I/P Engine, Inc. v. AOL, Inc. et al

Filing 1024

Declaration re 1022 Memorandum in Support, (Declaration Of Howard Chen In Support Of Defendants Motion For Leave To Submit Evidence And Offer Of Proof In Support Of Defendants Opening Brief On Issues Raised In The Court's August 14 Order) by AOL Inc., Gannett Company, Inc., Google Inc., IAC Search & Media, Inc., Target Corporation. (Attachments: # 1 Exhibit 1 (Public Version), # 2 Exhibit 2 (Public Version), # 3 Exhibit 3 (Public Version))(Noona, Stephen)

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UNITED STATES DISTRICT COURT

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EASTERN DISTRICT OF VIRGINIA

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NORFOLK DIVISION

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I/P ENGINE, INC.,
Plaintiff,

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v.

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AOL, INC., et al.,

Civil Action No.

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211-cv-512

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Defendants. :

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CONFIDENTIAL - OUTSIDE COUNSEL ONLY

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Videotaped Deposition of BARTHOLOMEW FURROW

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Redwood Shores, California

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Friday, September 20, 2013
9:38 a.m.

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Job No.: 44843

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Pages: 1 - 214

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Reported by: Diane S. Martin, CSR, CCRR

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servers.

We go to SmartAds after the creative

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server.

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same for new AdWords.

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participation in the auction.

I think that's where

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you said that's where we have some new things going

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on.

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I think you said that was essentially the
And then to the ad mixer for

Would you like me to describe them?

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A.

Right.

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Q.

That would be great.

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A.

Okay.

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The -- so in the old AdWords system,

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as we're using the term, there would be this

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promotion disabling step and this disabling step.

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In the new system,

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The step that happens -- the auction step
does happen.

And in the auction step we have a --

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CONFIDENTIAL OUTSIDE COUNSEL ONLY
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CONFIDENTIAL VIDEOTAPED DEPOSITION OF BARTHOLOMEW FURROW

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MR. PERLSON:

Objection.

Form.

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BY MR. CIMINO:

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CONFIDENTIAL OUTSIDE COUNSEL ONLY
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CONFIDENTIAL VIDEOTAPED DEPOSITION OF BARTHOLOMEW FURROW

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I should mention, because I believe I

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mentioned it in the context of the old AdWords

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system,

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Q.

That's still in place?

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A.

That's still in place.

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CONFIDENTIAL OUTSIDE COUNSEL ONLY
888.433.3767 | WWW.PLANETDEPOS.COM

CONFIDENTIAL VIDEOTAPED DEPOSITION OF BARTHOLOMEW FURROW

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CONFIDENTIAL OUTSIDE COUNSEL ONLY
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CONFIDENTIAL VIDEOTAPED DEPOSITION OF BARTHOLOMEW FURROW

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Q.

And who would be most familiar with that?

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A.

I don't know who would be most familiar.

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Q.

Okay.

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So back to the new AdWords auction.

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There could actually be no ads that even

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made it to the ad mixer.

Perhaps none of the

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keywords had any ads associated with them.

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So in

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side; otherwise, the other signals are the same?
A.

That's correct, yes.

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MR. PERLSON:

Objection.

Form.

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BY MR. CIMINO:

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CONFIDENTIAL OUTSIDE COUNSEL ONLY
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CONFIDENTIAL VIDEOTAPED DEPOSITION OF BARTHOLOMEW FURROW

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10:41:47
MR. PERLSON:

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Objection.

Form.

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BY MR. CIMINO:

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I thought you said

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something like LTV changes based on impression

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cost.

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new LTV.

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Q.

So I thought there was a different signal in

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What did you mean by that?

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So you said "LTV."

A.

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The LTV formula has -- is essentially the

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CONFIDENTIAL VIDEOTAPED DEPOSITION OF BARTHOLOMEW FURROW

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BY MR. CIMINO:
Has the strategy

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behind having QBB in old AdWords, is that reflected

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anywhere in new AdWords?

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Q.

A.

Okay.

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Going back to QBB.

The --

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MR. PERLSON:

Objection.

Form.

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THE WITNESS:

The strategy, as I understood

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it, was it was a very sort of course, if you will,

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filter to try to reduce the number of ads that

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would make it to later in the process.

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BY MR. CIMINO:

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CONFIDENTIAL OUTSIDE COUNSEL ONLY
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CONFIDENTIAL VIDEOTAPED DEPOSITION OF BARTHOLOMEW FURROW

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BY MR. CIMINO:
Q.

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For each auction in new AdWords,

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MR. PERLSON:

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Objection.

Form.

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BY MR. CIMINO:

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Q.

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So it's essentially the same signal; isn't

that right?

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MR. PERLSON:

Objection.

Form.

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THE WITNESS:

LTV isn't a signal.

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It's a

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score.

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BY MR. CIMINO:

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Q.

Okay.

The score represents the same

information about the ad; is that right?

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A.

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-- no.

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It makes -- it makes use of the same inform

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Sorry.

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Let me correct that.

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And so we did it for the

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right-hand side/bottom as well.
And in April we finished the -- oh, I beg

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your pardon.

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In -- that was before I provided my

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written declaration.
And in July we

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Q.

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A.

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Desktop is regular AdWords?

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I understand.

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I don't recall regular AdWords, but it's

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ads shown on Google.com.

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Q.

Okay.

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A.

But for desktop browser or laptop, rather

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than a mobile phone.
Q.

Mobile, yep.

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Q.

But to your knowledge, no information as to

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whether those were ads that in the prior system

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would have been filtered out?

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A.

Right.

To my knowledge that analysis

wasn't done, but it could have been.
Q.

Okay.

In paragraph 10, second sentence, it

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says, "The auction predicted click-through rate,

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advertisers' bid and other factors are used to

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calculate LTV scores."

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That's still correct for new AdWords?

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But otherwise, yes.

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Q.

And the next sentence says, "LTV scores are

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used to perform a variety of functions, including

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ad ranking and pricing."

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"Ad ranking" there is the auction?

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A.

Yes.

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Q.

Okay, if you look down to paragraph 12, I

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think there might be an inaccuracy here.
"Google has modified the accused AdWords,

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