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)

EXHIBIT H

Page 1

UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF NEW YORK
-------------------------------------X
JT COLBY AND COMPANY, INC., D/B/A
BRICK TOWER PRESS, J. BOYLESTON AND
COMPANY PUBLISHERS, LLC, AND
IPICTUREBOOKS, LLC,
Plaintiffs,
-against-

Index No.
11-CV-4060(DLC)

APPLE, INC.,
Defendant.
-------------------------------------X

VIDEOTAPED DEPOSITION OF
MIKE SHATZKIN
New York, New York
December 4, 2012, 9:35 a.m.

Reported By:
Nicole Sesta
Ref: 8575

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Page 46
1

M. Shatzkin

2

So there were -- when I stopped working at Two

3

Continents, it was already true that lots of

4

small publishers were distributed by large

5

publishers.

6

the years where I would help them get more out

7

of their distributor because I had seen that

8

from both sides.

9

And I had a number of clients over

Then, in the last 20 years, it's

10

really been about digital change.

11

work has been around digital change.

12

exclusively.

13

pieces are digital change and the supply chain.

14
15
16

Q

A lot of my
Not

I'd say that the two biggest

When you say "digital change,"

what do you mean by that?
A

What I mean is that we are in the

17

midst of a transition from everything being read

18

on paper, just about, to everything being read

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on screens, just about.

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which we are no where near done with, royals the

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publishing industry because it changes the

22

economics and it changes the value propositions.

23

And therefore, it presents a combination of

24

threats and opportunities to anybody who's in

25

the business.

And that transition,

And understanding those dynamics

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Page 61
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M. Shatzkin

2

A

"At digital publishing events

3

globally," yes.

4

Q

For the conferences that you have

5

run, are there any particular subject matter

6

that those address?

7

A

Yeah, once again, it's really, as

8

somebody once put it, looking at the same house,

9

looking in the same house through different

10

windows.

11

publishing.

12

an expert and about which people are interested

13

in having me organize the presentations.

14

It's all about digital change in

Q

That is the subject about which I'm

And by "digital change," you mean

15

the changes in the publishing industry as a

16

result of the internet?

17

A

I mean the commercial challenges

18

presented to publishers by the fact that we are

19

in the transition that I mentioned earlier.

So

20

sometimes the topic is not a digital topic.

We

21

may be talking about how you change sales force

22

coverage because there aren't as many

23

bookstores.

24

books, but it has to do with the change that

25

we're living through because of digital impacts.

It might have to do with paper

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Page 97
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M. Shatzkin

2

a biography, followed by, you know, there's no

3

particular consistency to what they read.

4

people are very unlikely to have much of an

5

informed opinion about publishers or imprints.

6

But then there are other readers

Those

7

who are genre readers.

And their

8

characteristics are different and they tend to

9

read many, many, many books in the same genre.

10

And in that case, there's a much higher

11

likelihood that they will be conscious of

12

publisher brands within the genre.

13

Q

Have you ever done any research to

14

examine consumer awareness of brands either on

15

the part of general readers or genre readers?

16

MR. RASKOPF:

17

Objection.

Asked and answered.

18

A

No.

19

Q

Are you aware of any research that

20

looks at awareness of brands among general

21

readers or genre readers?

22

A

No.

23

Q

You mentioned Harlequin as an

24
25

example of a niche publisher, correct?
A

Yes.

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Page 147
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M. Shatzkin

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has spawned companies that really don't have

3

much presence except on the internet because

4

it's a big enough market to support that.

5

That's well understood by people who are working

6

the digital revolution.

7

Q

In your report when you say which

8

have turned out to be of substantial interest on

9

the internet and sold well as ebooks, were you

10

talking about genre fiction generally or the

11

books published by iBooks in particular?

12

A

No, I was actually talking about

13

the genres in which they publish, not iBooks

14

itself.

15

how those books have sold on the internet,

16

iBooks books particularly have sold on the

17

internet.

18

I don't think I ever knew or do know

Q

Looking in the next line you say,

19

"Although the sales of iBooks overall were

20

modest (5,689, 950 units) with sales of science

21

fiction titles alone totally 1,944,314 units,"

22

do you see that?

23

A

Uh-huh.

24

Q

Looking at that and doing the

25

math, is it fair to say that 34 percent of the

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M. Shatzkin

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If anyone built a brand by saying

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I'm going to make this brand understood by a

4

bunch of people and advertise and promote to

5

them to do that, I didn't see it.

6

another I missed it.

7

would be amazed but it certainly did not happen

8

repeatedly.

9

Q

Somehow or

Even if it happened once I

So is it your testimony that all

10

brands in publishing including the Dummies brand

11

for that series of books exist solely because of

12

the sales of books that happened to happen?

13

MR. RASKOPF:

14

the form of the question.

15

A

Objection to

It is my testimony that all

16

brands, that is author brands, title brand,

17

author brands -- sorry, imprint brands, series

18

brands and publishing house brands are the sum

19

total of awareness created by the books sold and

20

read under those brands.

21

minimal impact of anything else.

22

Q

There is very, very

Do publishing houses undertake

23

marketing activities with respect to authors,

24

for example?

25

MR. RASKOPF:

Objection to

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