Bellwether transcript

7/27/2019 Bellwether transcript

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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

Case 2:12-cv-02078-MMB Document 205 Filed 06/28/13 Page 1 of 234


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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


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


P- 1 Li st of X- Ar t Fi l ms on Tor r ent 36 3625



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4


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


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


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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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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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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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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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



18/234


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



19/234


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



20/234

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


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



21/234

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


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



22/234

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



23/234

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



24/234

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



25/234


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



26/234


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



27/234


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



28/234


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



29/234


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



30/234


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



31/234


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



32/234


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



33/234


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



38/234


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



41/234


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



42/234


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



43/234


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



44/234


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 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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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



46/234


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



47/234


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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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 WI TNESS: Yeah. Okay. Yes.12


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



54/234

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


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


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



55/234


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



56/234


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


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


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



57/234


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


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


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


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



58/234


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


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



59/234


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 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 COURT: So f or how l ong do you moni t or how l ong25



60/

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Bellwether transcript