84:5 within here, yes, and those are being mentioned -- 84:6 again, as a vendor, she's trying to battle back 84:7 Link > P352.1.3 A. So those are the two features that had 84:2 85:20 -86:9 correct? 84:1 57 M4.57 A. I would assume that is LoggerHead. 83:12 Link > P352.1.2 Pope_B-100715-2of2 to? 83:11 00:13:23 Q. Do you know who "current vendor" refers 83:10 M4.56 A. Yes. 83:9 Pope_B-100715-2of2 current vendor"; do you see that? 83:8 00:14:10 price was too high based on your quote from your 83:7 M4.55 -- Jill says "You had commented that you felt the 83:6 Pope_B-100715-2of2 Q. Under subpart (b), Stephanie -- or sorry 83:5 00:14:54 with Stephanie on why the price is what it is. Pope, Barry 2015-10-07 00:00:41 00:31:56 85:20 Q. It says, at the very end, "It's possible 85:21 to change and not alter the size range of the 85:22 wrench which matches the Bionic Wrench today"; do 85:23 11:14:33PM Q. Is it always the intention to have a 86:1 5/4/2017 A. Yes. 85:25 Printed: you see that? 85:24 handle width be the same as the Bionic Wrench -- Page 15 of 22 Pope B PLAYED on 5_4 20151007 PA DC on 5-1-17 86:2 LoggerHead Bionic Wrench? 86:3 A. It was not. 86:4 Q. Do you know if the width of Loggerhead's 86:5 handle was measured and consulted in the design 86:6 Link > Hide Q. It just, by happenstance, wound up being 86:9 86:11 -86:15 A. I don't believe it was. 86:8 58 process of the Max Axess Locking Wrench? 86:7 the exact same size? Pope, Barry 2015-10-07 86:11 00:00:15 00:32:37 Pope, Barry 2015-10-07 00:00:25 00:32:52 M4.61 Craftsman, it can't be worse than the competition 86:23 that you're going after. We make it equal to or 86:24 better, and we add extra features. Pope, Barry 2015-10-07 00:00:11 00:33:17 88:4 Q. Mr. Pope, we just handed you what is 88:5 marked as Exhibit 14. It's a document that bears 88:6 Bates No. SEARS_0000266 through 269. Pope, Barry 2015-10-07 00:00:47 00:33:28 92:21 Q. Do you know why you were asked to compare 92:22 the strength between the Max Axess Wrench and 92:23 LoggerHead? 92:24 A. Well, again, as I mentioned, as we put 92:25 together a Craftsman tool, you want to be equal or 93:1 better to in, we'll say, performance specifications 93:2 with enhancements in regards to product features, 93:3 and so he was just asking me in regards to the 93:4 comparable. 93:5 The other thing is you'll see that when we 93:6 lock it, we actually get more torque strength. So 93:7 that was one of the benefits of the locking 93:8 mechanism. 93:9 And, actually -- I'm sorry. I did read it 93:10 before, but as I read it again, he makes mention of 93:11 11:14:33PM Pope_B-100715-2of2 A. When you are making an item, especially a 86:22 5/4/2017 00:11:51 LoggerHead's Bionic Wrench? 86:21 Printed: M4.60 accommodate the same size of more pieces as 86:20 Link > Hide Pope_B-100715-2of2 Axess Locking Wrench to make sure that it would 86:19 92:21 -93:11 00:12:02 Q. And was it a goal in designing the Max 86:18 61 M4.59 be reviewed. 86:17 Link > P346.1 Pope_B-100715-2of2 the size range, that would be something that would 86:15 88:4 -88:6 00:12:27 everything, and if that is an element that helps on 86:14 60 M4.58 benchmarking, you take into consideration 86:13 86:17 -86:24 Pope_B-100715-2of2 THE WITNESS: Again, when you're doing a 86:12 59 00:12:42 that again, about the locking position. Page 16 of 22 Pope B PLAYED on 5_4 20151007 PA DC on 5-1-17 62 93:23 -95:11 Pope, Barry 2015-10-07 00:02:09 00:34:15 93:23 A. Design from what standpoint? 94:3 As I said -- well, I'll just leave it at 94:4 that. 94:5 Q. Did you seek to design the tool from 94:6 scratch? 94:7 A. No. 94:8 Q. Did you use any other products as a basis? 94:9 A. Sure. As I've mentioned, I think numerous 94:10 times in the deposition, one of the key things that 94:11 you do in any product development is benchmarking. 94:12 So you'll look at -- part of the benchmarking is 94:13 looking at competitive tools. And, obviously, as 94:14 product people, we have targets on who -- and 94:15 knowledge of who those are. So that's where that 94:16 would come from. 94:17 Q. So I believe you testified earlier the 94:18 Bionic Wrench was one of the -- 94:19 A. That is correct. 94:20 Q. Did you look at any other products in 94:21 designing the Max Axess Locking Wrench? 94:22 A. Well, and, again, we talked about, 94:23 especially with my background being with American 94:24 Tool, the vice grip pliers, which, again, has -- is 94:25 another type of pliers, call it a mouse trap, if 95:1 you would allow me, and so the advantage of a vice 95:2 grip was the locking mechanism. So, yes, I mean 95:3 we'll take features from different items, similar 95:4 in nature, and combine them. 95:5 Q. Other than Loggerhead's Bionic Wrench and 95:6 the vice grip, do you recall any other tools with 95:7 different inspiration? 95:8 A. Those were, I think, the primaries. 95:9 And, I guess, you know, the other thing 95:10 95:12 -96:6 that you're looking at too, is pliers, you know, in 95:11 63 general. Pope, Barry 2015-10-07 00:01:05 00:36:24 00:08:55 95:12 look similar to the Bionic Wrench? 95:15 11:14:33PM team or Apex to make the Max Axess Locking Wrench 95:14 5/4/2017 Q. Were any instructions given to the design 95:13 Printed: M4.63 design? 94:2 Pope_B-100715-2of2 sort -- what sources were used for determining its 94:1 M4.62 when the Max Axess was being developed, what 93:25 Pope_B-100715-2of2 Q. Before we go to this, I want to ask you, 93:24 00:11:04 A. No. Page 17 of 22 Pope B PLAYED on 5_4 20151007 PA DC on 5-1-17 95:16 I guess I would like to elaborate a little 95:17 bit. Again, we talked about that VBL, and VBL, 95:18 visual brand language, is one of the key elements 95:19 of any Craftsman tool. As I mentioned, we have 95:20 this whole variety of vendors, and what the 95:21 industrial designers do through VBL is try to 95:22 convey the best they can or police, actually, the 95:23 way items look. So we do not design things to look 95:24 like, we'll say, our competition. 95:25 Q. Do you design them to function the same 96:1 way as your competition? 96:2 A. No. 96:3 96:4 96:5 96:6 64 117:7 -117:14 Link > P359.1 MR. BLOCK: Just to clarify for the record, that was a no? THE WITNESS: No. I'm sorry. Stronger, no, absolutely not. Pope, Barry 2015-10-07 00:00:29 00:37:29 00:07:50 117:7 A. Correct. Pope, Barry 2015-10-07 00:00:15 00:37:58 00:07:21 117:15 Q. Do you know what Ms. Trainer's role was 117:16 within -- 117:17 A. She was on the true what we'll call it 117:18 marketing side. She was part of KCD, which is the 117:19 team that I'm on, and then she was on the marketing 117:20 and the branding. Pope, Barry 2015-10-07 117:21 00:00:18 00:38:13 00:07:06 Q. And she says "Hi Barry, Can you send me 117:22 all images of Bionic Wrench"; do you see that? 117:23 A. Yes. 117:24 Q. Do you know why she's asking you for 117:25 A. She is not asking for images of the Bionic 118:2 Wrench. She was asking for the Max Axess Locking 118:3 118:4 -118:12 images of Bionic Wrench? 118:1 67 Wrench. Pope, Barry 2015-10-07 00:00:27 00:38:31 118:4 5/4/2017 11:14:33PM 00:06:48 Q. Do you think she is confused with regards 118:5 Printed: M4.67 Craftsman Max Axess Wrench, right? 117:14 Link > P359.1.2 Pope_B-100715-2of2 Q. And the title of this e-mail is the 117:13 117:21 -118:3 M4.66 A. Yes. 117:12 66 Pope_B-100715-2of2 dated December 6, 2012, at 3:43 p.m., correct? 117:11 117:15 -117:20 M4.65 This is an e-mail from Amy Trainer to you 117:10 65 Pope_B-100715-2of2 It's a document bearing Bates No. SEARS_0000393. 117:9 M4.64 Q. Mr. Pope, I've just handed you Exhibit 21. 117:8 Link > P359.1.1 Pope_B-100715-2of2 to the names of the products? Page 18 of 22 Pope B PLAYED on 5_4 20151007 PA DC on 5-1-17 118:6 118:7 A. No. Again, the -- you know, whether it be -- 118:8 and the reason I'll say no is because you have 118:9 Craftsman Max Axess. She does not have locking, 118:10 118:13 -118:17 essentially, that was a title that was thrown out 118:12 68 but it's wrench on here. And here she's calling 118:11 being a project name. Pope, Barry 2015-10-07 00:00:11 00:38:58 118:13 119:4 -119:13 00:06:10 Pope_B-100715-2of2 M4.69 00:05:34 Pope_B-100715-2of2 M4.70 00:05:30 Pope_B-100715-2of2 M4.71 00:05:22 Pope_B-100715-2of2 M4.72 of the Max Axess Locking Wrench? 118:17 69 Wrench, do you believe her to be asking for images 118:16 M4.68 understand when she says images of the Bionic 118:15 Pope_B-100715-2of2 Q. But you -- so -- just so I am clear, you 118:14 00:06:21 A. I do, yes. Pope, Barry 2015-10-07 00:00:36 00:39:09 119:4 Q. What do you understand her to be asking? 119:5 A. She's -- I mean, again, I go back -- she's 119:6 asking for what images I would have of our existing 119:7 product. This -- looking at this, this is a Sears 119:8 website. We had our own, which was Craftsman, and 119:9 Innovation Tools. Those are going to be ones they 119:10 Link > P359.1.3 internal that goes live ultimately. I'd be 119:13 119:14 -119:16 know if this is, we'll say live, or if this is an 119:12 70 are going to feature. I don't -- I honestly don't 119:11 speculating on that. Pope, Barry 2015-10-07 119:14 00:00:04 00:39:45 Q. The next sentence says "This link also has 119:15 71 119:24 -120:2 the video of the competitor"; do you see that? 119:16 A. Right. Pope, Barry 2015-10-07 119:24 00:00:08 00:39:49 Q. What do you understand the word 119:25 120:8 -120:17 "competitor" to refer to here? 120:2 72 "competitor" -- who do you understand the word 120:1 A. Bionic Wrench. Pope, Barry 2015-10-07 00:00:24 00:39:57 120:8 Q. And even though the subject of her e-mail 120:9 is the Craftsman Max Axess Wrench, you still 120:10 believe that when she says Bionic Wrench, she's 120:11 correct tool name and the subject line and it 120:15 references -- 120:16 A. Correct. 120:17 11:14:33PM Q. Even though she's used virtually the 120:14 5/4/2017 A. When she's asking for images, yes. 120:13 Printed: referring to the Max Axess Wrench? 120:12 Q. -- competitor's videos on the website? Page 19 of 22 Pope B PLAYED on 5_4 20151007 PA DC on 5-1-17 73 120:18 -121:11 Pope, Barry 2015-10-07 00:01:09 00:40:21 120:18 Pope_B-100715-2of2 M4.75 00:03:18 Pope_B-100715-2of2 M4.76 00:02:44 Pope_B-100715-2of2 M4.77 an employee, as I am, of Craftsman.com. So there 120:24 00:03:36 I say it is because it says www.Sears.com. She's 120:23 M4.74 Sears. I'm talking what I think. And the reason 120:22 Pope_B-100715-2of2 which would be the images of our product from 120:21 M4.73 like someone contacted her to get those images, 120:20 Pope_B-100715-2of2 A. Correct. So when you see this, it looks 120:19 00:04:58 is a couple different websites within here. 120:25 So Sears would have -- Sears.com would 121:1 121:2 wouldn't be for me to know necessarily who that 121:6 was. 121:7 Q. And then she says "When are we allowed to 121:8 start showing the item online," question mark, 121:9 "November 1," question mark; do you see that? 121:10 A. Right. So typically we don't show an item 121:11 Link > P469.1 So she's assisting somebody, and, again, it 121:5 136:19 -136:21 Craftsman, but Craftsman would only have Craftsman. 121:4 74 we'll call it a bionic, a Stanley or whatever, and 121:3 Link > P359.1.4 have national brands, and it would have -- which until it's available to be shipped. Pope, Barry 2015-10-07 00:00:13 00:41:30 00:03:49 It's a document bearing Bates numbers SEARS_0005527 136:21 136:22 -137:1 Q. Mr. Pope, I just handed you Exhibit 27. 136:20 75 136:19 to 5528. Pope, Barry 2015-10-07 00:00:18 00:41:43 136:22 136:23 138:4 -138:15 May 31, 2012, at 12:02 p.m.; do you see that? 137:1 Link > P469.1.2 an e-mail from you to Matthew McDonnell dated 136:25 76 Q. On page 5527, at the very bottom, there is 136:24 Link > P469.1.1 A. Okay. A. Yes. Pope, Barry 2015-10-07 00:00:34 00:42:01 138:4 Q. The next e-mail up in the string, it's 138:5 from you to Stephanie Kaleta on June 1, 2012, at 138:6 A. Yes. 138:8 Q. Under No. 2 it says "China will be stamped 138:9 in an area where part number and date code will be 138:10 Link > P469.1.3 11:06 a.m.; do you see that? 138:7 this is then black oxide so it will be less 138:11 5/4/2017 11:14:33PM important to put the China label in an 138:15 Printed: Q. Was it important to -- why was it 138:14 138:18 -138:19 A. Yes. 138:13 77 conspicuous"; do you see that? 138:12 inconspicuous area? Pope, Barry 2015-10-07 00:00:05 00:42:35 Page 20 of 22 Pope B PLAYED on 5_4 20151007 PA DC on 5-1-17 138:18 138:19 78 138:21 -138:23 THE WITNESS: I mean you're just not advertising. We are not advertising for China. Pope, Barry 2015-10-07 00:00:06 00:42:40 138:21 138:22 79 138:24 -139:10 Pope_B-100715-2of2 M4.78 00:02:33 Pope_B-100715-2of2 M4.79 00:01:49 Pope_B-100715-2of2 M4.80 00:01:11 Pope_B-100715-2of2 M4.81 manufactured in the United States? 138:23 00:02:39 Q. Were you aware that LoggerHead's tool is A. Yes. Pope, Barry 2015-10-07 00:00:44 00:42:46 138:24 Q. Would it have been at a competitive 138:25 disadvantage to advertise your tool being from 139:1 A. I have worked, as I said before, for 139:5 American Tool Company, and we have done research on 139:6 made in America versus Taiwan, and that research 139:7 really has indicated that it's not a predominant 139:8 feature, the country of manufacture. You are not 139:9 advertising it as an advantage either, but it's not 139:10 Link > P472.1 Q. Why do you say no? 139:4 144:4 -144:17 A. No. 139:3 80 China when theirs was manufactured in the U.S.? 139:2 a negative. Pope, Barry 2015-10-07 00:00:38 00:43:30 144:4 Q. Mr. Pope, we just handed you Exhibit 30. 144:5 It's Bates number SEARS_0005542 to 5543. 144:6 Link > P472.1.1 144:7 In the middle of the first page, there is an e-mail from you to an Iqbal Singh dated 144:8 March 30, 2012, at 1:13 p.m.; do you see that? 144:9 A. Yes. 144:10 Q. It says "Iqbal, Need you to develop and 144:11 send Eric at Apex our performance specifications 144:12 for Item No. 1, Bionic II Wrench"; do you see that? 144:13 A. Yes. 144:14 Q. Would these be the performance 144:15 specifications for the tool that ultimately became 144:16 81 144:18 -145:13 the Max Axess Locking Wrench? 144:17 Link > Hide A. Yes. Pope, Barry 2015-10-07 144:18 00:01:10 00:44:08 Q. How were the performance specifications 144:19 determined? 144:20 A. Again, they would be determined by 144:21 combining existing specifications that might exist 144:22 in regards to similar products and modifying them 144:23 based on the operations and then by competitive 144:24 5/4/2017 11:14:33PM Q. And am I correct that Iqbal was the one 145:1 Printed: analysis. 144:25 who was responsible for developing these Page 21 of 22 Pope B PLAYED on 5_4 20151007 PA DC on 5-1-17 145:2 specifications? 145:3 A. He would be, yes. 145:4 Q. Were these specifications reviewed or 145:5 approved by anybody? 145:6 A. Collectively, we -- again, I guess I said 145:7 -- and maybe shame on me -- is from a generality 145:8 is, you know, it's meet or beat the competition, 145:9 and then he would be working with Apex. 145:10 Q. Do you know if he got any specifications 145:11 from Apex? 145:12 A. He would have worked with them to develop 145:13 it. Play Time for this Script: Total time for all Scripts in this report: Printed: 5/4/2017 00:45:19 00:45:19 11:14:33PM Page 22 of 22

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