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UNI TED STATES DI STRI CT COURTEASTERN DI STRI CT OF PENNSYLVANI A
MALI BU MEDI A, LLC, ) 12- cv- 2078)
Pl ai nt i f f , ) )
vs. )
)J OHN DOES 1, 13 and BRI AN )WHI TE, ) Phi l adel phi a, PA
) J une 10, 2013Def endant s. ) 9: 28 a. m.
TRANSCRI PT OF BENCH TRI ALBEFORE THE HONORABLE MI CHAEL M. BAYLSON
UNI TED STATES DI STRI CT J UDGE
APPEARANCES:
For t he Pl ai nt i f f : CHRI STOPHER P. FI ORE, ESQUI RE FI ORE & BARKER LLC
425 Mai n St r eet - Sui t e 200 Har l eysvi l l e, PA 19438
MI CHAEL KEI TH LI PSCOMB, ESQUI RELI PSCOMB HEI SENBERG & BAKER PL2 South Bi scayne Boul evard
Pent house 3800Mi ami , FL 33131
For t he Def endant s: RONALD A. SMI TH, ESQUI RERONALD A. SMI TH AND ASSOCI ATES
Whi t e 1617 J FK Boul evar d - Sui t e 1240Phi l adel phi a, PA 19103
J ohn Doe #1 LEONARD J . FRENCH, ESQUI RETHE LAW OFFI CES OF LEONARD J . FRENCH1022 Mai n St r eetBet hl ehem, PA 18108
J ohn Doe #13 A. J ORDAN RUSHI E, ESQUI REMULVI HI LL & RUSHI E LLC2424 East Yor k St r eet Sui t e - 316Phi l adel phi a, PA 19125
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2
Audi o Operat or : KELLY HAGGERTY
Tr anscr i bed by: DI ANA DOMAN TRANSCRI BI NGP. O. Box 129Gi bbsboro, New J ersey 08026- 0129Of f i ce: ( 856) 435- 7172
Fax: ( 856) 435- 7124 E- mai l : di anadoman@comcast . net
Pr oceedi ngs r ecor ded by el ect r oni c sound r ecor di ng, t r anscr i ptpr oduced by t r anscr i pt i on ser vi ce.
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3
I N D E X1
OPENI NG STATEMENTS: PAGE2
FOR THE PLAI NTI FF:3
By Mr . Li pscomb 134
5
WI TNESSES: COURT: DI RECT: CROSS: REDI RECT: RECROSS:6
FOR THE PLAI NTI FF:7
Col l et t e P. Fi el d 49 24( Li p)8
87( Li p)9
Mi chael Pat zer 54( Li p10
Tobi as Fi eser 91( Fi o)11
Pat r i ck Pai ge 109( Li p)12
Loui s Ci nquant o 143 147( Li p)13
J ohn Doe 13 191( Fi o)14
BY DEPOSI TI ON PAGE15
Col i n Padget t 10616
J ohn Doe 117
Deposi t i on and I nt er r ogat or i es 16818
Decl ar at i on 17719
Br i an Whi t e20
Deposi t i on and I nt er r ogat or i es 18021
22
EXHI BI TS: I D. RECEI VED23
FOR THE PLAI NTI FF:24
P- 1 Li st of X- Ar t Fi l ms on Tor r ent 36 3625
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4
EXHI BI TS: I D. RECEI VED1
P- 2 Li st of Li nks t aken down pur suant t o DMCA 37 392
P- 3 Pi r ate Bay s Response t o Dr eam Works3
Not i ce 39 404
P- 4 Cer t i f i cat e of Copyr i ght Regi st r at i ons 47 485
P- 5 LTO- 5 Ul t r i um WORM Dr i ve 58 686
P- 6 Repor t Produced by I PP Sof t ware 73 747
P- 7 500G Har d Dr i ve 76 768
P- 8 Or i gi nal of Mal i bu Medi a s Movi es 94 959
P- 9 Cor r el at i on of Tor r ent Fi l es t o Mal i bu10
Medi a Fi l es 95 9611
P- 10 I nf r i ngement Dat a f r om Law Fi r ms 99 10112
P- 11 St i pul at i on Re: J ohn Doe 16 102 10313
P- 12 St i pul at i on Re: J ohn Doe 13 103 10414
P- 13 St i pul at i on r e: J ohn Doe 1 104 10515
P- 14 Por t i on of Padget t Depo Read 106 10716
P- 15 Thr ee Ter abyt e Seagat e Hard Dr i ve 117 11817
P- 16 Screen Capt ure of 240 Gi g SSE Dr i ve 120 12018
P- 17 Screen Capt ure of 240 Gi g SSE Dr i ve 121 12119
P- 18 Scr een Capt ur e Regi st r y Key of 24020
Gi g SSE Dr i ve 123 12321
P- 19 Wi ndows Li cense Key f or 240 Gi g22
24 Gi g SSE Dr i ve 129 13023
P- 20 Scr een Capt ur e of Pant her Fol der 130 13024
P- 21 Screen Capt ure of Li nux OS 133 13325
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5
EXHI BI TS: I D. RECEI VED1
P- 22 Scr een Capt ur e of Core Fi l es of2
Lapt op, Squeaky 136 - - -3
4
FOR THE COURT:5
C- 1 Ci nquanto s Rsum 143 - - -6
C- 2 Ci nquant o s Report 145 - - -7
8
CLOSI NG ARGUMENTS: PAGE9
FOR THE PLAI NTI FF10
By Mr . Li pscomb 19511
12
DECI SI ON OF THE COURT:13
By J udge Bayl son 21114
15
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6Colloquy
( The f ol l owi ng was heard i n open cour t at 9: 28 a. m. )1
THE COURT: Pl ease be seat ed.2
Okay. We r e her e f or t he begi nni ng of a t r i al i n3
Mal i bu Medi a ver sus sever al J ohn Does, Ci vi l Act i on 2012- 2078.4
MR. LI PSCOMB: Your - - Your Honor , Mr . Smi t h i s not5
her e yet .6
THE COURT: I see.7
MR. LI PSCOMB: He r epr esent s J ohn Doe - -8
THE COURT: Yes.9
MR. LI PSCOMB: or Br i an Whi t e.10
THE COURT: Al l r i ght . Wel l , we l l wai t a f ew11
mi nut es, but I - - I have some quest i ons f or you, Mr . Li pscomb,12
t hat I don t - -13
MR. LI PSCOMB: May I appr oach?14
THE COURT: - - t hi nk he s - - yes - - t hat he s15
essent i al f or .16
When t hi s case st ar t ed, t her e wer e t hr ee cases t hat17
were ass i gned t o me, as you may r ecal l , and t hey - - t hey were18
Ci vi l Act i ons No. 2078, 2084 and 288 - - 2012 and those t hr ee19
dash numbers.20
And at some poi nt , as everybody may r ecal l , I21
consol i dat ed t hem al l i nt o t he cur r ent case of 2078, so al l22
t he pr oceedi ngs si nce t he consol i dat i on have been car r i ed23
f or t h i n 2078.24
Now, t her e wer e - - i n t hose t hr ee cases t her e wer e a25
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7Colloquy
t ot al of 52 def endant s, and when I est abl i shed t he bel l wet her1
t r i al , whi ch i s st ar t i ng t oday, I i ssued an or der st ayi ng t he2
pr oceedi ng agai nst al l t he ot her def endant s.3
Now, act ual l y, t her e wer e - - of t he 52 def endant s4
t here were si x who came f orward and f i l ed mot i ons t o quash5
your subpoena t o t he i nt er net servi ce pr ovi der s, and t hen one6
of t hose wi t hdr ew t he opposi t i on.7
MR. LIPSCOMB: J ohn Doe 6.8
THE COURT: And t hen t here wer e f i ve l ef t , and t hen9
t oday we have t hr ee l ef t .10
But - - so my f i r st quest i on i s what i s t he st at us as11
t o t he remai ni ng, say, 52 mi nus s i x, so t he remai ni ng 46 - -12
MR. LI PSCOMB: Vol unt ar i l y di smi ssed - -13
THE COURT: - - who wer e i ni t i al l y sued?14
MR. LI PSCOMB: - - wi t hout pr ej udi ce.15
THE COURT: What ?16
MR. LI PSCOMB: Vol unt ar i l y di smi ssed wi t hout17
pr ej udi ce.18
THE COURT: You di d t hat .19
MR. LI PSCOMB: We di d t hat because by t he t i me we - -20
we woul d get t hei r name, i t woul d be del eted by t he I SPs, so21
t hey were dead. They were dead t o us. We coul dn t - -22
THE COURT: They wer e what ?23
MR. LI PSCOMB: The - - t he I SPs del et e t he24
cor r el at i ng dat a af t er - - bet ween si x mont hs and at t he most ,25
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8Colloquy
18 mont hs, and - -1
THE COURT: Okay.2
MR. LI PSCOMB: - - we - - we vol unt ar i l y di smi ssed3
t hem because we woul dn t be abl e t o now subpoena t hem and get4
t hei r names, and - - and so i t - - t hose wer en t - -5
THE COURT: Okay.6
MR. LI PSCOMB: - - t hose wer en t goi ng t o be vi abl e7
cases anymor e.8
THE COURT: So t he I SPs, i f , f or exampl e Comcast and9
Ver i zon, t hey woul d have del et ed t he cor r el at i ng dat a?10
MR. LI PSCOMB: Comcast has a si x- mont h dat a11
r et ent i on per i od. Ver i zon has an 18- mont h dat a r et ent i on12
per i od.13
THE COURT: Comcast i s si x mont hs?14
MR. LI PSCOMB: Comcast i s si x mont hs.15
THE COURT: And Ver i zon i s 18?16
MR. LI PSCOMB: Ei ght een mont hs. So Ver i zon - -17
Ver i zon woul d have - - woul d have kept i t , but Comcast woul d18
have - -19
THE COURT: Al l r i ght .20
MR. LI PSCOMB: - - woul d have come and gone.21
THE COURT: Do t hey - - do t hose compani es est abl i sh22
t hat on t hei r own or i s t her e some regul at i on, FCC or23
ot her wi se?24
MR. LI PSCOMB: They est abl i sh i t on t hei r own, and25
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9Colloquy
i n f act t he FBI has been beggi ng f or a nat i onal st andar d1
because some I SPs don t keep i t but f or a week. And some2
onl y, you know - - and - - and i t i mpedes t hei r abi l i t y to do3
cri mi nal i nvest i gat i ons.4
THE COURT: Does t he FCC have any j ur i sdi ct i on over5
t hi s or not ? Federal Communi cat i ons Commi ssi on?6
MR. LI PSCOMB: No.7
THE COURT: Cause t hey - - t hey r egul at e Comcast and8
Ver i zon.9
MR. LI PSCOMB: They do, under t he Cabl e Act , sur e.10
THE COURT: Ri ght . But t hi s woul d not be cabl e. I f11
you know.12
MR. LI PSCOMB: I don t know.13
THE COURT: Al l r i ght . Okay. Now, of t he - - di d14
you - - di d you ent er i nt o set t l ement s wi t h any of t hose 46?15
MR. LI PSCOMB: I don t know.16
THE COURT: You - - you woul dn t have any way of17
knowi ng, or you j ust don t r ecal l .18
MR. LI PSCOMB: The answer t o your quest i on i s bef ore19
t he - - r i ght at t he begi nni ng of t he sui t s, when you f i l e t hi s20
t ype of sui t , and when - - I don t know i f we wer e ever21
gi ven - - oh, yes.22
Oh, t he way t hat t hi s case went was we were gi ven23
t he abi l i t y to subpoena t he def endant s, and t hen - -24
THE COURT: The f i r st t hi ng i s you subpoenaed - -25
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10Colloquy
MR. LI PSCOMB: Yeah, okay.1
THE COURT: - - t he - - I gave you l eave t o - -2
MR. LI PSCOMB: I submi t t ed t he I SPs.3
I n r esponse t o t hat subpoena what t ypi cal l y happens4
i s, say, 10 t o 15 per cent of t he Does cal l us and say, Hey, I5
want t o r esol ve t hi s r i ght away because t her e s no use i n6
f i ght i ng. 7
And so t her e s - - t her e s some hi gh pr obabi l i t y t hat8
we set t l ed wi t h some of t hose peopl e.9
THE COURT: Okay.10
MR. LI PSCOMB: I - - I don t know of f t he t op of my11
head, but i t s l i kel y.12
THE COURT: Al l r i ght . Now, of t he si x who had13
f i l ed t he mot i ons t o quash t he subpoena t o t he I SPs, one14
wi t hdr ew i t , and t her e wer e f i ve l ef t , and t hey wer e i n15
addi t i on t o t he t hr ee J ohn Does her e. They wer e - - one of16
t hem, J ohn Doe 6, you may r ecal l - -17
MR. LI PSCOMB: He wi t hdr ew. Di dn t he wi t hdr aw18
hi s - -19
THE COURT: Wel l , t hat s my quest i on. He s - - he20
was t he onl y one when, he f i l ed t he mot i on t o quash, submi t t ed21
a decl ar at i on, t aken subj ect t o penal t i es of per j ur y, t hat he22
di d not downl oad.23
MR. LI PSCOMB: Oh, okay. That was t hat one. And24
t hen - -25
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11Colloquy
THE COURT: Do you know what happened t o hi m?1
MR. LI PSCOMB: Subsequent l y he - - subsequent l y he2
f i l ed a decl ar at i on i n t hi s case sayi ng t hat someone i n hi s3
house di d, and - - and I ent er ed i nt o a conf i dent i al set t l ement4
agr eement wi t h hi m, but he admi t t ed l i abi l i t y came f r om hi s5
house.6
THE COURT: Al l r i ght .7
MR. LI PSCOMB: He had - - i t was - - i t was a f ami l y8
member , i s what s i n speci f i cal l y that af f i davi t .9
THE COURT: Okay. Okay. Al l r i ght . And so - - so10
t oday we have t he case l i mi t ed t o the t hr ee J ohn Does - -11
MR. LI PSCOMB: Yeah.12
THE COURT: - - t hat woul d be - -13
MR. LI PSCOMB: Out of t he f i ve, Your Honor , what14
i t s goi ng t o be i s one conf i dent i al set t l ement , whi ch I can t15
t al k - -16
THE COURT: That was wi t h J ohn Doe 6.17
MR. LI PSCOMB: No. There was one conf i dent i al18
set t l ement t hat I can t t al k about , okay, but i t - - i t j ust - -19
I can t t al k about i t .20
But t he ot her f our al l ar e goi ng t o have admi t t ed i t21
or admi t t ed somebody di d i t i n t hei r house.22
THE COURT: Al l r i ght . And t hat woul d - - okay.23
Okay. Al l r i ght .24
Okay. Here s Mr . Smi t h.25
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12Colloquy
MR. SMI TH: Sor r y about t hat , Your Honor . I r an1
i nt o some r eal bad t r af f i c.2
THE COURT: Yes, t r af f i c has been bad.3
MR. SMI TH: Yeah.4
THE COURT: I underst and. Okay. So everyone i s5
here r i ght now. We have t he counsel f or t he t hr ee def endant s6
as t o whom t he cases ar e st i l l open. That i s J ohn Doe 1, J ohn7
Doe 14 and J ohn Doe 16, i s t hat - - i s t hat corr ect number s?8
MR. LI PSCOMB: One, t hr ee - - 1, 13 and - -9
THE COURT: One, 13 and 16. Yes, sor r y.10
MR. LI PSCOMB: And 16 i s now goi ng t o be on t he11
r ecor d as Br i an Whi t e.12
THE COURT: Yes. Al l r i ght . So - - al l r i ght .13
Number one i s r epr esent ed by Mr . Rushi e or - -14
UNIDENTIFIED ATTORNEY: Ronal d Smi t h.15
UNIDENTIFIED ATTORNEY: Number one i s Leonard16
Fr ench.17
THE COURT: Mr . Fr ench.18
UNIDENTIFIED ATTORNEY: Ri ght .19
THE COURT: Okay. Al l r i ght . Number 13 i s Mr .20
Rushi e?21
MR. RUSHI E: Yes, J ordan Rushi e, Your Honor .22
THE COURT: And number si x who was i dent i f i ed as23
Br i an Whi t e i s r epr esent ed by Mr . Smi t h.24
MR. SMITH: That s cor r ect , Your Honor .25
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13Lipscomb - Opening Statement
THE COURT: Yes, and - - and Mi st er - - I - - I ve1
agr eed t hat J ohn Does 1 and 13 can cont i nue as a - - i n an2
anonymous st at us wi t hout obj ect i on? Cor r ect .3
UNI DENTI FI ED ATTORNEY: Cor r ect .4
THE COURT: Okay. Al l r i ght . Now - - and J ohn Doe5
16 has been i dent i f i ed.6
Al l r i ght . Now we r e r eady t o pr oceed.7
MR. LI PSCOMB: Okay. Wi t h t hat , l et me go i nt o a8
shor t openi ng st at ement .9
THE COURT: Ver y good.10
MR. LI PSCOMB: Your Honor , i f you Googl e bel l wet her11
t r i al def i ni t i on, t her e s a quot e on usl egal . com whi ch12
states:13
By def i ni t i on, bel l wet her i s an i ndi cat or of14
f ut ur e t r ends. Cour t s ut i l i ze a bel l wet her appr oach when15
a l ar ge number of pl ai nt i f f s ar e pr oceedi ng on the same16
t heor y or cl ai m and t her e i s no ot her f easi bl e way f or17
t he Cour t s t o handl e t he enormous case l oad. Thi s18
appr oach has been used i n many cases, i ncl udi ng asbest os19
l i t i gat i on. A gr oup of pl ai nt i f f s ar e chosen t o20
r epr esent al l of t he pl ai nt i f f s. The i ssues f or t r i al21
shoul d concer n common cl ai ms or t heor i es among al l t he22
pl ai nt i f f s. These r epr esent at i ve cases go f or t r i al , and23
t he r esul t s act as a bel l wet her f or t he ot her pl ai nt i f f s24
t r i al s. The ver di ct f r om t hi s gr oupi ng i s ext r apol at ed25
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14Lipscomb - Opening Statement
t o t he r emai ni ng pl ai nt i f f s cases. The act ual r esul t s1
may be ut i l i zed f or val ui ng gr oups of cl ai ms i n2
set t l ement s. The pl ai nt i f f s can al so choose t o cont i nue3
wi t h t hei r own i ndi vi dual t r i al . 4
Now, her e, a l ar ge number of pl ai nt i f f s are not5
sui ng one def endant . I nst ead, Mal i bu Medi a i s sui ng l ot s of6
def endant s, but t he concept r emai ns exact l y t he same.7
Now, when you f i r st ent er ed t he - - t he bel l wet her8
t r i al or der , Your Honor , honest l y, Mr . Fi or e and I had no i dea9
what a bel l wet her t r i al was, and I t hought t o mysel f , Oh,10
boy, her e we go, anot her J udge i s j ust pi cki ng on my cl i ent . 11
But I t ook i t as a chal l enge, and pr et t y shor t l y12
af t er you ent er ed the or der I r esear ched t he wor ds bel l wet her13
t r i al , and t hen I got i t . A l i ght went of f . I t hi t me.14
You wer e gi vi ng us t he oppor t uni t y t o prove Mal i bu15
Medi a s case. You were gi vi ng us t he opport uni t y t o send a16
si gnal t o t he wor l d t hat Mal i bu Medi a s cases are pr ovabl e,17
and you i nt ended f or t hi s t r i al t o reduce your wor kl oad, and18
you i nt ended f or t hi s t r i al t o r educe my wor kl oad goi ng19
f or war d.20
And so I t hought t o mysel f , Thi s guy s br i l l i ant .21
Thi s i s a br i l l i ant - -22
THE COURT: I m not - -23
MR. LI PSCOMB: Thi s i s a br i l l i ant move. 24
THE COURT: I m not - - I m not l ooki ng f or any25
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15Lipscomb - Opening Statement
compl i ment s. That s r eal l y - - t hat s not why we r e her e.1
MR. LI PSCOMB: Thi s i s exact l y - -2
THE COURT: But why don t you j ust say what you r e3
goi ng t o pr ove.4
MR. LI PSCOMB: I wi l l .5
THE COURT: Okay.6
MR. LI PSCOMB: Thi s i s exact l y what was - - and t hi s7
wi l l be shor t , wi l l be a f ew mi nut es.8
Thi s was exact l y what was needed.9
Your Honor , now, you put t hi s case on a super r ocket10
docket .11
THE COURT: That s l i ke t el l i ng a j ury, you know,12
You r e t he gr eat est , br i ght est peopl e i n t he wor l d. That13
woul d never be al l owed i n a j ur y t r i al , so don t - - don t do14
i t her e. Thank you.15
MR. LI PSCOMB: I l l - - I l l di l l y no mor e.16
But , anyway, r egar di ng t he r ocket docket , t hat - - a17
t ypi cal copyr i ght case t akes between one and t wo years. We18
di d t hi s one i n seven mont hs. And a bel l wet her t r i al , I agr ee19
i t made sense because t her e s l i t i gat i on pendi ng bot h i n20
Pennsyl vani a and ar ound the count r y.21
And so we hust l ed. We al l worked f r om st ar t t o22
f i ni sh ver y - - and dur i ng - - f r om t he t i me you ent er ed t hi s23
or der , qui t e l i t er al l y, ver y near l y ever y wor ki ng day I24
t hought about t hi s case.25
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16Lipscomb - Opening Statement
You di dn t see, Your Honor , al l t he st uf f t hat was1
goi ng on behi nd t he scenes, but t r ust me when I t el l you al l2
t he par t i es and t hei r l awyer s i n t hi s case wor ked ver y har d3
f r om star t t o f i ni sh. They - -4
THE COURT: Wel l , t hat - - t hat I appr eci at e. I5
agr ee wi t h t hat , and - -6
MR. LI PSCOMB: They - - t hey al l di d what t hey7
t hought was r i ght , and al l of t he def endant s except one f ought8
ver y har d r i ght f r om t he begi nni ng. Many f ought t oot h and9
nai l r i ght t o t he end, and i t hasn t been easy f or anyone.10
But as t he evi dence wi l l show her e today, whi l e11
pl ai nt i f f t he bur den of pr oof , pl ai nt i f f had a huge advant age,12
t he t r ut h. And as Edward Counsel sai d, Tr ut h i s both arms13
and ar mor . 14
As f or ar ms Mal i bu Medi a s al l egat i ons ar e t r ue. As15
f ar as ar mor , Mal i bu Medi a f ears no at t ack because i t comes t o16
cour t wi t h cl ean hands, knowi ng i t s act i ons ar e l egal and i t s17
f i ght agai nst onl i ne pi r acy i s r i ght eous.18
Your Honor , t here s an ol d I ndi an proverb t hat goes,19
Tel l me a f act , and I wi l l l ear n. Tel l me a t r ut h, and I20
wi l l bel i eve. Tel l me a st or y, and i t wi l l l i ve i n my hear t21
f or ever . 22
Your Honor , t oday a group of wi t nesses ar e goi ng t o23
t el l you f act s. They ar e goi ng t o swear t o, and t hey wi l l24
t el l you t he t r ut h. And Chr i s and I have done our absol ut e25
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17Lipscomb - Opening Statement
best t o ar r ange t hese f act s i nt o a st or y. And af t er t oday I m1
hopef ul t hat Mal i bu Medi a s st or y and t he st or y of Bi t Tor r ent2
copyr i ght i nf r i ngement i n gener al wi l l l i ve on i n your hear t .3
And I m conf i dent you wi l l agr ee wi t h me at t he end4
of t he day that Bi t Tor r ent copyr i ght i nf r i ngement i s a maj or5
pr obl em, and t hat Mal i bu Medi a, f ar f r om bei ng a vi l l ai n f or6
f i l i ng t hese sui t s, shoul d be r espect ed f or shi ni ng a l i ght on7
what t he evi dence wi l l show i s one of t he most si gni f i cant8
pl agues of t or t i ous conduct exi st i ng i n t he U. S. t oday.9
Wi t h t he f act s, t r ut h and st or y i n mi nd, her e i s an10
out l i ne of what you wi l l hear . Col l et t e Fi el d wi l l be cal l ed11
f i r st . She wi l l - - she wi l l t el l you about how she st ar t ed12
Mal i bu Medi a, what her busi ness means t o her , what Bi t Tor r ent13
pi r acy does t o her busi ness. Col l et t e wi l l al so t est i f y14
Mal i bu Medi a i s t he r egi st r ant of t he copyr i ght ed wor ks at15
i ssue i n t hi s case.16
Next I wi l l cal l Mi chael Pat zer . Mi chael creat ed - -17
THE COURT: Last name spel l ed.18
MR. LI PSCOMB: Pat zer , P- A- T- Z- E- R.19
Mr . Pat zer cr eated, desi gned, wr ote much of t he20
sour ce code f or , i mpl ement ed and moni t ors t he I P det ect i on21
sof t ware used by I PP. He al so mai nt ai ns and moni t ors t he22
ser ver s t hat use i t . I n shor t , he i s t he al pha and t he omega23
of f act wi t nesses r egar di ng how I PP Li mi t ed s syst em wor ks.24
Af t er Mr . Pat zer my co- counsel , Mr . Fi or e, wi l l cal l25
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18Lipscomb - Opening Statement
Fi ezer . Mr . Fi ezer wi l l expl ai n i n si gni f i cant det ai l how he1
ver i f i es t hat t he copi es of Mal i bu Medi a s bei ng di st r i but ed2
t hr ough Bi t Tor r ent ar e i dent i cal t o Mal i bu Medi a s or i gi nal3
movi es.4
He wi l l al so expl ai n t o you how he checked t o see i f5
t he exhi bi t s f i l ed at t he begi nni ng of t hi s case and - - and6
t hat ar e - - l i st t he i nf r i ngement s, how - - how he checks t o7
see i f t hose ar e accur at e.8
Ul t i mat el y he wi l l t est i f y t hat t he Bi t Tor r ent9
copi es of Mal i bu Medi a s at i ssue i n t hi s case ar e copi es of10
t he or i gi nal movi es produced by Mal i bu Medi a i n t hi s case.11
Af t er Mr . Fi ezer , Mr . Fi or e i s goi ng t o i nt r oduce12
i nt o evi dence t he I SP cor r el at i ons. Thi s wi l l be done t hr ough13
st i pul at i ons and a shor t excer pt f r om a deposi t i on of Comcast14
cor por at e repr esent at i ve.15
Dur i ng t hat t est i mony you l l hear t hat Comcast16
r epr esent at i ve sai d i t was, quot e, absol ut el y cer t ai n t hat i t17
made t he cor r el at i on cor r ect l y. And t hat s t he t ype of18
t est i mony we expect f r om Si ever .19
Af t er t hat I wi l l cal l Pat r i ck Pai ge. Mr . Pai ge20
wi l l t est i f y about t he t est he per f or med of I PP Li mi t ed s I SP21
det ect i on sof t war e, and he wi l l concl ude that i t wor ks.22
He wi l l al so t est i f y about hi s exper i ence as a23
pol i ce of f i cer usi ng si mi l ar I P addr ess det ect i on met hods when24
he was i nvest i gat i ng chi l d por nogr aphy cases. Fi nal l y, he25
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19Lipscomb - Opening Statement
wi l l t est i f y hi s - - about hi s exami nat i on of Mr . Whi t e s1
comput ers.2
Af t er t hat we wi l l r ead some evi dence i nt o the3
r ecor d f r om J ohn Doe 1, deposi t i on t r anscr i pt and hi s4
i nt er r ogat or i es, and f r om Mr . Whi t e s i nt er r ogat or i es,5
r esponses, and deposi t i on t r anscr i pt s - - and hear i ng6
t r anscr i pt s . Thi s - -7
THE COURT: When you say Mi st er - - Mr . Whi t e, you8
mean - -9
MR. LI PSCOMB: Yes.10
THE COURT: - - J ohn Doe 16.11
MR. LI PSCOMB: Yes.12
THE COURT: Formerly known as John Doe 16.13
MR. LIPSCOMB: Yes, Your Honor. This evidence will14
prove cer t ai n mat er i al f act s t hat we t hi nk wi l l hel p you make15
a deci si on i n t hi s.16
We wi l l concl ude our case i n chi ef by cal l i ng J ohn17
Doe 13 t o t he st and. J ohn Doe 13, I expect , wi l l admi t18
l i abi l i t y and descr i be t he pr ocesses he used t o i nf r i nge19
Mal i bu Medi a s copyr i ght s.20
Your Honor , t hat concl udes my openi ng st at ement , but21
bef or e I begi n, I have a coupl e of mor e l i t t l e t hi ngs - -22
THE COURT: Yes.23
MR. LI PSCOMB: - - ki nd of housekeepi ng.24
One, i f at any t i me dur i ng the t est i mony t oday25
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20Colloquy
ei t her you or Mr . Ci nquant o have quest i ons, pl ease f eel f r ee1
t o i nt err upt me and ask what ever quest i ons you have of t he2
wi t nesses.3
THE COURT: Ri ght . Wel l , I was goi ng t o ment i on4
t hat Mr . Ci nquant o, who I appoi nt ed as t he Cour t - appoi nt ed5
exper t i n t hi s case, i s her e and pr esent .6
Now, I - - I - - i f nobody el se cal l s hi m, I i nt end t o7
cal l hi m t o t he st and at some poi nt , as wel l , but I m j ust8
wonder i ng whet her you al l t hi nk he needs t o be her e f or t he9
ent i r e day or whet her we mi ght be abl e t o cal l hi m as t o what10
he di d her e and t hen l eave or whet her - - but f or t he r ecor d, I11
mean you ve agr eed to pay hi s f ee on an hour l y r at e, so I mean12
i f - - i f he s avai l abl e and you want hi m t o st ay, I have no13
obj ect i on t o i t .14
MR. LI PSCOMB: I woul d l i ke hi m t o st ay at l east15
t hr ough Mr . Pai ge s t est i mony, and i f you r e goi ng t o cal l16
hi m, I t hi nk t he quest i ons shoul d be af t er Mr . Pai ge s17
t est i mony - -18
THE COURT: Al l r i ght .19
MR. LI PSCOMB: - - and I l l - - I l l cal l hi m.20
THE COURT: Wel l , maybe coul d we move up Mr .21
Pai ge - - I don t know. Mr . Ci nquant o - -22
MR. LI PSCOMB: No, t hat - -23
THE COURT: - - do you have ot her commi t ments t oday?24
What i s your - -25
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21Colloquy
MR. CI NQUANTO: Hi , Your Honor .1
THE COURT: - - cause he s i nvol ved i n ot her t r i al s2
i n t he cour t house.3
MR. CI NQUANTO: I am here at t he Cour t s di sposal4
t oday, and counsel s - -5
THE COURT: Let s see i f we can hi m on t hi s mor ni ng.6
Al l r i ght . I f necessar y, we l l cal l hi m out of or der .7
MR. LI PSCOMB: But i t doesn t make sense t o do t hat8
because I want hi m t o test i f y about I PP s pr ocesses - -9
THE COURT: Ri ght .10
MR. LI PSCOMB: - - and Mr . Pai ge s pr ocesses, and - -11
and t hey go f i r st r i ght af t er Ms. Fi el d, and Ms. Fi el d shoul d12
go f i r s t j ust - -13
THE COURT: Okay.14
MR. LI PSCOMB: - - j ust l ogi cal l y.15
THE COURT: Yes, I - - I have no probl em wi t h t hat .16
Okay.17
MR. LI PSCOMB: Okay.18
THE COURT: Al l r i ght .19
MR. LI PSCOMB: The next t hi ng t hat I want t o t al k t o20
you about bef or e we st ar t t r i al , Your Honor , i s Mr . Pat zer and21
Mr . Fi ezer ar e Ger man. I woul d char act er Mr . Pat zer s Engl i sh22
as ver y good. I woul d char act er Mr . Fi eser s Engl i sh as f ai r23
t o good.24
We i nt end t o conduct t he ent i r e t r i al i n Engl i sh;25
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22Colloquy
however , i f you or Mr . Ci nquant o have t echni cal quest i ons f or1
Mr . Fi eser , he may need t he assi st ance of a t r ansl at or .2
Towar d t hat end we have Thomas Conrad i n t he - - i n t he3
cour t r oom t oday. He s a Ger man t r ansl at or , Cour t - appoi nt ed - -4
not Cour t - appoi nt ed, Cour t - cer t i f i ed, and i f you have5
t echni cal quest i ons f or Mr . Fi eser , we mi ght need hi s6
assi st ance.7
THE COURT: Okay. Thank you.8
MR. LI PSCOMB: Al so, j ust f or t he r ecor d, bot h Mr .9
Fi ezer and Mr . Pat zer , when t hey say the wor d l og, L- O- G, i t10
sounds l i ke L- O- C- K.11
THE COURT: Okay.12
MR. LI PSCOMB: And so very t i me you hear t he wor d13
l ock, t hey r e sayi ng L- O- G, l og.14
THE COURT: Okay. Thank you.15
MR. LI PSCOMB: And t hen al so t hei r Zs do not sound16
anyt hi ng l i ke Engl i sh Zs. They sound l i ke zet a or some - - I17
don t know. I t doesn t sound l i ke Engl i sh.18
One - - one l ast t hi ng, i f t hi s had been a j ur y19
t r i al , I woul d not have gi ven t he same openi ng, obvi ousl y.20
I - - I pl anned on gi vi ng a much l onger openi ng and usi ng21
demonst r at i ves.22
I di dn t have t hose demonst r at i ves act ual l y bl own23
up, but I br ought t hem t oday, and I d l i ke - - I ve gi ven t hem24
t o counsel , or t wo of t he counsel , not - - yet .25
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23Colloquy
I d l i ke t o gi ve t hem t o you. We may r ef er t o t hem1
somet i me dur i ng - -2
THE COURT: Sur e. Thank you. Do you have an ext r a3
set f or my l aw cl er k?4
MR. LI PSCOMB: I have a set f or ever y at t orney.5
THE COURT: Do you have an ext r a set f or my l aw6
cl er k who s si t t i ng i n f r ont of me?7
MR. LI PSCOMB: I don t . I onl y br ought f i ve.8
THE COURT: Okay.9
MR. LI PSCOMB: But i f you - - i f we - -10
THE COURT: Al l r i ght . I l l share t hem.11
MR. LI PSCOMB: - - get a copy.12
THE COURT: Okay.13
MR. LI PSCOMB: One mi nut e.14
THE COURT: Sur e. Thank you.15
MR. LI PSCOMB: Wi t h t hat , Your Honor , I m done wi t h16
t he openi ng and t he housekeepi ng, and wi t h your permi ss i on17
I l l cal l my f i rs t wi t ness.18
THE COURT: Yes. Okay.19
( Pause)20
THE COURT: Al l r i ght . Ms. Fi el d, do you want t o21
come up and t ake t he wi t ness st and, pl ease.22
COLLETTE PELLI SI ER- FI ELD, PLAI NTI FF S WI TNESS, SWORN23
THE CLERK: Pl ease be seat ed. St at e your f ul l name24
and spel l your l ast f or t he r ecor d.25
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24Field - Direct (Lip)
THE WI TNESS: I t s Col l et t e Pel l i si er - Fi el d, F- I - E-1
L- D, F l i ke Fr ank, I , i nt er net , E, Edwar d, L, Li sa, D,2
democr acy.3
DI RECT EXAMI NATI ON4
BY MR. LI PSCOMB:5
Q Ms. Fi el d, wher e di d you gr ow up?6
A I n New Jersey, cl ose t o Pennsyl vani a, act ual l y.7
Q Wher e di d you go t o col l ege?8
A I went t o Rut gers Col l ege.9
Q What di d you do t o make a l i vi ng af t er col l ege?10
A I sol d sof t war e and managed comput er pr ogr ammer s.11
Q What di d you do next ?12
A Then I managed account i ng and t he net wor k syst em f or a13
medi cal i magi ng company, MRI s and t hi ngs l i ke t hat .14
Q And af t er t hat ?15
A Af t er t hat I sol d r eal est at e.16
Q Wher e wer e you sel l i ng r eal estat e?17
A I n Cal i f or ni a.18
Q Are you marr i ed, Ms. Fi el d?19
A Yes.20
Q What s your husband s name?21
A Br i gham Fi el d.22
Q How di d you meet Br i gham?23
A Doi ng yoga.24
Q When di d you meet Br i gham?25
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25Field - Direct (Lip)
A Al most seven years ago.1
Q When di d you and Br i gham get mar r i ed?2
A We wer e mar r i ed December 2011.3
Q What was Br i gham doi ng t o make a l i vi ng when you met hi m?4
A He was a phot ogr apher .5
Q Wer e hi s phot ogr aphs ever publ i shed?6
A Yes.7
Q Wher e?8
A Var i ous magazi nes and on hi s own websi t e.9
Q Are you st i l l a r eal est at e agent ?10
A I m st i l l l i censed, but I don t sel l r eal est at e.11
Q When di d you deci de t o stop sel l i ng r eal estat e?12
A As t he r eal est at e mar ket was - - st ar t ed goi ng down, I13
t hought ser i ousl y about st ar t i ng a new busi ness.14
I - - I l ove sel l i ng r eal est at e when I coul d sel l a home15
t o someone, and t hey woul d make money. When I d sel l a home16
t o someone and t hey d l ose money, I r eal l y di dn t enj oy i t17
anymore. So I - - and t hen I t hought maybe I coul d work wi t h18
my husband or we coul d st ar t some ki nd of busi ness t hat I19
woul dn t have t o be sel l i ng r eal est at e.20
Q What t ypes of busi nesses di d you consi der ?21
A We consi der ed a f ur ni t ur e busi ness and a busi ness t hat22
woul d t ake hi s - - my husband s phot os and maybe make t hem mor e23
expl i ci t and of f er subscr i pt i ons.24
Q Di d t he f urni t ure bus i ness work out ?25
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26Field - Direct (Lip)
A No.1
Q Why not ?2
A Wel l , no one was buyi ng houses so no one was buyi ng3
f ur ni t ur e t o put i n houses.4
Q So di d you deci de t o f ocus on t he phot ogr aphy busi ness?5
A Yes.6
Q Di d you have any thought s about how you mi ght t ake i t t o7
t he next l evel ?8
A I - - I di d. My husband I bot h l ove er ot i c ar t , and when9
you l ook onl i ne - - when we l ooked on l i ne t o see what was10
avai l abl e, i t was r eal l y - - t her e was not hi ng beaut i f ul and11
art i st i c and er ot i c t hat coupl es, women and men coul d enj oy.12
So I t hought we coul d take hi s beaut i f ul phot ogr aphy,13
whi ch wer e ar t i st i c nude, and make t hem mor e expl i ci t and sel l14
subscr i pt i ons, and maybe t her e d be peopl e, especi al l y15
coupl es, t hat woul d share our opi ni on and appr eci ate what we16
had t o of f er , whi ch I was - - I t hi nk di f f er ent t han what17
anyone el se was doi ng.18
Q Di d Br i gham have a websi t e at t hat t i me?19
A He di d.20
Q What was t he name of t hat websi t e?21
A I t was cal l ed beautyi sdi vi ne. com.22
Q Was t hat websi t e onl y di spl ayi ng phot os?23
A J ust phot os.24
Q When di d you deci de t o make movi es?25
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27Field - Direct (Lip)
A When Canon came out wi t h t he 5D Mar k I I . I t s a DSLR1
camera, and i t al l ows you t o make HD vi deo wi t h j ust a phot o2
camer a, so i t s not ver y expensi ve. You can make hi gh qual i t y3
vi deo, and we taught our sel ves how t o use i t .4
Q Do you r emember about what year t hat was?5
A That was ar ound 2008 or t he begi nni ng of 2009.6
Q Had you ever wor ked i n t he adul t ent er t ai nment busi ness7
bef or e?8
A No, never .9
Q I s t he busi ness of r unni ng an adul t ent er t ai nment websi t e10
compet i t i ve?11
A I t s ext r emel y compet i t i ve.12
Q Ar e t her e as many compani es t oday as t her e used t o be?13
A I don t t hi nk so.14
Q Why not ?15
A Because so many peopl e can get ent er t ai nment f or f r ee.16
So many of t he compani es went out of busi ness.17
Q How di d t hey get t hat - - t he ent er t ai nment f or f r ee?18
A They - - most l y f r om t he Tor r ent s i t es.19
Q We l l - - we l l t al k about more pi racy l at er . Let s keep20
f ocused r i ght now on t he cr eat i on of your busi ness. Okay?21
A Okay.22
Q Di d you bel i eve you coul d succeed i n t he ext r emel y23
compet i t i ve adul t ent er t ai nment busi ness?24
A Yes.25
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28Field - Direct (Lip)
Q Why?1
A Wel l , because I f eel l i ke we have an i dea t hat no one2
el se had, and I f eel I m a real har d wor ker , and we wer e3
j ust - - I want ed t o put everyt hi ng i nt o i t .4
And my husband s ext r emel y t al ent ed. So we wor ked5
t oget her . We bui l t i t wi t h a l ot of l ove and a l ot of har d6
work, and I j ust knew we coul d make somet hi ng t hat no one el se7
was maki ng, and I t hought t her e was a pl ace f or t hat .8
Q At t he begi nni ng what wer e some of t he maj or t hi ngs you9
had t o do to take t he i dea of a busi ness and t ur n i t i nt o a10
real i t y?11
A Keep sel l i ng houses.12
Q Why - - why di d you have t o keep sel l i ng houses?13
A To make money so I coul d make t he cont ent f or t he14
websi t e.15
Q What el se di d you have t o do f or t he busi ness?16
A Wel l , we had t o regi st er t he domai n name, buy t he domai n17
name, set up t he ser ver s, do t he pr ogr ammi ng, pr ogr am t he back18
end, t he f r ont end, get t he code wr i t t en, desi gn t he websi t es,19
f i nd model s, l earn how t o shoot - - I even do t he make- up and20
t he l i ght s, ever yt hi ng, mysel f . We wer e a t wo- man show.21
I t was pr et t y cr azy. We t ook a - - we woul d t ake a22
r edeye, get of f . I di dn t even want t o wast e t he $300 f or our23
l ocat i on apart ment , and we woul d get r i ght up and st ar t24
shoot i ng and do as much as we coul d. I t was crazy, hard work.25
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29Field - Direct (Lip)
Real l y, real l y a l ot .1
Q And we i s you and Mr . Fi el d, Br i gham, cor r ect?2
A Yes, my husband.3
Q What t ype of l egal ent i t y was - - wer e you oper at i ng under4
at f i r st ?5
A We wer e a par t ner shi p, j ust t he t wo of us.6
Q An uni ncor por at ed par t ner shi p, cor r ect ?7
A Cor r ect .8
Q Bet ween you and Br i gham i nsi de t he begi nni ng, at t he9
begi nni ng, who was doi ng what ?10
A At f i rs t I di d most of t he f i nances , t he budget i ng, t he11
pl anni ng, or gani zi ng, pr oduci ng t he sheet s, and he di d t he12
cr eat i ve.13
He actual l y went behi nd t he l ens. He t ook t he photos,14
and he di d t he vi deo, moved t he l i ght s, pi cked - - f i gur ed out15
whi ch l i ght s we need, hel ped wi t h t he desi gn of t he websi t e,16
t hen I di d most of t he busi ness end. We were bot h doi ng as17
much as we coul d.18
Q Was t he busi ness pr of i t abl e r i ght f r om t he begi nni ng?19
A No.20
Q How l ong di d i t t ake f or you t o make t he busi ness21
pr of i t abl e?22
A I woul d - - a l i t t l e over t wo year s.23
Q Dur i ng t hat t i me wer e you t aki ng any money out of t he24
busi ness?25
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30Field - Direct (Lip)
A No, not hi ng. I was sel l i ng houses t o f und t he busi ness.1
That was hard.2
Q About what year di d t he busi ness act ual l y become3
pr of i t abl e?4
A I woul d say l at e 2009, mi d- 2009 t o 2010.5
Q What di d you t hi nk to your sel f when t he busi ness f i nal l y6
di d t ur n t he cor ner ?7
A I coul d f i nal l y st op sel l i ng real est at e, but al so I was8
r eal l y exci t ed, I mean because we worked so hard, and we ve9
been - - and i t s a bi g gambl e, put t i ng al l your money i n, al l10
my l i f e savi ngs.11
I had some savi ngs, a l i t t l e bi t of savi ngs f r om a house12
I sol d bef or e t he mar ket went down, and I put al l t hat i nt o13
t he busi ness, t oo.14
So besi de put t i ng al l my savi ngs and al l my work, and we15
wer e exci t ed and r el i eved, but al so st i l l caut i ous because16
i t s ver y compet i t i ve, and you have t o keep gr owi ng.17
So I mean happy at f i r st . You d be happy when your18
busi ness t ur ns pr of i t abl e.19
Q Tal ki ng about busi ness, how does your busi ness sel l i t s20
pr oduct ?21
A We have t he subscr i pt i on- based websi t e.22
Q What i s t he domai n name of t hat websi t e?23
A I t s xar t . com.24
Q When you f i r st st ar t ed your busi ness, about how many25
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hours a day woul d you say you were wor ki ng?1
A How many hour s ar e i n a day? I mean a l ot . Ei ght een2
hour s.3
Q How much do you wor k now?4
A I st i l l wor k al l t he t i me. I - - I wor k al l t he t i me.5
You can probabl y ask any of our members, and t hey l l t el l you6
I m onl i ne al l t he t i me f i xi ng t hi ngs, comment i ng, doi ng - - I7
st i l l pr obabl y wor k 18 hour s i f I m not t aki ng a br eak.8
Q What does your busi ness mean t o you?9
A I t means everyt hi ng. I l ove i t so much. I - - i t s - - I10
know some peopl e don t under st and cause i t s adul t , but i t s11
r eal l y - - t he model s, wor ker s, ever yone. I t s l i ke a f ami l y.12
We r e - - even t hough we are, quote, adul t busi ness, and13
besi de my husband my f ami l y I j ust l ove my busi ness. I l ove14
ever yt hi ng we pr oduce. I want i t al l t o be beaut i f ul . I want15
peopl e t o enj oy i t . I want t hem t o know t hat i t s, you know,16
i t j ust means so much t o me.17
I j ust - - I real l y l ove i t , and I m j ust so passi onat e18
about i t , and i t s ever yt hi ng, except f or my husband and my19
f ami l y.20
Q How much i s a subscr i pt i on t o xar t . com?21
A I t was 19. 95, and we j ust r ai sed t he pr i ce t o 24. 95 a22
mont h, but i f you pay f or a year i n advance, i t s 99. 95 f or a23
year .24
Q How many subscr i ber s di d you have i n year one?25
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A Less than 500, 500 or so.1
Q How many subscr i ber s di d you have i n year t wo?2
A Maybe a coupl e t housand.3
Q Appr oxi mat el y how many subscr i ber s do you have now?4
A We have r oughl y 50, 000 - - f i ve - - 50, 000.5
Q Over - -6
THE COURT: Wai t . I j ust want t o say f or t he7
r ecor d, not hi ng t o do wi t h your t est i mony.8
We r e pr oceedi ng - - we di scussed t hi s on - - l ast9
week, but we r e pr oceedi ng non- j ur y by agr eement . Al l t he10
def endant s wai ved - - and t he compl ai nant has wai ved t he j ur y,11
and al l t he def endant s have wai ved t he j ur y, cor r ect ?12
MR. LI PSCOMB: That s corr ect , Your Honor .13
THE COURT: Go ahead. Sor r y t o i nt er r upt , but I - -14
THE WI TNESS: No.15
BY MR. LI PSCOMB:16
Q Over t he year s how has your busi ness - - I m sor r y. Oop,17
str i ke t hat .18
Over t he year s has your busi ness changed i n ot her ways?19
A Yes.20
Q Can you t el l me about t hat ?21
A Wel l , when we f i r st st ar t ed, we spent maybe 150 t o22
$200, 000 a year produci ng cont ent . We di dn t update t he si t e23
as of t en. We had maybe one vi deo per week.24
Now t hi s - - we spend over $2 mi l l i on a year pr oduci ng25
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cont ent . We updat e t he si t e ever y day. We have huge expenses1
f or bandwi dt h, whi ch i s, you know, f or servi ng t he vi deos and2
t he downl oads and runni ng t he si t e.3
We ve added dozens of ser ver s. We have empl oyees,4
pr ogr ammers, gr aphi c desi gners and j ust - - we have a huge team5
now. I t s tur ned i nt o a r eal busi ness, and - - and i t s - - t he6
expenses have grown as t he members have grown.7
So f or some reason, I mean you mi ght t hi nk t hat woul dn t8
happen, but i t does.9
Q Has your subscr i pt i on base i ncreased i n r ecent year s?10
A I n r ecent year s, no.11
Q Do you know i f mor e or f ewer peopl e ar e wat chi ng your12
movi es, say, i n 2013 as compar ed t o 2012?13
A Mor e.14
Q Then why i sn t your subscr i pt i on base i ncreased?15
A Because t her e s over 300, 000 peopl e per mont h downl oadi ng16
t he movi es f or f r ee, and so t hat s - -17
Q And t hat 300, 000, t hat s - - wher e i s that geogr aphi cal l y?18
A That woul d ei t her be - - f r om t he count r i es we scan19
t here s about 80, 000 per mont h i n t he U. S. I mean we don t20
scan t he ent i r e wor l d, but t he ot her 15 count r i es we scan i s21
t he r emai nder .22
THE COURT: Wel l , wai t . I t hought you sai d your23
cust omer base had gone f r om 500 when you st ar t ed t o 50, 00024
peopl e now.25
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THE WI TNESS: I n t he l ast f ew year s i t s r emai ned1
t he same, about 50, 000.2
THE COURT: Oh, i t s r emai ned - - i t s 50, 000 - -3
THE WI TNESS: Yeah, i t s act ual l y sl i ght l y l ess t hi s4
year .5
THE COURT: Wel l , how - - t he 50, 000 i s your pai d6
subscr i pt i on - -7
THE WI TNESS: Cor r ect .8
THE COURT: But you est i mat e t hat si x t i mes t hat , or9
300, 000, downl oad f or f r ee?10
THE WI TNESS: Cor r ect .11
THE COURT: Go ahead.12
MR. LI PSCOMB: J ust a pr of f er f or t he r ecor d, Your13
Honor . Lat er I PP wi l l t est i f y t hat t hat s not an est i mat e.14
I t s a - - i t s a f act .15
THE COURT: Okay.16
THE WI TNESS: And, al so, I ve act ual l y - - r ecent l y17
our subscr i pt i on base has - - has st ar t ed decr easi ng even mor e.18
I t s been decreasi ng t hi s year , f i r st year ever .19
BY MR. LI PSCOMB:20
Q Woul d i t hel p your busi ness i f peopl e di dn t steal your21
movi es?22
A Of cour se, because t he peopl e t hat st eal t he movi es ar e23
obvi ousl y f ans, so t hey l i ke movi es, and some of t hem woul d24
pr obabl y j oi n i nst ead of st eal t hem.25
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Q Can you compet e wi t h f r ee copi es of your own movi es?1
A We can t compet e wi t h f r ee copi es of our own movi es2
because we have cost t o make t hem.3
Q How - - t el l me how peopl e downl oad your movi es f or f r ee.4
A They downl oad t hem vi a Bi t Torr ent .5
Q What i s Bi t Tor r ent ?6
A I t s a sof t ware prot ocol t hat enabl es peer - t o- peer f i l e7
shar i ng, whi ch basi cal l y means one per son - - t hose pi eces of8
t he f i l e exchange bet ween t he peopl e and once someone has al l9
t he pi eces, t hen t he Bi t Tor r ent sof t war e put s t he f i l e10
t oget her .11
So ki nd of i magi ne t he f l y goi ng i nt o - - t he guy i n The12
Fl y goi ng i nt o t he t hi ng, and he br eaks up i nt o whol e bunch13
of pi eces, and t hen he get s put back t oget her . Bi t Tor r ent14
works a l i t t l e bi t l i ke t hat .15
Q Have you ever seen your movi es bei ng made avai l abl e f or16
di str i but i on vi a Bi t Tor r ent ?17
A Yes, al l t he t i me.18
MR. LI PSCOMB: Your Honor , I d now l i ke t o - - wel l ,19
we ve pr e- mar ked Pl ai nt i f f s Exhi bi t 1. I ve got copi es f or20
counsel .21
And may I approach, Your Honor ?22
THE COURT: Yes.23
MR. LI PSCOMB: I ve al so got a copy.24
THE COURT: Wel l , t he - - you shoul d pre- mar k your25
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exhi bi t s or - - t hi s i s what ?1
MR. FIORE: They r e al l pre- mar ked.2
MR. LI PSCOMB: They have a l i t t l e st i cker on t hem i f3
you - -4
THE COURT: Oh, al l r i ght . Wel l , I m goi ng t o put5
i t on t he body - -6
MR. LI PSCOMB: Okay.7
THE COURT: - - so we can see i t . Al l r i ght .8
BY MR. LI PSCOMB:9
Q Ms. Fi el d, have you seen Pl ai nt i f f s 1 bef ore?10
A Yes.11
Q Can you t el l me what t hat shows?12
A Thi s i s a l i st of X- Ar t f i l ms avai l abl e on - - on Ext r a13
Tor r ent , whi ch i s a Tor r ent si t e.14
Q Okay.15
MR. LI PSCOMB: Your Honor , I d l i ke t o now i nt r oduce16
Pl ai nt i f f s 1, t o - - t o move i t i nt o evi dence.17
THE COURT: Yes, i t s admi t t ed.18
Al l r i ght . I f counsel f or - - any of t he counsel f or19
t he def endant s obj ect , pl ease say obj ect i on. I f we don t20
hear any obj ect i on, you can assume i t s admi t t ed.21
MR. LI PSCOMB: Thank you, Your Honor , .22
THE COURT: And t hen you can move al l your exhi bi t s23
when you r e done.24
THE WI TNESS: So t hese ar e al l movi es - - our movi es25
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t hat ar e avai l abl e f or f r ee on t hi s si t e.1
BY MR. LI PSCOMB:2
Q On Ext r a Tor r ent .3
A On Ext r a Tor r ent , yes.4
MR. LI PSCOMB: Your Honor , I d now l i ke t o - - we ve5
pr e- mar ked Pl ai nt i f f s 2. May I appr oach?6
THE COURT: Yes.7
BY MR. LI PSCOMB:8
Q Ms. Fi el d, have you seen Pl ai nt i f f s 2 bef ore?9
A Yes.10
Q Can you t el l me what i t i s?11
A Thi s i s the search resul t s i f you t ype i n X - - t he word12
X- Ar t and t he word Tor r ent i nt o a Googl e sear ch engi ne,13
t hi s i s what woul d come up.14
Q What does the - - t he f i r st page show?15
A The f i r st page shows a l i st of X- Ar t movi es that ar e16
avai l abl e on di f f er ent Tor r ent si t es f or a downl oad f or f r ee.17
Q Have you ever t r i ed t o get websi t es t o st op maki ng your18
movi es avai l abl e t o be downl oaded f or f r ee?19
A Yes, al l t he t i me.20
Q How do you do t hat ?21
A We send DMCA not i ces.22
Q What s a DMCA not i ce?23
A DMCA not i ce i s the Di gi t al Mi l l enni um Copyr i ght Act , and24
i t al l ows a val i d copyr i ght hol der t o send a not i ce t hat25
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not i f i es t he i nf r i nger t o st op usi ng t he copyr i ght i l l egal l y,1
t o cease usi ng t he copyr i ght i l l egal l y.2
Q Do these not i ces work?3
A Yes, wi t h some s i t es . No, wi t h Tor rent .4
Q Can you t ur n t o t he second page of P- 2, pl ease?5
What i s t hat - - what does t hat page show?6
A Thi s shows a page of l i nks t hat wer e t aken down wi t h7
Googl e s r esponse t o our DMCA not i ces.8
We al so send DMCA not i ces t o Googl e t o have t hem r emove9
t he l i nks t o t he Tor r ent si t es. So as you see t he Tor r ent10
si t es l i st ed on t he f i r st page, t he second page has a l i st - -11
t hese woul d have been l i nks t o Tor r ent si t es, but Googl e12
r emoved t hem, based on our r equest .13
So t he l i nks ar e not t her e, but t he Tor r ent si t es st i l l14
exi st wi t h our f i l es. So Googl e compl i es wi t h t he DMCA15
not i ces, but t her e s j ust t oo many. They can t keep up.16
Q Tel l me how many DMCA not i ces do you send a mont h?17
A Thousands ever y mont h.18
Q Thousands.19
A Thousands.20
Q What i s a - - a Torr ent s i t e, a Torr ent webs i t e?21
A A Torr ent webs i t e i s a s i t e t hat cat al ogs Torr ent f i l es22
avai l abl e f or downl oad, most l y i l l egal downl oads.23
Q Do you send Tor r ent websi t es DMCA not i ces?24
A We t r y t o somet i mes. They most l y i gnor e t hem.25
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Q Have you ever hear d of Pi r at e Bay?1
A Yes.2
Q What i s Pi r at e Bay?3
A I t s one of the most popul ar Tor r ent si tes.4
MR. LI PSCOMB: Your Honor , I ve pre- marked5
Pl ai nt i f f s 3.6
( Pause)7
MR. LI PSCOMB: Oh, and f or t he r ecor d, Your Honor ,8
I d l i ke t o move P- 2 i nt o evi dence.9
THE COURT: Admi t t ed.10
BY MR. LI PSCOMB:11
Q Ms. Fi el d, have you ever seen P- 3 bef or e?12
A Yes.13
Q What - - what i s t hat ?14
A Thi s i s - - f i r s t of al l , i t s t he r eason we haven t15
sent - - we don t send DMCA not i ces t o Pi r ate Bay, and, second,16
i t i s Pi r at e Bay s r esponse t o t he - - i t s t he DMCA not i ce17
t hat Dr eam Wor ks sent t o Pi r at e Bay, and Pi r at e Bay s r esponse18
t o t hat not i ce.19
Q And can you f i nd t hat r esponse on Pi r at e Bay s websi t e20
under t he l egal not i ces sect i on on t he f r ont page?21
A Yes, you can.22
Q Can you r ead j ust Pi r at e Bay s r esponse t o Dr eam Wor ks23
DMCA not i ce - -24
A Yes.25
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Q - - t hat s bel ow t he - -1
A Yes, but I m - - I m not goi ng t o compl et e readi ng t he2
ent i r e r esponse, but I wi l l r ead t he begi nni ng.3
Thi s i s Pi r at e Bay s r esponse t o Dr eam Wor ks not i ce, t he4
Dr eam Works DMCA not i ce t o t hem. So Pi r at e Bay says:5
As you may or may not be awar e, Sweden i s not a6
st at e i n t he Uni t ed St at es of Amer i ca. Sweden i s a7
count r y i n nor t her n Eur ope. Unl ess you f i gur ed i t out by8
now, U. S. l aw does not appl y her e. For your i nf or mat i on9
no Swedi sh l aw i s bei ng vi ol at ed. Pl ease be assured t hat10
any f ur t her cont act wi t h us, r egar dl ess of medi um, wi l l11
r esul t i n, A, a sui t bei ng f i l ed f or har assment , B, a12
f or mal compl ai nt l odged wi t h the Bar of your l egal13
counsel f or sendi ng f r i vol ous l egal t hr eat s. I t i s t he14
opi ni on of our l awyer s t hat you ar e, dot , dot , dot ,15
mor ons, and t hat you shoul d - - I m not goi ng t o read16
t hat par t - - And pl ease al so not e t hat your emai l and17
l et t er wi l l be publ i shed i n f ul l at t he pi r at ebay. or g. 18
And t hen i t says, swear wor d, pol i t e as usual , Anakat a. 19
MR. LI PSCOMB: And, Your Honor , I d l i ke t o20
i nt r oduce P- 3 i nt o evi dence.21
THE COURT: Al l r i ght . Admi t t ed.22
BY MR. LI PSCOMB:23
Q Why don t you sue Tor r ent websi t es l i ke Pi r at e Bay?24
A Wel l , most of Tor r ent websi t es ar e l ocat ed out si de25
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j ur i sdi ct i ons t hat r espect copyr i ght s, and t here ar e so many1
of t hem, even i f we were t o sue one and have one success,2
another one woul d pop up.3
So t he cost i s - - we coul dn t af f or d i t . I t woul dn t be4
possi bl e. We coul dn t r un our busi ness and sue Tor r ent5
websi t es. Even wi t h one vi ct ory, t here d be more and more and6
mor e. I t s - - and t hey r e al l l ocat ed out si de j ur i sdi cti ons7
t hat respect copyr i ght s. I t s not possi bl e.8
Q Why don t you sue Bi t Tor r ent , I ncor por at ed?9
A Bi t Torr ent i s - - j ust makes the sof t ware, and t he10
sof t war e can al so be used f or l egi t i mat e pur poses.11
Q Does Bi t Tor r ent make sof t war e or j ust t he comput er code?12
A Bi t Tor r ent j ust makes t he comput er code t hat t hey l i cense13
f or t he sof t war e.14
Q And what i s a Bi t Tor r ent cl i ent ?15
A A Bi t Torr ent c l i ent i s sof t ware t hat enabl es t he16
Bi t Tor r ent pr ot ocol s t o wor k.17
Q And - - and ar e t her e mor e - - i s t her e mor e t han one t ype18
of Bi t Tor r ent cl i ent ?19
A There are scores of di f f erent Bi tTor r ent cl i ent s .20
Q Why don t you sue t he sof t war e compani es, t he Bi t Tor r ent21
cl i ent s?22
A Wel l , f i r s t of al l , most of t hem are al so l ocat ed23
over seas, and t hey r e al so j ust maki ng a sof t war e t hat s24
di sassoci at ed f r om t he i nf r i nger s. I t coul d al so be used f or25
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l egi t i mat e pur poses.1
Q Have you - - have any of your payi ng subscri ber s ever2
ment i oned Bi t Tor r ent t o you?3
A Yes, of ten.4
Q How - - t el l - - t el l me about t he t hi ngs that t hey say.5
A Wel l , a l ot of t i mes our subscr i ber s are real l y l oyal ,6
and t hey r e payi ng, and t hey want t o pay, and t hey want t o7
suppor t us. But t hey r e mad because t hey don t want ot her8
peopl e get t i ng i t f or f r ee.9
So t hey r e sayi ng, I t s l ocat ed her e. I t s l ocat ed10
t her e. Can t you get i t down?11
But some of t hem al so say, Why shoul d I pay when I can12
get i t f or f r ee, and ot her s say, I can downl oad f ast er f r om13
t he f r ee si t es t han I can on your si t e. 14
Q How of t en do you get t hese t ypes of communi cat i ons f r om15
your subscr i ber s?16
A Dai l y, weekl y.17
Q How does i t make you f eel t o get t hese t ypes of18
communi cat i ons f r om your subscr i ber s?19
A Ext r emel y f r ust r at ed because I don t know what t o do20
about i t . I t s - - I - - I m scar ed t hat our busi ness model ,21
whi ch I l ove, and al l of our model s and al l of our t eam, whi ch22
I l ove, t hat - - won t exi st because t hese - - t he Tor r ent s ar e23
so power f ul , I don t know what t o do.24
Li ke how can you f i ght t hem? How can you t ake t hem down?25
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I t s - - i t s real l y scary. I t s real l y scary, and i t s real l y1
f rust r at i ng.2
And I don t - - and I want our members t o f eel t hat t hey3
have somet hi ng t o pay f or , t hat - - and - - and I want t o be4
abl e t o keep cr eat i ng what we r e cr eat i ng. So i t s scar y and5
f r ustr at i ng.6
Q About t he downl oad speed, whi ch i f I hear d you r i ght , you7
sai d some of your subscr i ber s - -8
A Uh- huh.9
Q - - compl ai n t hat t hey can get f aster - -10
A Yes.11
Q - - f r om Bi t Tor r ent t han t hey can f r om your own websi t e.12
What di d you do about t hat ?13
A Wel l , I al ways want ed t o pr ovi de t he best ser vi ce f or our14
member s, so what I di d i s we - - we i mpl ant ed a cont ent15
del i ver y net work whi ch now put s our sof t ware - - our cont ent16
al l over t he wor l d, on di f f er ent ser ver s al l over t he wor l d,17
and i t s ext r emel y expensi ve.18
So t o compet e wi t h t he speed, besi de al l of our cust omers19
and ser ver s, we now have our cont ent on a cont ent del i ver y20
net wor k l ocat ed al l over t he wor l d.21
Q How much i s t hat cost i ng you on a mont hl y basi s?22
A J ust to star t , i t s $20, 000 a month, and i t s r i si ng, and23
i t r i ses rapi dl y. That s - - so - -24
THE COURT: Wel l , how does t hi s di f f er f r o what you25
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wer e doi ng bef or e, t he cont ent del i ver y net wor k? Does t hi s1
pr event t he Bi t Tor r ent sof t war e f r om wor ki ng?2
THE WI TNESS: No. What i t does i s i t - - t he3
cont ent - - r i ght now our ser ver s are l ocat ed i n Ar i zona and4
Cal i f orni a.5
So i f you r e t r yi ng t o downl oad our movi es f r om6
Aust r al i a, i t s goi ng t o be sl ow. But i f you t r y t o downl oad7
our movi e on a Bi t Tor r ent and you l i ve i n Aust r al i a, i t wi l l8
be qui ck.9
THE COURT: Ri ght .10
THE WI TNESS: So now I have t o have t he movi es on11
ser ver s i n Aust r al i a, on ser ver s i n Ger many, on ser ver s i n12
Ger many, on server s ever ywher e. So i t works al most l i ke a13
Bi t Tor r ent wher e t hat t hey can access, but I have t o pay f or14
t hat bandwi dt h, and i t s r eal l y expensi ve.15
THE COURT: Okay.16
BY MR. LI PSCOMB:17
Q Have you ever had any secur i t y i ssues associ at ed wi t h18
Bi t Tor r ent ?19
A Yes. Act ual l y, j ust thi s year our ser ver s wer e hacked20
t wi ce, and t he vi deos, bef or e t hey wer e r el eased on our si t e,21
wer e act ual l y upl oaded ont o Bi t Tor r ent s, and we l ost a l ot of22
sal es t hat - - t hose days, and we had - -23
Q About how much i n - - can you put a number on t he l ost24
sal es?25
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45Field - Direct (Lip)
A I t was thousands of dol l ar s a day, maybe mor e. I don t1
know exact l y, but i t was - - i t was bad.2
Q How - - di d you have t o do anyt hi ng wi t h your secur i t y3
syst em i n r esponse t o t hi s t hr eat f r om - -4
A Wel l , i t s al l qui t e - -5
Q - - Bi t Tor r ent hacker s?6
A I t s al l qui t e t echni cal , but we had t o real l y make7
advancement s i n our secur i t y syst em. We had t o hi r e anot her8
t eam of progr ammers. We had t o get more ser ver s. We had t o9
separ at e wher e al l t he cont act - - cont ent was st or ed on t he10
server s, change al l t he SI M l i nks, and t hen we have a new t eam11
now moni t or i ng t he secur i t y of t he server s.12
Q How much i s t hat cost i ng you on a mont hl y basi s?13
A J ust t he new t eam i s cost i ng us $15, 000 a mont h, but14
t hat s not even count i ng t he ext r a ser ver s, and - - and i t15
keeps growi ng.16
Q Now, I t hi nk ear l i er t hi s mor ni ng you t est i f i ed about17
80, 000 uni que peopl e ar e st eal i ng your movi es ever y mont h i n18
t he U. S. ?19
A That s cor rect .20
Q What woul d happen t o your busi ness i f t hose peopl e21
wer en t st eal i ng your movi es t hr ough Bi t Tor r ent ?22
A Wel l , I woul d t hi nk our busi ness woul d - - woul d gr ow, I23
mean maybe al most doubl e i f - - I - - I m not sur e t hat al l of24
t hem woul d subscr i be t o t he si t e because some peopl e j ust want25
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46Field - Direct (Lip)
t hi ngs f or f r ee, but i f no movi es wer e avai l abl e on1
Bi t Tor r ent , you woul d have a - - a gr eat chance of qui t e a2
bunch of t hem j oi ni ng our si t e.3
Q What woul d 80, 000 new subscr i ber s mean t o you i n t er ms of4
r evenue?5
A Al most mor e t han doubl e.6
Q Mul t i pl e, mul t i pl e, mul t i pl e mi l l i ons of dol l ar s ?7
A Yes.8
Q Do you bel i eve Bi t Tor r ent s i nf r i ngement i s cost i ng your9
company mul t i pl e mi l l i ons of dol l ar s a year ?10
A Yes, most def i ni t el y.11
Q Real l y no doubt about t hat .12
A No doubt about i t .13
Q What s t he bi ggest compet i t i ve t hr eat t o your busi ness?14
A Bi t Tor r ent .15
Q Can you - - can you compet e i n a f ai r mar ket pl ace?16
A Yes.17
Q Can you compet e agai nst f r ee?18
A No.19
Q Has pi r acy af f ected your busi ness i n ot her ways?20
A Yes. I mean i f t her e wer en t pi r acy, obvi ousl y we woul d21
be abl e t o gr ow our busi ness mor e. I d be abl e t o pr ovi de f or22
our member s. We d be abl e to do mor e of t he upgrades and23
updat es and produce mor e cont ent and move f ast er wi t h maki ng24
al l t he gr eat t hi ngs t hat we want t o do.25
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47Field - Direct (Lip)
I t s - - you know, I j ust - - I want t o agai n t hank our - -1
our member s who st i l l pay f or our si t e, and I want t o do2
ever yt hi ng I can f or t hem and make r eal l y gr eat t hi ngs, and3
i t s not f ai r t hat peopl e ar e t aki ng t hi ngs f or f r ee and4
peopl e ar e st eal i ng, and peopl e don t under st and t hat , and5
i t s - - i t real l y - - i t real l y hur t s our busi ness. I t real l y6
hur t s al l ar t i st s and anyone who needs a copyr i ght t o pr ot ect7
t hei r busi ness.8
Q Do you t hi nk t hat Bi t Torr ent pi racy i s f ai r t o your9
payi ng subscr i ber s?10
A No, i t s not f ai r t o t hem at al l because why shoul d - -11
t hey r e payi ng and ot her peopl e ar en t payi ng, and i t s - - and12
we coul d do mor e f or our payi ng subscr i ber s i f i t wer en t f or13
Bi t Tor r ent or pi r acy.14
MR. LI PSCOMB: Your Honor , I m now goi ng t o - - we ve15
pr e- mar ked Composi t e Exhi bi t 4, Pl ai nt i f f s 4.16
THE COURT: Okay.17
( Pause)18
MR. LI PSCOMB: For t he r ecor d, Composi t e Exhi bi t 419
shoul d be 34 pages.20
BY MR. LI PSCOMB:21
Q Ms. Fi el d, have you ever seen Composi t e Exhi bi t 4,22
Pl ai nt i f f s 4 bef or e?23
A Yeah, yes, I have.24
Q What ar e t hese?25
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48Field - Direct (Lip)
A They are a cer t i f i cate of copyr i ght regi st r at i ons.1
Q And ar e t hese t he r egi st r at i ons that cover t he wor ks,2
edi t i ons on t hi s case?3
A Shoul d I l ook at - - t hrough al l of t hem j ust t o make4
sur e?5
Q Wel l , i f you ve l ooked at t hem bef ore - - .6
THE COURT: You r epresent t hi s i s what she l ooked at7
bef or e?8
MR. LI PSCOMB: Thi s i s t he same exact t hi ng she9
l ooked at .10
THE COURT: Al l r i ght .11
THE WI TNESS: Yeah. Okay. Yes.12
THE COURT: Al l r i ght .13
THE WI TNESS: They ar e.14
BY MR. LI PSCOMB:15
Q I s Mal i bu Medi a the regi st r ant of al l of the - - l i sted as16
t he r egi st r ant on al l t hose r egi st r at i ons?17
A Yes.18
Q Mal i bu Medi a i s t he owner of t he copyr i ght s, cor r ect ?19
A Cor r ect. We made al l t he movi es our sel ves, so - -20
MR. LI PSCOMB: Your Honor , I d l i ke t o move21
Pl ai nt i f f s Exhi bi t 4 i nt o evi dence.22
THE COURT: I t s admi t t ed.23
MR. LI PSCOMB: Your Honor , I have no f ur t her24
quest i ons f or Ms. Fi el d.25
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49Field - The Court
THE COURT: Okay. Cr oss exami ne, anyone?1
MR. SMI TH: No quest i ons, Your Honor .2
MR. FRENCH: No, Your Honor .3
MR. RUSHI E: No, Your Honor .4
THE COURT: Al l r i ght . Thank you ver y much.5
THE WI TNESS: Okay. Thank you.6
THE COURT: I have one quest i on.7
THE WI TNESS: Oh.8
THE COURT: Want t o come back - -9
THE WI TNESS: Sur e.10
THE COURT: - - on t he st and f or j ust a moment .11
BY THE COURT:12
Q Do you - - does your company publ i sh any st i l l phot os, or13
ar e t hey al l vi deos?14
A We publ i sh st i l l phot os, t oo.15
Q You do.16
A Yes.17
Q Al l r i ght . Where - - do you copyr i ght t he s t i l l phot os?18
A We don t copyr i ght the st i l l photos .19
Q You do not .20
A We do wr i t e a copyr i ght mar k on t he phot o.21
Q You copyr i ght t hem on - - on t he mar k on t he phot o?22
A Mar k on t he phot o.23
Q Wher e do you put i t ? On t he f r ont or t he back?24
A On t he f r ont .25
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50Field - The Court
Q Okay. And how about t he vi deos? Wher e do you put - - do1
you put a copyr i ght not i ce on t he vi deos?2
A We put a copy - - we put our t i t l es on t he vi deos wi t h t he3
copyr i ght .4
Q Wi t h t he copyr i ght not i ce.5
A Wel l , i t has our t r ademar k, our t r ademar k t i t l e.6
Q I s what ?7
A Xar t . com - -8
Q Xar t .9
A - - i s our t r ademar k.10
Q Okay. Do you use a l i t t l e C wi t h a ci rc l e or - -11
A We have a l i t t l e C next t o xar t . com.12
Q Al l r i ght . But you don t use t he wor d copyr i ght on13
the - - on the f i l m i t sel f .14
A No, but we - - we def i ni t el y can i f we shoul d.15
MR. LI PSCOMB: No.16
BY THE COURT:17
Q Wel l , I m not - - no, no, I m j ust aski ng.18
MR. LI PSCOMB: Ever yone knows her wor ks, except t wo19
i n t hi s case, wer e - - have a copyr i ght not i ce on t hem, and20
t hey wer e al l r egi st er ed pr i or t o the dat es of i nf r i ngement .21
Copyr i ght not i ce i s compl i ant wi t h t he Copyr i ght22
Act .23
THE COURT: Okay.24
MR. LI PSCOMB: And t he websi t e al so has a par agr aph25
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51Field - The Court
on t he hal f copyr i ght not i ce and i t s ter ms of use. So i t1
has - - ever yt hi ng on her e i s copyr i ght ed.2
BY THE COURT:3
Q Al l r i ght . Do you know what I mean by a 2257 not i ce?4
A Yes, we have - -5
Q Where do you put t hat ?6
A We ar e compl i ant , and we put t hat on t hei r websi t e. I t7
says a 2257, and you can cl i ck i t , and i t gi ves t he addr ess8
where t he r ecor ds ar e kept .9
Q Al l r i ght . You put t hat on t he t i t l e page - - where t he10
cover - - t i t l e page of t he vi deo?11
A The t i t l e - - no, i t s on t he websi t e. I can - - I can12
show you on my phone.13
Q No, I don t - - you don t have t o show me, j ust - -14
A Okay.15
Q Okay.16
A Yeah.17
Q You don t put i t on each vi deo?18
A I t s not - - they re not vi deos l i ke DVDs. They re19
shor t . They r e l i ke 10 mi nut es.20
Q Oh.21
A They r e vi gnet t es.22
Q Okay.23
A And they re j us t of f ered on l i ne, so i t s not l i ke a bi g24
DVD wi t h a - -25
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52Field - The Court
Q Wel l , how - - what i s t he r unni ng l engt h of your movi es?1
What - - what s t he r ange:2
A I t s anywher e f r om 10 mi nut es to 20 mi nut es.3
Q Okay. They r e no - - not l onger t han t hat .4
A No, t hey r e not l onger t han t hat , and some ar e even ar e5
even j ust l i ke si x or seven mi nut es.6
They r e r eal l y hi gh product i on val ue. They r e r eal l y7
beaut i f ul , and - -8
Q Okay.9
A So i t s - - and we do keep ver y - - we keep compl i ant U. S.10
2257 r ecords and - -11
Q Okay. Al l r i ght .12
MR. LI PSCOMB: J ust a pr of f er f or t he r ecor d, Your13
Honor . I14
have seen t hem per sonal l y, and t hey have t he - - a15
newspaper her e and the photo I D her e, and t hat s one f orm of16
t he way t hat t hey keep t hem, and t hey al so keep t hem - - t he17
way that t hei r si t e wor ks ever yt hi ng has t o ki nd of cr oss18
r ef er ence t o t hem. I t s a compl ex syst em, but I have seen19
t hese physi cal l y. They have - -20
THE WI TNESS: We act ual l y have t he model hol d t he21
model r el ease f orm. We have t hei r - - hol d t wo I Ds, and 225722
act ual l y onl y r equest s a copy of t he I D, whi ch I t hi nk they23
shoul d r equest mor e. They shoul d r equest t he gi r l hol di ng t he24
I Ds.25
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53Field - The Court
So I keep al l of t hat on t he dat abase, and t hen I1
al so keep t he compl i ant database f or t he U. S. 2257.2
THE COURT: Al l r i ght . Thank you.3
MR. LI PSCOMB: And I know you r e i nvol ved i n t hat4
case - -5
THE COURT: Yes.6
MR. LI PSCOMB: - - r i ght now whi ch - -7
THE COURT: That s another case.8
MR. LI PSCOMB: - - f ai r l y amazi ng t hat t wo adul t9
cases - -10
THE COURT: I t s compl et el y coi nci dent al .11
Compl et el y coi nci dent al .12
MR. LI PSCOMB: You r e t he adul t - - adul t j udge t hi s13
week.14
THE WI TNESS: But you - - our movi es, I m sure15
t hen - - you d pr obabl y l i ke t hem.16
THE COURT: Okay. Al l r i ght . Thank you.17
THE WI TNESS: Okay. Thank you.18
THE COURT: Cal l your next wi t ness.19
MR. LI PSCOMB: Your Honor , I d now l i ke t o cal l20
Mi chael Pat zer .21
MI CHAEL PATZER, PLAI NTI FF S WI TNESS, SWORN22
THE CLERK: Woul d you be seat ed, st at e your f ul l23
name and spel l your l ast name f or t he record.24
THE WI TNESS: Mi chael Pat zer , P- A- T- Z- E- R.25
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54Patzer - Direct (Lip)
DI RECT EXAMI NATI ON1
BY MR. LI PSCOMB:2
Q Mr . Pat zer , wher e di d you go t o hi gh school ?3
A ( I naudi bl e) , Ger many.4
Q When di d you gr aduat e?5
A I n 1999.6
Q Have you wor ked i n t he I T busi ness si nce 1999?7
A Yes, I do.8
Q So you ve wor ked f or 14 year s i n t he I T busi ness.9
A That s cor rect .10
Q Do you cur r ent l y wor k I PP, Li mi t ed?11
A Yes, I desi gned, creat ed and i mpl ement ed and now I m12
moni t or i ng t he sof t ware and servi ce t hey cur r ent l y use t o13
t r ace possi bl e copyr i ght i nf r i ngement s.14
Q You don t act ual l y wor k f or I PP, Li mi t ed. You sai d you15
wor k f or a f i r m t hat pr ovi des t hese ser vi ces t o I PP, Li mi t ed,16
correct?17
A That s cor rect .18
Q I s Mal i bu Medi a a cl i ent of I PP, Li mi ted?19
A Yes, i t i s.20
Q And Mal i bu Medi a r el i ed on I PP, Li mi t ed sof t war e t o21
det ect t he i nf r i nger s i n t hi s case, cor r ect?22
A Cor r ect .23
Q How l ong di d i t t ake t o devel op t he sof t war e used by I PP,24
Li mi t ed?25
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A Over one year .1
Q How does t he sof t war e wor k?2
A I t - - i t s - - normal l y star t s by customers gi vi ng us the3
names of t he copyr i ght wor ks, and - - yeah, t hat s - -4
THE COURT: Cust omer s gi ve you t he name of a5
copyr i ght ed work?6
THE WI TNESS: Of t hei r copyr i ght ed wor ks, yeah.7
BY MR. LI PSCOMB:8
Q What happens af t er a cust omer gi ves you t he name of t hei r9
copyr i ght ed work?10
A We sear ch t he i nt er net f r om t he wel l known Tor r ent web11
pages f or possi bl e mat ches. I t s basi cal l y a l exi cal sear ch12
based on t he name t he - - t hey gave us.13
Q What happens i f I PP s ser ver s f i nd a possi bl e mat ch?14
A We downl oad t he dat a f i l es whi ch ar e cor r el at ed t o t he15
Tor r ent f i l es.16
THE COURT: You cor r el at e what , t he beta f i l e?17
THE WI TNESS: The dat a.18
THE COURT: Dat a f i l e.19
THE WI TNESS: Yeah, sor r y, t he dat a f i l e, cor r el at e20
t o t he Tor r ent f i l e and st ar t t he l oggi ng pr ocess at t he21
same - - at t he same t i me.22
BY MR. LI PSCOMB:23
Q The data that s cor r el ated to the Tor r ent f i l e, i n thi s24
case, t hat woul d be a movi e, r i ght ?25
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A Cor r ect .1
Q And you sai d you st ar t t he l oggi ng pr ocess at t he same2
t i me.3
A Yes.4
Q Does I PP di st r i but e pi eces of dat a back i nt o t he5
Bi t Tor r ent swarm?6
A No, t hat s not possi bl e.7
Q Why i s t hat not possi bl e?8
A Because we compl et el y wr i t - - wr ot e t he whol e sof t war e by9
scr at ch our sel f . Ther e s no such f eat ur e i mpl ement ed what s10
makes i t possi bl e t o upl oad or di st r i but e any dat a.11
Q But doesn t Bi t Torr ent work on a t i t - f or - t at bas i s?12
A That s cor rect .13
Q What i s a t i t - f or - t at basi s?14
A I t means t hat you have t o upl oad dat a t o be abl e t o15
downl oad dat a.16
Q But di dn t you j ust t el l me you r e not upl oadi ng dat a?17
A That s cor rect .18
Q So how ar e you get t i ng ar ound t he t i t - f or - t at ?19
A Because i f you ar e new i n t he Bi t Tor r ent swar m and you20
don t have any dat a, so the pr ot ocol , t he Bi t Tor r ent pr ot ocol21
has t o support t hat i f somebody new i s j oi ni ng t he swarm, t hat22
you st i l l get some ki nd of dat a t o be abl e t o j oi n.23
THE COURT: Use t he wor d swar m?24
MS. FI ELD: The swar m.25
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THE COURT: Di d you use t he wor d swar m?1
THE WI TNESS: Swar m, yeah.2
MS. FIELD: A swarm is computer --3
BY MR. LI PSCOMB:4
Q What is a BitTorrent swarm?5
A BitTorrent swarm is actually a huge amount of people6
sharing the same content.7
THE COURT: When you say "huge amount" -- well, go8
ahead. You can ask the question.9
THE WI TNESS: But I can st i l l - -10
BY MR. LI PSCOMB:11
Q A Bi t Tor r ent swar m i s al l of t he peer s who ar e shar i ng12
t he same Tor r ent f i l e, cor r ect ?13
A That s cor rect .14
Q And t hen one of Mal i bu Medi a s movi es, when peopl e ar e15
shar i ng i t , t her e s usual l y f i ve, 10, 000 peopl e at a t i me,16
correct?17
A That s cor rect .18
Q Goi ng back t o t he t i t - f or - t at quest i ons, i s I PP19
const ant l y j oi ni ng swarms as new peer s?20
A That s cor rect .21
Q And t hat s how you get ar ound t he t i t - f or - t at .22
A Ri ght .23
Q You sai d af t er a possi bl e mat ch i s f ound t hr ough24
el ect r i cal sear ch, you i mmedi at el y st ar t downl oadi ng t he25
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comput er f i l e, and you st ar t l ogi n communi cat i ons, cor r ect ?1
A Cor r ect .2
Q What do you mean by st ar t l oggi ng communi cat i ons?3
A We star t connect i ng t o possi bl e i nf r i nger s and stor e t hat4
i nf or mat i on i n our dat abase ser vi ce.5
Q Do you al so save t he - - t he communi cat i ons?6
A Yes.7
Q Wher e do you save t hem?8
A We j ust - - we wr i t e t hem t o WORM t ape dr i ves af t er t hey9
have wr i t t en t o t he har d di sk bef or e.10
Q That s WORM, W- O- R- M, t ape dr i ve, cor r ect?11
A What does WORM st and f or ?12
Q I t stands f or wr i t e once, r ead many. Thi s - - act ual l y,13
we use - - because i t s i mpossi bl e t o modi f y dat a af t er i t s14
get wr i t t en t o t he t ape dr i ve, i t s i mpossi bl e t o del et e any15
dat a. The onl y way i s t o dest r oy t he t ape dr i ve.16
MR. LI PSCOMB: Your Honor , we pre- mar ked as P- 5 a17
WORM t ape dr i ve, and t hi s i s, f or t he r ecor d, a t hr ee t er abyt e18
LTO- 5 Ul t r i um WORM, and I d j ust l i ke t o - - I onl y have one19
copy of t hi s because i t i s a t ape dr i ve - -20
THE COURT: Ri ght .21
MR. LI PSCOMB: - - so I d j ust l i ke t o show i t t o t he22
wi t ness and t hen - -23
THE COURT: Sur e. Wel l , can I j ust ask a quest i on?24
MR. LI PSCOMB: Of cour se.25
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THE COURT: When you say t hat you f i nd f i ve - - f i ve1
t o 10, 000 peopl e i n a swar m, i s t hat - - i s t hat your2
t est i mony?3
THE WI TNESS: Yeah, i t s - - i t depends on t he - -4
THE COURT: Now, ar e t hey i n one l ocat i on, or t hey5
coul d be al l over t he wor l d or - -6
THE WI TNESS: I t s wor l dwi de.7
THE COURT: What ?8
THE WI TNESS: The - - t he number s a wor l dwi de9
number .10
THE COURT: Al l r i ght . Now, l et s - - l et s say11
t her e s a movi e - - I j ust want t o under st and t hi s.12
Let s say t her e s a movi e, and I l l - - I l l pi ck a13
pl ai n vani l l a t opi c l i ke Mi ss J ones, okay?14
THE WI TNESS: Yeah.15
THE COURT: Al l r i ght . Now, i f - - ar e you sayi ng16
t hat i f Mi ss J ones i s bei ng vi ewed on Bi t Tor r ent - - l et s17
say i n t hi s - - t he way Ms. Fi el d sai d, t hat movi e may j ust be18
10 mi nut es l ong, r i ght ?19
THE WI TNESS: Yeah.20
THE COURT: But t hi s coul d be pl ayed al l day l ong on21
Bi t Tor r ent because peopl e i n di f f er ent count r i es woul d be22
wat chi ng i t at di f f er ent t i mes, i s t hat r i ght ?23
THE WI TNESS: Yeah.24
THE COURT: So f or how l ong do you moni t or how l ong25
Case 2:12-cv-02078-MMB Document 205 Filed 06/28/13 Page 59 of 234
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