J.T. Colby & Company, Inc. et al v. Apple, Inc.

Filing 135

DECLARATION of Claudia T. Bogdanos in Opposition re: 120 MOTION in Limine to Exclude any Testimony, Argument or Evidence Regarding the Expert Reports and Opinions of Susan Schwartz McDonald.. Document filed by Ipicturebooks LLC, J.Boyston & Company, J.T. Colby & Company, Inc., Publishers LLC. (Attachments: # 1 Exhibit A, # 2 Exhibit B, # 3 Exhibit C, # 4 Exhibit D, # 5 Exhibit E, # 6 Exhibit F, # 7 Exhibit G, # 8 Exhibit H, # 9 Exhibit I Part 1, # 10 Exhibit I Part 2, # 11 Exhibit J, # 12 Exhibit K, # 13 Exhibit L, # 14 Exhibit M, # 15 Exhibit N, # 16 Exhibit O, # 17 Exhibit P, # 18 Exhibit Q, # 19 Exhibit R)(Chattoraj, Partha)

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EXHIBIT B 1 UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK -----------------------------X J.T. COLBY & COMPANY, INC., d/b/a BRICK TOWER PRESS, J. BOYLSTON & COMPANY PUBLISHERS LLC and IPICTUREBOOKS LLC, Plaintiffs, vs. No. 11-cv-4060 (DLC) APPLE, INC., Defendant. -----------------------------X DEPOSITION OF STEPHEN M. NOWLIS Friday, December 14, 2012 New York, New York 9:30 a.m. Reported by: Maureen Ratto, RPR, CCR, CLR Job No: 27929 Stephen M. Nowlis, Ph.D. – 12/14/2012 STATE OF NEW YORK COUNTY OF NEW YORK ) ss: ) I wish to make the following changes, for the following reasons: PAGE 18 LINE 3 REASON: 18 25 REASON: 24 6 REASON: 61 18 CHANGE FROM: .01 CHANGE TO: 0.1 Transcription error. CHANGE FROM: don’t CHANGE TO: do Transcription error. CHANGE FROM: of if CHANGE TO: of -- if Transcription error. CHANGE FROM: CHANGE TO: You are correct, you really You are correct, I really REASON: 84 Transcription error. 19 CHANGE FROM: iBooks* CHANGE TO: ibooks Transcription error. REASON: 84 22 REASON: 85 5 REASON: 87 10 CHANGE FROM: I-picture-books CHANGE TO: ipicturebooks Transcription error. CHANGE FROM: iBooks CHANGE TO: ibooks Transcription error. CHANGE FROM: CHANGE TO: I-imperialist i-imperialist 1 Stephen M. Nowlis, Ph.D. – 12/14/2012 REASON: 87 Transcription error. 11 CHANGE FROM: I CHANGE TO: i Transcription error. REASON: 89 6 REASON: 90 17 REASON: 90 20 REASON: 91 5 REASON: 91 9 REASON: 91 12 REASON: 91 14 REASON: 95 17 REASON: CHANGE FROM: Deposition CHANGE TO: Deception Transcription error. CHANGE FROM: I-Tracking CHANGE TO: eye-tracking Transcription error. CHANGE FROM: intention CHANGE TO: attention Transcription error. CHANGE FROM: iBooks, Inc. CHANGE TO: ibooks, inc. Transcription error. CHANGE FROM: Inc. CHANGE TO: inc. Transcription error. CHANGE FROM: iBooks CHANGE TO: ibooks Transcription error. CHANGE FROM: iBooks, Inc. CHANGE TO: ibooks, inc. Transcription error. CHANGE FROM: Deposition CHANGE TO: Deception Transcription error. 2 Stephen M. Nowlis, Ph.D. – 12/14/2012 95 19 REASON: 98 23 REASON: 101 4 CHANGE FROM: Deposition CHANGE TO: Deception Transcription error. CHANGE FROM: peer CHANGE TO: proper Transcription error. CHANGE FROM: CHANGE TO: I-imperialist i-imperialist REASON: 101 Transcription error. 6 CHANGE FROM: I CHANGE TO: i Transcription error. REASON: 101 12 REASON: 101 19 REASON: 113 16 REASON: 124 23 REASON: 131 21 REASON: CHANGE FROM: I CHANGE TO: i Transcription error. CHANGE FROM: I CHANGE TO: i Transcription error. CHANGE FROM: Page 3 CHANGE TO: Page 1 Transcription error. CHANGE FROM: away CHANGE TO: a way Transcription error. CHANGE FROM: iBooks CHANGE TO: ibooks Transcription error. 3 Stephen M. Nowlis, Ph.D. – 12/14/2012 136 16 REASON: 136 23 REASON: 152 5 CHANGE FROM: iBooks CHANGE TO: ibooks Transcription error. CHANGE FROM: iBooks CHANGE TO: ibooks Transcription error. CHANGE FROM: plaintiffs CHANGE TO: plaintiffs’ REASON: 162 Transcription error. 23 CHANGE FROM: whose CHANGE TO: who’s Transcription error. REASON: 167 2 REASON: 171 7 REASON: 211 3 REASON: 215 3 REASON: 270 9 REASON: CHANGE FROM: didn’t CHANGE TO: did Transcription error. CHANGE FROM: iBooks CHANGE TO: ibooks Transcription error. CHANGE FROM: two CHANGE TO: to Transcription error. CHANGE FROM: write CHANGE TO: read Transcription error. CHANGE FROM: I CHANGE TO: i Transcription error. 4 Stephen M. Nowlis, Ph.D. – 12/14/2012 272 24 REASON: 273 2 REASON: 285 19 CHANGE FROM: iBooks CHANGE TO: ibooks Transcription error. CHANGE FROM: iLit CHANGE TO: ilit Transcription error. CHANGE FROM: though CHANGE TO: know REASON: 296 Transcription error. 14 CHANGE FROM: small CHANGE TO: mall Transcription error. REASON: *Throughout the transcript, when I referred to the name IBOOKS the court reporter transcribed it in the following manner: iBooks. Also, when I referred to ILIT the court reporter transcribed it as “iLit.” I corrected the capitalization for these words wherever the court reporter was transcribing a quote from an exhibit in order to match the capitalization used in the original document. Otherwise, for simplicity, I have not changed the capitalization used by the court reporter. Subscribed and sworn to before me this 14th day of January, 2013. _________________________ Stephen M. Nowlis, Ph. D. 5 45 1 NOWLIS 2 buy something I think it says, 3 "sending," it takes five seconds, and 4 then it will say "Your sample has now 5 been received on your Nook. 6 now open it and look at it. I think 7 they use the word "sending" but I'm not 8 sure. 9 10 Q. How would you describe the business of Apple? 11 12 You may MS. CENDALI: A. Objection. I would say Apple is a -- in a 13 very general sense, a computer company 14 -- well, a computer company that sells 15 -- that sell phones, they sell 16 computers, they sell iPads, so I guess 17 I would call it a computer company. 18 19 Q. Do you consider Apple to be a book publisher? 20 A. No. 21 Q. From the data generated from 22 your study, is it your opinion that 23 consumers consider Apple to be a book 24 publisher? 25 A. No. DAVID FELDMAN WORLDWIDE, INC. 450 Seventh Avenue - Ste 500, New York, NY 10123 1.800.642.1099 49 1 2 3 NOWLIS has nothing to do with selling? A. Well, I mean selling -- again, 4 the reason why I say "puts out," is 5 because that was meant to get at the 6 idea, if people thought that Apple was 7 the publisher but not -- I didn't ask a 8 question, for example, about available 9 because that might have meant something 10 else to people about whether they were 11 the distributor or, quote/unquote, the 12 seller, if you want to use that term. 13 14 15 Q. Is "available," then, in your opinion, a broad word? A. "Available," yes, it's a broad 16 word that it could encompass lots of 17 different things beyond source. 18 could encompass, for example, 19 distributor. 20 21 22 Q. It What else could it encompass, in your opinion? A. Like I said, the distributor, 23 the retailer, that sort of thing, above 24 and beyond just whether the company had 25 anything to do with being the source of DAVID FELDMAN WORLDWIDE, INC. 450 Seventh Avenue - Ste 500, New York, NY 10123 1.800.642.1099 50 1 2 3 4 5 NOWLIS the item. Q. So what do you mean by "source" then? A. The questions that I was getting 6 at about the source, affiliation and 7 sponsorship were meant to get more at 8 the publisher of the book. 9 10 Q. Is publishing encompassed by the word "available" or "made available"? 11 12 13 14 15 MS. CENDALI: A. I don't think in a very precise way so, no, I don't think so. Q. Is "release" encompassed by "available," "made available"? 16 17 18 Objection. MS. CENDALI: A. Objection. I mean, in a very ambiguous sense. 19 Q. How about "print"? 20 A. Is "made available" the same as 21 "print"? 22 the same thing, no. 23 Q. I do not believe those are That wasn't my question. 24 "print" encompassed by "made 25 Is available"? DAVID FELDMAN WORLDWIDE, INC. 450 Seventh Avenue - Ste 500, New York, NY 10123 1.800.642.1099 76 1 2 NOWLIS Q. Looking through Exhibit 3, do 3 you see instances in Exhibit 3 where 4 plaintiffs imprint appears as little I, 5 big B? 6 A. I do and my understanding is 7 this was done recently and this is 8 where I see examples of that. 9 Q. What is the basis for your 10 understanding that it was done 11 recently? 12 A. I -- it's just -- that's my 13 understanding. 14 communications that I had with the 15 attorneys. 16 17 18 Q. I believe this is Any basis, other than communications with counsel? A. No. Other than, again, we 19 talked earlier about Exhibit 2 and 20 that's something that I produced and we 21 talked about Exhibit 2 confirms this 22 point that that Exhibit 2 we only see 23 small I, large B recently. 24 25 Q. Can you take a look please at page -- it's somewhat near the DAVID FELDMAN WORLDWIDE, INC. 450 Seventh Avenue - Ste 500, New York, NY 10123 1.800.642.1099 81 1 2 NOWLIS A. Yes. As we talked about this 3 before, my understanding is that was 4 done fairly recently. 5 MS. BOGDANOS: 6 marked as Nowlis Exhibit 2? 7 Can I have this And I would like to note for the 8 record that the questions and answers, 9 the testimony concerning this document 10 are confidential and the exhibit itself 11 is confidential. 12 page, yes it's -- is confidential, 13 "Restricted Confidential, Subject to 14 the Protective Order." 15 At least the cover (Nowlis Exhibit 2, an e-mail 16 from John T Colby, Jr., was received 17 and marked on this date for 18 identification.) 19 20 Q. 2? 21 22 Dr. Nowlis, please read Exhibit (Whereupon, the Deponent reviews the document.) 23 A. Okay. 24 Q. Have you ever seen what has been 25 marked as Exhibit 2 before today? DAVID FELDMAN WORLDWIDE, INC. 450 Seventh Avenue - Ste 500, New York, NY 10123 1.800.642.1099 93 1 2 NOWLIS a survey? 3 MS. CENDALI: Objection. 4 A. A way to capture opinion. 5 Q. Is it an experiment? 6 A. It can be. 7 Q. Was yours? 8 A. Yes. 9 10 11 12 I would call -- I would call it an experiment, yes. Q. And your survey, you've said, "captured opinions." A. Yes. Is that right? Well, you said -- it's not 13 my survey, you said, "How would you 14 describe a survey in general here?" 15 Q. Okay. 16 A. Survey in general, let me come Right. 17 up with something here. 18 capture people's opinions, sure. 19 20 Q. It's a way to Did your survey also capture people's opinions? 21 A. Yes. 22 Q. You intended for it to? 23 A. Yes. 24 Q. So the data from your survey, 25 I believe it did. they don't represent facts? Is that DAVID FELDMAN WORLDWIDE, INC. 450 Seventh Avenue - Ste 500, New York, NY 10123 1.800.642.1099 97 1 NOWLIS 2 hypothesis but maybe you had an axe to 3 grind and you were trying to find 4 support for that. 5 You could design a survey 6 without a hypothesis or you could 7 design a survey where you don't have a 8 hypothesis because you don't even know 9 exactly what you're testing. It's a 10 very broad based, there is a lot of 11 ambiguity, so I think a survey can 12 serve different purposes but one of 13 those certainly is to test a 14 hypothesis. 15 16 Q. hypothesis? 17 18 Did your survey test a MS. CENDALI: A. Objection. My survey addressed an issue, 19 yes, which we could call a 20 "hypothesis." 21 Q. How did that differ from what 22 Dr. McDonald did, because she also 23 tested a hypothesis, did she not? 24 25 A. My understanding of her testimony is what she said is she DAVID FELDMAN WORLDWIDE, INC. 450 Seventh Avenue - Ste 500, New York, NY 10123 1.800.642.1099 110 1 NOWLIS 2 number of things in here and what 3 exactly you wanted me to focus on. 4 I'm focusing on "dramatic rhetoric," 5 which I wrote in my report about the 6 earlier pages, so now I will see -- 7 look at the later pages. 8 9 10 So (Whereupon, the Deponent reviews the document.) A. Okay. I would say I don't see 11 any examples of, quote/unquote, 12 dramatic rhetoric, from pages 8 to 17. 13 I see lots of other problems but I 14 would not phrase those as "dramatic 15 rhetoric" for these pages, 16 specifically. 17 Q. Thank you. And taking a look at 18 paragraph 19, page 7 of your own 19 report, that paragraph begins with the 20 words "Dr. McDonald's report." Correct? 21 A. Yes. 22 Q. And indeed, the heading B under 23 which paragraph 19 falls, begins 24 "Dr. McDonald's Report"? 25 A. That is correct. DAVID FELDMAN WORLDWIDE, INC. 450 Seventh Avenue - Ste 500, New York, NY 10123 1.800.642.1099 115 1 NOWLIS 2 Apple consumer, do you consider Apple 3 to have strong "i-" brands? 4 5 6 MS. CENDALI: Objection. Outside the scope. Q. Let me rephrase it. As a 7 marketing expert and as an Apple 8 consumer do you consider the iPhone to 9 be a strong brand? 10 A. Do I? I really don't know. 11 What I can tell you as a marketing 12 expert, I have seen studies that show 13 that Apple is a strong brand. 14 are studies on -- that analyze the 15 brand equity of different companies and 16 I believe they say that Coca-Cola is 17 the strongest brand in the world and 18 Apple is the second strongest brand in 19 the world, so I've seen their 20 methodology, it makes sense to me, and 21 I believe that. 22 There I don't think I've ever seen any 23 studies on whether iPhone in and of 24 itself is a strong brand or not, so I 25 don't know. I'd like to rely on DAVID FELDMAN WORLDWIDE, INC. 450 Seventh Avenue - Ste 500, New York, NY 10123 1.800.642.1099 116 1 2 3 NOWLIS something and not just speculate. Q. Do you -- as a marketing expert, 4 are you unable, then, to say that the 5 iPhone is a strong source indicator for 6 Apple, without having data to rely on? 7 8 9 MS. CENDALI: A. Objection. That iPhone is a strong source indicator for Apple? Again, I couldn't 10 tell you that without some empirical 11 information. 12 and I don't believe in guessing. 13 marketing expert but I try to, as best 14 I can, have my opinions be based on 15 something rather than pure speculation. 16 17 Q. I'm a Would your answer be the same if I asked it about Apple's iPad? 18 19 I don't want to venture MS. CENDALI: A. Objection. Again, I've seen no studies on 20 this, whether "iPad is a strong source 21 indicator for Apple," and I'm using 22 your exact wording here. 23 seen anything on that, so I honestly 24 couldn't tell you that without 25 speculating. I've never DAVID FELDMAN WORLDWIDE, INC. 450 Seventh Avenue - Ste 500, New York, NY 10123 1.800.642.1099 117 1 2 NOWLIS Q. Do you provide marketing 3 consultancy services for anyone or any 4 company? 5 A. Do I in terms of litigation? Is 6 that what you mean? 7 expert, sitting here today, providing 8 consulting services in a litigation 9 matter. I'm a marketing 10 Q. In any non-litigation matters? 11 A. I rarely, if ever, in terms of a 12 paid consultancy. 13 professor, I have students, I teach 14 executives, and many of these people 15 are working for a business at the time 16 they take my class. 17 marketing issues and I'll give my 18 opinions about different things they 19 tell me about and explain what the 20 situation is, and where they have 21 information I'll provide my expertise 22 in that area. 23 consulting, I would call that a 24 professor. 25 Q. Again, I'm a We talk about I wouldn't call that So the information that they DAVID FELDMAN WORLDWIDE, INC. 450 Seventh Avenue - Ste 500, New York, NY 10123 1.800.642.1099 119 1 2 3 4 NOWLIS informed decision. Q. Have you seen advertisements for the iPhone? 5 A. I'm sure I have. 6 Q. More than one? 7 A. I can't recall. 8 9 to guess. Q. I'm not going I'm not sure. Have you studied anything, in 10 any literature or business reports, 11 about Apple's iPhone? 12 A. I probably have seen articles 13 written on it but nothing comes to mind 14 right now about it. 15 Q. Are you able to say whether 16 Apple, itself, considers that the 17 iPhone is a strong source indicator? 18 19 MS. CENDALI: A. Objection. I have no idea what Apple would 20 say, itself. 21 what they think. 22 guess what they would say. 23 Q. I would say ask Apple I'm not going to So when Dr. McDonald testified 24 that she "Entered into the case in the 25 spirit of intellectual freedom and DAVID FELDMAN WORLDWIDE, INC. 450 Seventh Avenue - Ste 500, New York, NY 10123 1.800.642.1099 144 1 NOWLIS 2 selected your stimulus and what you 3 were trying to achieve in selecting 4 your stimulus was to replicate 5 marketplace reality in the kind of 6 survey laboratory? 7 A. Yes. I mean, that -- that's 8 exactly why I gave them an actual book 9 that they would actually see in the 10 actual marketplace and asked them to 11 evaluate it. That's exactly why I did 12 that. 13 Q. Do you agree or disagree with 14 the following statement, and this is 15 again as a marketing professional, as a 16 survey expert: "I think we attempt in 17 many of the more conventional scenarios 18 to try to create a kind of laboratory 19 understanding that a survey is never a 20 replication of the market. It is always 21 a laboratory. 22 stilted representation of the way 23 consumers shop and the way they 24 experience brands. 25 any sense at all and products are It's always a somewhat But where it makes DAVID FELDMAN WORLDWIDE, INC. 450 Seventh Avenue - Ste 500, New York, NY 10123 1.800.642.1099 145 1 NOWLIS 2 pedestrian and their marketing or sales 3 environment is pedestrian, we do it." 4 5 MS. CENDALI: A. Objection. I'm not sure what the word 6 "pedestrian" means in this case. 7 with you for a while and then we 8 switched over to pedestrian. 9 Q. Oh, okay. 10 A. I was Well -- and if you want a 11 complete answer here and then you 12 switched over to something else and I'm 13 not sure how to respond to it. 14 Q. Okay. Let me ask you again, 15 cutting out that word. 16 attempt in many of the more 17 conventional scenarios to try to create 18 a kind of laboratory understanding that 19 a survey is never a replication of the 20 market. 21 It's always a somewhat stilted 22 representation of the way consumers 23 shop and the way they experience 24 brands." 25 "I think we It's always a laboratory. Do you agree with that DAVID FELDMAN WORLDWIDE, INC. 450 Seventh Avenue - Ste 500, New York, NY 10123 1.800.642.1099 214 1 2 NOWLIS A. No. And it also supports my 3 earlier point that you asked me about 4 before, about why did I pick a printed 5 book for my study and this shows 72% of 6 the adults have read a printed book, 7 which is by far the most common kind of 8 book. 9 Q. Is it possible that someone 10 who's a reader of an e-book might 11 respond differently to the stimulus in 12 your study than someone who is a reader 13 exclusively of printed books? 14 15 MS. CENDALI: A. Objection. Again, anything is possible. I 16 try to live in the world of probable 17 and because in this case there is such 18 a great overlap amongst the -- both 19 people, they -- that read both types, 20 so if somebody is going to read a 21 printed book, they're also going to 22 ready an electronic book, and I see no 23 reason why they would respond 24 differently if they read both kinds of 25 books. DAVID FELDMAN WORLDWIDE, INC. 450 Seventh Avenue - Ste 500, New York, NY 10123 1.800.642.1099 265 1 2 3 NOWLIS Q. Have you ever discussed this case with Mr. Kivetz? 4 A. No. 5 Q. Are you friends with Mr. Kivetz? 6 A. I would say we're -- we're 7 colleagues, we're professional 8 colleagues, yes. 9 10 Q. Have you ever worked as an expert for Apple before? 11 A. No. 12 Q. As a marketing expert are you 13 able to opine whether Apple has a 14 strong brand or would you not be able 15 to do that without data in front of 16 you? 17 A. I think we talked about this 18 before and the research that I'm aware 19 of shows that Apple has a very strong 20 brand, I believe it was the second 21 strongest brand. I have not seen any 22 studies on their individual products, 23 so I would need some sort of support, 24 some sort of information, to be able to 25 give an intelligent answer to that, DAVID FELDMAN WORLDWIDE, INC. 450 Seventh Avenue - Ste 500, New York, NY 10123 1.800.642.1099 270 1 NOWLIS 2 Q. Sure let's start with that one? 3 A. I don't -- I have no idea what 4 -- what they would do. 5 think -- get in the mind of a company 6 and see how they would react. 7 know we talked about this, that when -- 8 when people see a word starting with 9 "I," they tend to speculate and guess I try not to I do 10 that it has something to do with Apple 11 in many cases. 12 important to use a control that gets at 13 that guessing. 14 Q. Okay. That's why it's With your experience with 15 brands and marketing and consumer 16 psychology, do you think consumers 17 would assume that a frozen pizza 18 product in the grocery store that was 19 called "iCheese," would have anything 20 to do with Apple? 21 22 MS. CENDALI: A. Objection. If it has nothing to do with the 23 type of product that they sell, I 24 really don't know. 25 don't know how the average consumer I'm not sure. I DAVID FELDMAN WORLDWIDE, INC. 450 Seventh Avenue - Ste 500, New York, NY 10123 1.800.642.1099 272 1 2 3 4 NOWLIS A. Right. I don't know at this point. Q. Do you know in a relative 5 context if a consumer seeing my frozen 6 pizza, my frozen iCheese pizza and a 7 consumer seeing, say, something called 8 an "iPen" that came with a little flash 9 drive on the top of it, if consumers 10 would be more likely to think the iPen 11 had something to do with Apple than 12 that -- than the iCheese pizza had 13 something to do with Apple? 14 15 MS. CENDALI: A. Objection. Possibly because it -- consumers 16 can -- can see that it has something to 17 do with their core business. 18 19 Q. Dr. Nowlis, who selected the control that was used in your study? 20 A. I did. 21 Q. Can you take a look, please, at 22 exhibit -- Exhibit 1 in your study, at 23 page 40, in paragraph 98 you say "In 24 addition, all references to 'iBooks' on 25 the title page of the book were DAVID FELDMAN WORLDWIDE, INC. 450 Seventh Avenue - Ste 500, New York, NY 10123 1.800.642.1099 278 1 NOWLIS 2 around with what they think they're 3 supposed to say, with what the right 4 answer is, even though they may -- 5 never would have associated this with 6 -- with Apple at all, in the first 7 place, but they are asked this 8 question, they see an "I" and they say, 9 "Hmm, I see an 'I' on other things and 10 I guess I'm supposed to say 'Apple' 11 here." 12 I tried to point out examples of 13 this in -- in my report where people 14 said "I'm assuming," "I'm guessing," 15 and that kind of a thing, so you would 16 want to remove that kind of "noise" 17 from your survey. 18 Q. In my iPen example, then, is 19 there another type of noise to be 20 removed, namely someone who thinks of 21 Apple simply because the product has 22 something to do with electronics, with 23 computers? 24 25 A. If -- if there's a basis for that opinion other than "Hmm, I'm just DAVID FELDMAN WORLDWIDE, INC. 450 Seventh Avenue - Ste 500, New York, NY 10123 1.800.642.1099 279 1 NOWLIS 2 going to take a wild guess, I'm 3 supposed to answer this," if there's a 4 real reason for them saying it, then, 5 that's perfectly okay. But that's 6 exactly is why the control is there, to 7 remove the sort of real reasons versus 8 the guessing and speculation, and it 9 can come in various forms. You don't 10 know exactly what the "noise" is going 11 to be, but a good control can take care 12 of all of those different kinds of 13 "noise," so you get a true response. 14 Q. Do you consider -- in your 15 study, do you consider Xbooks to be a 16 good control? 17 A. 18 did? 19 Q. 20 In my -- in the study that I Right. If in that study -- did you consider using Xbooks as a control? 21 A. I considered it, yes. 22 Q. Why did you not select it? 23 A. I thought that in my particular 24 study that iLit would be better. 25 didn't see a problem with it, I just I DAVID FELDMAN WORLDWIDE, INC. 450 Seventh Avenue - Ste 500, New York, NY 10123 1.800.642.1099 295 1 2 3 4 5 NOWLIS Q. In general, why are surveys validated? A. To make sure that people actually responded to the survey. 6 Q. Is that the only reason? 7 A. You asked me in general. That 8 was the general reason. 9 other reasons besides making sure -- I Are there 10 mean, I'm not -- I think that 11 encompasses a lot, to make sure that 12 somebody actually did it. 13 So, therefore, there wasn't some 14 sort of fraud going on or sloppiness or 15 other reasons to make sure that the 16 results were -- are real and not, you 17 know, the survey company didn't make 18 things up to make money, for example. 19 That's the general reason. 20 Q. So if the survey company made 21 things up, that would really be a 22 fraudulent action on the part of the 23 interviewer or supervisor or someone 24 working for the survey company. 25 that right? Is DAVID FELDMAN WORLDWIDE, INC. 450 Seventh Avenue - Ste 500, New York, NY 10123 1.800.642.1099 296 1 2 NOWLIS A. True. And it -- right. And 3 another good reason for doing it is to 4 make sure that the person who said that 5 they did the survey, actually did the 6 survey, himself or herself, rather than 7 having somebody else complete it for 8 him or her. 9 Q. So in a mall context, then, that 10 would be akin to a respondent providing 11 his brother's name instead of his own 12 name? 13 A. Yeah. That would be very 14 unlikely in a small setting for 15 somebody to fill out a survey and then 16 when they were recontacted, to say, 17 "No, it wasn't really me, that was my 18 brother who gave my name." That 19 wouldn't be very common to happen in a 20 mall survey, I don't think but, again, 21 validation, is just to make sure that 22 the person actually did it. 23 why. 24 Q. 25 Who knows How does the context of an internet study affect, if at all, the DAVID FELDMAN WORLDWIDE, INC. 450 Seventh Avenue - Ste 500, New York, NY 10123 1.800.642.1099 297 1 2 3 4 5 NOWLIS need to validate survey research? A. I don't think it changes anything. I think it's still needed. Q. Even though there's no middle 6 person, as it were, such as the mall 7 interviewer or the supervisor who might 8 be cheating to get their quotas or -- 9 even without the middle person, your 10 11 opinion is that the same issues remain? A. There is a middle person, 12 though, within a survey. 13 company that's conducting the survey, 14 right? 15 whose conducting the survey that is 16 giving you responses. Hypothetically, 17 they can make up responses to give you, 18 potentially. It's the So there's a middle person 19 But there's also the issue with 20 an internet survey where now the other 21 issue becomes much more likely. 22 now somebody who signed up for the 23 survey who met certain criteria, now he 24 or her does not fill out the survey, 25 but has somebody else do the survey for We're DAVID FELDMAN WORLDWIDE, INC. 450 Seventh Avenue - Ste 500, New York, NY 10123 1.800.642.1099 305 1 2 NOWLIS Q. Okay. I didn't mean to leave 3 that unclear. 4 then, I apologize. 5 Okay. I'll use your language So the fact that 61% of 6 your respondents were reached and all 7 of the 61% verified their participation 8 in your study. Is that usual, such a 9 perfect track record? 10 11 12 13 14 A. That's very common, yes. I -- I don't know why it wouldn't be. Q. Was that common in the internet study that you conducted as well? A. I wish I could remember to help 15 you out here but I honestly don't 16 recall the percentage of people that 17 were validated, I wish I could. 18 Q. And I made reference to a single 19 study and I know you said there may or 20 may not have been more than that. 21 you, as you sit here today, have any 22 recollection of an internet study that 23 you conducted where the validation 24 results were such -- were -- were lower 25 than 100%? Do DAVID FELDMAN WORLDWIDE, INC. 450 Seventh Avenue - Ste 500, New York, NY 10123 1.800.642.1099 306 1 NOWLIS 2 A. I do not recall that, no. 3 Q. Do you know of any study, 4 perhaps in your role as a rebuttal 5 expert, and it doesn't have to be a 6 study conducted by you, any trademark 7 study for litigation where the survey 8 results were thrown out because of 9 validation problems? 10 A. When you say "thrown out," you 11 mean they weren't accepted by the judge 12 because of validation issues? 13 what you mean? 14 Q. 15 Yes. 16 A. Is that Let's start with that. Sure. I couldn't -- I couldn't 17 pinpoint, one way or the other. 18 simply don't know. 19 Q. I Do you recall any studies that 20 you have critiqued where the validation 21 was so low as to be problematic? 22 A. I can vaguely recall possibly -- 23 I'm not going to guess. 24 don't know. 25 Honestly, I That's my truthful answer. MS. BOGDANOS: Let's take a DAVID FELDMAN WORLDWIDE, INC. 450 Seventh Avenue - Ste 500, New York, NY 10123 1.800.642.1099 309 1 NOWLIS 2 doesn't mess up the covers. 3 sound good to you? 4 MS. BOGDANOS: Yes. Does that Why -- why 5 don't we mark them on the inside of the 6 hardcover and then we are fine with 7 counsel taking these back into -- into 8 custody. 9 MS. CENDALI: 10 Thank you. (Nowlis Exhibit 9, the test cell 11 for iBooks, was received and marked on 12 this date for identification.) 13 (Nowlis Exhibit 10, the control 14 cell for iLit, was received and marked 15 on this date for identification.) 16 17 18 (Whereupon, a discussion is held off the record.) Q. Dr. Nowlis, a survey like yours 19 is an experiment designed to examine 20 what might happen in the real world. 21 Is that correct? 22 A. It's -- it's -- right. Right. 23 I refer to it as an experiment, it's an 24 experiment meant to replicate 25 marketplace conditions in the real DAVID FELDMAN WORLDWIDE, INC. 450 Seventh Avenue - Ste 500, New York, NY 10123 1.800.642.1099 310 1 2 3 NOWLIS world, yes. Q. And do you, then, attempt to 4 extrapolate from the data derived from 5 your survey experiment to predict 6 actual market conditions? 7 A. Right. They were -- people were 8 shown actual market conditions and the 9 responses that they gave would be 10 representative of the population, a 11 sample, a smaller group of people than 12 everybody in the population just like 13 political polls do, but that -- that is 14 meant to be representative of everybody 15 in -- in the universe. 16 Q. And representative of everyone 17 in the universe's reaction to the 18 stimulus? 19 20 21 22 A. 25 Their opinion, based on the stimulus. Q. No study replicates actual market conditions. 23 24 Yes. MS. CENDALI: A. Is that right? Objection. Well, I mean, I guess not to split hairs here, but what actual DAVID FELDMAN WORLDWIDE, INC. 450 Seventh Avenue - Ste 500, New York, NY 10123 1.800.642.1099

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