Viacom International, Inc. et al v. Youtube, Inc. et al

Filing 307

DECLARATION of Andrew H. Schapiro, Group 7, Exhibit 215, Part 1 in Opposition re: 176 MOTION for Partial Summary Judgment /Viacom's Notice of Motion for Partial Summary Judgment on Liability and Inapplicability of the Digital Millennium Copyright Act Safe Harbor Defense.. Document filed by Youtube, Inc., Youtube, LLC, Google, Inc.. (Attachments: # 1 Exhibit 215, Part 2, # 2 Exhibit 215, Part 3, # 3 Exhibit 215, Part 4, # 4 Exhibit 215, Part 5, # 5 Exhibit 216 - 222, # 6 Exhibit 223 - 237)(Schapiro, Andrew)

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Schapiro Exhibit 216 ~ e. ~\ 1 I \ ~\ VIA01474688 ¡Õ' i -. =s o o ::. . ei il :: ~ o 1 Projec Beagle Model 0 22 Summary õ:' Scn i -Barline a 2 3 Co per View Pre-Roll Companion Professional Content 4 Oter o 2006 2008 Use Scenario 2007 200 2010 o SCenario 1 2 3 Revenue Cost per View New Unit Pro Content Video Pre-Roll - Total Premium - Total Cos per View - Total Paid Search I Ad Netwrk - Total Revenue - Total Expense Bandwidth Cos of Goods Storage Ad servng Web Anaiyics Cos of Goods - Total Gross Margin General Expense Operations Seiviæ & SUpport Engineering sales Marketing G& Content Ucensin General Expenses - Total Net Profit I (Los) Average Annual Head Count .: :¡ o ~ .. -. .n . i CO CO ¡Õ' i NewSite P&L - Summary ($0005) VIA Base Case NON-BINDING - FOR DISCUSSION ONLY -. =s CONFIDENTIAL o o ::. .i e Average Monthly Unique Users Revenue Vìdeo Programming CD :: ~ ~ - Ad-Supported - Electronic Sell Thru - VOD Rental - Subscription Total Programming Revenue Plus: Run of Site Revenue Total Revenue Video Programming Costs - Ad-Supported - Electronic Sell Thru - VaD - Rental - Subscription - Exclusivity Fee Total Programming Costs Gross Profit - ,\d-Supported Electronic Sell Thru - VOD - Rental - Subscription - Exclusivity Fee Total Video Programming Plus: Run of Site Revenue Total Gross Profit % of Video Pr(),gra7Jmin,~ Revenue % q(Total Revenue Less: Operating Expenses :\ ffiate distribution fee In frastructurc / N ctwork Research & Development Marketig - G8u\ Total Expenses % of Total Revenue .: Operating Profit %Alargin Partner Share @ 50% :¡ CO o ~ .. -. .n . i o ¡Õ' i NewSite P&L - Summary ($ooOs) NON-BINDING - FOR DISCUSSION ONLY = ~s CONFIDENTIAL o o ::. .i e VIA Base Case Average Monthly Unique Users Revenue Video Programming il ~ - ,\d-Suppoftcd - Electronic Selllbru - VOD - Rental - Subscription Total Programming Revenue Plus: Run of Site Revenue Total Revenue ~ Video Programming Costs - Ad-Supp0rted - Electronic Sell Thru - VOD - Rental - Subscription - Exclusiviry Fee Total Programming Costs Gross Profit - Ad-Supported - Flecrronic Sell "I,ru - VOD - Rental - Subscription - Exclusiviry Fee Total Video Programming Plus: Run of Site Revenue Total Gross Profit ~/o rl L/ideo Programming Revenue % of Total Revenue Less: Operating Expenses /\ffiare distribution fee In frastrucrure IN etwork Reseach & Development :Yarkerig - G&i\ Total Expenses % of Total Revenue .: Operating Profit %¡,\1.argiti :¡ Partner Share (Í 50% o ~ .. -. .n . i CO ¡Õ' i NewSite - Content Holder P&L ($OOOs) NON-BINDING - FOR DISCUSSION ONLY -. VIA Base Case Year 1 Year Year Year =s CONFIDENTIAL o o 2 3 4 Year 5 3- ei CD :: ~ TV & fil revenue share õ:' Content Holder Revenue Ad Revenuc Revenue sharc from NewCo Net rcvenue sold by Content HoI Subtotal TV inventory sold by content ~oldcrs Other Revenue Electronic Sell Thru VOD - Rental Subscription Exclusivity Fee Lícense fee for exclusive TV content Total Content Holder Rev % Revenue breakdown Fox Viacom Other $ Revenue breakdown Fox Viacom Other Mfiliate distrbution cost Fox Viacom Bandwidth costs Fox - Viacom Gross Profit Fox ~ Viacom Plus: Share of NewCo Operating Profit Fox .: - Viacom :¡ T mal Incremental Value o ~ .. -. .n . i Fox Viacorn CO I\ J ~ jj 1 1 ~ j 1 ~ ~ r. ~ ~ 1" . J i .' 14~ ,, . t, l Highly Confidential VIA01474693 ¡Õ' i -. :: o o ::. . ei Projec Beagle Model 0 18 il :: ~ Model èI ..."." ~ Vis Pag Views pe Vlsor PaçYîews filmViews Visitor pe F¡lmVie Traff Copoition u5/UK/CDN Balanc of lnte-tiooal Pagc.itiof~Hom Page List Pag . No-searh List Page. Serdi Results Content PaQ 0I Paa - Utility (lo;!" Help, Uplo, etc) Pag Views Hom Pag lIS Page - Noo5ect lit Pag . Searc Re5ults Coment Pag Ot Pag ,utity (loin, Help, Uplo, etc) Cot of Gos Bawidtt Film len Ayttag Trarl 8illin Melo Film Erx Rate Film Down CompletJ Rate Pe Ho Us. Cot of Baodwkl Pe,,toMe.n Ratio C0of BaodwKt Deliver 8i1lng Metlodlogy De"" Cot of Baoowid Cosof&mdwid Cot of Bariwictt (Average-õf Metlloie) Storage whoUplo tJ Upl per Day Upl pe Montt Encoded fiie Size Soce file! Ençod File Size Ratio SoeFiiesiie SolTe file Retntio Stoag Pe:r Upld AVef.a New Stag per Moott Cumulative Storage at Year.End Cost of StoròQ (Redndant i.twoi Stofa, Cot of 5toaq Ad servin Cos pe Ac5e G311 Ad5eercæl Rate Ad 5eerCdIl Rate Pag serv Films Se Costof~ Ad 5eercalls Web Analy .: Cot pe Web Anlyic call :¡ Films Seed Web Anllic (aILS Pag serv o -L Costof Anlyic .t -- .¡ (J CO .. t3 ~ 6~ ON ~~ ¡¡ M' § R, ~~ ~ M ~* ~ '" ¡; N 8 :; ~ '" ~ § ;; ~~ -" Highly Confidential VIA01474695 ¡Õ' i -. =s o o ~ ""pt ei il :: ~ Bala of Intetll Hom Pag Sl Coen Pag LiP~-No'5erc Li p* - Se Resll Ot Pag . Vti! (loin Hl!? \J et Bala of Intertil. So lnto Sold lltor - Total Co Pe Vie lnin . Paid Serd ( Ad Net US¡UCDN Hom Pag Li Paq - 5lar Reslt lit Paq . No-Searc Cotet Pag Ot Pag - Ut!t (loin Help uplo etc US¡UK/CDN . Sold liweito Balae of Intetial Hom Pag CoPaç li Pag - NQ.Serd Li Paq - Serd Re51t Ot Pages. utilit (Ioir Help Uplo etc) Sari of Interatiol. Sok: fnve So loveti . Total Inlíne . Paid 5erc I Ad Netrk illto-Totl R~ Vid Inv . Pr Roll US/UK/CDN Al Ad R~ue (Moott) Balae of Iitemti ~evue(MQIth) Film Revue - Totl V!d Inven - Pre Roll Inlin . Priu, Bran Display Ad US/UK/CDN Hom Pag Lit Pag . No-5e CorenP~ USt Pag . Se Resl15 Ot Page' Utlit (loin, HeiP Uplo, etc Aóvir Rev~ue (Moott) Balae of Interti Ho',, li Pag . No-5erc Cont Pag liM Pag - serc Result Ot Pag . Utilit (!on Help Uplo, etc Advein Revue (MOOth) R~ue - Total Inlin. Premium, Brand Di$ Ad Cot Pe Vie US/UK/CDN Hom Pag List Pa - No.5e COOtePai Ust Pag - 5erd Reslt Ot Pag . Utlit (lom MOO Uplo et Ad Reue (Month) .: Bal.oflnt~ :¡ HoP,, o ~ .. -. .n . i list Pag . No.serc list Pag . se Reslt CO in Highly Confidential VIA01474697 ¡Õ" i -. =s o o ::. . ei il Project Beagle Model 0 1S ~ Summary ~ Visitors (millon/montl) Global US/UK/CON Page Views (milion) Global US/UK/CDN Film Views (milion) Global US/UK/CON Revenue Video Pre-Roll - Total Premium - Total Cost per View - Total Paid Search / Ad Network - Total Revenue - Total Expenses Bandwidth Cost of Goods Storage Ad Servng Web Analytics Cost of Goods - Total Gross Margin General Expenses Operations Seivice & Support Engineering sales Marketing G&A Content Licensin General Expenses - Total Net Profit I (Loss) .: :¡ o ~ Average Annual Head Count ... - -i Q) CO 00 ¡Õ- i 2006P -. =s o o ::. . 2007P 2009P Project Beagle Model 0 18 200P 20iop ei il :: ~ Financial ê: Key Mod Onv Total Revenue Averae # Users COGS - Bandwid Storge Ad 5eng We! Analyt ~evue Total COGS .: :¡ o ~ .. -. .n . i Prje 6ægle Model 0 IS,xls -- I CO CO ¡Õ' i 200P 2007P 2009P -. =s o o 200P 2010P ei ::. . Project Beagle Model 0 18 il ~ Financial ê. ~ti. Cotio Space i! Related Charg Average Montly Co 5e09 capaci Co Grwt Annua Co Site Opeatis Team Hedcnt @ YE Burdne CostEE @ YE % Increse În Burdne COEE Total Cost Cotent 5ervki09 i! Cust S4pprt # Reps Burdne CostRep % Incse in Burdne CoEE Totl Co Depreciation Expense Operations % of Revenue .ÉnAenEmpee Required (Manual Adjustt) g ctl Burden CoEmployee % Increse in Burde CoEE Totl Resrch i! Deelopt Cos Enginei: % of Revenue .: :¡ o ~ .. -. .. -. o o Projec Begle Model 0 18.xls -- 2 ¡Õ' i 2006P 2007P -. =s o o ::. . ei 200P 2009P Project Beagle Model 0 18 20iop il :: ~ ê: Financial Sale &. Marletng Sale &. Safes Support Emploee Related Co Sale Rep Brand Adversing Reenue Revenue Burd pe Rep Branded Rep Heaount Branded Reps Loaed Cost per Emplo Totl - Branded Rep Cost per View Advert!ing Revenue Revenue Burden pe Rep Insid Rep Heaount Inside Reps Lode Cost per Employee Totl ' Insi Sale Rep Sale Supprt &. Ad Ops Ad ops/cllent services/yìeld managemet to rep rat Ad ops/client seices hecont Branded Sales Supprt Headcount Inside Rep Suppo Headcunt Burdened Cost per Support Headcount Totl - Supp Managemnt and Overhead Management and Overtead Heaunt Burdened Cost per Suppo Headcount Total - Managet &. Ovd Totl Sale Marketng &. BD Empioyee Relate Cost # Employees Burdene CoEmployee % Increase CostEE Totl Emploee Related Cost Outsde Marketng % of Revenue Outsde Markng Exse Totl Marketng Sale . Marietin % of Revenue .: :¡ o ~ .. -. .. -. o Prjec Bele Mod 0 IB,x1s -- 3 ¡Õ" i 2006P 2007P 2008P -. =s o o 2009P 2010P Project Beagle Model 0 18 ::. ei il Financial 2- ê: G&A Employee Relted Co # Emplyee Burde CoEmpyee % Increse in Burded CostEE Totl Employee Reated Co Recitng COst: $ Per New Hire -- non-supp # New Hîre $ Per New Hire -- support # New Hires Totl Recitng Co Overhead I Facilites Headcount Space per Persn (sq. ft) Price per Square Fo Ba De Expense % Revenue fr National & Inside sales Total Ba Debt Expse G&A % of Revenue COntent Licensing - Contet licensing Fee Rate Content Ucensing Expe Content Licensin CAPEl Total Incrmental cape 1$1 Emplo Operatins service & Support Engineng sale Marietng GM Totl Employee Revenue pe Empyee .: :¡ o ~ .. -. .. -. o I\ Prje Begle Modl 0 18.xls --- 4 '" , ~ ~ o ~ " l l lS li .. g; ~ l .. ~ ¡ co .- o Qj '8 :E m a: m Q. ''' i: ~~ e~ . g- .c gi ~ ~~ oi ~ ~ ~ ~.i? 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VIA01474705 Highly Confidential N .ë: ~ CU CU o .c CU ~ :i l:i o )- Highly Confidential VIA01474706 ¡Õ' i -. =s o o ::. . ei il :: ~ ~ YouTube at a Glance · Founded February 2005 · Site motto: "Broadcast Yourself' -- Features and usage - Users can instantly upload, watch, tag and share videos, - Getting to comprehensive - search millions of videos uploaded by community members - Personalize the experience by subscribing to member videos, saving favorites, and creating playlists, Developing a persona on YouTube - Embed YouTube videos on websites using video implants or APls - Users can make their posted videos public or private - Ability to watch and share videos from mobile phones or PDAs · Headquarters: San Mateo, CA · Management: - Chad Hurley - CEO & co-founder - prior Paypal - Steve Chen - CTO & co-founder - Prior Paypal - Sales and bus dev. mostly x-Yahoo! (Chris Maxcy) · Investors: - YouTube announced its first round of funding in November 2005 for $3.5 million from venturecapital firm Sequoia CapitaL .: - In April 2006, YouTube received an additional $8 million in a second round of funding from :¡ Sequoia - investment led by Roelof Botha, former CFO of PayPal 3 o ~ .. -. .. -. o -. ¡Õ- i -. =s o o ei ~ il :: ~ YoLiTube is a "Video Utilty" .. Serving an õ:' Extremely "Longtail" of Content . YouTube is a utility people use to contribute, share and consume video - Users currently upload -70K videos per day and invest in tagging, cataloging and sharing their videos . Consumption of "branded" content on YT is low - There are no movie trailers in the top 30, nor are there any clips from popular TV shows - Only four of the top 30 most watched videos of all time on YouTube are music videos, one of which is in German . In fact, in the "branded area," Ifilm does significantly more streams than YouTube, even though Ifilm is much smaller from a user base perspective o Pirates of the Caribbean 2 trailers consumption on YT = 250k; consumption on IFILM = 1m o Even the much-discussed SNL "Lazy Sunday" sketch and its myriad spoofs have been seen more times on IFILM than on YouTube . Net-net, YouTube is much closer to video search than VOO .: :¡ o -' .. -. .. -. o 4 CO ¡Õ' i -. =s o o 2. ei il ~ Daily Reach (per million) 40,000 YouTube is Showing Break Out Growth õ:' NIELSEN NETRATINGS MONTHLY UNIQUES Monthly Unìques Thousands 25.000 r ! 20.000 f ,..,:i:....;.....t-.. -~,j\"..\-....f'\:.. .. "..... -4 .. .. 30,000 20,000 . ,,(./\/1) .... - tvi :~ ",. 1.\Ìi'-' 15.000 /v v, ,'" ~I' f i "'i î ',' t.~ i,r' iii I r,.j 10.000 10,000 ,.~.,...,/."'IY. .. 'v' I'" ..~ t"\Ì'v.., "/ l v r I ~_'tv-..~J' o o o ),," .G~" ~" ,," ",,~ Oèf ..o~ ~" ~ ~" ~.?" ~,¡ '~2l)06 ,:".I~'''4 ,p ~):'ò ~" ~,,~ Feb 1006 Jul7 I NetRatings - May 2006 I (US Only) I Alexa Rankings - July 2006 I . In video, YouTube is a clear leader with 20M uniques (NetRatings) growing 100% month-on-month . YouTube has a massive global reach: A top 10 site in 8 countries, a top 20 site in 18 countries, and a top 50 site in 49 countries Alexa ranks the site 19th in the world; Implies 4% global audience reach Approximately 80% of traffic is non-US .: :¡ o ~ .. -. .. -. o co 5 ¡Õ' i -. =s o o ::. . ei il ~ The Site is Extremely "Sticky" -- ê. Particularly vs. Competitive Sites Stickiness vs. Engagement (US Only) Grouper @jFfLM May - Average Time Spent per Unique rn .. . víd13o.msn.com Minutes EbaumsworJ.d.com @Goog! Video a viós.mysp.-ce.com ~) YouTuoe 36.0 :J C -ti:n 'E liJV íl @MySpace S 130 § 110 MySpace 11.6 6,9 8.4 ~ 90 ~ 70 (j 5,5 E 30 (l 50 (j ! ¡-- E 10 o Youiube MySpace eBaums \'Vorid Video Google Video Yahoo' Video ;: ~ (j t5 -10 Engaged (Visits per person) 5 10 Source: Nielsen Netratmgs - Loyalty matm - May 2006 Source Media Metrixs - May 2006 . Relative to the competition it is experiencing 3-5X time spent with an average of 36 minutes per unique per month (MediaMetrix) 6 .: :¡ o ~ .. -. .. -. ~ o ¡Õ' i = ~s o o ei il :: ~ YouTube's Audience is a Strong Fit with MTVN ëI . MTVN's primary demos are strongly represented on YouTube: o P12 - 34 = 39°Jl of YouTube's audience and 67°Jl of the site's page views o P18-49 = 59°Jl of YouTube audience and 53% of page views · MTVN I YouTube unduplicated audience would be 35MM uniques - an active reach of 230/0 o ::40% of the unique audience on each MTV.com, CMT.com, Gametrailers, iFilm, and The-N.com are also on YouTube o By comparison, only 9°Jl of YouTube's uniques overlap with MTV.com representing a significant opportunity to grow our audiences · The potential competitive threat of a combined MySpace I YouTube would reach 51 MM unduplicated uniques .: 7 :¡ o ~ .. -. .. -. Source: Nielsen Netratings - Audience overlap ~ ~ ¡Õ" i -. =s o o 2- ei il ~ ~ However, YouTube's Advertising Business is in its Infancy . You V.i_rJJ~!li l."l:ne Ç.i~tt_eSl.!LfLê.~ L1!ri~k kb:..:':h",, flfil); . We do not believe YouTube has any significant ad business The company has (correctly) been focused on the user experience and has not implemented any invasive advertising ~i RBSg-tts: ~-2G ùf 3D'! H.elalect f4gs: ~:i'I Focuses on Banners AÓ$ t"f (,-"-(":I(',,:;.::.;e Search ¡art sunoiay - No "pre-roll" video !¿.l::L5lJil 011) Spes! of 3-'!Ulj3~~ r.;¡g!',t ü.¡e's L~;:v S:.r;vJ'f Fltn!01Lyirfa;~l~ inventory T õlgs ~!:~: i.D2: .8;,;::.¿ ~~rt~,.,::£r~ -S'"~:ih'S,::'Q(¡ . ***~ iaNSUM?ý i Cnny$undav 1\"\-t1' However, it has recently done business with Disney, NBC, and Weinstein Co. . .: Also using ad networks Google AdSense to :¡ monetize traffic 8 o ~ -i -. .. -. f\ -A (j E o ~ z :: I:æ u .e- (. .c .. .~ .. .LL Highly Confidential VIA 01 4747 1 3 ¡Õ" i -. =s o o ~ ei il As Video Consumption Moves to the Web, :: ~ ~ YouTube has Emerged As a First Choice Asset for the Company · YouTube is the dominant platform for consumers as they migrate to using video to express themselves - It is quickly becoming a "video social network" - There is currently no other asset that approaches this position · YouTube would be a transformative acquisition for MTV Networks / Viacom in the internet space; we would: - Immediately become the leading global deliverer of video online, with dominance in almost every country - Own the world's largest repository of digital video that is relevant to our audiences .: 10 :¡ o ~ .. -. .. -. ~ .. .. .. cu tJ .c :i I- Q) .n.s '- Q) 0 ... )l- E 0 '+ 0 (. :i .0 .. .tn t'n Q) e: 0 e. '0 .0 . (. CU tJ .m l- - LL tJ :E ~ z ~ l- .e. .. "C ns Q) 0 e. ~ "l .0 -. :s Q) .e-: (. '" '" : .n.:s .t. n ~ e: ns tn .r-: .:.i CI rl: " en en tJ '+ Q) 0 (. -'Q) "C 0 e. E 0 (. E .. '" Q) (i ~ . CU : Q) E "C en D- e: O tn :: (. 0 E ns e: .. Q) e: .. Q) "C ~ ~ lLL 0 :: e .n-s: .. .. .e.: ~. ( .n-s ns ':: 0 . . ~N (l .(.. (. 0 .. Q) (. .... e: .. 0 0 e: C) ~ J .tC J .t- :i (. .c o e: (. Q) w. . . m J: "C .. Q) .e-s: Q) "C .n.: :: e: - ns o '- .e-s :: :: :n: .c W M . ~ . Highly Confidential VIA 01474715 ¡Õ0 i -. =s o o ::. . ei il :: ~ ê: .: Consumer Leadershi(l: While YouTube is Number One, the Space is Competitive, Meaning its Position Cannot Be Taken for Granted · A range of companies - including the portals, the social networks and pure-play start-ups are aggressively pursuing this space, creating alternatives for consumers likely · Therefore, YouTube must focus not only on continuing to attract new consumers, but maintaining existing ones -- The key here wil be to increase "switching costs" - Today, YouTube has a "limited audience lock-in" · Unlike MySpace, there is less investment in personal profiles and personalities · YouTube will have to focus on adding features which make it harder to move - With limited switching costs audiences are likely to migrate to other sources should the site's appeal be diminished - ad integration will be a particularly sensitive issue 12 .: :¡ o -J .. -. .. -. -J in ¡Õ' i -. =s o o ~ ei il :: ~ ê. the Branded and Ad Network Spaces as Well as Creating A New "Ad Sense-Like" Product ii Advertising: Success Will Require Tapping · YouTube's traffic is fragile with respect to attempts to monetize it through traditional "inserted" video advertising. · Audience tolerance for pre and post-roll video advertising wil be low compared to websites that are used predominantly for the consumption of professional programming that is not available elsewhere (e.g. IFILM, Overdrive) · The model we have built assumes three revenue generation models, two of which already exist and are well understood, one of which is new and therefore untested. · The proposed monetization mechanisms are: - Branded Premium Advertising & Sponsorships - Cost per View / "Video Ad Sense" Model .: - Run Of Site / Advertising Network 13 :¡ o ~ .t "' .t -. ~ "' ¡Õ" i -. =s o o ::. . ei il ~ ii The Markets We Know - Branded and Ad Networks · "Branded" revenue will be generated from key real estate, and wil likely be in the form of auctioned premium advertising and sponsorships Paid Placement - home page based sponsored video (i.e. one block where film studios bid for placement of their trailers) - Premium Content - over time the use of ad supported premium clips/content in a separate section (i.e., Movie of the week, first looks, releases, film trailers, etc). - That said, there is some concerns surrounding generation of . Likely lack of ability to drive traffic to home page and other destinations within the site, . Most popular and therefore valuable content - such as huge movie releases (trailers, etc.) - wil significant revenue from entertainment advertisers (e.g. studios) include: likely be available freely anyway. .: :¡ o -" · In addition, we assume the use of advertising networks for yield management - initially domestically and over time internationally 14 .. -. .. -. ~ co ¡Õ' i -. =s o o ::. . ei il :: ~ ê. The "Video Ad Sense-Like" Opportunity . Users have so much freedom of choice for the consumption of media that marketers can no longer assume they can "buy time" within it. . Advertisers are becoming obliged to offer compelling content and services. Google's advertising model made this clear, whereby advertisers not only bid for the privilege of real estate but advertising that does not make good use of available real estate is penalized. . We propose a revenue model for YouTube that treats advertising and content as nearequals, as in Google's "natural vs. sponsored" search results. Cost per view paid video advertising would appear throughout the YouTube site, alongside the programming. . Advertisers would bid for keyword-space, and could ultimately upload their own creative. . Audiences would be receptive to the advertisers' content because it would never be forced upon them but offered more as a service or as additional content to them, and advertising content that doesn't perform (is not watched) would be automatically discounted and would ultimately disappear. .: :¡ o -L 15 .¡ -. .¡ -L . - CO ¡Õ' i -. =s o o ::. . ei CD :: ~ õ:' 3) Evolve the content model to fully incorporate "branded content · Today, YouTube incorporates some branded content · However, the experience is not maximized and the business model is not fully defined · On a going forward basis, YouTube needs to evolve to deal with both of these issues .: 16 :¡ o ~ .. -. -. -P J\ o ¡Õ' i = ~s o o 2- ei il ~ õ:' 4) Maintain "Technology Companï: status KEY SUCCESS FACTORS . Ability to hire and retain technical talent: requires significant technical talent to develop targeted advertising and search related competencies. E.g., developing cost per play models that match categories of video to advertisers. As a corporately owned company it will be more challenging to incentivize new hires . Ongoing investment in infrastructure: YouTube is at an early stage of infrastructure development and will require ongoing investments in storage/caching, and servers to maintain speed and effectiveness . Investment in innovation: As a platform, YouTube requires ongoing investment in innovation to maintain the relevance of its searches and ~ sharing technology .. 17 o ~ .. -. -. ~ -- ¡Õ' i -. =s o o ::. . ei il :: ~ eI Viacom I YouTube - Sources of Value Added . Provide users with fame on television i.e., The crowd decides, we put it on air - best of appears weekly on Comedy Central and MTVN, provides additional incentive for users to upload, vote and promote themselves on YouTube . Brandsl editorial fit enables us to both source talent, innovative content for consumption across platforms. We are one of the few providers willing to put edgier content on TV. Ie. User generated music video, user generated ads on television . Video content - breadth and depth can power YouTube to the next level of relevance. By providing all of our clip based video in raw form - i.e. non branded editorial experience- simple search and obtain. We can push YouTube to become a more comprehensive destination and source for broader syndication . Promotion - fit with our target audience and demo. We can reinforce and drive traffic/ promotion between YouTube and other MTVN sites .: . User Registration information - Breadth of user information will increase 18 :¡ o ~ .. -. our ability to target advertising to the user base across the MTVN network -i -. I\ I\ ¡Õ' i = ~s o o ::. . ei il ~ eI Financial Model · We currently are in the midst of finalizing out operating projections - Advertising revenue - Video storage and delivery costs - General company management costs . In addition, the Viacom M&A team is on board and waiting to overlay the requisite financial items . We anticipate having something for you to review later day .: :¡ o ~ .. -. 19 .t -. I' w ¡Õ' i -. =s o o ~ ei il ~ ~ Summary and Next Steps · Integrate your input · Refine operating model · Build valuation model . Socialize the opportunity with other key members of the Viacom management team . Depending on the outcome of these steps, potentially engage with the controlling VC this week .: :¡ o ~ .¡ -.¡ 20 -I' .. Schapiro Exhibit 217 1 UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK VIACOM INTERNATIONAL INC., COMEDY PARTNERS, COUNTRY MUSIC TELEVISION, INC., PARAMOUNT PICTURES CORPORATION, and BLACK ENTERTAINMENT TELEVISION LLC, ) ) ) ) ) ) Plaintiffs, ) vs. ) YOUTUBE, INC., YOUTUBE, LLC, ) and GOOGLE, INC., ) ) Defendants. ) ___________________________________) THE FOOTBALL ASSOCIATION PREMIER ) LEAGUE LIMITED, BOURNE CO., et al.,) on behalf of themselves and all ) others similarly situated, ) ) Plaintiffs, ) vs. ) YOUTUBE, INC., YOUTUBE, LLC, and ) GOOGLE, INC., ) ) Defendants. ) __________________________________) Case No. 1:07CV02103 Case No. 07CV3582 VIDEOTAPED DEPOSITION OF JUDY McGRATH New York, New York Wednesday, July 29th, 2009 REPORTED BY: ERICA RUGGIERI, CSR, RPR JOB NO: 17161 2 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 July 29, 2009 8:09 a.m. VIDEOTAPED DEPOSITION OF JUDY M c G R A T H , h e l d a t t h e o f f i c e s o f W il s o n Sonsini, Goodrich & Rosati, 1301 Avenue of the Americas, New York, New York, pursuant to notice, before before Erica L. R u g g i e r i , R e g i s t e r e d P r o f e s s i o n al R e p o r t e r a n d N o t a r y P u b l i c o f t h e S t a t e o f Ne w York. DAVID FELDMAN WORLDWIDE, INC. 450 7th Avenue - Ste 2803, New York, NY 10123 (212)705-8585 3 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 APPEARANCES FOR THE PLAINTIFFS: JENNER & BLOCK, LLP BY: SUSAN KOHLMANN, ESQ. 1099 New York Avenue, NW Washington, DC 20001 (202) 639-6000 Skohlmann@jenner.com FOR THE DEFENDANTS: MAYER BROWN, LLP BY: JOHN P. MANCINI, ESQ. 1675 Broadway New York, New York (212) 506-2146 Jmancini@mayerbrown.com 10019 FOR THE DEFENDANTS WILSON SONSINI GOODRICH & ROSATI PC BY: DAVID H. KRAMER, ESQ. MICHAEL H. RUBIN, ESQ. 650 Page Mill ROad Palo Alto, California 94304 Dkramer@wsgr.com DAVID FELDMAN WORLDWIDE, INC. 450 7th Avenue - Ste 2803, New York, NY 10123 (212)705-8585 4 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 A P P E A R A N C E S: (Cont'd) ALSO PRESENT: MICHELINA HALLEY, MTV Networks ANDRA SHAPIRO, MTV Networks CARLOS KING, Videographer DAVID FELDMAN WORLDWIDE, INC. 450 7th Avenue - Ste 2803, New York, NY 10123 (212)705-8585 133 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 12:29:50 12:29:30 12:29:20 12:28:49 12:28:31 McGRATH o p e r a t i n g w i t h r e s p e c t f o r c o p y r ig h t owners. Q. A. Well -Things like that. (McGrath Exhibit 11, e-mail t h r e a d , s u b j e c t , R e g a r d i n g Y o u T ub e , marked for identification, as of this date.) Q. E x h i b i t 1 1 , M s . M c G r a t h , i s an e - m a i l t h r e a d , t h e l a s t f e w m e s s ag e s o f w h i c h a r e b e t w e e n y o u a n d W a d e D a vi s , o n J u l y 5 t h a n d J u l y 6 t h , w i t h t h e s u bj e c t , Regarding YouTube. You, yourself, were writing to t h e h e a d o f m e r g e r s a n d a c q u i s i t io n f o r a l l o f V i a c o m o n J u l y 6 , 2 0 0 6 , s a y in g , a l l caps, "I want to own YouTube." Do you see that? A. Q. caps? A. caps. Q. W h y d o y o u t y p i c a l l y p u t t h i ng s I d o n ' t k n o w w h y I p u t i t i n a ll Uh-hum. Why did you put that in all DAVID FELDMAN WORLDWIDE, INC. 450 7th Avenue - Ste 2803, New York, NY 10123 (212)705-8585 134 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 12:30:59 12:30:26 12:30:16 12:30:05 12:29:58 McGRATH in all caps, Ms. McGrath? MS. KOHLMANN: A. Objection. I would put it in all caps so t h a t i t w o u l d s t a n d o u t , a n d t h e r ea d e r would read it. Q. A. Q. For emphasis, right? Right. You put the phrase, "I want to o w n Y o u T u b e " i n a l l c a p s , i n c o m m un i c a t i n g with Viacom's head of mergers and a c q u i s i t i o n s t o c o n v e y t o h i m y o ur s t r o n g o p i n i o n t h a t V i a c o m s h o u l d a c q u i re YouTube, right? MS. KOHLMANN: You can answer. A. I emphasized that I wanted to Objection. own YouTube, yes. Q. You had a strong view that V i a c o m s h o u l d a c q u i r e Y o u T u b e , d id y o u not? A. I b e l i e v e d t h a t o w n i n g Y o u T ub e i n t h e v i d e o s p a c e , i f t h e d e a l m a de s e n s e , w o u l d b e a v e r y g o o d a c q u i si t i o n for Viacom. DAVID FELDMAN WORLDWIDE, INC. 450 7th Avenue - Ste 2803, New York, NY 10123 (212)705-8585 135 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 12:32:14 12:31:53 12:31:44 12:31:29 12:31:06 McGRATH Q. In fact, you thought it was c r i t i c a l f o r V i a c o m t o o w n Y o u T u be , d i d n ' t you? A. Q. I said I think it's critical. And you meant it, right? MS. KOHLMANN: A. Objection. Again, language in an e-mail is not the kind of language you would use in a p r e s e n t a t i o n f o r a n a c q u i s i t i o n. So in t a l k i n g t o W a d e D a v i s , I s a i d I t h in k i t ' s c r i t i c a l , a n d I w o u l d n o t l i k e t o se e i t go to a competitor. Q. You don't say things that are u n t r u e , j u s t b e c a u s e y o u a r e c o m mu n i c a t i n g t h r o u g h e - m a i l r a t h e r t h a n a f o r ma l presentation, do you? MS. KOHLMANN: A. Q. Objection. I said I think it's critical. A n d y o u t h o u g h t i t w a s c r i t i ca l to acquire YouTube, correct? MS. KOHLMANN: and answered. A. I thought it was critical at Objection. Asked this point in time to own YouTube, DAVID FELDMAN WORLDWIDE, INC. 450 7th Avenue - Ste 2803, New York, NY 10123 (212)705-8585 136 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 12:33:13 12:33:01 12:32:50 12:32:37 12:32:26 McGRATH according to this e-mail. Q. And according to your recollection, right? A. yes. Q. Y o u t h o u g h t i t w a s c r i t i c a l fo r A c c o r d i n g t o m y r e c o l l e c t i o n, V i a c o m t o o w n Y o u T u b e , e v e n t h o u gh y o u w e r e f u l l y a w a r e a t t h i s p o i n t t h at s o m e m e d i a i n t e r e s t s h a d e x p r e s s e d c o py r i g h t concerns about YouTube, correct? MS. KOHLMANN: A. Objection. I w o u l d n e v e r s a y t o o w n Y o u T ub e w i t h - - u n d e r a n y c i r c u m s t a n c e , wi t h n o condition. Q. M s . M c G r a t h , i n y o u r e - m a i l to M r . D a v i s y o u d o n ' t l a y o u t c o n d i ti o n s o n owning YouTube, do you? MS. KOHLMANN: A. deck. Q. In your message to Mr. Davis, Objection. I suggested I'm sending him a w h e n y o u s a y " I w a n t t o o w n Y o u T u b e, " i n a l l c a p s , " I t h i n k i t ' s c r i t i c a l ," y o u d o n ' t l a y o u t c o n d i t i o n s f o r V i a co m t o DAVID FELDMAN WORLDWIDE, INC. 450 7th Avenue - Ste 2803, New York, NY 10123 (212)705-8585 137 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 12:34:12 12:33:52 12:33:39 12:33:30 12:33:20 McGRATH acquire YouTube, do you? MS. KOHLMANN: A. Well, I -MS. KOHLMANN: You can answer. A. I s u g g e s t o n e p o t e n t i a l i s s ue , -- objection. Well -- buying it with a partner to keep it below the line -Q. A. Q. What does that mean? - - w h i c h s u g g e s t s a c o s t i s s ue . What does that mean, "even if we h a v e t o b u y i t w i t h a p a r t n e r t o k ee p i t below the line"? A. T h a t i s a w a y t o s h a r e t h e r i sk and reward of an acquisition with someone else. Q. line"? A. That means if it's -- it's not What does it mean, "below the c o n s o l i d a t e d o n t o o u r c o m p a n y ' s P& L completely. I t ' s a s e p a r a t e c o m pa n y o r j o i n t v e n t u r e , s o m e t h i n g l i k e t h at . Q. Your message has roughly 15 e x c l a m a t i o n p o i n t s a f t e r t h e s e n te n c e " I DAVID FELDMAN WORLDWIDE, INC. 450 7th Avenue - Ste 2803, New York, NY 10123 (212)705-8585 138 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 12:34:55 12:34:49 12:34:40 12:34:28 12:34:19 McGRATH want to own YouTube. I think it's c r i t i c a l a n d i f i t g o e s t o a c o m p e ti t o r . " Do you see that? A. Q. Uh-hum. T h a t w a s y o u r w a y o f e m p h a s i zi n g i n t h e s t r o n g e s t p o s s i b l e t e r m s th a t y o u w a n t e d t o o w n Y o u T u b e a n d t h a t i t wa s critical, correct? MS. KOHLMANN: A. Q. Objection. I'd like to take a break. A c t u a l l y , c a n y o u a n s w e r t h at question first? A. No. THE WITNESS: I'd like to just take a break for a minute. Q. A. It's typically -I believe I have answered it I d o n ' t k n o w w h a t yo u a r e like 15 times. asking me. Q. Well, I asked the question whether, with -A. critical. Q. With 15 exclamation points? I said I thought it was DAVID FELDMAN WORLDWIDE, INC. 450 7th Avenue - Ste 2803, New York, NY 10123 (212)705-8585 139 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 12:35:22 12:35:11 12:35:00 McGRATH A. YouTube. Q. And my question, then, was And a good idea to acquire w h e t h e r , i n l i g h t o f t h e 1 5 e x c l a ma t i o n points at the end of the sentence, you w e r e s t a t i n g t h o s e p o i n t s i n t h e st r o n g e s t possible terms to Mr. Davis? MS. KOHLMANN: and answered. A. I s a i d " I t h i n k i t ' s c r i t i c a l" Objection. Asked to Mr. Davis. MS. KOHLMANN: a break. MR. KRAMER: Sure. The time is Why don't we take THE VIDEOGRAPHER: 1 2 : 3 5 p . m . , a n d w e a r e o f f t h e r e c or d . (Whereupon, there is a recess in the proceedings.) DAVID FELDMAN WORLDWIDE, INC. 450 7th Avenue - Ste 2803, New York, NY 10123 (212)705-8585 140 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 01:23:44 01:23:33 01:23:04 01:22:52 01:22:49 McGRATH AFTERNOON (Time noted: SESSION 1:23 p.m.) The time is THE VIDEOGRAPHER: 1:23 p.m., and we are back on the record. JUDY McGRATH, resumed. EXAMINATION BY (Cont'd) MR. KRAMER: Q. Ms. McGrath, back on Exhibit 11 w e w e r e t a l k i n g a b o u t y o u r c o m m e nt t o M r . D a v i s t h a t y o u t h o u g h t a n a c q ui s i t i o n o f Y o u T u b e w a s c r i t i c a l f o r V i a c om . Why was it critical for Viacom to own YouTube? A. At the time we were -- we believed we were -- that video was an important space on-line. W e h a d ve r y p u b l i c l y b e e n k i n d o f p i l l o r i e d fo r n o t acquiring MySpace. A n d i t f e l t l ik e a c q u i r i n g a c o m p a n y w i t h t h i s s k il l , a s o p p o s e d t o t r y i n g t o b u i l d o n e , w ou l d b e a better way to go, if we were going to get into the space on-line. Q. You say in your message to DAVID FELDMAN WORLDWIDE, INC. 450 7th Avenue - Ste 2803, New York, NY 10123 (212)705-8585 187 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 02:18:12 02:17:59 02:17:35 02:17:27 02:17:06 McGRATH Q. A. Does that description --- some of which is used by f e w e r p e o p l e , a s o p p o s e d t o m o s t pe o p l e . Q. D o e s t h a t d e s c r i p t i o n i n t h is presentation comport with your u n d e r s t a n d i n g o f t h e Y o u T u b e s e r vi c e around this time? MS. KOHLMANN: form of the question. A. Could you restate or reframe Object to the that question. Q. Sure. Does that description of Y o u T u b e o n t h e t i t l e o f t h i s p a g e co m p o r t w i t h y o u r u n d e r s t a n d i n g o f t h e Y ou T u b e service at around this time, July 2006? A. Q. A. I'm not sure. Why are you unsure? I'm not sure what I thought in 2 0 0 6 , s p e c i f i c a l l y , a b o u t Y o u T u be . I didn't write this document. Q. B u t y o u m a y h a v e w e l l p r e s e n te d i t t o t h e V i a c o m s e n i o r e x e c u t i v es , r i g h t ? MS. KOHLMANN: A. Objection. I'm not sure I presented this DAVID FELDMAN WORLDWIDE, INC. 450 7th Avenue - Ste 2803, New York, NY 10123 (212)705-8585 188 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 02:19:45 02:19:12 02:18:51 02:18:39 02:18:21 McGRATH document. MR. KRAMER: marked as 18. (McGrath Exhibit 18, July 9, 2006 e-mail from Mr. Harrison to M s . M c G r a t h , M r . W o l f a n d M r . C a h an , with attachments, marked for identification, as of this date.) Q. A. Q. Ms. McGrath? Yes. Exhibit 18 is an e-mail from Let's have this one M r . H a r r i s o n t o y o u , t h e d a y b e f o re Exhibit 17. It's July 9, 2006. I t' s t o T he you and Mr. Wolf and Mr. Cahan. s u b j e c t i s B e a g l e P r o j e c t F o r D i sc u s s i o n . If you could turn, please, to t h e f o u r t h p a g e o f E x h i b i t 1 8 , b e ar i n g Bates number VIA02046014, with a slide e n t i t l e d " K e y R i s k s a n d O b s e r v a t io n s . " You recall, I should ask first, h a v i n g r e c e i v e d t h i s d o c u m e n t , r ig h t ? A. document. Q. Let me just ask you, back on I d o n ' t r e c a l l t h i s p a r t i c u la r DAVID FELDMAN WORLDWIDE, INC. 450 7th Avenue - Ste 2803, New York, NY 10123 (212)705-8585 189 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 02:20:59 02:20:37 02:20:24 02:20:18 02:20:06 McGRATH E x h i b i t 1 7 , t h e n , t h e s e c o n d b u l le t p o i n t of the Project Beagle discussion with Judy McGrath and Michael Wolf document on this p a g e s a y s , " C o n s u m p t i o n o f b r a n d ed c o n t e n t on YouTube is low." It's the same page we were looking at. MS. KOHLMANN: you on? MR. KRAMER: Q. 17. Which exhibit are Y o u a r e o p e n t o i t r i g h t t h e r e, that one right in your left hand. A. Q. This one? Correct, that page. T h e s e c on d b u l l e t p o i n t d o w n s a y s , " C o n s u m p ti o n o f b r a n d e d c o n t e n t o n Y o u T u b e i s l o w. " Do you see that? A. Q. I see it. W h a t i s y o u r u n d e r s t a n d i n g of "branded content"? A. Content with some brand recognition. Q. M o v i e s , t e l e v i s i o n s h o w s , t ha t kind of thing? DAVID FELDMAN WORLDWIDE, INC. 450 7th Avenue - Ste 2803, New York, NY 10123 (212)705-8585 190 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 02:21:49 02:21:35 02:21:24 02:21:15 02:21:06 McGRATH A. Q. (Witness nods.) S o t h e p e o p l e w h o y o u h a d a s k ed to work up a report on a YouTube acquisition, who Mr. Wolf labeled the best m i n d s o f M T V N , r e p o r t e d t o y o u t h at consumption of branded content on YouTube is low. Do you see that? A. Q. I see that. Do you have any reason to b e l i e v e t h a t w a s u n t r u e a t t h e t i me ? A. Q. No. Do you have any reason to b e l i e v e t h a t t h e r e w e r e n o m o v i e tr a i l e r s i n t h e t o p 3 0 o f m o s t w a t c h e d v i d e os o n YouTube? A. Q. Do I have reason to believe? D o y o u h a v e a n y r e a s o n t o d o u bt that there were no movie trailers in the t o p 3 0 v i d e o s o n Y o u T u b e , a t t h e t im e t h i s p r e s e n t a t i o n w a s p r e p a r e d f o r y o u? MS. KOHLMANN: A. Objection. I'm going to go to the one that's sent to me. DAVID FELDMAN WORLDWIDE, INC. 450 7th Avenue - Ste 2803, New York, NY 10123 (212)705-8585 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 02:22:49 02:22:43 02:22:31 02:22:21 02:22:10 McGRATH Q. Okay. Same page, page 4. VIA0204014. A. Q. 04 -In this version of the p r e s e n t a t i o n , s e c o n d b u l l e t p o i nt i s t h e s a m e a s t h e o n e w e w e r e j u s t l o o k i ng a t i n E x h i b i t 1 7 , w h i c h s a y s t h e s a m e t hi n g . " C o n s u m p t i o n o f b r a n d e d c o n t e n t on Y o u T u b e is relatively low." Do you see that? A. Q. I see it. It's slightly different. T he word "relatively" is there. the one that's Exhibit 17. It's not in But under the subbullet point it s a y s , " T h e r e a r e n o m o v i e t r a i l e rs i n t h e top 30." Do you see that? A. Q. I see it. Do you have any reason to b e l i e v e t h a t w a s n ' t t r u e a t t h e t im e ? A. Q. No. Do you have any reason to b e l i e v e t h a t t h e r e w e r e c l i p s f r om p o p u l a r DAVID FELDMAN WORLDWIDE, INC. 450 7th Avenue - Ste 2803, New York, NY 10123 (212)705-8585 Schapiro Exhibit 218 Schapiro Exhibit 219 Schapiro Exhibit 220 From: Date: To: "heather gilette" -:heather@youtube.com:Mon, 17 Apr 200612:19:52 -0700 -:donn a.cooper@bet.net:YouTube Content Verification Tool Subject: login and instructions... Dear Donna, Thank you for signing up for our content verification tool! I have created an account for you. The username is: tle1b The password is:_ The password and email address for this content verification account can be changed by you at anytime. Simply login to the account and click on the 'my profie' link in the navigation bar. Once on this page, click on the 'edit' link next to the 'hello, I'm tlelb'. On this next page you wil see fields for email address and password that can be changed. Also, attached is a short tuorial so you have everything you need to get started! Thank you again! Heather Gilette Copyright Agent YouTube, Inc. List of attachments: Instructions for the CVT.doc Instructions for the YouTube Content Verification Tool In order to use the tool, you must have cookies, JavaScript, and popup windows enabled for youtube.com in your web browser. 1) First, go to http://www.youtube.com and click "Log In" in the upper-right-hand corner of the page. 2) Enter the username and password provided to you by YouTube. You should now be logged in and see your username in the upper-right-hand corner. 3) Next, enter one or more keywords into the text box at the top of the page and click the "Search" button. Videos related to your search will be displayed in an index listing. To the immediate left of each video's listing is a small white square checkbox. 4) Select the checkbox next to each video you wish to report. If you wish to report the majority of videos on a page, it may be quicker to click the "Check All" link at the top of the results and then deselect only the videos you do not wish to include. If there are many results, they will be displayed on several Results pages. You can switch between these pages by clicking the numbers at the bottom of the search results, or clicking the word "Next." 5) When you are finished checking off videos throughout the various pages of results, click the "Add to List" button at the bottom of the page. This will add all of the checkmarks across all of the pages to your list. You will then see a new pop-up window listing the Video 10 and Video Title for each of the videos you selected. 6) Select any videos listed that you do not wish to report and click the "Remove from List" button. When you are done reviewing the list, check all of the videos you wish to report and click the "Flag Videos" button at the bottom of the list. A confirmation message will be displayed, and you will receive an email receipt with the list of videos you flagged. You may now close the pop-up window. At this point, you may choose to return to searching for videos on the YouTube site. If you continue selecting videos where you left off, without starting a new search, all of your check marks from the previous search will persist and be added to your list again. To clear these check marks, simply click the "Search" button and start a new search. Schapiro Exhibit 221 1 UNITED STATES DISTRICT COURT F O R T H E S O U T H E R N D I S T RI C T O F N E W Y O R K VIACOM INTERNATIONAL, INC., COMEDY P A R T N E R S , C O U N T R Y M U S IC . T E L E V I S I O N , I N C . , P A R AM O U N T PICTURES CORPORATION, and BLACK E N T E R T A I N M E N T T E L E V I S IO N , L L C , ) ) ) ) ) ) Plaintiffs, ) ) vs. ) NO. 07-CV-2103 ) Y O U T U B E , I N C . , Y O U T U B E, L L C , ) and GOOGLE, INC., ) ) Defendants. ) _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ _ _ _ _ _ _ ) ) T H E F O O T B A L L A S S O C I A T IO N P R E M I E R ) LEAGUE LIMITED, BOURNE CO., et al.,) o n b e h a l f o f t h e m s e l v es a n d a l l ) o t h e r s s i m i l a r l y s i t u at e d , ) ) Plaintiffs, ) vs. ) NO. 07-CV-3582 ) Y O U T U B E , I N C . , Y O U T U B E, L L C , a n d ) GOOGLE, INC., ) ) Defendants. ) _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ _ _ _ _ _ _ ) VIDEOTAPED DEPOSITION OF WARREN SOLOW NEW YORK, NEW YORK DECEMBER 18TH, 2009 JOB NO. 18304 2 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 VIDEOTAPED DEPOSITION OF WARREN S O L O W , h e l d a t t h e o f f i c e s o f W i l so n , S o n s i n i , G o o d r i c h & R o s a t i , P C , 13 0 1 A v e n u e o f t h e A m e r i c a s N e w Y o r k , Ne w York, pursuant to notice, before M a u r e e n R a t t o , R e g i s t e r e d P r o f e ss i o n a l Reporter and Notary Public of the State o f N e w Y o r k o n D e c e m b e r 1 8 , 2 0 0 9 , at 10:10 a.m. DAVID FELDMAN WORLDWIDE, INC. 450 Seventh Avenue - Ste 2803, New York, NY 10123 (212)705-8585 3 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 APPEARANCES FOR THE PLAINTIFFS: JENNER & BLOCK, LLP BY: SUSAN J. KOHLMANN, ESQ. 9 1 9 T h i r d A v e n u e , N e w Y o r k , N Y 1 0 02 2 (212)891-1690 skohlmann@jenner.com FOR THE DEFENDANTS: W I L S O N , S O N S I N I , G O O D R I C H & R O S A TI BY: MICHAEL H. RUBIN, ESQ. 6 5 0 P a g e M i l l R o a d , P a l o A l t o , C A 94 3 0 4 650-849-3311 MRUBIN@wsgr.com DAVID FELDMAN WORLDWIDE, INC. 450 Seventh Avenue - Ste 2803, New York, NY 10123 (212)705-8585 4 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 09:52:16 09:27:27 09:27:05 09:25:06 VIDEOGRAPHER: This is DVD No. 1 of the video deposition of Warren Solow i n t h e m a t t e r o f V i a c o m I n t e r n a t io n a l Inc., et al, versus The Football A s s o c i a t i o n P r e m i e r L e a g u e L i m i te d , e t al versus YouTube, Inc., et al. This deposition is being held at 1 3 0 1 A v e n u e o f t h e A m e r i c a s , N e w Yo r k , New York on December 18, 2009 at approximately 9:51 a.m. My name is Manuel Abreu from the f i r m o f D a v i d F e l d m a n W o r l d w i d e an d I am the legal video specialist. T he court reporter is Maureen Ratto, in association with David Feldman Worldwide. Will counsel please introduce themselves? MR. RUBIN: Michael Rubin from W i l s o n , S o n s i n i , G o o d r i c h & R o s a ti f o r defendants YouTube and Google. MS. KOHLMANN: Susan Kohlmann, Jenner & Block for the Viacom plaintiffs. *** DAVID FELDMAN WORLDWIDE, INC. 450 Seventh Avenue - Ste 2803, New York, NY 10123 (212)705-8585 58 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 11:23:45 11:23:22 11:23:12 11:23:05 11:22:16 a n d o t h e r t h a n r e v i e w i n g t h e b i n de r o f 2 4 - i s h d o c u m e n t s t h a t w a s p r o v i d ed t o y o u , d i d y o u r e v i e w a n y o t h e r m a t er i a l s i n c o n n e c t i o n w i t h y o u r p r e p a r a t io n f o r today's deposition? A. Q. No. Did you access any systems in c o n n e c t i o n w i t h t o d a y ' s d e p o s i t io n ? A. No. MS. KOHLMANN: object. THE WITNESS: MS. KOHLMANN: Q. Sorry. It's okay. I'm going to Did you access any systems at BayTSP in connection with your p r e p a r a t i o n f o r t o d a y ' s d e p o s i t io n ? A. Q. No. But you have the ability to do so, don't you? MS. KOHLMANN: A. Q. Not personally. You don't have a log-in and Objection. password to any system at BayTSP? A. it. If I do, I no longer remember DAVID FELDMAN WORLDWIDE, INC. 450 Seventh Avenue - Ste 2803, New York, NY 10123 (212)705-8585 59 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 11:26:25 11:25:43 11:25:22 11:25:06 11:24:47 Q. When did Viacom first begin sending DMCA takedown notices to YouTube? A. I ' m n o t a w a r e o f t h e d a t e o f th e first notice sent to YouTube. Q. Did Viacom hire any third p a r t i e s t o a s s i s t i n l o c a t - - - s t ri k e that. Did Viacom hire any third p a r t i e s t o a s s i s t i n l o c a t i n g c o nt e n t on YouTube? MS. KOHLMANN: form. A. Q. Yes. W h i c h t h i r d p a r t i e s d i d V i a co m Objection as to hire to assist in locating Viacom content on YouTube? A. Q. A. Q. A. Q. BayTSP. Any others? Auditude. Any others? Staffing agencies. C a n y o u i d e n t i f y t h e n a m e o f an y staffing agencies that were hired for that purpose? DAVID FELDMAN WORLDWIDE, INC. 450 Seventh Avenue - Ste 2803, New York, NY 10123 (212)705-8585 60 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 11:28:21 11:28:05 11:27:45 11:27:14 11:26:49 A. Q. Not as I sit here now. W h e n d i d V i a c o m h i r e B a y T S P to assist in locating Viacom content on YouTube? A. I'm not sure of the exact day t h a t - - t h a t t h a t e n g a g e m e n t b e g an . Q. W h e n d i d V i a c o m h i r e A u d i t u de t o assist in locating Viacom content on YouTube? A. Q. In 2007. By October of 2006 Viacom was working with BayTSP to locate and send D M C A t a k e d o w n n o t i c e s r e g a r d i n g Vi a c o m content that had been located on YouTube, right? MS. KOHLMANN: form. A. You can answer. By October of 2006 Viacom had Objection as to h i r e d B a y T S P t o m o n i t o r a n d s e n d ou t takedown notices. Q. S o t h e a n s w e r t o m y q u e s t i o n is yes, right? A. Q. Yes. Several Viacom entities work w i t h B a y T S P t o l o c a t e t h e i r c o n t en t o n DAVID FELDMAN WORLDWIDE, INC. 450 Seventh Avenue - Ste 2803, New York, NY 10123 (212)705-8585 64 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 11:32:50 11:32:39 11:32:29 11:32:15 11:32:04 that they would be, but we want to a v o i d a n y c l a i m t h a t t h e y m i g h t b e. t h i n k t h e m o s t r e a s o n a b l e a p p r o a ch i s t o m o v e e x p e d i t i o u s l y t h r o u g h t h is . a r e , o f c o u r s e , w i l l i n g t o d i s c u ss a n y t h i n g w i t h y o u a s w e a l w a y s a r e. But I don't think it's going to be a significant concern. MS. KOHLMANN: Okay. Well, as I We I s a i d , I w i l l a l l o w M r . S o l o w t o t e st i f y g e n e r a l l y b u t i f i t g o e s t o o m u c h -into too much depth and beyond the s c o p e o f t h e n u m b e r 5 o f t h e 3 0 ( b )( 6 ) , I ' m g o i n g t o h a v e t o d i s c u s s i t a g ai n . You can answer. A. Would you mind repeating the question? Q. Be more than happy to. You c a n ' t r e c a l l i t a f t e r t h a t c o l l o qu y ? A. Q. I don't want to attempt to. I think I'll just ask the question again. It's my tes- -- it's my r e c o l l e c t i o n o f y o u r t e s t i m o n y , an d p l e a s e c o r r e c t m e i f I ' m w r o n g , t ha t DAVID FELDMAN WORLDWIDE, INC. 450 Seventh Avenue - Ste 2803, New York, NY 10123 (212)705-8585 65 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 11:34:42 11:34:20 11:33:43 11:33:30 11:33:09 you indicated that the individual or individuals at MTV who -- who were r e s p o n s i b l e f o r d i r e c t i n g B a y T S P' s activities changed over time. right? A. The primary point of contact Is that between Viacom and -- and BayTSP c h a n g e d o v e r t i m e , i n s o m e i n s t a nc e s . Q. Is there a distinction with regard to the BayTSP Viacom r e l a t i o n s h i p b e t w e e n p r i m a r y p o in t o f c o n t a c t a n d t h e i n d i v i d u a l a t V i ac o m o r M T V N w h o d i r e c t e d B a y T S P ' s a c t i v it i e s ? MS. KOHLMANN: form. A. You can answer. The person who articulated Objection as to direction to BayTSP changed over time, a s d i d t h e , p o t e n t i a l l y t h e m a k e up o f the people who had input into the s p e c i f i c a t i o n s t h a t w e r e p r o v i d ed t o - to Bay. Q. At the beginning of the r e l a t i o n s h i p w i t h B a y T S P w h o a t Vi a c o m had input into the specifications that were provided to BayTSP? DAVID FELDMAN WORLDWIDE, INC. 450 Seventh Avenue - Ste 2803, New York, NY 10123 (212)705-8585 66 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 11:36:38 11:36:16 11:35:56 11:35:42 11:35:10 A. P r i m a r i l y m e m b e r s o f t h e l e ga l department. Q. please? A. I d o n ' t h a v e d i r e c t k n o w l e d ge , C a n y o u i d e n t i f y t h e m b y n a m e, s p e c i f i c k n o w l e d g e , w h o t h o s e p e op l e would be at a point in time. Q. In October of 2006 who were those people? A. I h e s i t a t e b e c a u s e t h e r e w o ul d be some level of assumption in my answer. Q. Was Michelena Hallie one of those people? A. Q. people? A. C a n y o u , a g a i n , d e f i n e w h a t on e Yes. W a s C i n d y M o r a l e s o n e o f t h o se o f t h o s e p e o p l e a r e , t h e d e f i n i t io n o f that? Q. Someone at Viacom or MTVN who w a s p r o v i d i n g s p e c i f i c a t i o n s t o Ba y T S P ? A. I d o n ' t b e l i e v e C i n d y w o u l d ha v e been one of those people. Q. Was Adam Cahan one of those DAVID FELDMAN WORLDWIDE, INC. 450 Seventh Avenue - Ste 2803, New York, NY 10123 (212)705-8585 67 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 11:37:37 11:37:27 11:37:09 11:36:57 11:36:49 people? A. Yes. MS. KOHLMANN: Just to be clear, you're talking October of 2006? MR. RUBIN: A. Q. October, 2006. I would expect so, yes. Adam Cahan was not a member of the legal department, was he? A. Q. was he? A. Q. No. A few moments ago you No. A n d h e w a s n ' t a l a w y e r e i t h e r, a r t i c u l a t e d a d i s t i n c t i o n b e t w e en t h o s e w h o p r o v i d e d i n p u t i n t o s p e c i f i c at i o n s and those who served as points of c o n t a c t f o r B a y T S P a t M T V o r a t V i ac o m . O t h e r t h a n M i c h e l e n a H a l l i e a n d Ad a m C a h a n , w h o y o u ' v e i d e n t i f i e d a s pe o p l e w h o p r o v i d e d s p e c i f i c a t i o n s t o B ay T S P i n t h e O c t o b e r 2 0 0 6 t i m e f r a m e , c an y o u identify anyone else who either p r o v i d e d s p e c i f i c a t i o n s i n t h a t ti m e f r a m e o r s e r v e d a s a p o i n t o f c o n t ac t ? MS. KOHLMANN: Objection as to DAVID FELDMAN WORLDWIDE, INC. 450 Seventh Avenue - Ste 2803, New York, NY 10123 (212)705-8585 68 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 11:39:06 11:38:51 11:38:36 11:38:16 11:38:02 form. A. I w a s c o n s i d e r i n g t h e p r o v i si o n of specifications as somebody who was having point of contact. M y s e p a ra t e lives distinctions were there are p e o p l e w h o i n t e r a c t e d w i t h B a y d ir e c t l y a n d t h e n t h e r e w e r e o t h e r p e o p l e wh o may have had input in what the messaging to Bay would be. Q. Okay. Thank you for the So Ms. Hallie and clarification. Mr. Cahan were points of contact directly with BayTSP in that time period? A. I b e l i e v e b o t h o f t h e m h a d s o me direct contact with BayTSP. Q. Who at MTVN or Viacom more broadly had input into what those i n d i v i d u a l s w e r e c o m m u n i c a t i n g to B a y T S P w i t h r e g a r d t o s p e c i f i c a t io n s ? I n o t h e r w o r d s , w h e r e w a s t h e d i r ec t i o n a c t u a l l y c o m i n g f r o m w i t h i n V i a c om ? MS. KOHLMANN: Again, I'll allow W a r r e n t o a n s w e r t h e q u e s t i o n s b ut i t d o e s s e e m l i k e w e ' r e w a y b e y o n d t he DAVID FELDMAN WORLDWIDE, INC. 450 Seventh Avenue - Ste 2803, New York, NY 10123 (212)705-8585 69 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 11:40:35 11:40:19 11:40:01 11:39:49 11:39:28 scope of the 30(b)(6). You can answer. A. I believe that there would be -- t h e r e w e r e n u m e r o u s p e o p l e w h o w ou l d h a v e h a d i n p u t i n t o t h e c o n v e r s a ti o n w i t h B a y T S P , b u t I d o n o t h a v e s p ec i f i c k n o w l e d g e o f a n y m o m e n t w h e r e t h at collaborative process took place and who was at the table. A g a i n , i t w ou l d b e - - t h e r e w o u l d b e s o m e s p e c u l a ti o n in my answer. Q. You can't identify a single i n d i v i d u a l a t M T V N o r V i a c o m o t h er t h a n Ms. Hallie and Mr. Cahan who were i n v o l v e d i n t h e p r o c e s s i n a n y w a y? A. I n v o l v e d i n t h e p r o c e s s i n a ny way, yes, I can identify. Q. A. Q. A. Please do so. Michael Fricklas. Was he providing direction? I don't know that I could c h a r a c t e r i z e w h a t h e w a s p r o v i d i ng . Q. M i c h a e l F r i c k l a s i s t h e g e n er a l counsel of Viacom, is he not? A. Yes, he is. DAVID FELDMAN WORLDWIDE, INC. 450 Seventh Avenue - Ste 2803, New York, NY 10123 (212)705-8585 70 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 11:42:14 11:42:03 11:41:47 11:40:58 11:40:46 Q. Please continue. MS. KOHLMANN: Is there a question pending? MR. RUBIN: Q. Yes. Please continue listing the individuals that you're aware of p a r t i c i p a t i n g i n c o n t a c t o r h a v i ng i n p u t i n t o s p e c i f i c a t i o n s w i t h B ay T S P in the October, 2006 time frame? A. L i m i t i n g i t t o t h e O c t o b e r t im e frame, I'm not sure that I could -- I think that there would be too much s p e c u l a t i o n t o l i s t n a m e s o f p e o pl e . Q. The mass takedown that ultimately took place on February 2nd, 2007 resulted from a series of directives that were provided by Viacom to BayTSP. Isn't that right? Objection, vague. MS. KOHLMANN: A. please? Q. Sure. C a n y o u r e p e a t t h a t q u e s t i o n, The mass takedown that ultimately took place on February 2nd, 2007 resulted from a series of directives that were provided by Viacom DAVID FELDMAN WORLDWIDE, INC. 450 Seventh Avenue - Ste 2803, New York, NY 10123 (212)705-8585 71 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 11:43:48 11:43:38 11:43:17 11:43:06 11:42:46 to BayTSP. A. Isn't that right? The mass takedown was f a c i l i t a t e d b y i n s t r u c t i o n s p r o vi d e d t o BayTSP. Q. What do you mean facilitated by, Mr. Solow? A. They assisted in the -- the work, the effort that resulted in the takedown. Q. B a y T S P w a s a c t i n g a t t h e e x p re s s direction of Viacom, right? A. Q. Yes. Every action they took with regard to the mass takedown was at V i a c o m ' s e x p r e s s d i r e c t i o n , r i g ht ? MS. KOHLMANN: A. Objection. T h a t w o u l d c e r t a i n l y b e V i a co m ' s assumption or hope. Q. And the rules that led to what content was included or excluded from that takedown were set by Viacom, isn't that right? MS. KOHLMANN: form. A. You can answer. Yes. Objection as to DAVID FELDMAN WORLDWIDE, INC. 450 Seventh Avenue - Ste 2803, New York, NY 10123 (212)705-8585 72 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 11:45:37 11:45:19 11:44:59 11:44:23 11:44:06 Q. BayTSP did not determine the set of rules that led to which content was i n c l u d e d o r e x c l u d e d f r o m t h e m a ss takedown on its own, did it? A. Q. That's correct. And the directives that u l t i m a t e l y l e d t o t h e F e b r u a r y 2 nd , 2 0 0 7 m a s s t a k e d o w n c h a n g e d o v e r ti m e , didn't they? A. Q. Yes. I ' d l i k e t o i n t r o d u c e E x h i b it 2 . (Exhibit 2 is received and marked for identification.) Q. Mr. Solow, Exhibit 2 is a document BayTSP produced in this action p u r s u a n t t o Y o u T u b e ' s s u b p o e n a b ea r i n g Bates number BAYTSP 004306300. see that? A. Q. Yes. I would describe the Bates Do y o u n u m b e r p r o c e s s a t t h e l o w e r r i g h t- h a n d c o r n e r , b u t y o u ' r e w e l l a w a r e o f it . Do you recognize this document? A. Q. I do not. Have you seen it before? DAVID FELDMAN WORLDWIDE, INC. 450 Seventh Avenue - Ste 2803, New York, NY 10123 (212)705-8585 73 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 11:46:38 11:46:31 11:46:20 11:46:05 11:45:54 A. I do not recall seeing this document before. Q. This document represents i n s t r u c t i o n s f r o m P a r a m o u n t t o B ay T S P on how to search for one of their properties called "Jack Ass." that right? MS. KOHLMANN: I'm going to I sn ' t o b j e c t a n d a l s o n o t e t h a t t h e d o c um e n t is from October, 2006 and outside the scope of this 30(b)(6). Q. M r . S o l o w , p l e a s e t a k e a m o m en t to review the document. MR. RUBIN: Ms. Kohlmann, again, there are important foundational issues w i t h r e s p e c t t o h o w t h e m a s s t a k e do w n occurred. This is well within the scope of the mass takedown and I r e i t e r a t e , i f y o u a l l o w t h e d e p o si t i o n t o p r o c e e d , I t h i n k i t w i l l a l l b e co m e very clear. MS. KOHLMANN: Here I'm going to o b j e c t b e c a u s e I t h i n k f i r s t y o u ha v e to establish that anything that happened in October, 2006 relates to DAVID FELDMAN WORLDWIDE, INC. 450 Seventh Avenue - Ste 2803, New York, NY 10123 (212)705-8585 74 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 11:47:17 11:47:10 11:47:04 11:46:53 11:46:48 t h e t a k e d o w n b y a s k i n g o u r c o r p o ra t e representative and then you can determine whether or not this is s o m e t h i n g t h a t i s w i t h i n t h e s c o pe . MR. RUBIN: You're -- you're e n t i t l e d t o m a k e a n y o b j e c t i o n y ou want. answer. I've provided you my -- my I -MS. KOHLMANN: I'm going to allow him -- you can ask him a few q u e s t i o n s o n t h i s a n d t h e n I ' m g o in g t o d i r e c t h i m n o t t o a n s w e r , s o g o a h ea d . MR. RUBIN: I think that would be an exceptionally unwise move. MS. KOHLMANN: It wouldn't be t h e f i r s t t i m e t h a t I d i d s o m e t h i ng y o u thought was unwise. MR. RUBIN: No, and those are. A n d y o u r e s u l t e d i n b l o c k i n g r e l ev a n t t e s t i m o n y a t t h e o u t s e t o f t h i s c as e t h a t w a s o v e r r u l e d b y J u d g e S t a n to n multiple times. MS. KOHLMANN: and I am -MR. RUBIN: I would remind you That is incorrect DAVID FELDMAN WORLDWIDE, INC. 450 Seventh Avenue - Ste 2803, New York, NY 10123 (212)705-8585 75 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 11:48:30 11:48:05 11:47:52 11:47:37 11:47:28 to read Mr. Housley's deposition t r a n s c r i p t s a n d t h e n y o u c a n r e v ie w t h e stimulated order on the questions related to stealth marketing. MS. KOHLMANN: I think that is c o m p l e t e l y i n c o r r e c t a n d i r r e l e va n t t o t h e d e p o s i t i o n a n d y o u ' r e g o i n g to h a v e Mr. Solow as a fact witness. Y o u ca n a s k h i m w h a t y o u w a n t a s a f a c t w i tn e s s a s w e ' v e p a i n s t a k i n g l y g o n e t h r o ug h t h e 30(b)(6) as directed to question 5A through F and I think that you are well beyond the scope of the 30(b)(6). MR. RUBIN: I recognize that is B u t w e d i s ag r e e your position, Susan. with you. Q. Mr. Solow, have you had an o p p o r t u n i t y t o r e v i e w t h e d o c u m e nt ? A. I -- I still am. I'm sorry. I was -- I was eavesdropping on your conversation and not focusing on what I was asked to do. I've read it. Q. Do you see that the first in time e-mail subject line is "Jack Ass" DAVID FELDMAN WORLDWIDE, INC. 450 Seventh Avenue - Ste 2803, New York, NY 10123 (212)705-8585 76 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 11:50:36 11:49:16 11:49:04 11:48:53 11:48:43 YouTube search procedures? A. Q. Yes. A n d t h e i n t r o i s p r o c e d u r e f or determining whether to approve or decline? A. Q. means? MS. KOHLMANN: Objection. Yes. Do you understand what that Document speaks for itself. A. Q. In general terms, yes. In this context what does it mean to approve? MS. KOHLMANN: In what context? In the context of the document? Q. I n t h e c o n t e x t o f t h i s d o c u m en t , Mr. Solow, what does it mean to a p p r o v e , a s i t ' s w r i t t e n i n t h e f ir s t in time e-mail? A. I believe approve means -- a p p r o v e m e a n s a d e s i g n a t i o n o f a -- o f a -- that a clip is infringing, is -is not a

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