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

Filing 373

DECLARATION of ANDREW H. SCHAPIRO in Support re: 177 MOTION for Summary Judgment Regarding Applicability of the DMCA and on Plaintiffs' Inducement Claims.. Document filed by Youtube, Inc., Youtube, LLC, Google, Inc.. (Attachments: # 1 Exhibit 43 - 55, # 2 Exhibit 56 - 62, # 3 Exhibit 63 - 64, # 4 Exhibit 65 - 72, # 5 Exhibit 73 Part 1, # 6 Exhibit 73 Part 2)(Schapiro, Andrew)

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Schapiro Exhibit 56 YouTube Blog: Your 15 Minutes of Fame..ummm...Make that 10 Minutes or Less Page 1 of 9 Share Report Abuse Next Blog� Search Create Blog Sign In Home Videos Channels Shows SUNDAY, MARCH 26, 2006 Your 15 Minutes of Fame..ummm...Make that 10 Minutes or Less The past few months have been phenomenal for us here at YouTube, thanks to all of you. We've been going through unprecedented growth. Most days it seems we can barely catch our breath trying to keep up with everything, and sometimes I sit at my desk and look around at the 20 or so people around me and cannot believe how far we've come in such a short period of time. No matter how fast we grow or how large we may become, our primary goal is, and will always be, about being in touch with our users and providing them the best online video experience possible. That being said, we've gotten a fair amount of emails lately about the new 10 minute limit we've implemented for video uploads. For those of you not familiar with this change, we've always had a 100MB file limit for uploads. We also recently implemented a 10 minute length limit. This change won't impact the vast majority of our users. We know that over 99% of videos uploaded are already under 10 mins, and we also know that most of our users only watch videos that are under about 3 minutes in length. Search This Blog Search powered by Subscribe To Community Gatherings So, if most of our users are uploading and watching short form video clips, why even bother to make the change? If it ain't broke, don't fix it right? Well, if you've followed our blog postings or any of the press articles, you know we're constantly trying to balance the rights of copyright owners with the rights of our users. We poked around the system a bit and found that these longer videos were more likely to be copyrighted videos from tv shows and movies than the shorter videos posted. However, we also recognize that there are legit content creators out there who may have videos over 10 mins, so we've created a Premium Content Program for those of you with professional-produced videos. Portland, OR - June 26-27, 2010 Los Angeles, CA - Vidcon - July 911, 2010 Los Angeles, CA - Noncon - July 911, 2010 London, UK - Aug. 6-8, 2010 Past Gatherings Hosting a meetup? Leave a comment on this channel with details Twitter / youtube youtube: Congrats to @MysteryGuitarM, featured in @cnnmoney's Best Jobs series http://goo.gl/7OhV youtube: Inform, engage and mobilize voters with YouTube and @google campaign toolkits: http://goo.gl/rd0S youtube: @cpayne12 Um, Disco, of course! Best, Maryrose youtube: @PecosRoyBean Not at all :) youtube: @mediocrefilms Nice congrats! What We're Watching Adopt a Feature What about the little guys you ask? We hear ya. We know that although most users are uploading short form clips, there are those of you out there that are video bloggers or amateur film makers that have legitimate, user generated content over 10 mins, and obviously, this is not an ideal situation for you. We recognize that, and we're actively working on a solution that will allow for those of you with longer form user generated content, while still preventing copyrighted full length episodes from entering the system. In fact, if you are a user with videos over 10 mins, please contact us. We want to hear from you. We want to know how you've been impacted by this change and any thoughts or ideas you may have. Remember: this site is about you, and we're listening. The YouTube Team 23 comments: kieranmullen said... Citizentube EDU Movies MusicTuesday http://youtube-global.blogspot.com/2006/03/your-15-minutes-of-fameummmmake-that-10.h... 6/4/2010 YouTube Blog: Your 15 Minutes of Fame..ummm...Make that 10 Minutes or Less Page 2 of 9 The linke to Premium Content Program no longer works. News KieranMullen http://360oregon.com August 19, 2009 11:27 AM BattlefieldDoktor said... Kiearan ... check the date of this very old blog .... the Premium Content Program got already replaced by the Director Program and later by the Partner Program ;o)) August 27, 2009 4:40 AM Mike Lisanke said... Also, the email for Maryrose using the "contact us" link is no longer a valid email address. I was replying that this limit is a barrier to educational meeting content. I understand that's not your market, but; I thought I'd mention it anyway. I'll look elsewhere to find a video repository for our material. November 5, 2009 11:03 AM zeroxy said... Nice Thx sinema , vizyondakiler December 16, 2009 8:25 AM a11000 said... My daughter's 17 minute piano piece I recorded CANNOT be severed in half. This 10 minute limit is arbitrary and there should be some way users can purchase for a small fee a bit of additional time on a one-time basis. January 5, 2010 8:40 PM trompetejogador said... I am totally disgusted with YOUTUBE. I have a video blog called "Politically Incorrect Radio". My latest "attempt" was about 9.5 minutes long. I timed it with my watch. I use MS Movie maker. It's time line is set up so it shows minutes and seconds. Now I have to "divide" my blog. I did that B4. This 1st have was watched. The 2nd half was not. I am unemployed and cannot afford ANY "Premium" channel. I do not post material from other people. Then there's my "copy right"Issue concerning the sound track from Spring Lake Iron & Steel Charles Wesley Works. That music came from ROXIO PHOTO. Not me. I tried to use music I made such as on my other videos with Roxio. But it wouldn't let me. However the video is available with a ad for "Sonny Rollands". So now I go to waste time splitting my video up knowing the 1st part will be watched and not the 2nd. How a 9.5 minute video ends up being 23.56 minutes is beyond me!!!! I DO NOT POST OTHER PEOPLE'S VIDEOS. Now it will make me spend TWICE the time and cut my viewership. SOMEBODY FROM YOUTUBE RESPOND TO ME strobx1 February 10, 2010 5:11 AM Rehd said... This post has been removed by the author. 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Post Comment Preview Links to this post Create a Link Newer Post Subscribe to: Post Comments (Atom) Home Older Post http://youtube-global.blogspot.com/2006/03/your-15-minutes-of-fameummmmake-that-10.h... 6/4/2010 Schapiro Exhibit 57 From: Date: To: "Hallie, Michelena" ..Michelena.Hallie@mtvn.com:: Wed, 21 Mar 2007 15:35:52 -0400 "Kim, Clara" ..Clara.Kim@mtvstaff.com::, "Libin, Victoria - Atom Entertainment" ..VLibin@atom.com::, "Molko, Joseph - MTVN" ":Joseph .Molko@mtvstaff.com:: Subject: FW: Catalytic MTVN-UGC Study Are you in the loop on this? It obviously involves legal input at various stages including guidelines for moderation and review of questionable clips. I think it would be helpful to have a lawyers call to discuss moving forward. review Since the first two sites wil be addictingclips and ifim, I suggest a call among the four of us to discuss. I'm going to a meeting later this afternoon that should give me a better idea of timing on all of this. I'll loop back after the meeting. From: Rosen, Andrew Sent: Sunday, March 18,20075:48 PM To: Flannigan, Erik; Harrison, Blair - iFilm; Roesch, Scott - Atom Entertainment; Jackson, Brendan - Atom Entertainment; Klauschie, Matthew - iFilm Cc: West, Denmark; Borelli, Janet; Halle, Michelena; Wen, Pauline; Holt, Courtney; Ahmad-Taylor, Ty; Miler, Kenny; Lehman, Nicholas Subject: Catalytic MTVN-UGC Study Erik, Blair, Matt, Brendan,Scott, Thank you again for participating in Catalytic's initial survey of our UGC sites. Attached please find the results of this initial survey. The report includes a summary of current UGC moderation practices at AddictingClips and iFilm. It also includes recommendations for improved moderation of both sites, and more general recommendations for moderation of all MTVN sites. The survey appears to be a good foundation from which we can begin to establish a moderation solution across all brands. Generally, the report concluded the following: 1. At the MTVN level, Catalytic recommends we establish clearer moderation guidelines. Janet, Michelena, Pauline, and I are planning to meet this week to discuss further. 2. For both iFilm and AddictingClips, there are cost effciencies to be created by automating moderation tasks where possible. Also, Catalytic recommended more consistent moderation practicies for both, and proposed we implement more brand-specific guidelines for both sites. We should set up a conference call at the end of the week to discuss these particular proposals further. 3. AddictingClips requires a pilot program. I have spoken with Scott, and this pilot program requires launch as soon as possible. Catalytic is expected to send a proposal for this program tomorrow at the earliest. i wil follow up with Catalytic and also check with Viacom legal to see if this program can be established quickly as an amendment to our current Viacom-wide agreement with Catalytic. 4. iFilm should consider an offshore team to help with spikes in UGC submissions. iFilm should also consider automating reporting and metrics collection as a cost effciency. The Conclusion, Summary Findings, and Recommendations from the report can all be found summarized below. Please feel free to contact me with any questions. Andrew Andrew A. Rosen MTVN GDM Highly Confidential VIA 01673620 P: 212.846.8862 M: Conclusion Using upload volumes of 400 per day, and spikes of 20%, a pre-moderation solution would require one resource per shift. To support a 24*7 roster, the team size would need to be six trained resources, some working partial work weeks (i.e. 36 hours). Given that an offshore team achieves economies of scale at 15 resources and stabilty at 20 resources, a near-term target for the moderation program would be to provide pre-moderation services across three brands. Summary Findings * Smaller brands need help controllng moderation costs. Current volumes make it difficult for the smaller brands to cost-effectively moderate their sites. With approximately 200 uploads per day, full-time moderation is not cost effective, and less than full-time moderation results in upload delays that negatively impact users and volume growth. * Use of a dedicated team across multiple brands will improve quality and lower costs. While the current volumes wil make it difficult for anyone smaller brand to leverage offshore cost-effectively, sufficient volumes may exist across multiple brands. Creating a larger pool of moderation resources to provide moderation for multiple MTVN brands would allow all brands to benefit from economies of scale, greater team stabilty, and cross-pollination of best practices. * Moderation guidelines are not sufficiently defined. Moderation guidelines are currently interpreted differently by each brand. Implementing a dedicated, single-source team would provide a minimum level of risk protection across all brands and at the same time support brand-specific guidelines to be implemented. Recommendations * Further define moderation guidelines to drive consistently high quality UGC across MTVN brands and establish appeal for premium advertisers. * Identify a super-set of moderation guidelines that meet unique issues, opportunities, and strategic objectives of each brand. * Replicate moderation processes and tools across brands to the extent possible and achieve economies of scale at lower volumes. * Incorporate tools, processes, and human resources in the moderation process for a data-driven turn-key managed solution. * Use a managed solution that passes on lower resource costs to shorten pre-moderation cycles and improve user satisfaction without increasing risk. * Leverage moderation solution to support special events, custom data collection, and brand-specific strategic initiatives. * Implement a pilot project to meet Addicting Clips immediate moderation needs and scale the pilot project to build a dedicated MTVN team responsible for conducting moderation across at least three brands. From: Adam Young (mailto:adam.young@catalytic.comJ Sent: Wednesday, March 14, 2007 6:27 PM To: Rosen, Andrew Highly Confidential VIAO 1673621 Cc: sheridan.porter@catalytic.com; kalisaJraser@catalyic.com Subject: MTV-UGC Study Dear Andrew, Attached please find the UGC Discovery Report for iFilm and Addicting Clips. We are preparing a proposal that I expect to deliver to you by week's end for a pilot project with Addicting Clips as there appears to be an immediate need. One area that we will have to address is the rather low volumes that Addicting Clips currently experiences and how perhaps we can leverage across additional brands to achieve some economies and a corresponding cost reduction to MTV Networks. Please do not hesitate to contact me should you have any questions prior to our submitting the proposaL. Thank you for this opportunity. Regards, Adam Adam Young Catalyic Softare, Inc. Mobile: This email and any files transmitted with it are confidential and intended solely for the use of the individual or entity to whom they are addressed. If you have received this email in error please notify the system administrator n etops@catalytic.com ..http://na2.salesforce.com/se rvletjservlet.lmage Se rver? oid~OOD 300000006AU R&esid~O 1840000005 K wG s:: List of attachments: CatalyticDiscovery_Report 070312-l.doc Highly Confidential VIAO 1673622 UGC Moderation March 2007 ~'.,c:',~r: (~~~'~'.~ ~~: h~. Highly Confidential VIAO 1673623 (~i:rERTRlYt�c. :~,:...:.., ': : " S~:~i;:~:: Catalytic Discovery Report to MTVN - UGC Moderation Contact Information Submitted to: Andrew Rosen MTVN Global Digital Media T: E: andrew.rosen@mtvn.com Prepared by: Kalisa Jenne-Fraser Director, Interactive Support Solutions Catalytic Software, Inc. T: (425) 739-2080 E: Kalisa.Fraser@catalytic.com V'lvvw.catalytic.com ConfidentiaL. 2007 @ Catalytic Software, Inc Contact Information Highly Confidential VIA 01673624 (~1)dER'rHiyt�c' :~-:-'::"'- -:'. ' , S~:;i!::::: Catalytic Discovery Report to MTVN - UGC Moderation Contents Introduction....................................................................................................................................................1 Purpose of the Study.. Scope ............... ....1 ....1 Methodology.. Limitations of the Study ....1 ...2 ....2 Other Material Referenced Discussion: UGC Moderation .......................................................................................................................3 Sources of Risk....... ................... .3 ...................... .3 Moderation Strategies and Objectives Market Direction.. ...........................4 Addicting Clips ..............................................................................................................................................5 Interviewees Findings Moderation Process.. Specific Recommendations for Addicting Clips ..........5 .......5 ...........................7 ..................................... .........8 iFilm .......................................................................................................................................9 Interviewees. Findings.. ........................................................................... ..........9 ........9 ............. Error! Bookmark not defined. ........................ ........10 ...... ............... ................ ............. .... 11 Trends Moderation Process.. Specific Recommendations for iFilm.. Conclusion ...................................................................................................................................................12 Summary Findings.. Recommendations .. ..................12 . ..............................................................................12 Confidential 2007 @ Catalytic Software, Inc. Contents Highly Confidential VIAO 1673625 (~irEHTRlYt�c' ~:::::.., :', ,. S~�:~~:~:: Catalytic Discovery Report to MTVN - UGC Moderation Introduction Internet properties that incorporate social networking platforms and user generated content (UGC) are growing in value, sophistication, and appeaL. Social networking has evolved from relatively simple chat rooms to become a forum for personal expression and self promotion, driving a multi-billion dollar internet phenomenon. UGC, referenced throughout this document, is a catch-all term that includes audio, video, text, and images that are created, repurposed, or merely uploaded by users. Therefore by definition UGC includes rights protected material as well as content that is of questionable social and moral value. Within this context and despite the risks, UGC remains a revenue-generating business and is widely considered a basic component of a meaningful web presence. As evidenced by recent lawsuits involving YouTube and MySpace, managing UGC effectively is necessary to avoid litigation and guardian censorship, and at the same time meet the expectations of the internet generation. Purpose of the Study MTVN has initiated UGC initiatives within several web properties, and employs various moderation methods across brands to effectively manage risk. Since UGC includes material that cannot be effectively moderated through fully automated or softare driven processes, MTVN uses a combination of people and automated monitoring. In the scenario of image and video files, there is no existing fully automated moderation solution making in-house or US-based solutions prohibitively expensive due to labor costs. The purpose of the study was to better understand the requirements of video and image moderation within the context of existing MTVN entities, and use that information as a basis upon which to form a costeffective moderation solution scalable across other MTVN entities. Scope Moderation process and video upload volumes of: Addicting Clips (Atom Entertainment in San Francisco) iFilm (Los Angeles) Methodology Quantitative and qualitative data was collected. Stakeholders and representatives from the participating organizations were interv�ewed and the data from these sources was brought together in the final analysis and assessment stage of the evaluation. The key stages in the evaluation methodology were as follows: Interviews with key stakeholders and project leaders . High level process mapping Review of online moderation tools and historical volumes Review of moderation guidelines and discussion of interpretation of those guidelines Data gathering Analysis and assessment Confidential 2007 @ Catalytic Software, Inc. Highly Confidential VIA 01673626 (~l)dER'rHiYT�C' ~_,~.:..-. : -.-. S~:;~!:~:: Catalytic Discovery Report to MTVN - UGC Moderation Limitations of the Study 1. User Segments: Addicting Clips and iFilm are two brands with similar user segments. Moderation processes used successfully for a broad 18-35 segment may not be indicative of optimal processes for other MTVN brands with more targeted user segments like children, young adolescents, new parents, ethnic groups, etc. 2. Brand Power: Both iFilm and Addicting Clips are less established brands than MTV or Nickelodeon. Volumes, trends, upload patterns, and quality (or lack of) content may not be indicative of more well known brands and trafficked websites. Other Material Referenced Digital Millennium Copyright Act 1998: DMCA Title Ii, Online Copyright Infringement Liability Limitation Act (OCILLA) Federal Bureau of Investigation: Innocent Images National Initiative (IINI) discussing investigations and initiatives to reduce online child pornography and child sexual exploitation. http://www.fbi.gov/publications/innocent.htm Websites: www.addictingclips.com www.cnn.com www.dailymotion.com www.ifilm.com www.liveleak.com www.myspace.com www.stickam.com www.youtube.com Confidential 2007 @ Catalytic Software, Inc. 2 Highly Confidential VIAO 1673627 (~lf�ATRlYt�c' 7'~:~-:..: : . ~~::~�:~:: Catalytic Discovery Report to MTVN - UGC Moderation Discussion: UGC Moderation UGC moderation is intended to reduce risk and drive volumes by regulating the quality of content via a self- imposed process. Quality of content is typically determined by a combination of brand objectives, regulatory compliance, and legal consideration and the moderation strategy should evolve to support emerging constraints or opportunities on anyone of these planes. Sources of Risk Catalytic categorizes UGC related risk into two main areas: 1. Negative Brand Association Whether it is bad publicity, poor quality content, or off-topic content, social networking and UGC sites have the ability to link undesirable social attitudes and/or problems directly to a brand. Graphic depictions of violence, nudity and pornography, child safety issues, criminal acts, and anti- social behavior fall into this category. The immediate result of negative brand association is drop in advertising revenue. 2. Rights Infringement Rights protected content such as music, video, and imagery are frequently uploaded by users to social networking / UGC sites. While blatant piracy such as posting clips of broadcast TV shows is easily identifiable, rights infringement may take a more subtle form such as a user incorporating rights-protected audio within an original video file. The immediate result of rights infringement (i.e. receipt of a DMCA Takedown notice) is a legal review process. Moderation Strategies and Objectives In pure risk/reward scenario UGC moderation is a relatively linear proposition: pre-moderation reduces risk and reward; post moderation increases risk but is also more appealing to an audience looking for instant gratification. By incorporating a mix of moderation strategies, companies can move the risk-reward curve to align their risk tolerance and strategic objectives. Pre-Moderation Material cannot be accessed by viewers until a moderator has reviewed. Moderator assesses content according to regulatory and internal standards Most sites designed to appeal to children or sites that allow users to post pictures or other non-text content are pre-moderated. Suitable for sites where content is not time-critical, e.g., 6 to 24 hours to post Post-Moderation Moderator reviews the material after it has been posted Moderator assesses content according to regulatory and internal standards and decides whether it is suitable to remain. "Off-topic" content may be moved to appropriate channels or forums, or deleted. Appropriate for sites which debate predefined topics, current affairs. Confidential 2007 @ Catalytic Software, Inc. 3 Highly Confidential VIAO 1673628 (~1rCR'rHiyt�C' ~~~::'~:"" '; ",' " S~::i~~:: Catalytic Discovery Report to MTVN - UGC Moderation � Suitable for sites that require time-critical posting. Reactive Moderation � Users permitted to post content in real time. � Viewers/visitors to the site alert the moderator to inappropriate or offensive content. � Suitable for a mature online community where few messages have to be removed. This type of moderation is not suitable for sites targeting children. Distributed Moderation Relies on a system of content rating that allows users to flag content for automated removal based on a specific algorithm. � Typically used in conjunction with other moderation systems/approaches. Market Direction The more successful a UGC site becomes, the further it is forced to the mainstream. Legal challenges, community outcry, government regulation, and advertising withdrawal all impact the ability of companies to operate successfully at the fringe. Sites such as Liveleak and Dailymotion attract users through shock value, but high traffic (most war videos experience 6000+ views in their first day of posting) may not necessarily translate into high revenues or earnings multiples. Unmoderated UGC is widely regarded in the market as a race to the bottom and sites do not attract premium advertising. For example, by hosting violent and explicit video content on their website, Liveleak has limited their audience to a 'mature' segment and advertisers are predominantly click-throughs to adult content sites. The market has clearly shown that shock video is interesting to a broad base, but not necessarily profitable. While 'live' site Stickam is seeing its user base growing at approximately 2500 registrations per day, MySpace has blocked its use in their user accounts on the grounds of child safety. Sites that leverage an existing brand, and which are consistently pre-moderated may not be as heavily traffcked, but are nonetheless selling advertising to blue-chip brands. For example, like iFilm, CNN successfully mixes UGC with its own content and counts government agencies and Fortune 500s amongst its banner advertisers. To enhance user experience and keep content quality high without infringing copyright, MTVN may consider the following options: Provide a selection of royalty-free audio clips for users to integrate into their videos, profiles, etc. Investigate the feasibility of monetizing and managing copyrighted content to allow users to purchase specific content for inclusion in their UGC and use it legally. Seed content by developing a set of "power users" - general users that regularly submit original content and verified personnel affiliated with content owners - who would be authorized to upload copyrighted content on behalf of their studio or production company. Confidential 2007 @ Catalytic Software, Inc. 4 Highly Confidential VIAO 1673629 (~l;;dERTRlYt�C' ~:::,.:..;, : , . S~:;~!:;::; Catalytic Discovery Report to MTVN - UGC Moderation Addicting Clips Interviewees Brendan Jackson, Product Manager - Addicting Clips Scott Roesch, VP and General Manager - Atom Films � Victoria Libin, Senior Director, Legal Affairs - Atom Entertainment Findings Addicting Clips is one of four Atom Entertainment divisions that include Atom Films, Shockwave.com, Addicting Games, and Addicting Clips. Atom Entertainment was founded in 1998 and acquired by Viacom in August 2006. The Addicting Clips website was launched in April 2006, shortly before acquisition. The business model relies on advertising and sponsorships; current site advertising is mostly non-branded banner and skyscraper click throughs. Current Moderation Objectives Comply with MTVN moderation guidelines Comply with the DMCA by preventing infringing content from launching to the site and ensuring prompt removal of infringing content when notified Limit liability by acting only as a passive conduit for content Pre-moderate and launch all content within 10 minutes of upload Volumes Currently the site is experiencing upload volumes of 50 to 100 new clips per day. The site will soon merge with the Atom Films site when upload volumes are expected to reach 50 to 200 uploads per day. A maximum clip length of 10 minutes helps prevent uploading of pirated video content1. Description of Activities The moderation team decrease the viewing time by "scanning" the clip quickly. i.e. by dragging the play button across the play bar. Currently, Addicting Clips moderators (customer service personnel) perform a cursory review of the newest clips posted on the site on an hourly basis, from 8 am to 6 pm PST. Clips are reviewed for violation of the existing MTVN guidelines and are designated Approved, Approved Mature, Rejected, or submitted to the Pending Further Review queue. Clips in the Pending Further Review queue are reviewed by a legal assistant for approval/rejection or for promotional placement on the Addicting Clips home page. Currently, there is no moderation between the hours of 6pm and 8am PST; therefore, Addicting Clips personnel conduct ad-hoc moderation at 11 pm and 5am PST to remove any offensive content prior to the start of the US business day. Visitors to French website www.dailymotion.com may view entire 30 minute episodes of Lost, for example Confidential 2007 @ Catalytic Software, Inc. 5 Highly Confidential VIA01673630 (~li'ERTRlYt�c' ~':~::~: : .... . : $~::~~~:: Catalytic Discovery Report to MTVN - UGC Moderation Addicting Clips is in need of a 24x7 moderation solution that will provide through-put in less than 10 minutes. Currently, video is available for the uploading user only to view immediately. If the user sends a link to their uploaded content on Addicting Clips, users accessing that link are shown a placeholder: "This Content is Not Yet Available" until the moderators conduct their hourly review. This is a dissatisfying experience and eroding the user base. Confidential 2007 @ Catalytic Software, Inc. 6 Highly Confidential VIAO 1673631 ()l:tCRTRLvt� C' .-~"'.:":,: - _: S~:ii;::::; Catalytic Discovery Report to MTVN - UGC Moderation Moderation Process Ci::n�(3!1t f~'~H~d~(lgt~i��:BU� M1X!t:rdGf review" ~)(~~~1t:':r~~ ~\'~�def$JQt -$r�~~:jy?~~4fi c()n~::n~.:'$L:t,oN~lng .t~) :~UlGe~h:;'&;3 P��ndhlg f\irtliier ~Ztl.:..~..',i ~::~~~~ """ g\Jid;�IiEl�~ ft.W:i;�W C~Jn~~t~t r(.,:qt:Et~sforth:~.t !'�\"~e;~~'a~id ;'ltWjy~�,. Appmv�id t:i'~~),t8j'~~- i~ �ppil)v"d !iibti.te q.(n~(:ni is p.o,.t"d. to 5~te: wHh ~f~~�re C:ont�h~ -t2i:b8'Ud$r~:k.~ " R~ltid;id ~~r~nbm~t-f$ ~.IA)'(f:~~��d t-q .3....~:~.j~:� \~u�:w~ po~:nt~�j:_ t-f) $:1~ 1:tough Let~~~ ~~p~inE~:S L6ga~ ~J-~�i' Vj�)'�,f:~i~n �lt�tlH~h'(~~n~~.si~t h:�s be-:,,n n?iette:;~ Appro,.'t'd I Approw!,) M.�tun�, f~,*...d!ld Every video, upon uploading, enters the moderation system and arrives in the Pending queue. Pending queue is reviewed hourly during PST daytime hours Moderators review clip according to moderation guidelines and select Approve, Approve Mature, Reject, or Pending Further Review. Approved content launches to the site. Confidential 2007 @ Catalytic Software, Inc. 7 Highly Confidential VIAO 1673632 (~lr�RTRLYti c' :~-~~~:..,: ': '''' S~:)it~:: Catalytic Discovery Report to MTVN - UGC Moderation Approved Mature content launches, but a "Mature Content" disclaimer click-through appears before a user can view the clip. Rejected content goes into a Rejected queue and is reviewed by a legal assistant who sends an email notifying the user that their content has been rejected with a brief description of why the content was rejected (i.e., violation of TOS, copyright infringement, etc.) Content pushed to the Pending Further Review queue is viewed by Addicting Clips legal assistants to determine whether it violates moderation guidelines. It is then Rejected or Approved/Approved Mature, as appropriate. The Legal Team also reviews any material that appears on the Addicting Clips home page. The Program manager views the "most viewed" or "best rated" content on the site to review the most popular clips and forwards a select list to Legal for review. Legal then approves or rejects the submitted content for promotional positioning on the Addicting Clips home page. Approved Mature content is not considered suitable for the home page. Specific Recommendations for Addicting Clips Deploy a small pilot solution to eliminate the need for management and staff to perform overnight moderation tasks, as well as improve moderation times and user experience. Evaluate via pilot solution third-party tools to further automate moderation tasks (content recognition software, skin-tone filters) and reduce moderation costs. Further refine moderation guidelines to create brand-specific standards which will improve consistency of moderation within the brand. Create "Approved Producer" role and verification system to enable studio representatives, etc. to easily upload copyrighted content. Add a library of royalty-free content that users can integrate into their videos. Confidential 2007 @ Catalytic Software, Inc. 8 Highly Confidential VIAO 1673633 (~l:f�ATRLvt�c' ~,~~~:.., : ',' ' m:~~:~:: to MTVN UGC Moderation iFilm Interviewees Matthew Klauschie, Director of Media Technology - i Film Corp. Findings iFilm launched its UGC channel in January 2006 and currently receives up to 400 UGC uploads per day. iFilm has 350,000 registered users currently using the profiles section, and records between 11 and 12 million unique views per month. Although volume growth has been gradual, the site experiences some spikes in volume due to ongoing promotions (i.e., Web Junk 20 on VH1). The iFilm site is pre-moderated using an in-house team of moderators. iFilm is not currently considering outsourcing its moderation; however, Catalytic is using iFilm volumes to project and model moderation scenarios for the MTVN music groups. iFilm has a maximum clip size of 100MB. Clips can be any length, but the majority of clips uploaded are 3 minutes and less. iFilmModeration Volumes 700 600 500 400 300 200 100 o ,,;,~.S~ ,","~ .'- ........... .......................~... ~'~t"'~ i~ �~ ~ $~' ': 1'W' ~" ~~ ~' .; ~~ ',~,~'~-:"$ ~., '~"~ '~.' ~ .~ " l~~~,~t~y\~~~~~~~~~~~~~~\~~~~~~~~~~~~;;~~;~~~::~~~~~~~~~;~~l~:~~\;~~;~~~~~~~~~~~~\~~~~~;~~~;~~~~~~~~~~~:~~~~,~~~~~~~~~~~~~~~~~~~~~~~~;~~~~~' '::�-r .,"~t'.,"''',,,d,,',,,,~':''@''&~~'''M:.:,..k'#:%,'W�'k-''~~~,iiti\f~'�""~'..,~R\,~~~'~~'1~,,,.~, Uitijl~V\~,\",fu,~at"",~",,ii~,b~ ~'~t~'~' ~ ~~~ ~~~-~~~:-,,0~~~ ~.~1~~~\~,~~ '~"'& ~~~~s~~%~~~~~~:-~,;:~~~~~.~J~.~ :\ ~~~~~ \"',':5 ~\$\ ::\: �' ..�~ 'v' ",: ,\\. 1$' ,.--:~;j \�."-' ~�,(,l &~ .(.~: ~,,:.."-.~" ,,-!)\ \'" \'\. ,.\:: .:ici-~~ ; t;\ -:)\ ~::\ \\JY ~.k, ,,:.'t' ,~Sf''f' \0 . ",'"'i~ ~ \-..~\ ,,,:.\ 'lo' "')\ ,,'5~ ~~')\ :.'-;\ \,~p' ,.-f' ~~\ .,.~). ~k, t(." "y\ '\ ..*-'1 0.A.. ,,"?\'- ..,,;.,.\).i; "'lJ. """''''Clip, Upl�,.,dcci"''''''''C!i�;S Rejc�tii,ej The data suggests that when upload volumes are stable over time, moderation needs stabilize as users become familiar with the "community standards" of the site. This is typical of a well-moderated site with defined and enforced - standards and guidelines. iFilm trend data indicates a pattern of greater uploading at the beginning of the work week. At the highest point on Mondays, uploads are 20% more than at the lowest point on Fridays. While this trend is not significant at current volumes, it would present moderation challenges at larger volumes, requiring larger moderation teams and/or longer moderation response times during times of heavy activity. Confidential 2007 @ Catalytic Software, Inc. 9 Highly Confidential VIAO 1673634 (~irERTRLYtic' :~-~,::-,,: ": 'S~:;~i:~:; Catalytic Discovery Report to MTVN - UGC Moderation Moderation Process U$0r @r1ton� Cn:nted enter� moderati6n sY'$tem "Not R�Vlo�WM" ~lGd�raturn3V'i(~\~vz cont~3nt "lInfjer Re'ii�e-w'" o::intm�! gtJid�lkes "UGCOnly" Content is accepted �nir:,t~; gU.ldr':lin�s) m�d Is ~~~uneh-t~d to .gen�ra!: ~~:it~: "Rnje-�t~d" Con1Rnl DODS not nw~"it giiiddinm; (itrly M�'i,xalor:� rate G�n(r,rA: ~~~()dt~rt~tors.n)~y ~~~~~O 'fff~g ~AQd~~n~tk:-n i :ol.3(!neml i;i:nterit for \,pedi�ic Ch8t�m,ils sY�t�rn notih\:is I)SRt V�B emaH 2'" �:'G-13 :3 - ~ ~\itature,- content' tharsJ~:ek content Jias: .beer~ re�c\e- "Programming" Cn.!�tet1~'~5 Etccepted l\PP~'i:)\ied - ():;~ntent 'IS. plJst�d to. $tte (~Or:tt,ht fl~~(~q - ')~~h k~ d~:sp~av~~diN.ith- ~~_ ~~A.8'h.wt~ (m8et�;i~�.l�8��n:E!S) and USBf~ (:n SJltiClJC l�:lLJl� Ghann�~& Content djs'i:laimor Pri;:,gramminq G�nten( is p05ted t� ~�te8nd spe��c lFILl\,~ i;l�m�n~tb Confidential 2007 @ Catalytic Software, Inc. 10 Highly Confidential VIAO 1673635 (~lFEATRLYt�c' "",- s,;;;:,,:, Catalytic Discovery Report to MTVN - UGC Moderation . Upon uploading content, users are presented with a confirmation screen indicating the content is under review. The system encodes the content and submits the encoded file to the moderation queue . The iFilm Content Reviewer reviews the clip for compliance with the moderation guidelines and rates the content using a 1 to 3 scale (1 ~ OK for General Audiences, 2 ~ PG-13, 3 ~ Mature Content) Content can be flagged as: 1. Not Reviewed (in queue) 2. Under Review (a Content Reviewer is reviewing it) 3. UGC Only; the content is accepted (complies with moderation guidelines) and is approved for use on the User Video channeL. Once accepted, the content is posted to the iFilm site. 4. Rejected; the content does not comply with moderation guidelines. The Content Reviewer inserts the reason for rejection (selected from a list) into the interface and that information is merged into the auto-email to the uploading user notifying them that their content has been rejected and the reason why. 5. Programming; the content is being used elsewhere on the iFilm site (i.e., other channels). Content Reviewers have the option of flagging reviewed content for Programming use, for promotion on specific channels. Specific Recommendations for iFilm Explore the feasibiliy of leveraging an offshore team to address volume spikes and free up content reviewers for tasks that require onsite presence. Automate reporting and metric collection to eliminate the need for manual reporting at the end of each shift. . Add a library of royalty-free clips and music that users can incorporate into their own media. . Develop a system to link relevant advertising to specific channels and content, allowing advertisers to purchase more targeted placement on specific channels. Confidential 2007 @ Catalytic Software, Inc. 11 Highly Confidential VIA01673636 (~lfERTRLYt� C' ~?,,~:.., : ' : S~: ;~';:5i:; Catalytic Discovery Report to MTVN - UGC Moderation Conclusion Using upload volumes of 400 per day, and spikes of 20%, a pre-moderation solution would require one resource per shift. To support a 24*7 roster, the team size would need to be six trained resources, some working partial work weeks (i.e. 36 hours). Given that an offshore team achieves economies of scale at 15 resources and stability at 20 resources, a near-term target for the moderation program would be to provide pre-moderation services across three brands. Summary Findings Smaller brands need help controllng moderation costs. Current volumes make it difficult for the smaller brands to cost-effectively moderate their sites. With approximately 200 uploads per day, full-time moderation is not cost effective, and less than full-time moderation results in upload delays that negatively impact users and volume growth. Use of a dedicated team across multiple brands will improve quality and lower costs. While the current volumes will make it diffcult for anyone smaller brand to leverage offshore costeffectively, sufficient volumes may exist across multiple brands. Creating a larger pool of moderation resources to provide moderation for multiple MTVN brands would allow all brands to benefit from economies of scale, greater team stability, and cross-pollination of best practices. Moderation guidelines are not sufficiently defined. Moderation guidelines are currently interpreted differently by each brand. Implementing a dedicated, single-source team would provide a minimum level of risk protection across all brands and at the same time support brand-specific guidelines to be implemented. Recommendations Further define moderation guidelines to drive consistently high quality UGC across MTVN brands and establish appeal for premium advertisers. Identify a super-set of moderation guidelines that meet unique issues, opportunities, and strategic objectives of each brand. Replicate moderation processes and tools across brands to the extent possible and achieve economies of scale at lower volumes. Incorporate tools, processes, and human resources in the moderation process for a data-driven turn-key managed solution. Use a managed solution that passes on lower resource costs to shorten pre-moderation cycles and improve user satisfaction without increasing risk. Leverage moderation solution to support special events, custom data collection, and brand-specific strategic initiatives. Confidential 2007 @ Catalytic Software, Inc. 12 Highly Confidential VIA 01673637 (~lr��'rHiyt�c' . ;Siiii,S'; Catalytic Discovery Report to MTVN - UGC Moderation :C'.,'d. � Implement a pilot project to meet Addicting Clips immediate moderation needs and scale the pilot project to build a dedicated MTVN team responsible for conducting moderation across at least three brands. Confidential 2007 @Catalytic Software, Inc. 13 Highly Confidential VIA01673638 Schapiro Exhibit 58 Schapiro Exhibit 59 1 UN IT ED S TA TE S DIS TR IC T CO UR T FO R TH E SO UT HE RN DI ST RI CT O F NEW Y OR K VI AC OM I NT ER NA TIO NA L IN C. , CO MED Y PA RT NE RS , CO UN TRY M US IC TE LE VI SI ON , IN C., P AR AM OU NT PI CT UR ES C OR PO RAT IO N, a nd B LA CK EN TE RT AI NM EN T TEL EV IS IO N LL C, ) ) ) ) ) ) Pl ai nt if fs , ) vs . ) YO UT UB E, I NC ., YO UT UB E, L LC , ) an d GO OG LE , IN C., ) ) De fe nd an ts . ) __ __ __ __ __ __ __ ___ __ __ __ __ __ __ ___ __ _) TH E FO OT BA LL A SSO CI AT IO N PR EM IER ) LE AG UE L IM IT ED , B OU RN E CO ., e t a l. ,) on b eh al f of t hem se lv es a nd a ll ) ot he rs s im il ar ly si tu at ed , ) ) Pl ai nt if fs , ) vs . ) YO UT UB E, I NC ., YO UT UB E, L LC , and ) GO OG LE , IN C. , ) ) De fe nd an ts . ) __ __ __ __ __ __ __ ___ __ __ __ __ __ __ ___ __ _) Ca se N o. 1 :0 7C V0 21 03 Ca se N o. 0 7C V3 58 2 VI DE OT AP E DE PO SIT IO N OF R OB ER T T UR NE W YO RK , NE W YOR K Th ur sd ay , No ve mbe r 12 , 20 09 JO B NO . 18 09 1 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 No vem ber 12 , 2 009 9: 46 a.m . 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Th is app ear s t o b e a n e-m ail fr om my nei ghb or or an e-m ail fr om me to La nce Sc hmi dt, my ne igh bor . Q. Mr . S chm idt wr ite s, "Mu ch be tte r fo r y ou per son all y, tho ugh , t o b e out in fr ont , a s o ppo sed to ga the rin g a c las s f or a cla ss act ion su it or to be le ft beh ind by an oth er, bi gge r l aws uit ." Do yo u s ee tha t? A. Q. sa id. " Di d y ou agr ee wit h M r. Sch mid t's st ate men t? A. We ll, I do agr ee wit h "sl ipp ery "I f t he y Ye s. An d y ou res pon d, "Tr ue, w ell sl ope fo r t hem ," You Tub e. ac qui esc e t o t he dea l, the n a ll ot her s w ho DAVID FELDMAN WORLDWIDE, INC. 450 Seventh Avenue - Ste 2803, New York, NY 10123 (212)705-8585 320 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 07:30:09 07:29:41 07:29:36 07:28:49 07:28:37 TU R cl aim br eac h o f D MCA wi ll wan t t o joi n i n on th e a ct. " I don 't agr ee wit h, "Mu ch bet ter fo r y ou per son all y, tho ugh , t o b e out in fr ont as op pos ed to gat her ing a cl ass fo r a cla ss act ion su it or to be le ft beh ind by a big ger -- by an oth er big ger l aws uit ." Q. Yo u d idn 't agr ee wit h t ha t st ate men t f rom Mr . S chm idt ? A. No . MR . V OLK MER : Let 's mar k 3 6. (T ur Exh ibi t 3 6, e-m ail fr om Ro ber t T ur, ma rke d f or id ent ifi cat ion , a s o f t his da te. ) Q. Do yo u r eco gni ze the do cu men t I ha ve mar ked as Ex hib it 36, Mr . T ur ? A. Q. A. Ye s. An d w hat is it ? It 's an e-m ail fr om me to a fr ien d o f m ine . Q. Yo u w rit e, "I don 't thi nk we di d an yth ing wi th the m, unl ess Ma rik a m ad e a de al and fo rgo t t o t ell me ab out i t. th e m ovi e w ort h s eei ng? " Is DAVID FELDMAN WORLDWIDE, INC. 450 Seventh Avenue - Ste 2803, New York, NY 10123 (212)705-8585 321 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 07:31:41 07:31:22 07:30:58 07:30:28 07:30:18 TU R Wh at mov ie are yo u r efe ren cin g? A. Q. Fr eed om Wri ter s G uil d. Di d t he Fre edo m W rit ers G uil d mo vie co nta in any of yo ur foo tag e? A. Q. I don 't kno w. Di d y ou inv est iga te whe the r or no t t he Fre edo m W rit ers mo vie co nta in ed yo ur foo tag e? A. Q. No , I di d n ot. Is it po ssi ble th at Mar ik a h ad do ne a d eal wi th Par amo unt an d f or got to te ll you ab out it ? A. It 's pos sib le. I t's no t lik ely , bu t i t i s p oss ibl e. Q. If Pa ram oun t u plo ade d a c lip of Fr eed om Wri ter s m ovi e t o Y ouT ube , a nd it co nta ine d s ome of yo ur foo tag e, wou ld th at us e b e a uth ori zed ? MR . S HAF TEL : Obj ect ion , in com ple te hyp oth eti cal , v agu e a nd am big uou s. A. Le gal co ncl usi on. Yo u a re ask ing me -- I ca n't I d on' t k now , b ase d on the I wo uld h ave to an swe r t his . hy pot het ica l y ou pos ed. DAVID FELDMAN WORLDWIDE, INC. 450 Seventh Avenue - Ste 2803, New York, NY 10123 (212)705-8585 322 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 07:33:50 07:33:36 07:33:41 07:32:21 07:32:05 TU R se e t he con tra ct. Q. In Ma y o f 2 007 wa s M ar ika en gag ed in lic ens ing ef for ts on beh al f o f Lo s A nge les Ne ws Ser vic e o r o n b eh alf of th e c opy rig hts th at you ow ned ? MR . S HAF TEL : A. Q. Obj ect ion . Sh e d id som e l ice nsi ng. Di d s he do lic ens ing wo rk on yo ur beh alf in la te 200 7? A. It 's pos sib le. MR . V OLK MER : Let 's mar k 3 7. (T ur Exh ibi t 3 7, mem ora ndu m o f tr ans fer an d c onf irm ati on of rig hts , ma rke d f or ide nti fic ati on, as of th is dat e.) Q. Do yo u r eco gni ze the do cu men t I ha ve mar ked as Ex hib it 37? A. Q. A. I do. Wh at is thi s d ocu men t? Th is is a m emo ran dum of t ran sfe r an d c onf irm ati on of rig hts . Q. A. Q. Di d y ou eve r s ign th is do cum ent ? I did n't ha ve to sig n it. Di d y ou eve r s ign it ? DAVID FELDMAN WORLDWIDE, INC. 450 Seventh Avenue - Ste 2803, New York, NY 10123 (212)705-8585 323 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 07:35:12 07:35:01 07:34:44 07:34:22 07:34:04 TU R A. Q. A. No . Wh y w as it cre ate d? Sh e w as ass ign ing me th e rig hts to th e m ate ria l, for pu rpo ses of - pu rpo ses of ow ner shi p f or lit iga tio n, th ing s l ike th at. Q. An d w hat da te did th is in str ume nt -- wha t d ate wa s t his in str ume nt sig ned by Ma rik a? A. It 's rea lly di ffi cul t t o tel l, be cau se the xe rox , I ca n't re all y tel l f or su re. Q. Do yo u h ave an y r eco lle ct ion of th is ins tru men t b ein g d raf ted an d s ig ned ? A. Ye ah. I re mem ber as kin g her fo r I jus t d on' t it , a nd it was a whi le ago . re mem ber th e d ate . Q. pe ndi ng? A. Wa s i t w hil e t his li tig at ion wa s Co uld be th e C ali for nia c ase co uld ha ve bee n t his ca se. Q. Wa s o ne of the tw o? MR . S HAF TEL : A. It co uld be . Obj ect ion . I'm no t sur e. DAVID FELDMAN WORLDWIDE, INC. 450 Seventh Avenue - Ste 2803, New York, NY 10123 (212)705-8585 Schapiro Exhibit 60 1 UN IT ED S TAT ES D IS TRI CT C OU RT FO R TH E SOU TH ER N DIS TR IC T OF NE W YO RK VI AC OM I NTE RN AT IO NAL , IN C. , C OM ED Y PA RT NE RS , C OU NT RY MU SI C TE LEV IS IO N, IN C. , PA RAM OU NT P ICT UR ES C ORP OR AT IO N, AN D BL AC K E NT ER TA INM EN T TE LEV IS IO N, LL C, ) ) ) ) ) ) PL AI NT IF FS, ) ) vs . ) ) YO UT UB E, IN C. , YO UTU BE , LL C, AN D ) GO OG LE , INC ., ) ) DE FE ND AN TS. ) __ __ __ __ ___ __ __ __ ___ __ __ __ ___ __ __ ___ __ _) ) TH E FO OT BAL L AS SO CIA TI ON P REM IE R ) LE AG UE L IMI TE D, B OUR NE C O. , E T AL ., ) ON B EH AL F O F TH EM SEL VE S AN D A LL ) OT HE RS S IMI LA RL Y SIT UA TE D, ) ) PL AI NT IF FS, ) ) vs . ) ) YO UT UB E, IN C. , YO UTU BE , LL C, AN D ) GO OG LE , INC ., ) ) DE FE ND AN TS. ) __ __ __ __ ___ __ __ __ ___ __ __ __ ___ __ __ ___ __ _) VI DE OT AP ED 30 (B )( 6) DE PO SI TIO N X- RA Y DO G M US IC , INC . th ro ugh T IM OT HY TU ES DA Y, DE CE MB ER 8, 2 00 9 LO S AN GE LES , CA LI FOR NI A Jo b No . 181 95 CA SE NO . 0 7- CV -21 03 CA SE NO . 0 7- CV -35 82 OF A. S TI THE M 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 UN IT ED S TA TE S DI STR IC T CO UR T FO R TH E SO UT HE RN DI ST RI CT O F NE W Y OR K VI AC OM I NT ER NA TI ONA L, I NC ., C OM EDY PA RT NE RS , CO UN TR Y M US IC T EL EV IS ION , IN C. , PA RA MO UN T PIC TU RE S CO RP OR ATI ON , AN D BL AC K EN TE RT AIN ME NT T EL EV IS ION , LL C, ) ) ) ) ) ) PL AI NT IF FS , ) ) vs . ) ) YO UT UB E, I NC ., Y OUT UB E, L LC , AN D ) GO OG LE , IN C. , ) ) DE FE ND AN TS . ) __ __ __ __ __ __ __ __ ___ __ __ __ __ __ __ ___ __ __ _) ) TH E FO OT BA LL A SS OCI AT IO N PR EM IE R ) LE AG UE L IM IT ED , BOU RN E CO ., E T AL. , ) ON B EH AL F OF T HE MSE LV ES A ND A LL ) OT HE RS S IM IL AR LY SI TU AT ED , ) ) PL AI NT IF FS , ) ) vs . ) ) YO UT UB E, I NC ., Y OUT UB E, L LC , AN D ) GO OG LE , IN C. , ) ) DE FE ND AN TS . ) __ __ __ __ __ __ __ __ ___ __ __ __ __ __ __ ___ __ __ _) C ASE N O. 0 7- CV -2 10 3 C ASE N O. 0 7- CV -3 58 2 VI DE OT AP ED 3 0( B) (6) D EP OS IT IO N OF X- RA Y DO G MU SI C, I NC . th ro ugh T IM OT HY A . STI TH EM , ta ke n on be ha lf o f th e De fen da nt s, a t 10 :05 a .m ., T ue sd ay , De ce mb er 8 , 20 09 , a t 35 0 So ut h Gra nd A ve nu e, L os An ge le s, C al if or nia , be fo re E li zab et h Bo rr el li , CS R No . 78 84 , pu rsu an t to n ot ic e. 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 AP PE AR AN CE S OF C OUN SE L FO R CL AS S PL AI NT IFF S AN D TH E DE PON EN T: BE RN ST EI N LI TO WI TZ BE RG ER & G RO SSM AN N, L LP BY : B EN JA MI N GA LDS TO N, E SQ . 12 48 1 Hi gh B lu ff Dr iv e Su it e 30 0 Sa n Di eg o, C al if orn ia 9 21 30 -3 58 2 (8 58 ) 72 0- 31 88 (8 58 ) 43 6- 01 88 ( fax ) be ng @b lb gl aw .c om FO R DE FE ND AN T YO U T UB E: MA YE R BR OW N, L LP BY : B ET H AN N SC HUL TZ , ES Q. 16 75 B ro ad wa y Ne w Yo rk , Ne w Yo rk 10 01 9- 58 20 (2 12 ) 50 6- 23 55 (2 12 ) 84 9- 58 55 ( fax ) ba sc hu lt z@ ma ye rb row n. co m - AN D - 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 AP PEA RAN CES (C ont inu ed) : MA YER BR OWN , L LP BY : MIC HEL E K . K EEG AN, ES Q. 19 99 K S tre et, N. W. Wa shi ngt on, D. C. 200 06- 110 1 (2 02) 26 3-3 868 (2 02) 76 2-4 292 (f ax) mk eeg an@ may erb row n.c om AL SO PRE SEN T: MI TCH LE RMA N, Vid eog rap her DAVID FELDMAN WORLDWIDE, INC. 450 Seventh Avenue - Ste 2803, New York, NY 10123 (212)705-8585 154 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 14:14 14:14 14:14 14:13 14:13 14:13 li ce ns in g X RD 's w ork s fo r bac kg ro un d m us ic t o a te le vi si on sh ow ? MR . GA LD STO N: qu es ti on . Ob jec t to t he fo rm o f t he Ca ll s for a l eg al co nc lu sio n. TH E WI TN ESS : M y und er st an din g is n o. BY M S. S CHU LT Z: Q. W ou ld th is p roh ib it t he su bp ub lis he r fr om us in g XR D's w or ks as t he b ack gr ou nd to a h om e v id eo ? MR . GA LD STO N: TH E WI TN ESS : Sa me ob je ct ion s. I t' s n ot m y und er st an din g th at i t wou ld r es tri ct i t, no . BY M S. S CHU LT Z: Q. cr ea ti on ? MR . GA LD STO N: TH E WI TN ESS : Sa me ob je ct ion s. I d oub t it . Ag ai n, a s l on g W ha t a bo ut a s b ac kg ro und t o an an im at ed as i t' s lic en se d, tr ac ke d and p ai d for . BY M S. S CHU LT Z: Q. D o you k no w if EM I Gr oup H on g Kon g ha s ev

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