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

Filing 174

DECLARATION of Todd Anten in Support re: 77 MOTION to Preclude the Testimony of Defendant's Rebuttal Expert Witness Stephen M. Nowlis., 73 MOTION to Preclude the Testimony of Defendant's Expert Witness E. Deborah Jay.. 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)(Chattoraj, Partha)

EXHIBIT B

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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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.

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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

21

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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M. Shatzkin

2

and how they impact particular players or

3

particular propositions is what I think I've got

4

a reputation for doing well.

5
6

Q

Have you ever worked directly for

any publishers as a full-time employee?

7

A

No, except for Two Continents, no.

8

Q

You have worked for publishers as

9

a consultant, correct?

10

A

Oh, yes.

11

Q

What publishers have you worked

A

All of them, literally.

12

for?

13

Random

14

House, Simon & Schuster, Harper Collins,

15

Hachette, Penguin.

16

big ones now, right.

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ones.

18

retained by them or I've sold them projects or

19

that is to say sold them books to publish.

I mean, I'm just naming the
Many small ones, foreign

I mean, in one way or another, I've been

20

I've interacted on a professional

21

basis with most of the significant publishers in

22

the English-speaking world.

23
24
25

Q

Have you ever done any work for

Harlequin?
A

I spoke at Harlequin's global

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1

M. Shatzkin

2

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

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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.

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how those books have sold on the internet,

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iBooks books particularly have sold on the

17

internet.

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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

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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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