Eight Mile Style, LLC et al v. Apple Computer, Incorporated
Filing
94
REPLY to Response re 66 Renewed MOTION for Summary Judgment, 34 MOTION for Summary Judgment, 80 MOTION Exclude Late Produced Documents re 66 Renewed MOTION for Summary Judgment MOTION Exclude Late Produced Documents re 66 Renewed MOTION for Summary Judgment MOTION Exclude Late Produced Documents re 66 Renewed MOTION for Summary Judgment, 53 MOTION for Partial Summary Judgment iso Revised Motion for Summary Judgment filed by Aftermath Records, Apple Computer, Incorporated. (Attachments: # 1 Index of Exhibits TO DEFENDANTS AFTERMATH RECORDS AND APPLE INC.S REPLY BRIEF IN SUPPORT OF REVISED MOTION FOR SUMMARY JUDGMENT, # 2 Exhibit 22: Declaration of Melinda LeMoine In Support of Defendants Reply Brief In Support of Defendants Revised Motion for Summary Judgment, # 3 Exhibit 22-A: Excerpts of transcript pages from the depositions of Patrick Sullivan taken on September 18, 2008 and October 1, 2008, # 4 Exhibit 22-B: Excerpts of transcript pages from the deposition of Todd Douglas taken on May 6, 2008, # 5 Exhibit 22-C: Excerpts of transcript pages from the deposition of Cynthia Oliver taken on July 17, 2008, # 6 Exhibit 22-D: Excerpts of transcript pages from the deposition of Chad Gary taken on May 6, 2008, # 7 Exhibit 22-E: Excerpts of transcript pages from the deposition of Patricia Blair taken on May 29, 2008, # 8 Exhibit 22-F: Letter from Glenn Pomerantz to Richard Busch dated August 19, 2008, # 9 Exhibit 22-G: Ensign Publishing/Famous Music licenses (Filed Under Seal), # 10 Index of Exhibits 22-H: Summary Chart of Grants of Rights in Compositions (Docket No. 66-3, Revised to Include Ensign Publishing/Famous Music Licenses), # 11 Exhibit 22-I: Amendment to Production Agreement between F.B.T. Productions, LLC and Marshall Mathers p/k/a Eminem, dated February 22, 1999 (FBT-0042-46) (Filed Under Seal), # 12 Index of Exhibits 22-J: Summary Chart in Response to Sullivan Decl. Exhibit C-2 (Filed Under Seal), # 13 Exhibit 22-K: Summary Chart in Response to Sullivan Decl. Exhibit C-3 (Filed Under Seal), # 14 Exhibit 22-L: Excerpts of transcript pages from the deposition of Eddy Cue taken on June 20, 2008 (Filed Under Seal), # 15 Exhibit 22-M: Copyright Assignment and Co-Publishing Agreement with Ensign Music Corporation, dated February 4, 1999 (8M-00847-74) (Filed Under Seal), # 16 Exhibit 22-N: Letter from Kobalt Music Publishing to UMG Recordings, dated September 30, 2008 (AFT-0059179-83) (Filed Under Seal), # 17 Exhibit 22-O: Declaration of Richard Busch and accompanying Exhibit K filed in F.B.T. Productions, LLC and Em2M, LLC v. Aftermath Records et al., Case No. CV-07-03314 PSG (C.D. Cal.) on September 30, 2008 (Filed Under Seal), # 18 Exhibit 22-P: Copy of a check from Universal Music Group to Kobalt Music Publishing (AFT-0059125) (Filed Under Seal), # 19 Exhibit 22-Q: Music Resources, Inc. Administration Agreement dated October 17, 2007 (Filed Under Seal), # 20 Exhibit 23: Asset Marketing Systems, Inc. v. Gagnon, 2008 WL 4138181 (9th Cir. Sept. 9, 2008)) (Klaus, Kelly)
Eight Mile Style, LLC et al. v. Apple Computer Inc., et al. Case No. 2:07-CV-13164
EXHIBIT 22-A Excerpts of transcript pages from the depositions of Patrick Sullivan taken on September 18, 2008 and October 1, 2008
5005843.1
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UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF MICHIGAN SOUTHERN DIVISION ---------------------------x EIGHT MILE STYLE, LLC and MARTIN AFFILIATED, LLC, ) )
Plaintiffs,) vs. APPLE COMPUTER, INC. and AFTERMATH RECORDS d/b/a AFTERMATH ENTERTAINMENT, )Case No. 2:07-cv-13164 )Hon. Anna Diggs Taylor ) )
Defendants.) ---------------------------x September 18, 2008 10:12 a.m.
Deposition of PATRICK SULLIVAN, held at the law offices of Jenner & Block, 919 Third Avenue, New York, New York, pursuant to subpoena, before Anita T. Shemin, CSR and Notary Public within and for the State of New York.
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Patrick F. Sullivan A A license -MR. BUSCH: Go ahead. A Oh, a license is when a record company seeks to obtain a mechanical reproduction right, a synchronization right and the various rights that are afforded to copyright owners to use that in a digital distribution manufacturer and sell a CD to use in a film, a TV commercial. company and a music publisher. Q What are the minimum terms that have to MR. BUSCH: Any license in the Object to form. be in a license? world, or are you talking about publishing license? Q A Q You can answer the question. Specific to a mechanical license or a -I asked you what a license was, so you It is an agreement between -- generally between a record Object to form.
gave me an answer, so according to your understanding of a license. A General terms that are included in a license would be the territory, the term, which would be the year, accounting provisions, audit
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Patrick F. Sullivan provisions, who the licensing party is, the licensee, the licensors, general reps and warrants, various terms would be included in a license. Q First of all, just so for your benefit, my benefit and most importantly for the court reporter's benefit, I will try to wait for you to answer. If you can wait for me to finish my I question so we don't talk over each other, it -that will make everyone's life much easier. know it is not a natural setting. Let me ask you, what terms have to be in a license for it to be a license? MR. BUSCH: A Object to form. The terms that have to be within a
license will include the parties, so it would be the licensee and the licensor, generally the rate, the territory, audit provisions and accounting provisions. Q Based on my industry practice, those are the terms that are put forth in a license. Does the license have to grant the right MR. BUSCH: Objection to form. Are for it to be a license? you talking a mechanical license, or are
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Patrick F. Sullivan you talking about any license in the world right now? Q A Q Do you understand my question? Could you repeat the question? Sure. Does a license, in order to be a license, have to grant a right to do something? A Q A Q Yes. You said one of the things that has to In the industry practice that I am in What is your understanding, why do you
be in a license is territory? for licensing DPDs, yes. say that a license has to specify a territory in order for it to be a valid license? A In my experience and practice of licensing DPDs, the territory of a DPD grant is usually and only in the United States and its territory possessions. Q Is it your understanding that if a license doesn't include a territorial restriction, it is not a valid license? MR. BUSCH: Note my objection. These are calling for legal conclusions.
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Patrick F. Sullivan He is testifying as an expert on licensing practices. His experience in the industry, and things of that nature and all of these different questions call for legal conclusions, and I object to them. A Q it covers? A Q No. To be valid, does a license have to MR. BUSCH: A Q No. Does a license have to specify audit MR. BUSCH: A Q Same objection. Note my objection. Could you repeat the question? To be valid, is it your understanding
that a license has to set forth the territory that
specify a term? This calls for a legal conclusion.
rights or audit provisions? Repeat the question. To be valid, does a license have to have MR. BUSCH: A Same objection.
audit rights or audit provisions? In the licenses that I come across for
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Patrick F. Sullivan DPDs, yes. Q A What is your understanding as to why For the licensor to have the ability to they have to have audit provisions to be valid? be able to audit the books and accounts on the sales that they are granting in the license. Q Is your testimony that audit provisions have been in licenses that you have seen, or you understand that audit provisions have to be in licenses in order to be valid? MR. BUSCH: conclusions. Again, you are arguing with the witness and asking for legal He is here to testify about the industry practice and his specialized experience in the industry and not to offer legal conclusions. law is what the law is. A Repeat the question. MR. KLAUS: Could you read the question back, please. (Requested portion read back) A yes. Q When you say -- what do you mean by in In the industry practice of licensing, The
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Patrick F. Sullivan the industry practice of licensing? A When I go out on behalf of record companies as an agent, go out and license, its publishers will require an audit provision. Q A Q A Q A Has anyone ever told you that without an Not to my knowledge. What is a mechanical license? What is a mechanical license? Yes. A mechanical license is a license that a audit provision, you don't have a valid license?
publishing musical copyright owner will grant for the reproduction rights to distribute a sound recording. Q A separate. Q Is it that a DPD license is a form of a MR. BUSCH: and answered. A Q No, because -Okay. I think you said in your Expert Object to form. He has mechanical license? answered the question. Objection, asked Is a DPD license a mechanical license? In my industry practice, no. Two
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UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF MICHIGAN SOUTHERN DISTRICT
EIGHT MILE STYLE, LLC and MARTIN AFFILIATED, LLC, Plaintiffs, vs. APPLE COMPUTER, INC. and AFTERMATH RECORDS d/b/a AFTERMATH ENTERTAINMENT, Defendants.
) ) ) Case No. ) 2:07-CV-13164 ) Volume 2 ) (Pages 271-542) ) )
---------------------------)
CONTAINS ATTORNEYS' EYES ONLY INFORMATION
VIDEOTAPED DEPOSITION OF: PATRICK SULLIVAN WEDNESDAY, OCTOBER 1, 2008 11:09 A.M.
REPORTED BY: SUSAN NELSON C.S.R. No. 3202
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THE WITNESS: find that?
Oh, on Exhibit 2 where would I
I'd have to --
BY MR. KLAUS: Q. A. How would I find that -I'd have to reference the mechanical
licenses that were presented to me, so. Q. Right. But you've made a statement in
paragraph 3 -A. Q. Yup. -- about, you say -MR. BUSCH: sorry. Well, hold on one second. I'm
In paragraph 3, the section that you're So
reading does not say that the chart identifies.
you're asking him for -- you're assuming facts that are not in evidence. What he said in his declaration is that if the purported licensee on the proffered licenses any party, so I think you're -- you're assuming facts not in evidence in the attempt to try to build a phony record. And I object to it. MR. KLAUS: I'm not trying to build a phony
record, but Mr. Busch makes a helpful suggestion here, which is -- let me ask you the foundational question. Q. Your opinion about certain of the licenses
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being invalid because they're not licenses to one of the defendants, is that -- is your conclusion first -- strike that. Is it one of your conclusions in this case, is it one of your opinions, that at least some of the licenses that the defendants have submitted are not valid licenses for the Eminem compositions because they are not licenses to one of the defendants in the case? A. Q. Yes. Okay. And is it possible from your chart in
Exhibit 242 to determine which of the compositions you rendered that opinion as to? A. I would have to use the mechanical licenses
to reference that against the charts. Q. So someone looking at Exhibit 242 can't
determine from the text of the chart in Exhibit 242 which of the licenses you contend are invalid because they're not licenses to one of the defendants? MR. BUSCH: speaks for itself. THE WITNESS: You'd have to go by the Object to form. The chart
document name and reference against the full mechanical license. BY MR. KLAUS:
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record company, the album release.
I don't believe So there would
it states that here in this document.
be more information I would have to require to come to that. And, generally speaking, that the licensee It would also have the record I know it says UPC I associate
would be noted.
company, the album.
but that would not be enough information for me to know who that release was coming from, so. Q. isn't it? A. Q. A. I'm not an attorney, but it appears so. Okay. And it's called a mechanical license? Everyone -By the way, this is a license for DPDs,
Just industry-speak. MR. BUSCH:
Just answer the question,
please. THE WITNESS: MR. BUSCH: MR. KLAUS: witness. MR. BUSCH: He's asking you whether the That's So -He's asking -Don't -- don't interrupt the
document is entitled "Mechanical License." the question. THE WITNESS: License." BY MR. KLAUS:
Yes, it's entitled "Mechanical
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Q.
And it's a mechanical license that grants
DPDs rights? A. Q. It's not relevant. It's not --
I thought you said at your last deposition,
sir, that mechanical licenses didn't grant DPD rights. A. I do. I'm -- mechanical license it's just a But the actual rights, the
term for the document.
reproduction and distribution rights, that ephemeral copy are what are being granted here. So they may
call it mechanical licenses just like you call Vaseline, Vaseline. It's petroleum jelly. The
industry uses that term loosely for mechanical license. So from my -- you -- just because you call it mechanical license, it doesn't have the definitions, it doesn't have the language, it doesn't give you the grant of rights which includes reproduction, it even grants you the server reproduction rights. So you can call it what you
want, it's actually what the language of the agreement and the grant of rights state in that, so. Q. Okay. So something can be -- something can
be called a mechanical license and grant DPD rights? A. I will say from my experience, I've seen
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Q. A. Q.
Okay? Okay. So can you make the assumption that there
was a sublicense? A. Q. Yes. Okay. If there was a sublicense, would this
license in exhibit 58629 be an invalid basis for Defendants' distribution on the ground that the purported licensee on the proffered license was someone other than Aftermath or Apple? MR. BUSCH: Just note my objection. Improper hypothetical.
Incomplete hypothetical.
Numerous facts are missing from this hypothetical. And it's impossible to answer based upon the -THE WITNESS: conclusion. You're asking me a legal
All I know is, according to what we've
identified here, it is no licensee specified, it's not Aftermath. That's all I can testify to. I
can't -- I'm not an attorney, so I can't answer that question. BY MR. KLAUS: Q. A. Q. Okay. And -How would -- how would one -- how would So --
one -- just out of curiosity, Mr. Sullivan, how would
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someone be able to determine which of the licenses that are in Exhibit 245 you believe to be invalid on the ground that the licensee is someone other than Aftermath or Apple? MR. BUSCH: BY MR. KLAUS: Q. How would some- -- how would someone be able Objection.
to make the determination as to which of these licenses you hold that opinion for? MR. BUSCH: Just note my objection. This
was specifically asked and answered.
At the risk of
being scolded by you, he testified earlier that you have to look at the license, you have to look at the licensee -MR. KLAUS: please -MR. BUSCH: MR. KLAUS: MR. BUSCH: this witness. No. -- do -- no, do not -- do not -The point is you're harassing Mr. Busch, I -- Mr. Busch,
And in the record, he's answered this
specific question. You only have three hours for this deposition, sir. And I'm going to ask you to stop
asking the same question over and over again because it's not fair to this witness and it's harassing. So
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please stop. He answered that question directly. You
asked him about it when you were asking about the chart, how would he know. He answered how you have
to go through the documents, you have to look who it is. That question was answered. What are you doing?
Why are you asking the same question -BY MR. KLAUS: Q. I'm asking you -MR. BUSCH: BY MR. KLAUS: Q. I'm asking you, sir, how would someone make -- again and again?
that determination? A. I'd have to go through the schedule and look
at the licenses, as I stated earlier, so. Q. A. Q. So we'd have to go through one by one to -Yes. -- look at them. Okay. Right?
Let me just a- -- is it your
understanding, sir, that one who obtains -- one who obtains the right to reproduce and distribute a composition generally obtains the right to authorize others to exercise those rights? MR. BUSCH: Can you -- could you repeat that I missed it.
question, Madam Court Reporter, please.
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A.
No.
It says you need to -- until the
license is confirmed as signed in the system, so -it just says license status issued. So I don't know
if it's referring to signed, but it says licensed as issued for that 55 percent control. Q. So it's your testimony, sir, that if the --
it says -- although the document says licenses for digital configuration such as DPDs are effective upon being confirmed as issued in HFA's system, and even though it says license status issued, you -- is it your testimony that the -- that this document does not reflect whether the HFA license has been issued? MR. BUSCH: Just note my objection.
Document speaks for itself. THE WITNESS: Again, this document will So, yes, it would have
state license status issued.
the Harry Fox represented work and the status would be issued, but it would not represent the non-Fox, see. So, yes, according to this document and if you follow along, license status issued, it's issued. BY MR. KLAUS: Q. Let me come back to the -- your -- your
testimony regarding -MR. BUSCH: If you're going to a new subject
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Q.
Did you take the paragraph at the top of
page 42 into account in forming your conclusion that you reached that controlled composition clauses are explicitly not allowed for DPDs and cannot operate as a DPD license? A. I don't recall. I read a lot of documents.
I took a lot of reading material and -- and formed that opinion, as well as looking at that legislative history. I mean I, reading through this and reading
through all my other documents, reformed that opinion so -- and based on industry practice, too. Q. Which other documents besides the
legislative history? A. Q. A. Everything that was produced. Which -Would -- I'd say just reading through when
we looked at Section 115 and looking at the interpretation and definition of -- of what the DPD, digital phonorecord delivery, term means from that definition, so there's a lot of different things, so. Q. Looking back at Exhibit 240, next
sentence -A. Q. Sorry. Hold on.
You can just put that down. Third sentence in this paragraph states:
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"An author or coauthor of a musical composition may not license the composition." A. I'm sorry. MR. BUSCH: on? THE WITNESS: slower. Sorry. Yeah. Just go a little Where -- where -- what -Sorry. What paragraph are you
BY MR. KLAUS: Q. The very next sent- -- I -- I will go
slower, Mr. Sullivan, but that's not going -A. Q. A. I didn't even know where you were. -- to get us out of here faster. No, I'm sorry. MR. BUSCH: BY MR. KLAUS: Q. Page 3, paragraph 4 -MR. BUSCH: THE WITNESS: BY MR. KLAUS: Q. -- third sentence: "Further" -A. Q. Okay. Got it. Okay. Okay. Got it. I missed it, too. I --
-- "an author or coauthor of a musical composition may not
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license the composition where the author or coauthor has transferred his copyright interest to a music publisher." Do you see that? A. Q. A. Yes, sir. What -- what does that sentence mean? Very clearly, to me, if an author or
coauthor transferred that ownership right to a publisher, as an example, Eight Mile Style, they can't license that work without that publisher's permission. Q. Does it matter whether the transfer is
exclusive or nonexclusive? A. That trans- -- tran- -MR. BUSCH: Hold on. Object to form. conclusion. THE WITNESS: Transfer of ownership is Calls for a legal Object to form.
that -- and that's what we're stating, this -- this musical composition has been transferred, the copyright interest, meaning the ownership of that, it's exclusive. Once I've transferred that ownership It's no
right to someone else, they now own it.
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longer a personal right. clear-cut -BY MR. KLAUS: Q. A.
It's -- it's a very
How do you know that? Just from industry experience and knowing
that people I have to go to license, that own publishing, that you have to go get licenses. And
I've worked with significant publishers that own works. Q. Do you see that the next sentence states: "Based upon the documents provided by Defendants, this appears to have happened in virtually all instances"? A. Q. A. Yes. Which documents are you referring to there? I would say all of the licenses that were
presented to us. Q. Are you referring to everything that is in
Deposition Exhibit 245, the binder in front of you? A. Well, I believe all of the licenses are So, in my opinion, the
here, yes, in this binder.
transfer of ownership and the copyright interest was transferred to Eight Mile Style, from my understanding, and that they did not have -- they
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would need to obtain that right directly from Eight Mile Style, so. Q. Is it just -- is your statement that "based
upon the documents provided by Defendants, this appears to have happened in virtually all instances," is that referring only to transfers of ownership to Eight Mile Style? A. It would appear that the other ownership
shares were also transferred to noncontrolling authors, which -- for example, Almo Music and Bat Future Music became a new publisher, and that ownership was right -- and I believe according to Mark Levinson, when I spoke to him, he -- Joel Martin said those rights were -- were -- those ownership rights were transferred to new publishers. And when
I look at them, they all say "Universal Music Publishing," or -- so I assumed those authors transferred those rights. Q. But you don't know whether they transferred
those rights? A. I couldn't know unless I see those
contracts. Q. What other documents are you referring to
where it says "based upon the documents provided by Defendants this happened in virtually all instances"?
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you don't know one way or the other, do you, whether or not there actually has been a transfer of ownership? MR. BUSCH: Just note my objection, and this
is a continuing objection that I'm going to have to all of these documents. Every single one of these
documents were produced to us after the close of discovery. We've had no opportunity to take
discovery on any of these documents, so we filed a motion to exclude. So Mr. Sullivan's report is only based upon the documents we've provid- -- or that were provided to us after discovery because there were no depositions or other discovery taken on these documents. So I'm allowing questioning about this
but preserving our motion to exclude. THE WITNESS: Again, I'm going to add a
conversation with Mark Levinson regarding the other authors of these mechanical licenses. He informed me
that Joel Martin said they had transferred those ownerships. agreements. I don't know. I don't have those
But only from a licensing viewpoint,
this clearly states there's a different publisher other than the author and in this example it looks like Almo Music Corp. would be the controlling and
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answered. BY MR. KLAUS: Q. A. What's reflected in Exhibit 3, sir? Exhibit -MR. BUSCH: THE WITNESS: contracts. It's been asked and answered. Exhibit 3 is just a summary of
And it breaks down what these contracts
are, tied to the exhibit on the schedules, and also for the fact that they were not granted the right by Eight Mile Style through a controlled composition clause or any licenses to reproduce and distribute works that they represent. BY MR. KLAUS: Q. Please show me what in Exhibit 251,
Exhibit 3 to your declaration, is tied to any of the mechanical licenses that are in Exhibit Number 245. MR. BUSCH: I just want to note for the
record that Exhibit 3 speaks for itself. THE WITNESS: Well, I believe if you look at
some of the agreements and then look at some -- yeah, I'd have to through each one of these and find where we reference Exhibit 5A, recording agreement, so. I'd have to go through these. BY MR. KLAUS: Q. What would it -- what would going through
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the stack that's Exhibit 245 tell you? A. A, there's licenses that were -- mechanical
licenses that were granted by the publisher representing 50 Cent to different record companies unaffiliated -- unaffiliated with Aftermath. Q. How do you know they're unaffiliated with
Aftermath? A. Based on the fact that Aftermath is the
licensee in this case, and, other than that, they weren't mentioned as Aftermath, so. Q. A. Q. A. Q. Is Shady Records affiliated with Aftermath? I don't know. Is UMG Recordings affiliated with Aftermath? I don't know. Is Interscope Geffen A&M affiliated with
Aftermath? A. Q. I don't know. Is Interscope Records affiliated with
Aftermath? A. I don't know if they're -- when you say
"affiliated," in what degree do you mean affiliated? Q. You're just -- you're the one who used the I'm just wondering.
word "affiliated."
Do you know whether they're affiliated with Aftermath or with UMG?
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A. Q.
Contractually, I don't know, so. G-Unit Records, do you know if they have any
affiliated relationship with Aftermath? A. I would say from -- from a industry
perspective, they have -- they -- they have artists that are signed to them that -- in this instance, 50 Cent may be signed to them, Lloyd Banks, and reading those agreements that were the artist contracts, they signed -- they'll sign those agreements with Andre Young and -- and Aftermath Entertainment, so. Q. Do you know one way or another whether
they're affiliated with Aftermath, G-Unit Records? A. I don't have their -- in the -- I'd have to
see the contract so I don't -- so I don't -- I don't know the relationship of their contract, so. Q. Did you ask anybody what -- did you make any
attempt to determine whether they were affiliated? A. Q. No. With respect to a license granted to
Interscope Records, do you know whether Interscope Records would be able to sublicense that right to Aftermath Records? MR. BUSCH: hypothetical. Objection. In- -- incomplete Lack of foundation.
Object to form.
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And assumes facts not in evidence.
And my same
objections as I've expressed them before about these -- these documents. THE WITNESS: attorney, so. BY MR. KLAUS: Q. You have no -- you don't know one way or I wouldn't know. I'm not an
another whether it would be a sublicense? A. Q. I wouldn't know. I'm not an attorney.
Do you know -- you make the statement at the
bottom of page 3 carrying over to page 4, you say: "Even if these controlled composition clauses could be considered licenses for DPDs, which they cannot, these third-party controlled composition clauses cannot constitute a license to either of the defendants, to the extent the agreement is with a party other than either defendant, since, as mentioned in paragraph 3, such nonexclusive licenses are not transferable or assignable by the licensee." Do you see that?
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MR. BUSCH:
Don't get that -- I mean, you're
not going to go over this same thing again that we went over for an hour -THE WITNESS: MR. BUSCH: deposition, are you? BY MR. KLAUS: Q. I'm going to ask you what you mean by that Yeah. -- at the beginning of this
statement there, sir. MR. BUSCH: and answered. MR. KLAUS: sentence before, sir. MR. BUSCH: Yeah, but we dealt with that We haven't dealt with this Objection. It's all been asked
same thought that is referenced in that sentence where it says "as explained in paragraph 3" for about an hour this morning. And, again, we're at 7 hours
now and I'm going to ask you to move along, please. THE WITNESS: Okay.
Very clearly, that -- the agreements that are here (indicating) -BY MR. KLAUS: Q. A. Here, and you're pointing -Meaning Exhibit 3 -MR. BUSCH: Just note my objection, asked
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and answered. THE WITNESS: -- Exhibit 3 are not Aftermath
and you can't transfer any of the rights, and they're not assignable to third -- they're third-party licenses, from Eight Mile Style to any of these nonaffiliated parties. So basically, to clarify, there was never an exclusive license grant or transferable right given to any of these defendants and they're un- -- no, not the defendants, the unaffiliated labels, to then reproduce and distribute those works from Eight Mile Style, and that's what that statement is saying. BY MR. KLAUS: Q. Do you know one way or the other whether Between --
there was this transfer of a license? MR. BUSCH: BY MR. KLAUS: Q. Object to form.
Do you know whether there was a transfer of
a license between the parties to the agreements that are listed on Exhibit 251 and Aftermath? MR. BUSCH: Same objection, and the -- my
continuing objection about the nonproduction of documents till the end of dis- -- till after discovery closed. THE WITNESS: Can you repeat the question
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one more time. BY MR. KLAUS: Q. Sure. Do you know whether there was any transfer of a license between any of the parties to the agreements that you've summarized on Exhibit 251 and Aftermath Records? A. So when you say "transfer," was there a A transfer
transfer as a -- from label to label? from -- to musical composition? Q.
I'm asking was there a tran- -- do you know
whether there was a transfer from label to label? MR. BUSCH: BY MR. KLAUS: Q. That's what you've said can't be done, is Right? Object to form.
a -- is a transfer from label to label. A.
When looking at the documents in the case,
Aftermath being a defendant, and these recording agreements are between labels that are other than Aftermath, so we make the opinion that they are not the defendant. So they're not -- they don't have the
right to transfer any of the musical compositions of Eight Mile Style. Q. Would they have the right to sublicense any
compositions?
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A.
I don't have an opinion about it -MR. BUSCH: This has all been asked and
answered. THE WITNESS: so. BY MR. KLAUS: Q. And you don't know whether there was a Yeah. I'm not an attorney,
transfer of a sublicense, do you? MR. BUSCH: documents. THE WITNESS: MR. BUSCH: discovery. Yeah. You haven't given us any You haven't produced any
You -- it's -I --
THE WITNESS: BY MR. KLAUS: Q.
You don't know whether they transfer a
sublicense, do you? MR. BUSCH: BY MR. KLAUS: Q. A. You don't know, do you? Only look- -MR. BUSCH: THE WITNESS: Objection. Only looking at these -- inappropriate.
documents, it appears that it's not Aftermath and it's some other re- -- record label, that could be
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who knows what, that is now pr- -- relying on controlled composition clauses with some other authors to license, reproduce, and distribute works of Eight Mile Style, which they don't have the rights, and that's why that statement is there. BY MR. KLAUS: Q. How do you know whether there was a transfer
and assignment? MR. BUSCH: You're arguing with him. You're arguing with him. He said --
Please, Kelly, let's go.
Now, he's answered the question. THE WITNESS: MR. BUSCH: THE WITNESS: BY MR. KLAUS: Q. A. Q. Okay. I'm sorry. Thank you.
I -- I don't know. -- he doesn't know. I don't know.
I'd like to ask you, sir, if you would turn to paragraph 7 of your declaration, Exhibit 240. A. Q. A. Q. A. Excuse me. I'm there.
Are you at Exhibit 7? I'm there. I'm sorry, paragraph 7 -Paragraph 7, yeah.
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Q. A. Q.
-- of Exhibit 240. Yes, sir. You state in the first sentence: "With respect to the proffered licenses in Section 1 and Section 2, each such document, even if effective as a license, which they are not, are specifically limited to the territory of the United States and, in one instance, to the United States territories and possessions." Do you see that?
A. Q.
Yes, sir. What effect on any opinion you're offering
in this lawsuit does the ter- -- does any territorial restriction have on your opinion, sir? A. Very clearly, the right by -- I mean, sorry,
not the right, the territory that it would be granted would have been for the United States. And according
to what was presented in the case, iTunes was distributing outside of the United States, so they did not have a license. Q. Do you know one way or the other whether
this lawsuit concerns foreign distribution?
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A.
I know -- no, but I know it concerns
licensing. Q. Do you know whether there is an issue in
this case concerning or an attempt to seek damages for foreign distribution? A. Q. I don't know. Okay. You make a statement at the bottom
where you say: "The vast majority of the mechanical and DPD licensing outside of the U.S. is handled directly through rights societies who act on behalf of all publishers within one territory." Do you see that? A. Q. Correct. You understand that to be the case for -Correct?
for composition rights outside of the U.S. A. Q. Correct. Correct.
Do you know whether composition rights for
the compositions at issue in this lawsuit have been obtained through collecting rights societies outside of the U.S.? A. Q. I don't know. Did you ask anyone whether that was the
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case? A. Well, the business practice of licensing
obviously is clear that you need a rights society to license those works to online music services, so this is very clear-cut, 'cause I understand the business practice of licensing outside of the United States, so. Q. A. Which is? That rights societies -MR. BUSCH: THE WITNESS: Asked and answered. Rights societies license
directly to online music services such as iTunes. BY MR. KLAUS: Q. Do you know whether that happened in this
case with respect to the Eminem compositions? A. Q. A. I don't know. Did you ask anyone? No, 'cause it's very clear that those rights
would be licensed directly from the -- the iTunes, for example, in the territory of the U.K. or GEMA in Germany with the rights societies, so. MR. BUSCH: ask anybody. THE WITNESS: BY MR. KLAUS: Did -- oh, did -- oh, no. The question was just did you
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Q. A. Q.
Okay.
Do you --
I'm sorry. You stated that the licenses are limited to Is that -- does the fact that
the -- to the U.S.
there's a territorial -MR. BUSCH: BY MR. KLAUS: Q. -- limitation to the U.S. -MR. BUSCH: -- when you're at a convenient Counsel --
breaking point, I'd like to use the post lunch restroom break, please, but finish your line of question. BY MR. KLAUS: Q. When -- does the fact that there are
territorial limitations in any of these licenses affect any opinion that you have regarding the validity or not of any of the licenses that are in Exhibit 245, the binder? A. I'm not an attorney, so all I know is that
the -- you need a license for the United States distribution and -- reproduction and distribution through Eight Mile Style and you need a license -iTunes, for example, has an online music service who needs to obtain a license, from general industry practice, through the rights societies as outlined
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here below, so. Q. Do you have any opinion regarding foreign
distribution of any of the compositions at issue in this case? A. Q. Do I have an opinion in what sense? Any opinion that you're offering for a
purpose of this lawsuit. A. Apple iTunes did -- would have had -- would
have had to get the licenses directly from MCPS and I'm assuming they didn't. Q. A. Q. A. You're what? They didn't. How -- why are you assuming they didn't? 'Cause it wasn't presented to us. MR. BUSCH: THE WITNESS: BY MR. KLAUS: Q. Did you ask anyone any- -- did you ask Well, don't assume. I --
anyone anything to try to confirm this? A. Oh, no, no, no. MR. KLAUS: take a minute. MR. BUSCH: MR. KLAUS: Thank you. Take a break. Off the record. The time Okay. Why don't we stop and
THE VIDEOGRAPHER:
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