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Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page1 of 274283123UNITED STATES DISTRICT COURTNORTHERN DISTRICT OF CALIFORNIASAN JOSE DIVISION456789101112131415APPLE INC., A CALIFORNIACORPORATION,VS.PLAINTIFF,SAMSUNG ELECTRONICS CO.,LTD., A KOREAN BUSINESSENTITY; SAMSUNGELECTRONICS AMERICA,INC., A NEW YORKCORPORATION; SAMSUNGTELECOMMUNICATIONSAMERICA, LLC, A DELAWARELIMITED LIABILITYCOMPANY,DEFENDANTS.)))))))))))))))))))C-11-01846 LHKSAN JOSE, CALIFORNIAJULY 31, 2012VOLUME 2PAGES 283-5551617TRANSCRIPT OF PROCEEDINGSBEFORE THE HONORABLE LUCY H. KOHUNITED STATES DISTRICT JUDGE181920APPEARANCES ON NEXT PAGE21222324OFFICIAL COURT REPORTER: LEE-ANNE SHORTRIDGE, CSR, CRRCERTIFICATE NUMBER 959525

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page2 of 27428412345678910A P P E A R A N C E S:FOR PLAINTIFF MORRISON & FOERSTERAPPLE: BY: HAROLD J. MCELHINNYMICHAEL A. JACOBSRACHEL KREVANS425 MARKET STREETSAN FRANCISCO, CALIFORNIA 94105FOR COUNTERCLAIMANT WILMER, CUTLER, PICKERING,APPLE:HALE AND DORRBY: WILLIAM F. LEE60 STATE STREETBOSTON, MASSACHUSETTS 02109BY: MARK D. SELWYN950 PAGE MILL ROADPALO ALTO, CALIFORNIA 94304111213141516171819202122232425FOR THE DEFENDANT:QUINN, EMANUEL, URQUHART,OLIVER & HEDGESBY: CHARLES K. VERHOEVEN50 CALIFORNIA STREET, 22ND FLOORSAN FRANCISCO, CALIFORNIA 94111BY: VICTORIA F. MAROULISKEVIN P.B. JOHNSON555 TWIN DOLPHIN DRIVESUITE 560REDWOOD SHORES, CALIFORNIA 94065BY: MICHAEL T. ZELLERWILLIAM C. PRICEJOHN B. QUINN865 SOUTH FIGUEROA STREET10TH FLOORLOS ANGELES, CALIFORNIA 90017

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page3 of 27428512INDEX OF PROCEEDINGS3456OPENING STATEMENT BY MR. MCELHINNY P. 304OPENING STATEMENT BY MR. LEE P. 353OPENING STATEMENT BY MR. VERHOEVEN P. 38078910111213INDEX OF WITNESSES141516171819PLAINTIFF'SCHRISTOPHER STRINGERDIRECT EXAM BY MR. MCELHINNY P. 469CROSS-EXAM BY MR. VERHOEVEN P. 511REDIRECT EXAM BY MR. MCELHINNY P. 537PHILIP SCHILLERDIRECT EXAM BY MR. MCELHINNY P. 541202122232425

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page4 of 274286123INDEX OF EXHIBITSMARKEDADMITTED4567891011121314PLAINTIFF'S1040 4721041 4731043 474163 481164 483165 486166 488168 490167 491162 4921000 4971001 4971002 4981003 498171 500170 5021004 5041005 50415161718DEFENDANT'S741 524 538687 534740 53819202122232425

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page5 of 2742871234SAN JOSE, CALIFORNIA JULY 31, 2012P R O C E E D I N G S(WHEREUPON, THE FOLLOWING PROCEEDINGSWERE HELD OUT OF THE PRESENCE OF THE JURY:)5THE COURT:GOOD MORNING.67SO WE ARE FILING RIGHT NOW AN AMENDEDORDER TO THE ORDER WE FILED LAST NIGHT BECAUSE THE8THREE DEMONSTRATIVE EXHIBITS WERE FILED.THIS IS91011WITH REGARD TO SAMSUNG'S OBJECTIONS TO APPLE'SEXHIBITS FOR THE SECOND DAY OF TRIAL.SO THE AMENDED ORDER -- I THINK OUR ORDER12WAS FILED AT 11:00 O'CLOCK.OUR AMENDED ORDER IS13141516171819202122232425BEING FILED NOW AND WILL ADDRESS THE THREEDEMONSTRATIVES WHERE WE RESERVED RULING LAST NIGHT.OKAY?WE ARE ALSO FILING NOW A -- RULINGS ONTHE OBJECTIONS ON THE STRINGER, CHRISTOPHERSTRINGER EXHIBITS, AND I GUESS AROUND MIDNIGHT LASTNIGHT, SOMEONE FILED ADDITIONAL -- APPLE FILEDADDITIONAL OBJECTIONS, CORRECT, ON ABOUT FOURADDITIONAL EXHIBITS.AND SO THAT RESPONSE TO THE OBJECTIONSTHAT WERE FILED AT MIDNIGHT WE'LL FILE PROBABLYAROUND LUNCHTIME.OKAY? BUT WE ARE WORKING ON THAT. YOU

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page6 of 274288123456789101112131415161718192021WILL GET ALL OF THE STRINGER EXHIBITS.SO WITH REGARD TO THE NISHIBORI, IT WASIN OUR RULING LAST NIGHT ON APPLE'S OBJECTIONS TOTHE SAMSUNG SLIDES AND EXHIBITS.THAT WILL BE ADMITTED SOLELY FORFUNCTIONALITY AND FOR NO OTHER PURPOSE, OKAY?AND I'M GOING TO INSTRUCT THE PARTIES,DURING YOUR OPENING STATEMENTS, YOU CAN ONLY SAYWHAT THE EXHIBITS WILL SHOW, WHAT THE WITNESSESWILL TESTIFY TO.THERE SHOULD BE NO ARGUMENT, NOINFERENCES, NO ARGUING THE LAW, AND IF YOU DO THAT,I'M GOING TO STOP YOU IN THE MIDDLE OF YOUR OPENINGAND ASK YOU TO PLEASE STOP ARGUING THE CASE.AND I'M ALSO GOING TO TELL THE JURY ATTHE BEGINNING THAT OPENING STATEMENT IS NOTEVIDENCE, THAT THE ATTORNEYS ARE MERELY TO STATEWHAT THE EXHIBITS AND THE WITNESSES WILL SAY ANDARE NOT TO ARGUE THE CASE AND NOT TO MAKEINFERENCES AND START ARGUING THE LAW AND THAT, IFTHEY DO SO, I WILL STOP THEM IN MID-SENTENCE AND22ASK THEM TO PLEASE STOP ARGUING.OKAY?232425SO I'M JUST PUTTING EVERYONE ON NOTICETHAT THAT'S WHAT'S GOING TO HAPPEN, SO PLEASE DON'TCROSS THE LINE.

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page7 of 2742891NOW, WE HAVE AN ISSUE WITH ONE OF OUR2JURORS ALREADY.MS. FRIESEN HAS INDICATED THAT HER345678910111213141516171819EMPLOYER WILL NOT PAY HER DURING THE TIME THAT SHEIS SERVING AS A JUROR IN THIS CASE AND THAT THISWILL CAUSE HER A SEVERE FINANCIAL HARDSHIP BECAUSEOF THE LENGTH OF THIS CASE, AND THE STRESS OF THISSITUATION IS CAUSING HER ANXIETY TO THE POINT WHERESHE CANNOT SLEEP, SHE'S HAVING PANIC ATTACKS, HERHUSBAND HAD TO DRIVE HER TO THE COURTHOUSE TODAY.SHE SAYS THAT THE COMMUTE AND THE TRAFFICARE CAUSING HER GREAT ANXIETY AND SHE IS REQUESTINGTHAT SHE BE DISMISSED AS A JUROR.SHE APOLOGIZES FOR THE VERY LATE NOTICE.SHE SAYS THAT YESTERDAY SHE WAS UNAWARE THAT SHE --THAT HER EMPLOYER WOULD NOT PAY HER FOR THEDURATION OF THIS TRIAL.SO LET ME HEAR FROM COUNSEL AS TO WHATYOU ALL WOULD LIKE TO DO, WHETHER YOU WOULD LIKE TOHAVE ANY ADDITIONAL VOIR DIRE OF MS. FRIESEN.20MR. MCELHINNY:I DON'T THINK WE WANT ANY2122FURTHER VOIR DIRE OF HER, YOUR HONOR.(PAUSE IN PROCEEDINGS.)23MR. VERHOEVEN:WE DON'T NEED ANY2425ADDITIONAL VOIR DIRE, EITHER, YOUR HONOR.THE COURT: OKAY. SO THEN ARE BOTH

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page8 of 2742901PARTIES CONSENTING TO HER DISMISSAL?2MR. LEE:THAT'S FINE FOR APPLE, YOUR3HONOR.4MR. VERHOEVEN:YES, YOUR HONOR.5THE COURT:ALL RIGHT.67NOW, LET ME ASK MS. PARKER BROWN IF YOUWOULD JUST ASK MS. FRIESEN TO COME OUT, PLEASE.8THE CLERK:SURE.9(PAUSE IN PROCEEDINGS.)10THE CLERK:JUDGE, SHE'S IN THE REST11ROOM.12131415THE COURT:MR. QUINN:THE COURT:MR. QUINN:OKAY.YOUR HONOR?YES.MAY I ADDRESS THE ISSUE OF1617SLIDES 11 TO 19 WHICH I WAS PREPARED TO ARGUE --THE COURT: NO. NO. WE HAVE HAD THREE18RECONSIDERATIONS ON THAT, OKAY?YOU'VE MADE YOUR19RECORD. I'VE RULED. WE NEED TO GO FORWARD.202122MR. QUINN:THE COURT:FOR RECONSIDERATION.YOUR HONOR, I BEG THE COURT.SAMSUNG HAS HAD TEN MOTIONSI'M DOING, AS QUICKLY AS I232425CAN, RULINGS TO GIVE YOUR TEAM AS MUCH ADVANCEDNOTICE FOR YOUR PREPARATION OF WITNESSES ANDEXHIBITS.

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page9 of 27429112MR. QUINN:PRACTICING 36 YEARS.YOUR HONOR, I'VE BEENI'VE NEVER BEGGED THE COURT345LIKE I'M BEGGING THE COURT NOW TO HEAR ARGUMENT ONTHIS ISSUE.THIS RELATES TO A CENTRAL ISSUE THAT HAS6BEEN IN THE CASE FROM THE VERY BEGINNING.THERE78910WAS NO -- THEY SAY, IN THEIR PAPERS THEY FILED LASTNIGHT, WE DIDN'T DISCLOSE IT IN THE CONTENTIONINTERROGATORIES.YOUR HONOR, THERE IS NO INTERROGATORY11121314THAT REQUIRED US TO DISCLOSE THAT, AND WE DID.OF THAT WAS SERVED -- ALL THOSE IMAGES IN THOSESLIDES WERE SERVED IN FEBRUARY --THE COURT: I'VE GIVEN YOU --ALL151617INJUNCTION --MR. QUINN:THE COURT:-- IN THE PRELIMINARY-- AN ADDITIONAL OPPORTUNITY18TO BRIEF THIS ISSUE YESTERDAY, OKAY?I REVIEWED1920WHAT YOU FILED YESTERDAY.YESTERDAY.I HEARD ARGUMENT ON THIS2122WHAT'S THE POINT --MR. QUINN: ALL RIGHT. YOUR HONOR,232425THE COURT:FOR RECONSIDERATION.MR. QUINN:I'VE GIVEN YOU THREE MOTIONS-- OF HAVING THE TRIAL?

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page10 of 2742921234567891011WHAT'S THE POINT?THEY WANT TO CREATE THE COMPLETELY FALSEIMPRESSION, YOUR HONOR, THAT WE CAME UP WITH THISDESIGN AFTER JANUARY OF 2007 AND, YOUR HONOR, WHATTHIS SUGGESTS, WHAT THEY'RE SEEKING IS TO EXCLUDEINDISPUTABLE EVIDENCE THAT WE HAD THAT DESIGNPATENT IN 2006.AND WE CAME OUT WITH THAT PRODUCT INFEBRUARY OF 2007.THE COURT: MR. QUINN, PLEASE. PLEASE.WE'VE DONE THREE RECONSIDERATIONS ON THIS AND WE12NEED TO MOVE FORWARD.WE HAVE A JURY WAITING.13YOU'VE MADE YOUR RECORD.YOU'VE MADE14YOUR RECORD FOR APPEAL.OKAY?15MR. QUINN: ALL RIGHT. CAN I ASK THE16COURT FOR SOME EXPLANATION, YOUR HONOR?THERE IS17NO INTERROGATORY THAT REQUIRED IT.WE DID DISCLOSE1819IT IN THE PRELIMINARY INJUNCTION PAPERS.THEM THE DOCUMENTS --WE GAVE20THE COURT:MR. QUINN, PLEASE, DON'T MAKE2122ME SANCTION YOU. PLEASE. PLEASE.MR. QUINN: SO I WON'T GET --23THE COURT:YOU'VE HAD THREE24RECONSIDERATIONS MOTIONS.YOU'VE HAD AT LEAST TWO,25IF NOT THREE, IF NOT FOUR OPPORTUNITIES TO BRIEF

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page11 of 2742931THIS. OKAY? PLEASE, TAKE A SEAT.2MR. QUINN:ALL RIGHT.34OUT MS. FRIESEN?THE COURT: ALL RIGHT. WOULD YOU BRING5MR. QUINN:YOUR HONOR, AS A MATTER OF6PERSONAL PRIVILEGE, MAY I CHANGE THE SUBJECT?7THE COURT:NO.89MR. QUINN: ABOUT --THE COURT: NO. I WANT YOU TO SIT DOWN,10PLEASE.111213141516(WHEREUPON, THE FOLLOWING PROCEEDINGSWERE HELD IN OF THE PRESENCE JUROR FRIESEN.)THE COURT: OKAY. MS. FRIESEN, WEUNDERSTAND THAT YOUR SERVICE WOULD BE A SEVEREECONOMIC HARDSHIP ON YOU, AS WELL AS PSYCHOLOGICAL.IT'S JUST VERY STRESSFUL; CORRECT?17JUROR:I'M HAVING ANXIETY ATTACKS DUE TO18THE COMMUTE.I'M NOT A VERY GOOD DRIVER.1920212223THE COURT: NO PROBLEM. YOU DON'T NEEDTO EXPLAIN ANY FURTHER.WE WANT TO THANK YOU FOR YOUR SERVICE ANDTO APOLOGIZE FOR THE ANXIETY AND THE STRESS THATTHIS HAS ALREADY CAUSED YOU.24JUROR:I'M SORRY FOR THE INCONVENIENCE.25I'M -- I DIDN'T REALLY THINK THAT IT WOULD AFFECT

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page12 of 27429412ME THIS BAD.THE COURT:NOT AT ALL A PROBLEM.34YOU ARE THANKED AND EXCUSED.FULFILLED YOUR JURY DUTY OBLIGATION.YOU HAVE56789I'M JUST GOING TO ASK THAT YOU PLEASE GOSEE MR. YOUNGER ON THE SECOND FLOOR AND JUST CHECKOUT AND HE CAN GIVE YOU THE PAPERWORK TO DEAL WITHYOUR MILEAGE AND YOUR OTHER JUROR FEES AND WHATNOT.OKAY?10SO THANK YOU.YOU'RE EXCUSED FROM THE11JURY.12JUROR:THANK YOU.1314(WHEREUPON, THE FOLLOWING PROCEEDINGSWERE HELD OUT OF THE PRESENCE OF JUROR FRIESEN.)1516THE COURT:THE CLERK:ALL RIGHT.ARE WE READY?1718THE COURT: YES. LET'S BRING THEM OUT.YOU HAVE THE VIDEO; CORRECT?1920MR. JACOBS:THE CLERK:YES, YOUR HONOR.JUDGE, I JUST REALIZED THAT21WE'RE MISSING MR. ROGERS.HE'S NOT HERE YET.222324THE COURT: OKAY. WE'LL WAIT FOR HIM.CAN SOMEONE CALL HIM AND SEE IF HE'S ON HIS WAY?THE CLERK: OKAY. I'LL DO THAT.25THE COURT:THANK YOU.

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page13 of 27429512345678THE CLERK: SORRY. THAT'LL TEACH ME NOTTO DO A HEAD COUNT.THE COURT: ALL RIGHT. DO WE HAVE THEORDERS THAT WERE FILED ON SPRINGER?OH, HE'S HERE? OH, OKAY, PERFECT. LET'SBRING THEM OUT AGAIN.(WHEREUPON, THE FOLLOWING PROCEEDINGSWERE HELD IN THE PRESENCE OF THE JURY:)9THE COURT:MR. CATHERWOOD, IF YOU'D LIKE10TO SLIDE DOWN SO THERE'S NO EMPTY CHAIR.GREAT.11ALL RIGHT.THANK YOU.12THE CLERK:YOU MAY BE SEATED.1314151617THE COURT: ALL RIGHT. WOULD YOU PLEASESHOW THE FEDERAL JUDICIAL CENTER VIDEO.(WHEREUPON, A VIDEOTAPE WAS PLAYED INOPEN COURT OFF THE RECORD.)THE COURT: ALL RIGHT. MAY WE HAVE THE18LIGHTS BACK ON, PLEASE?THANK YOU.19ALL RIGHT.I'M GOING TO READ AN ADDENDUM2021TO THIS VIDEO AND THEN THE PARTIES HAVE ASKED THATI SHOW YOU ONE SAMSUNG UTILITY PATENT AND ONE APPLE22DESIGN PATENT.THEY'RE IN YOUR JURY NOTEBOOKS, SO2324IN A MINUTE WE'LL GO THROUGH THEM TOGETHER.LET ME READ YOU THIS STATEMENT FIRST.BUT25LADIES AND GENTLEMEN OF THE JURY, YOU'VE

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page14 of 2742961JUST WATCHED A VIDEO ABOUT THE AMERICAN PATENT23SYSTEM.THE VIDEO TALKED ABOUT PATENTS IN GENERAL.IN FACT, THERE ARE DIFFERENT KINDS OF45678910111213141516171819PATENTS AND YOU WILL SEE TWO TYPES IN THIS CASE,UTILITY PATENTS AND DESIGN PATENTS.EVERYTHING YOU JUST HEARD ABOUT PATENTSIN THE VIDEO APPLIES TO UTILITY PATENTS.HOWEVER, THERE ARE SOME DIFFERENT RULESAND PROCEDURES THAT APPLY TO DESIGN PATENTS WHICHTHE VIDEO DID NOT TALK ABOUT.FOR THAT REASON, I WANT TO EXPLAIN TO YOUBRIEFLY WHAT THOSE DIFFERENCES ARE.AS THE VIDEO DESCRIBED, UTILITY PATENTSARE DESIGNED FOR INVENTIONS AND, TO BE PATENTABLE,AN INVENTION MUST BE BOTH NEW AND USEFUL.DESIGN PATENTS, ON THE OTHER HAND, DO NOTCOVER INVENTIONS, BUT RATHER, AS THEIR NAMESUGGESTS, THEY COVER DESIGNS.TO BE PATENTABLE, A DESIGN MUST MEET A20DIFFERENT TEST.IT MUST BE A NEW, ORIGINAL, AND2122232425ORNAMENTAL DESIGN.IN GENERAL, A UTILITY PATENT PROTECTS THEWAY AN ARTICLE WORKS, WHILE A DESIGN PATENTPROTECTS THE WAY AN ARTICLE LOOKS.SINCE THE DESIGN IS SHOWN BY ITS

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page15 of 27429712345678910APPEARANCE, A DESIGN PATENT MAY RELATE TO THECONFIGURATION OR SHAPE OF AN ARTICLE, TO THESURFACE ORNAMENTATION APPLIED TO AN ARTICLE, OR TOTHE COMBINATION OF SHAPE AND SURFACE ORNAMENTATION.SO ALTHOUGH YOU HEARD IN THE VIDEO THAT AUTILITY PATENT MUST DESCRIBE A NEW AND USEFUL WAYOF SOLVING A PROBLEM, THIS PROBLEM-SOLVINGREQUIREMENT DOES NOT APPLY TO DESIGN PATENTS.THE VIDEO DESCRIBED A PATENT ASREPRESENTING A BARGAIN MADE BETWEEN THE GOVERNMENT11AND THE INVENTOR OF A UTILITY PATENT.THAT WAS THE1213141516IDEA THAT THE INVENTOR WOULD ADD SOMETHING NEW ANDUSEFUL TO THE STATE OF THE ART IN RETURN FOR THERIGHT TO KEEP OTHERS FROM USING THE INVENTION FOR APERIOD OF TIME.THE SAME KIND OF BARGAIN IS STRUCK WITH A17DESIGN PATENT INVENTOR.IN RETURN FOR ADDING A1819202122232425NEW, ORIGINAL, AND ORNAMENTAL DESIGN TO THE PUBLICKNOWLEDGE, THE INVENTOR CAN KEEP OTHERS FROM USINGTHE CLAIMED DESIGN AS SHOWN AND SET FORTH IN THEDRAWINGS OF THE DESIGN PATENT FOR A SET PERIOD OFTIME.UTILITY PATENTS NORMALLY LAST FOR 20YEARS, WHEREAS DESIGN PATENTS LAST 14 YEARS.YOU ALSO HEARD THAT FOR A UTILITY PATENT,

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page16 of 274298123456789101112131415161718192021CONCEPTION OF THE INVENTION OCCURS WHEN IT ISFORMULATED IN THE MIND OF THE INVENTOR CLEARLYENOUGH THAT HE OR SHE CAN WRITE IT DOWN AND EXPLAINIT TO SOMEONE.FOR A DESIGN PATENT, CONCEPTION HAPPENSWHEN THE DESIGN IS FORMULATED CLEARLY ENOUGH IN THEMIND OF THE INVENTOR THAT HE OR SHE CAN DRAW THEDESIGN.THE VIDEO DESCRIBED THE APPLICATION FOR AUTILITY PATENT AS A WRITTEN DOCUMENT IN WHICH THEINVENTOR DESCRIBED THE INVENTION HE OR SHE ISTRYING TO PROTECT.THIS IS THE SAME FOR DESIGN PATENTS,EXCEPT THAT DESIGN PATENTS RELY ON FIGURES TODESCRIBE THE DESIGN AND DO NOT INCLUDE LENGTHYWRITTEN DESCRIPTIONS.A DESIGN PATENT HAS SIMILARITIES INFORMAT TO THE MAIN PARTS OF A UTILITY PATENT THATTHE VIDEO JUST WALKED YOU THROUGH.I WILL USE THE '677 DESIGN PATENT, WHICHIS IN TAB 6 OF YOUR JURY NOTEBOOKS, TO IDENTIFY THE22BASIC PARTS OF A DESIGN PATENT.THERE ARE MANY232425SIMILARITIES TO UTILITY PATENTS, BUT THERE ARE ALSOSOME DIFFERENCES.WHY DON'T I FIRST SHOW YOU THE SAMSUNG

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page17 of 2742991UTILITY PATENT.AS I SAID YESTERDAY, WE USE THE2345LAST THREE DIGITS TO DESCRIBE IT, THE '460, WHICHIS TAB 15.DO YOU HAVE THAT BEFORE YOU, TAB 15?SO IN THE UPPER RIGHT-HAND CORNER, YOU6HAVE THE PATENT NUMBER.WE HAVE THE FULL NUMBER,7BUT WE GENERALLY JUST REFER TO PATENTS BY THEIR8LAST THREE DIGITS.THAT'S WHY WE SAY THE '460.9101112131415161718192021222324AS THE VIDEO SHOWED YOU, THE DATE OF THEPATENT IS IN THE RIGHT-HAND CORNER; THE TITLE OFTHE PATENT IS AT THE TOP OF THE LEFT COLUMN; WHOTHE INVENTORS ARE; AND IF THE INVENTORS HAVEASSIGNED THEIR RIGHTS TO SOMEBODY, THE ASSIGNEE ISLISTED ON THE LEFT COLUMN AS WELL.AND THE FIELD OF CLASSIFICATION SEARCH,WHICH WAS ALSO MENTIONED ON THE VIDEO, STARTS ONTHE BOTTOM LEFT-HAND CORNER; AND THE ABSTRACT, ORTHE SPECIFICATION, IS THE DESCRIPTION, AND THATBEGINS ON THE SECOND COLUMN ON PAGE 1.AND AS YOU FLIP THROUGH IT, YOU CAN SEETHE VARIOUS FIGURES THAT ARE INCLUDED, AND IF YOULOOK AT WHAT'S NUMBERED AT THE BOTTOM AS 14739 --SO THE NUMBERS ON THE TOP, WHEN YOU HEAR ADESCRIPTION, A LOT OF PEOPLE WILL SAY COLUMN 1,25LINE WHATEVER.SO THE NUMBER AT THE TOP WHERE IT

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page18 of 2743001SAYS 1, THAT MEANS COLUMN 1.THE NUMBER 2 ON THE2TOP OF THE RIGHT-HAND COLUMN, THAT'S COLUMN 2.SO3456YOU MAY HEAR THROUGHOUT THIS TRIAL PEOPLE REFER TOLINE NUMBERS AND COLUMN NUMBERS AND THAT'S WHATWE'RE REFERRING TO.THE SMALL NUMBERS IN THE MIDDLE OF THE7TWO COLUMNS, THOSE ARE THE LINE NUMBERS.OKAY?89101112131415AND AS THE VIDEO SAID, THERE IS, IN THISSPECIFICATION, OR ALSO CALLED AN ABSTRACT, THEBACKGROUND OF THE INVENTION, SUMMARY OF THEINVENTION, A DESCRIPTION OF EMBODIMENTS.AND THEN IF YOU LOOK AT THE VERY LASTPAGE, WHICH IS BATES NUMBER 14745, IF YOU LOOK ATCOLUMN 14 WHERE YOU SEE THE NUMBER 1, A DATATRANSMITTING METHOD, THAT IS THE CLAIM.16OKAY?SO IN THIS PARTICULAR CASE, IN17THIS PARTICULAR PATENT, THERE'S ONE CLAIM.BUT18192021YOU'LL SEE WITH THE OTHER PATENTS THERE MAY BE MANYMORE CLAIMS.BUT I HOPE THAT'S CLEAR WHEN THE PARTIESREFER TO COLUMN NUMBERS AND LINE NUMBERS WHAT22THEY'RE TALKING ABOUT.OKAY?232425BINDERS.NOW GO TO TAB NUMBER 6 IN YOUR JURYAND THAT IS APPLE'S DESIGN PATENT '677.AND THE FIRST PAGE OF A DESIGN PATENT HAS

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page19 of 27430112345678910111213141516171819202122232425MUCH OF THE SAME MATERIAL AS THE UTILITY PATENT IJUST SHOWED YOU.IT HAS A PATENT NUMBER ASSIGNED BY THEPTO IN THE UPPER RIGHT CORNER; AND ON THE LEFTSIDE, THE TITLE; THE NAMES OF THE INVENTORS; ANDSOMETIMES THE COMPANY THE INVENTORS HAVE ASSIGNEDTHE PATENT TO; THE FILING DATE OF THE APPLICATION;THE NUMBERS FOLLOWING THE HEADING FIELD OF SEARCH,WHICH IDENTIFY THE CATEGORIES OF PREVIOUSLY ISSUEDPATENTS THE EXAMINER LOOKED AT OR SEARCHED; AND THELIST OF REFERENCES CITED.ONE DIFFERENCE YOU CAN SEE, HOWEVER, ISTHAT WHILE IN THE UTILITY PATENT, THE CLAIMS CAMEAT THE END, HERE THE CLAIM IS ON THE FIRST PAGE.IN SOME PATENTS -- IN SOME DESIGNPATENTS, THE CLAIM WILL BE ON A FOLLOWING PAGE.ANOTHER DIFFERENCE YOU WILL NOTICE INLOOKING AT THE SAMPLE PATENT IS THAT A DESIGNPATENT DOES NOT HAVE A LENGTHY WRITTEN DESCRIPTION,WHICH YOU HEARD IS CALLED THE SPECIFICATION INUTILITY PATENTS.AND WHILE IN A UTILITY PATENT THE CLAIMSDESCRIBE THE PATENTED INVENTION IN WORDS, THE CLAIMOF A DESIGN PATENT IS THE DESIGN AS SHOWN IN THEFIGURES, INCLUDING THE DESCRIPTION OF THE FIGURES

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page20 of 2743021234567891011121314151617IMMEDIATELY BELOW THE SECTION HEADED CLAIM.THE CLAIM AND DESCRIPTION SECTIONS ARETHEN FOLLOWED BY FIGURES THAT SHOW THE PATENTEDDESIGN AS CLAIMED.I WILL INSTRUCT YOU LATER ON HOW TOUNDERSTAND THE FIGURES AND THE DESIGN THAT ISLEGALLY CLAIMED IN EACH DESIGN PATENT THAT IS INTHIS CASE.UNLIKE UTILITY PATENTS, A DESIGN PATENTCAN HAVE ONLY A SINGLE CLAIM, ALTHOUGH THERE MAY BEMORE THAN ONE EMBODIMENT OF THE CLAIMED DESIGN ASSHOWN IN THE FIGURES.WHERE A DESIGN PATENT IS EVENTUALLYGRANTED BY THE PTO, THOSE DRAWINGS DEFINE THEBOUNDARIES OF THE PATENT'S PROTECTION AND THENOTICE TO THE PUBLIC OF THE CLAIMED DESIGN.THE VIDEO ALSO DISCUSSED HOW THE PTO18PROCESSES PATENT APPLICATIONS.THE PROCESS IS19202122232425LARGELY THE SAME FOR DESIGN PATENTS IN THAT ANEXAMINER WHO SPECIALIZES IN DESIGN PATENTS WILLREVIEW THE APPLICATION, INCLUDING THE FIGURES, WILLSEARCH THE PRIOR ART, AND WILL THEN MAKE A DECISIONABOUT WHETHER THE DESIGN AS CLAIMED IS PATENTABLE.JUST LIKE WITH UTILITY PATENTS, YOU MAYALSO BE ASKED TO DECIDE ABOUT VALIDITY; THAT IS,

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page21 of 2743031234567891011121314151617181920WHETHER THE DESIGN PATENT SHOULD HAVE BEEN ALLOWEDAT ALL BY THE PTO.FOR EXAMPLE, THE PTO MAY NOT HAVE HADAVAILABLE TO IT ALL THE PRIOR ART THAT WILL BEPRESENTED TO YOU.A PERSON ACCUSED OF INFRINGING HAS THERIGHT TO ARGUE IN FEDERAL COURT THAT THE PATENT ORPATENTS ARE INVALID BECAUSE THEY DO NOT MEET THEREQUIREMENTS FOR PATENTABILITY.IN THE SAME WAY YOU HEARD ABOUT UTILITYPATENTS ON THE VIDEO, THE PATENT OFFICE IS PRESUMEDTO HAVE DONE ITS JOB CORRECTLY IN ISSUING DESIGNPATENTS, SO A PARTY SEEKING TO PROVE A DESIGNPATENT INVALID MUST MEET THE HIGHER STANDARD OFPROOF THAT APPLIES TO UTILITY PATENTS.AND FINALLY, JUST AS WITH UTILITYPATENTS, WHEN AN INFRINGEMENT CASE SUCH AS THIS ONEIS BROUGHT, IT IS UP TO YOU, THE JURY, TO DECIDETHE FACTS OF THE CASE BASED ON THE LAW THAT I WILLGIVE YOU AT THE CONCLUSION OF THE TRIAL.21ALL RIGHT.WITH THAT, WE ARE NOW GOING22TO MOVE TO OPENING STATEMENTS, AND IT'S CALLED23"OPENING STATEMENTS" FOR A REASON.AT THE END OF2425THE CASE YOU WILL HEAR CLOSING ARGUMENTS, AND IT'SCALLED "ARGUMENT" FOR A REASON.

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page22 of 274304123456IN A CLOSING ARGUMENT, THE PARTIES AREALLOWED TO ARGUE THE CASE, TO DRAW INFERENCES FROMTHE EVIDENCE.AN OPENING STATEMENT IS CALLED A"STATEMENT" BECAUSE IT'S SUPPOSED TO BE A STATEMENTOF WHAT THE WITNESSES WILL TESTIFY TO AND WHAT ALL78THE DOCUMENTS WILL SHOW.AN OPENING STATEMENT.ARGUMENT IS IMPROPER IN91011121314I HAVE NOTIFIED THE ATTORNEYS THAT THEYARE NOT TO ARGUE IN AN OPENING STATEMENT, AND IFTHEY DO SO, I MAY STOP THEM IN THE MIDDLE OF THEIRSTATEMENT AND ASK THEM TO PLEASE NOT ARGUE.SO WITH THAT, LET ME ASK IF THEPLAINTIFFS WISH TO GIVE AN OPENING STATEMENT.15MR. MCELHINNY:WE DO, YOUR HONOR.1617THE COURT: OKAY. GO AHEAD, PLEASE. YOUHAVE -- THE TIME IS NOW 9:33.18MR. MCELHINNY:THANK YOU.1920(WHEREUPON, MR. MCELHINNY GAVE HISOPENING STATEMENT ON BEHALF OF APPLE.)2122MR. MCELHINNY:GOOD MORNING.MAY IT PLEASE THE COURT.MY NAME IS HAROLD23MCELHINNY.I'LL USE A LITTLE BIT OF MY TIME TO2425REPEAT SOME OF THE INTRODUCTIONS THAT YOU HEARDYESTERDAY IN CASE YOU HAD OTHER THINGS ON YOUR MIND

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page23 of 2743051234567891011121314WHEN THE INTRODUCTIONS HAPPENED YESTERDAY.FIRST I'D LIKE TO INTRODUCE BRUCE SEWELL,WHO IS THE SENIOR VICE-PRESIDENT AND GENERALCOUNSEL OF APPLE AND IS MY BOSS.I WOULD ALSO LIKE TO TALK ABOUT THE TRIALTEAM, BECAUSE THESE ARE THE PEOPLE THAT YOU'LL BESEEING FROM TIME TO TIME.STARTING IN THE BACK ROW, YOU HAVEMARK SELWYN; YOU HAVE JOE MUELLER; YOU HAVEFRANCIS HO; YOU HAVE RACHEL KREVANS; BILL LEE, WHOYOU MET YESTERDAY; AND MIKE JACOBS; AND AS I SAID,MY NAME IS HAROLD MCELHINNY, AND WE ARE THE TEAMTHAT REPRESENTS APPLE.SO THERE IS GOOD NEWS AND THERE IS BAD15NEWS.THE GOOD NEWS IS, AS THE JUDGE HAS TOLD YOU,1617AND YOU CAN HEAR HER TALKING ABOUT THE CLOCK, SHEHAS US ON A VERY STRICT SCHEDULE TO MAKE SURE THAT1819WE DO NOT WASTE ANY OF YOUR TIME.NEWS.THAT'S THE GOOD202122THE BAD NEWS IS WHAT THAT MEANS ISTHERE'S GOING TO BE A LOT OF TESTIMONY AND A LOT OFEVIDENCE THAT'S GOING TO COME VERY QUICKLY AND, AND23IT WILL JUST COME.BUT WHAT I WANT YOU TO24UNDERSTAND FROM THE BEGINNING IS THAT BILL LEE AND25I ARE THE LEAD TRIAL COUNSEL FOR APPLE.IT IS OUR

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page24 of 2743061234567891011JOB TO MAKE SURE THAT THAT EVIDENCE COMES INCLEARLY, THAT IT GIVES YOU WHAT YOU NEED TO DO YOURJOB.AND EVERYBODY, THANK YOU FOR YOUR SERVICEYESTERDAY, AND I'LL JUST SAY FOR YOU AT THE END OFTHIS, WE WANT YOU TO BE GLAD THAT YOU SERVED ONTHIS JURY.ALTHOUGH THERE WILL BE A LOT OF FACTS ANDTHERE WILL BE A LOT OF TESTIMONY, LIKE MOSTDISPUTES, WE THINK THAT ULTIMATELY THIS WILL COMEDOWN TO TWO PRETTY SIMPLE QUESTIONS, AND THE FIRST12QUESTION IS THIS:HOW DID SAMSUNG MOVE FROM THESE1314151617181920212223PHONES -- AND THESE ARE THE PHONES THAT SAMSUNG WASSELLING IN THE YEAR 2006 -- HOW DID THEY MOVE TOTHESE PHONES WHICH THEY WERE SELLING IN 2010?LET'S LOOK AT THOSE FIRST PHONES AGAIN.I LOVE THIS PICTURE BECAUSE WHEN I FIRST LOOKED ATTHIS, I DIDN'T REMEMBER WHAT PHONES LOOKED LIKE IN2006. THERE WAS A LOT OF TESTIMONY YESTERDAY ABOUTOLD CELL PHONES, AND THERE THEY ARE.BUT THE QUESTION IS, HOW DID SAMSUNG MOVEFROM HERE IN 2006 TO HERE IN 2010?AND TO ANSWER THAT QUESTION, WE HAVE TO24GO BACK TO JANUARY 9TH, 2007.THAT'S WHEN25STEVE JOBS INTRODUCING THE IPHONE AT THE MAC WORLD

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page25 of 274307123CONFERENCE IN MOSCONE CENTER IN SAN FRANCISCO IN ACONFERENCE ATTENDED BY THOUSANDS OF PEOPLE.MR. JOBS, AT THAT CONFERENCE, CALLED THE45IPHONE THREE DEVICES IN ONE:AN INTERNET DEVICE.AN IPOD, A PHONE, AND67891011YOU WILL HEAR FROM APPLE WITNESSES WHOWERE INVOLVED IN THAT CONFERENCE, AND WHAT THEY'REGOING TO TELL YOU IS THAT APPLE HAD A VISION THATTECHNOLOGY SHOULD BE ABOUT MUCH MORE THAN SIMPLYFUNCTIONALITY.IT SHOULD BE ABOUT EXPERIENCE, HOW YOU12REACT TO YOUR PRODUCTS.A WORLD IN WHICH THE LOOK13141516171819202122232425AND FEEL OF A DEVICE AND THE WAY THAT IT INTERACTSWITH THE USER WOULD BE JUST AS IMPORTANT AS WHATTHE DEVICE WAS CAPABLE OF ACCOMPLISHING.THE EVIDENCE WILL BE THAT APPLE HAS MADETHAT VISION A REALITY, SO MUCH THAT NOW IT REALLYIS HARD TO REMEMBER WHAT PHONES LOOKED LIKE BEFORETHIS CONFERENCE.BUT AT THE SAME TIME THAT MR. JOBSANNOUNCED THE IPHONE, HE WARNED HIS NEW COMPETITORSTHAT APPLE HAD FILED FOR PATENT PROTECTION FOR MORETHAN 200 NEW INVENTIONS INCORPORATED IN THE IPHONE,OVER 200 PATENT APPLICATIONS FOR NEW INVENTIONS INA DEVICE THIS SIZE (INDICATING).

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page26 of 2743081LET'S THINK ABOUT WHAT THAT MEANS.THE2345678910111213141516171819IPHONE, LIKE ALL OF APPLE'S PRODUCTS FROM THE FIRSTMACINTOSH COMPUTER TO THE APPLE STORE DOWN THESTREET, IS ABOUT CREATING A UNIQUE AND SPECIAL USEREXPERIENCE, AN EXPERIENCE THAT IS SO SEAMLESS ANDINTUITIVE THAT IT JUST FEELS RIGHT.IT DOESN'T COME EASY, AND THAT'S WHY THEWITNESSES WHO COME HERE WILL TELL YOU ABOUT THETEAMWORK AND THE INNOVATION THAT IT TOOK IN ORDERTO MAKE THIS A REALITY.THE EXPERIENCE THAT USERS HAVE WITHPRODUCTS LIKE THE IPHONE ARISES OUT OF THERELATIONSHIP BETWEEN THE MANY INTERVENTIONS -- THEMANY INNOVATIONS AND INVENTIONS THAT GOT PULLEDTOGETHER INTO THIS NEW DEVICE, INNOVATIONS LIKE THEBOUNCE BACK FEATURE.IF WE THINK ABOUT IT, YOU KNOW THAT IN ANIPAD OR AN IPHONE, WHENEVER YOU GET TO THE BOTTOMOF A LIST, YOU KNOW YOU'RE AT THE BOTTOM OF A LIST20BECAUSE IT BOUNCES BACK.IT'S A LITTLE THING -- IT2122SEEMS LIKE A LITTLE THING, BUT IF YOU THINK ABOUTIT, OTHERWISE IF IT STOPPED, YOU WOULD THINK YOUR23PHONE WAS BROKEN.OR IF IT JUST KEPT GOING INTO2425WHITE SPACE, YOU WOULDN'T KNOW WHERE YOU WERE ONYOUR SCREEN.

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page27 of 2743091234567891011OTHER INVENTIONS WERE THE BLACK TO BLACKCOMPLETE FLAT FACE OF THE PHONE, WHICH WAS A NEWLOOK, A LOOK THAT DIDN'T EXIST, THAT DRAWS PEOPLEINTO THE DEVICE AND MAKES THEM WANT TO USE IT.EACH OF THOSE INNOVATIONS, THE DESIGN OFTHE THING, THE BOUNCE BACK FEATURE, ALL OF THOSETHINGS WERE COVERED BY INDIVIDUAL PATENTS BECAUSETHEY ARE CRITICAL COMPONENTS THAT YOU HAD TO PULLALL TOGETHER TO GET A PRODUCT THAT WOULD WORK FORTHE FIRST TIME.MANY OF US ARE AT LEAST GENERALLY12FAMILIAR WITH APPLE'S HISTORY.IN 1984, APPLE13INTRODUCED THE MACINTOSH COMPUTER, A COMPETITOR IN14THE P.C.IT WAS FAMOUS FOR ITS NEW DESIGN, THE USE1516171819202122232425OF THE MOUSE, AND ITS DISTINCTIVE ICONS.THEN IN 2001, APPLE SURPRISED THE WORLDWITH THE IPOD, APPLE'S VERSION OF AN MP3 PLAYER,AGAIN, A PRODUCT IDENTIFIED BY A UNIQUE DESIGN THATTHE WORLD IMMEDIATELY IDENTIFIED AS AN APPLEPRODUCT.THE IPOD LINE HAS BEEN SO SUCCESSFUL THATTODAY, TEN YEARS LATER, APPLE STILL SELLS MILLIONSOF THEM EVERY YEAR.SO BY 2001, APPLE WAS A FAMOUS COMPUTERCOMPANY AND IT WAS A FAMOUS MUSIC COMPANY.

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page28 of 27431012345BUT AS YOU'RE GOING TO HEAR FROM THEPEOPLE WHO WORKED THERE AT THE TIME WHO WEREINVOLVED IN THIS, APPLE WAS NOT CONTENT TO STAY ACOMPUTER COMPANY AND A MUSIC COMPANY.APPLE HAS ALWAYS BEEN A FORWARD-LOOKING6COMPANY.IT ALWAYS HAS ITS EYE ON THE FUTURE.7PEOPLE ARE ALWAYS TALKING ABOUT WHAT WILL APPLE'S8NEXT PRODUCT BE?THE PEOPLE AT APPLE ARE ALWAYS910TALKING ABOUT WHAT WILL THEIR NEXT PRODUCT BE?AND SO IN 2003, APPLE BEGAN A RESEARCH11PROJECT.IRONICALLY, AS YOU'LL HEAR, WHEN THEY1213141516171819202122232425STARTED THE PROJECT, IT WASN'T ABOUT THE PHONE.THEY STARTED WORKING ON WHAT EVENTUALLY BECAME THEIPAD.BUT AS THESE PEOPLE, AS THESE ENGINEERS,AS THESE DESIGNERS GOT TOGETHER IN THEIR SMALLGROUP THAT WAS WORKING ON IT AND THEY WEREDISCUSSING ABOUT THE PRODUCTS, THEY SUDDENLYREALIZED THAT WHAT THE WORLD REALLY NEEDED, WHAT ITDIDN'T HAVE, WAS A PHONE THAT HAD THE CAPABILITIESOF A COMPUTER.AND SO APPLE BEGAN TO DESIGN AN ENTIRELYNEW PRODUCT, A PHONE, A WEB BROWSER, AND A MUSICPLAYER, A PHONE THAT HAD A DESIGN THAT THE WORLDHAD NEVER SEEN BEFORE.

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page29 of 2743111234PHYSICAL KEYBOARDS WOULD BECOME A THINGOF THE PAST.YOU'LL HEAR THAT TO DO THIS REQUIREDCOMBINING THE TALENTS OF PEOPLE FROM VARIOUS --5FROM MANY DIFFERENT FIELDS.IT REQUIRED AN67891011ENTIRELY NEW HARDWARE SYSTEM, THE MAC OS SYSTEMWHICH WORKED ON A COMPUTER HAD TO BE TRANSPORTED SOTHAT IT WOULD WORK ON A DEVICE AS SMALL AS A PHONE.IT REQUIRED AN ENTIRELY NEW USERINTERFACE, AND THAT INTERFACE HAD TO BECOMECOMPLETELY INTUITIVE.12THINK ABOUT THIS FOR A MINUTE.THINK13ABOUT THE FIRST TIME PEOPLE PICKED UP ONE OF THESE14DEVICES.WHAT WAS INTERESTING ABOUT IT, WHAT1516STRUCK ME -- AND YOU CAN TELL I AM NOT OF THE YOUNGTECHIE GENERATION -- BUT WHAT STRUCK ME ABOUT THIS1718WAS THERE IS NO MANUAL.TO DO IT.IT DOESN'T TEACH YOU HOW192021YOU HAD TO WALK INTO THE STORE, YOU HADTO PICK IT UP, AND YOU HAD TO IMMEDIATELY GET DRAWNINTO HOW TO USE THE DEVICE, BECAUSE IF THAT DIDN'T22HAPPEN IMMEDIATELY, YOU WOULD NEVER BUY IT.YOU232425WOULD PUT IT BACK, YOU WOULD SAY IT WAS TOO HARD,THAT THE HUNDREDS AND THOUSANDS, THE MILLIONS OFPEOPLE THAT NEEDED TO TAKE THIS DEVICE -- THAT

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page30 of 27431212345678910NEEDED TO BUY THIS DEVICE WOULD NOT BE ATTRACTED TOIT UNLESS IT WORKED FOR THEM THE FIRST TIME THEYPICKED IT UP.AND TO MAKE THAT HAPPEN FOR PEOPLE WHOHAD NEVER USED A TOUCH SCREEN BEFORE REQUIREDFORWARD THINKING, FORWARD INVENTIONS, GADGETS,FEATURES THAT WOULD DRAW PEOPLE INTO THE PRODUCTITSELF.AND FINALLY, IT REQUIRED A UNIQUE DESIGN,A PRODUCT THAT WOULD SAY TO PEOPLE, "THIS IS AN11APPLE PRODUCT.IT IS NOT A PRODUCT THAT ANY OTHER121314COMPANY HAS EVER MADE."SO THAT IS -- THIS IS WHAT THE PEOPLE INCUPERTINO DEVELOPED LESS THAN TEN MILES FROM THIS15COURTHOUSE.THAT'S WHAT THIS TEAM PUT TOGETHER.1617JUST FOR A MOMENT, IF YOU CAN GO BACK INTIME, THINK OF WHAT A RISK THAT WAS FOR THE18COMPANY.THEY WERE A SUCCESSFUL COMPUTER COMPANY.1920THEY WERE A SUCCESSFUL MUSIC PLAYER COMPANY.AND THEY WERE ABOUT TO ENTER A FIELD THAT21WAS DOMINATED BY GIANTS.NOKIA, MOTOROLA, SAMSUNG,22232425ALL OF THESE PEOPLE WERE IN THE TELEPHONE BUSINESS.SAMSUNG AND APPLE -- OR APPLE HADABSOLUTELY NO NAME IN THE FIELD, NO CREDIBILITY.IT WAS AN ENTRY INTO AN AREA THAT, IF IT HAD GONE

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page31 of 27431312BAD, COULD HAVE ENDED THE COMPANY'S FUTURE.WE ALL KNOW NOW THAT IT WAS A SUCCESS.3WE ALL KNOW NOW THAT IT WORKED.WE ALL FORGET45ABOUT HISTORY AND HOW THEY GOT THERE.FORGET ABOUT THE RISKS.WE ALL67891011BUT ON JANUARY 9TH, 2007 WHEN STEVE JOBSAND PHIL SCHILLER -- YOU'LL MEET MR. SCHILLER,HE'LL COME HERE AND TESTIFY -- WENT THROUGH THATPRESENTATION, THEY WERE LITERALLY BETTING THEIRCOMPANY.CRITICAL ACCLAIM FOR THE IPHONE WAS12IMMEDIATE.ON JANUARY 11TH, 2007, THE NEW YORK131415161718TIMES COMPARED APPLE TO THE FAIRY GODMOTHER INCINDERELLA, WAVING A WAND AT SOME HOMELY ANDUTILITARIAN OBJECT, THE ORDINARY CELL PHONE, ANDTURNING IT INTO SOMETHING GLAMOROUS AND EXCITING,THE IPHONE.TIME MAGAZINE NAMED THE IPHONE THE 200719INVENTION OF THE YEAR.THEY CALLED IT -- THIS IS2021THEIR WORDS, THIS IS NOT AN APPLE AD, THIS ISTIME MAGAZINE -- THE PHONE THAT HAS CHANGED PHONES22FOREVER.AND THEY SAID THE IPHONE IS CRITICAL.23THINK ABOUT THAT FOR A MOMENT.APPLE HAS24CHANGED A PHONE INTO SOMETHING GLAMOROUS AND25AMAZING.THE PHONE THAT HAS CHANGED PHONES

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page32 of 2743141FOREVER.23PRESTIGIOUS PROFESSIONAL ORGANIZATIONS,AS YOU'LL HEAR, HAVE GIVEN IT AWARDS FOR ITS DESIGN4AND ITS INGENUITY.WE'LL TALK SPECIFICALLY, WHEN567891011121314151617ONE OF THE DESIGNERS COMES, ABOUT THIS DESIGN ARTDIRECTION AWARD, WHICH IS GENERALLY CONSIDERED TOBE THE HIGHEST ACHIEVEMENT IN THE DESIGN FIELD FORA PRODUCT.THE WORLD IMMEDIATELY RECOGNIZED, THESEPEOPLE, THESE CRITICS IMMEDIATELY RECOGNIZED THATAPPLE HAD DONE SOMETHING NEW AND REVOLUTIONARY,BOTH IN TERMS OF THE NATURE OF THE DEVICE, AND INTERMS OF THE NATURE OF THE DESIGN.BUT YOU KNOW, AND THE REASON WE'RE HEREIS BECAUSE APPLE PROTECTED EACH OF THESE INVENTIONSWITH PATENTS.YOU HEARD ABOUT, IN THE MOVIE, THE U.S.18PATENT AND TRADEMARK OFFICE.WHAT YOU'LL HEAR1920212223ABOUT HERE IS THAT EVEN THE PATENT AND TRADEMARKOFFICE HAS RECOGNIZED THE SIGNIFICANCE OF APPLE'SINVENTIONS AND THE IMPORTANCE OF THE PATENTPROTECTIONS THAT APPLE HAS BEEN AWARDED.THIS -- YOU SAW ONE OF THOSE THINGS IN24THE PRESENTATION.THIS IS ANOTHER PRESENTATION25THAT THE PTO DID LAST DECEMBER, WHICH HAS NOW BEEN

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page33 of 27431512345MOVED TO THE SMITHSONIAN MUSEUM AS A PERMANENTEXHIBIT, ABOUT THE IMPORTANCE OF THE APPLEINVENTIONS AND THE DESIGNS THAT HAVE BEEN AWARDED.SO APPLE ENTERS THE PHONE FIELD.APPLE'S COMPETITORS IMMEDIATELY RECOGNIZE6THE IMPACT OF THIS NEW DEVICE.THESE COMPETITORS78910INCLUDED, AS I MENTIONED, SAMSUNG ELECTRONICSCORPORATION, WHICH IS ONE OF THE THREE DEFENDANTSIN THIS CASE.BUT AS YOU WILL HEAR, SAMSUNG IS NOT ONLY1112A COMPETITOR OF APPLE.MAJOR SUPPLIERS.IT IS ALSO ONE OF APPLE'S13APPLE, LIKE MOST OTHER COMPANIES, BUYS14COMPONENTS FROM SUPPLIERS.APPLE REGULARLY MEETS1516171819202122232425WITH THOSE SUPPLIERS TO DESCRIBE FOR THEM THESEMICONDUCTORS AND OTHER COMPONENTS IT WILL NEEDFOR ITS PRODUCTS.AND AS APPLE HAS BECOME MORE AND MORESUCCESSFUL, APPLE HAS PURCHASED MORE AND MORE PARTSFROM SAMSUNG, BILLIONS OF DOLLARS FOR ELECTRONICPARTS YEAR AFTER YEAR.SO AS BOTH A PHONE MAKER AND A SUPPLIER,SAMSUNG SUDDENLY FOUND ITSELF COMPETING WITH ITSLARGEST CLIENT.BUT AS THE MAGAZINE ARTICLES SAY, IN

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page34 of 27431612345678910112007, APPLE CHANGED PHONES FOREVER.WHAT DID THAT MEAN?IT MEANT THAT A COMPETITOR LIKE SAMSUNGCOULD NOT CONTINUE TO MAKE THE SAME KINDS OFPHONES, THE 2006 PHONES, THAT IT USED TO MAKE.IT MEANT THAT APPLE HAD INVENTEDSOMETHING THAT WAS SO UNIQUE AND INNOVATIVE THATCUSTOMERS WOULD NO LONGER ACCEPT THE DEVICES THATLOOKED AND ACTED -- THAT DIDN'T HAVE TOUCH SCREENS,FOR EXAMPLE.FACED WITH THIS REALITY, THE EVIDENCE12WILL SHOW THAT SAMSUNG HAD TWO CHOICES:IT COULD131415161718192021ACCEPT THE CHALLENGE OF THE IPHONE, IT COULD CREATEITS OWN PRODUCTS, IT COULD INNOVATE, IT COULD COMEUP WITH ITS OWN DESIGNS, IT COULD BEAT APPLE FAIRLYIN THE MARKETPLACE; OR IT COULD COPY APPLE.SAMSUNG COULD LOOK AT THE DETAILS OF THEIPHONE, DETAILS LIKE THE BOUNCE BACK FIGURE --BOUNCE BACK FEATURE AND THE FLAT GLASS FACE ANDSAMSUNG COULD COPY THAT.NOW, AS WE ALL KNOW, IT'S EASIER TO COPY22THAN TO INNOVATE.IT'S FAR LESS RISKY BECAUSE, AS23THE EVIDENCE WILL SHOW, APPLE HAD ALREADY TAKEN THE24RISKS.APPLE HAD INTRODUCED SOMETHING THAT WAS25WILDLY SUCCESSFUL IN THE MARKETPLACE.

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page35 of 2743171234567891011121314SO WHAT WILL THE EVIDENCE SHOW THATAPPLE'S TRUSTED SUPPLIER DID WHEN THE IPHONE WASINTRODUCED?WE'RE GOING TO LOOK AT SAMSUNG'S OWNINTERNAL DOCUMENTS.NOW, AS YOU PROBABLY KNOW, IN LAWSUITSLIKE THIS, AS PART OF THE PROCESS, EACH COMPANY ISREQUIRED TO TURN ITS SECRET, CONFIDENTIAL, INTERNALDOCUMENTS OVER TO THE LAWYERS FOR THE OTHER SIDE.SO WE, AS THE LAWYERS FOR APPLE, HAVE HAD THEOPPORTUNITY TO LOOK AT SAMSUNG'S INTERNALDOCUMENTS.WHAT I'M ABOUT TO SHOW YOU ARE SAMSUNGINTERNAL DOCUMENTS, TRANSLATIONS OF THEM, THAT HAVE15NEVER BEEN SEEN IN PUBLIC BEFORE.APPLE DIDN'T16171819KNOW ABOUT THESE DOCUMENTS AT THE TIME THAT THEYWERE CREATED.SHORTLY AFTER THE IPHONE HIT THE MARKET,ONE SAMSUNG DIVISION PREPARED THIS FEASIBILITY20REVIEW -- THIS IS AN ENGLISH TRANSLATION.THIS21WILL BE EXHIBIT 34.WHEN THE TRIAL IS ALL OVER,22232425YOU WILL ACTUALLY HAVE THIS PHYSICAL DOCUMENT INTHE JURY ROOM WITH YOU -- TO ANALYZE THE IMPACTTHAT THE IPHONE WAS HAVING ON SAMSUNG'S MARKET.THE PHONE FOCUSSED ON THE IPHONE'S USER

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page36 of 2743181INTERFACE AND ITS BEAUTIFUL DESIGN.23"BEAUTIFUL DESIGN."OWN WORDS AT THE TIME.THESE WERE SAMSUNG'S4567891011121314151617AND IT CONCLUDED, "COMPETING WITH THEIPHONE ONE WAY OR THE OTHER IS INEVITABLE."AND THEN IT NOTED -- H.W. STANDS FORHARDWARE -- "THE HARDWARE PORTION IS EASY TO COPY."EXHIBIT 36 IS A SAMSUNG SURVEY FROM 2008DESCRIBING WHAT CONSUMERS WERE TELLING SAMSUNG'SINTERVIEWERS ABOUT THE BEAUTIFUL NEW APPLE PRODUCT.TOUCH PORTFOLIO -- BECAUSE THESE PHONES HAVE TOUCHSCREENS, SO A TOUCH PORTFOLIO RELATES TO PHONE THATIS OPERATED FROM A TOUCH SCREEN.THE PEOPLE IN THE MARKETPLACE WERETELLING SAMSUNG, CONSUMERS WERE SAYING THE IPHONEHAS CHANGED THEIR NOTION OF WHAT A PHONE CAN ANDSHOULD DO. IT'S NOT JUST USABLE. IT'S NOT JUST18FUNCTIONAL.IT'S ENJOYABLE, ENGAGING, AND COOL.19THEY SAID IT'S FUN.IT SAYS THE GESTURES202122232425LIKE THE TWO FINGERED PINCH AND FLICK, YOU'LL SEETHAT -- YOU KNOW THAT ON PICTURES WHERE YOU CANEXPAND THE PICTURE JUST BY PINCHING IT OR PULLINGIT TOGETHER OR PULLING IT APART, THAT'S ONE OF THEPATENTS IN THIS CASE -- AND IN 2008, CONSUMERS WERETELLING SAMSUNG THAT THAT WAS ONE OF THE THINGS

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page37 of 27431912345678910111213141516171819202122232425THAT THEY IMMEDIATELY NOTICED ABOUT THE PHONE.AND THEY SAID IT WAS WHIMSICAL BECAUSETHE LISTS BOUNCED.THESE ARE A FEW OF THE FEATURES THATIMMEDIATELY CAPTURED THE PUBLIC'S ATTENTION.SO AS THE MARKET TURNED AGAINST SAMSUNG'SOWN DESIGNS, AT ITS HIGHEST CORPORATE LEVELS,SAMSUNG DECIDED SIMPLY TO COPY EVERY ELEMENT OF THEIPHONE.SAMSUNG MAY BRING A COUPLE OF DESIGNERSTO THIS TRIAL TO TELL YOU THAT THEY PERSONALLYDIDN'T COPY.BUT THE PRODUCTS THEY DESIGNED AND THEDOCUMENTS THAT SAMSUNG HAS PROVIDED TELL A MUCHDIFFERENT STORY.LET'S LOOK AT EXHIBIT 40.EXHIBIT 40 ARE NOTES FROM A FEBRUARY 2010EXECUTIVE LEVEL MEETING SUPERVISED BY THE HEAD OFSAMSUNG'S MOBILE PHONE DIVISION, J.K. SHIN, THEHEAD OF THEIR MOBILE PHONE DIVISION.MR. SHIN TOLD THE ASSEMBLED SAMSUNGEXECUTIVES -- THIS IS 2010 -- THAT THE USERINTERFACE OF SAMSUNG'S THEN CURRENT OFFERING, WHICHWAS CALLED THE OMNIA -- AND HERE'S A PICTURE OFWHAT THE OMNIA LOOKED LIKE, YOU SEE THE BUTTONS

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page38 of 2743201234567891011121314151617181920DOWN AT THE BOTTOM.SO HE'S TALKING ABOUT THE OMNIA AND HESAYS THE USER INTERFACE OF SAMSUNG'S OMNIA COULDNOT COMPETE WITH THE IPHONE.HE SAID THE IPHONE HAS BECOME THESTANDARD. HE TALKED ABOUT THE USER EXPERIENCE --THAT'S -- THE U.S. IS USER EXPERIENCE -- BETWEENTHE OMNIA AND THE IPHONE AND HE SAID IT IS ADIFFERENCE BETWEEN HEAVEN AND EARTH.IN 2010, THE HEAD OF THEIR MOBILE PHONEDIVISION TOLD HIS EXECUTIVES THAT SAMSUNG FACED,QUOTE, "A CRISIS OF DESIGN."FINALLY, MR. SHIN TOLD HIS SENIOREXECUTIVES THAT THEIR MAJOR CUSTOMERS, THE PHONECARRIERS, WERE URGING SAMSUNG TO, QUOTE, "MAKESOMETHING LIKE THE IPHONE."EVEN IF THESE DOCUMENTS THEMSELVES DIDN'TSHOW COPYING, THE PRODUCTS THEMSELVES LEAD US TO ANINESCAPABLE CONCLUSION.AGAIN, THIS CHART SHOWS WHAT SAMSUNG'S21PHONES LOOKED LIKE BEFORE THE IPHONE.THERE'S A22232425PHONE IN THERE THAT LOOKS LIKE THE PALM, AND SEETHE ONE THAT LOOKS LIKE THE BLACKBERRY?THIS CHART SHOWS THE PHONES THAT SAMSUNGINTRODUCED RIGHT AFTER THE IPHONE CAME OUT FOR THE

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page39 of 27432112NEXT PERIOD OF TIME.THE ONE THAT IS CALLED AN F700 IS WHAT'S34CALLED A SLIDER PHONE.GET TO THE KEYBOARD.YOU WOULD SLIDE IT OPEN TO567BUT FINALLY, AFTER CAREFULLY MONITORINGAPPLE'S SUCCESS AND THE FAILURE OF ITS OWN DESIGNS,IN JUNE 2010, SAMSUNG INTRODUCED THE8GALAXY S I9000, A COMPLETE IPHONE CLONE.SINCE91011THEN THE SUCCESS OF THE GALAXY SERIES HAS LED TO ASERIES OF IPHONE KNOCK-OFFS.AGAIN, YOU DON'T HAVE TO TAKE OUR WORD12FOR IT.CRITICS IMMEDIATELY CHIDED SAMSUNG FOR THE13OBVIOUS COPYING.P.C. WORLD SAYS, "HOW FAMILIAR IT14LOOKED.THE DESIGN IS ACTUALLY VERY1516IPHONE 3GS-LIKE."WIRED MAGAZINE WAS EVEN TOUGHER.IT17SAYS, "SAMSUNG RIPS OFF THE IPHONE 3G DESIGN,1819SHOCKINGLY SIMILAR."A "DERIVATIVE DESIGN."THEY CALLED SAMSUNG'S DESIGN202122BUT SAMSUNG SIMPLY IGNORED THIS CRITICISMAND PLOWED AHEAD WITH ITS STRATEGY.PHONES AREN'T THE ONLY PRODUCTS INVOLVED23IN THIS CASE.ON JANUARY 7, 2010, APPLE REPEATED2425ITS SUCCESS BY INTRODUCING THE IPAD.DO YOU BELIEVE THE IPAD HAS ONLY BEEN

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page40 of 274322123AROUND FOR TWO YEARS?AGAIN, CRITICAL ACCLAIM WAS IMMEDIATE.TIME MAGAZINE NAMED THE IPAD AS ONE OF THE 50 BEST4INVENTIONS OF THE YEAR.THEY SAID THAT APPLE IS5678910THE FIRST COMPANY THAT DESIGNED FINGER-FRIENDLYHARDWARE AND SOFTWARE FROM SCRATCH, REINVENTING APRODUCT CATEGORY THAT ITS COMPETITORS HAVE GIVEN UPON.TIME MAGAZINE CALLED IT MAGICAL AND THEYCALLED IT REVOLUTIONARY.1112CRITICS AT THE TIME.AGAIN, NOT OUR WORDS.THE WORDS OF131415161718192021SAMSUNG IMMEDIATELY INTRODUCED AN EXACTCOPY INTO THE MARKETPLACE.THIS IS WHAT SAMSUNG'S TABLET LOOKED LIKEBEFORE THE IPAD WAS ANNOUNCED, AND THIS IS THEGALAXY TAB 10.1 THAT SAMSUNG RELEASED A YEAR AGO INJUNE OF 2011 (INDICATING).AGAIN, CRITICS IMMEDIATELY ATTACKEDSAMSUNG FOR ITS OBVIOUS COPYING.ON MARCH 22ND, 2011, FAST COMPANY WROTE,2223"SAMSUNG'S ANTI-IPAD 2 POLICY:OF IT."CLONE THE HECK OUT2425APPLE'S OFFERING.THEY CALLED IT PRETTY MUCH CLONES OF

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page41 of 27432312345678910AND IN WORDS THAT I MAY REPEAT IN THECLOSING, THEY SAID, "SAMSUNG HAS THROWN IN THETOWEL ON INNOVATIVE TABLET DESIGN AND HAS REALIZEDIT HAS TO MATCH APPLE'S SUCCESSFUL DESIGN TOCAPTURE ANY MEANINGFUL MARKET SHARE."TO BE CLEAR, SAMSUNG DID NOT SIMPLY COPYTHE OUTWARD APPEARANCE OF APPLE'S PHONE AND TABLET.SAMSUNG COPIED EVERY DETAIL, INCLUDINGTHE SPECIFIC PATENTED INVENTIONS THAT WE WILL TALKABOUT IN THIS TRIAL.1112THIS WAS NOT ACCIDENTAL.COPYING WAS INTENTIONAL.SAMSUNG'S131415161718IN THIS TRIAL, YOU WILL SEE DOCUMENTSTHAT SHOW HOW OVER 100 TIMES SAMSUNG MADE DETAILEDCHANGES TO ITS PHONE AND TABLETS SO THAT THE ENDRESULT WAS IDENTICAL TO APPLE PRODUCTS.THIS DOCUMENT WILL BE EXHIBIT 44, ANDAGAIN, YOU'LL HAVE IT IN THE JURY ROOM WHEN WE'RE19DONE.THIS WAS THE ORIGINAL KOREAN DOCUMENT THAT202122232425CAME FROM SAMSUNG.WHEN YOU LOOK THROUGH IT, AND I'LL SHOWYOU A PAGE IN A MINUTE, BUT WHEN YOU LOOK THROUGHIT, YOU WILL SEE THAT FOR OVER 100 PAGES, EVERYPAGE HAS A COMPARISON OF THE SI PHONE, WHICHSAMSUNG WAS WORKING ON AT THE TIME, WITH THE

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page42 of 274324123456IPHONE, PAGE AFTER PAGE AFTER PAGE OF THISDOCUMENT.AND IF WE LOOK AT A SAMPLE PAGE, EVERYSINGLE ONE OF THE PAGES IN THE REPORT FOLLOWS THISSAME FORMAT.AT THE TOP IT IDENTIFIES A DIFFERENCE7BETWEEN THE GALAXY S I AND THE IPHONE.HERE YOU8910111213141516171819202122232425CAN SEE THE BLUE HEADING AT THE TOP AND THEN THEBULLET POINT BELOW WHERE IT SAYS, HERE'S THE WAYTHEY DO IT IN THE IPHONE, AND THE IPHONE -- ANDSOMETIMES IT'S HARD TO TELL THE DIFFERENCE, BUT THEIPHONE IS ON THE LEFT -- AND HERE'S THE WAY THEGALAXY S I DOES IT ON THE RIGHT.AND THEN AT THE BOTTOM IT HAS WHAT'SCALLED DIRECTIONS FOR IMPROVEMENT, AND IN EVERYCASE, OVER 100 PAGES, IT RECOMMENDS COPYING ORMAKING IT IDENTICAL TO THE IPHONE.ON THIS PARTICULAR PAGE, YOU'LL SEE THATSAMSUNG CHANGED ITS ICONS TO LOOK MORE LIKE APPLE'SICONS, EVEN THOUGH THE APPLE ICON DESIGN WASPROTECTED BY THE U.S. DESIGN PATENT, ONE OF THEONES THAT'S IN YOUR BINDER.EXHIBIT 57 FROM 2011 IS A SIMILAR REPORT,BUT THIS ONE -- AGAIN, AN ENGLISH TRANSLATION THATYOU'RE SEEING HERE -- COVERS TABLET DESIGN.

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page43 of 2743251234567THIS PAGE FROM THE REPORT COMPARES ASAMSUNG TABLET THAT WAS UNDER DEVELOPMENT TO THEIPAD 2.NOW, IN THIS ONE THE SAMSUNG TABLET IS ONTHE LEFT AND THE IPAD IS ON THE RIGHT.SAMSUNG SAYS THAT LEGIBILITY IS NOTGOOD -- TALKING ABOUT ITS OWN -- AS THE ICON LABEL8IS TOO SMALL IN PROPORTION TO THE LARGE SCREEN.IT910111213141516171819202122232425REMARKS THAT THE IPAD 2 HAS LARGE ICONS AND LABELS.SO SAMSUNG RECOMMENDS THE PROPOSEDIMPROVEMENT OF INCREASING THE SIZE OF ICONS ANDLABELS IN ORDER TO MATCH THE IPAD 2.AGAIN, YOU WILL HAVE THIS EXHIBIT ANDYOU'LL SEE THAT THERE ARE MANY PAGES IN THE RECORD,EACH ONE A SIDE-BY-SIDE COMPARISON AND EACH ONE ADECISION TO COPY APPLE.TO BE BLUNT, THE TESTIMONY IS GOING TOSHOW YOU THAT SAMSUNG HAS NOT BEEN HONEST ABOUTTHIS COPYING.BEFORE WE GOT THE DOCUMENTS THAT I JUSTSHOWED YOU, AT THE VERY BEGINNING OF THIS CASE, ATA TIME WHEN WE WERE TALKING ABOUT A SUBSET OF THEPATENTS THAT ARE AT ISSUE, NOT ALL OF THEM, BUT ASUBSET, AND A SUBSET OF THE PRODUCTS THAT ARE ATISSUE, NOT ALL OF THE ONES THAT ARE NOW, WE WERE

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page44 of 27432612345ABLE TO QUESTION A SAMSUNG CORPORATE SPOKESMANUNDER OATH ABOUT COPYING.THIS WAS A WITNESS THAT SAMSUNG HADCHOSEN TO BE THEIR CORPORATE SPOKESMAN ON THESUBJECT OF COPYING.67HIS NAME IS JUSTIN DENISON.WHAT MR. DENISON TESTIFIED.AND THIS IS89(WHEREUPON, A VIDEOTAPE WAS PLAYED INOPEN COURT OFF THE RECORD.)10MR. MCELHINNY:"IN EACH CASE, THE111213141516171819202122232425DESIGNERS SAID THEY HAD NOT."THAT WAS TESTIMONY UNDER OATH IN THISCASE.AS I MENTIONED SEVERAL TIMES, APPLE HASTAKEN STEPS TO PROTECT THE HUNDREDS OF INVENTIONSTHAT WENT INTO ITS PRODUCTS, AND IN RECOGNITION OFAPPLE'S CREATIVITY, THE U.S. PATENT AND TRADEMARKOFFICE HAS AWARDED APPLE HUNDREDS OF PATENTS,PATENTS THAT COVER ITS UNIQUE AND BEAUTIFULDESIGNS; PATENTS THAT COVER VARIOUS ASPECTS OF THEHARDWARE OF ITS PRODUCTS; AND PATENTS THAT COVERTHE SOFTWARE THAT SUPPORT APPLE'S INSTANTLYRECOGNIZED USER INTERFACE.OBVIOUSLY WE CAN'T PURSUE THE HUNDREDS OFPATENTS THAT COVERED THE IPHONE IN THIS -- AND THE

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page45 of 2743271234567IPAD, I KNOW THIS WILL DISAPPOINT YOU, BUT WE CAN'TDO 100 PATENTS IN THIS TRIAL.SO WHAT WE HAVE DONE IS WE HAVE SELECTEDA SPECTRUM, A HANDFUL OF PATENTS BECAUSE WE WANT TOCONVINCE YOU THAT SAMSUNG HAS COPIED THE ENTIREDESIGN USER EXPERIENCE.SPECIFICALLY, IN THIS CASE WE WILL8PRESENT 12 CLAIMS FOR YOU TO CONSIDER.FIRST IS9101112131415161718GOING TO BE THE DESIGN -- THE INFRINGEMENT OF FOURDESIGN PATENTS.DESIGN PATENTS, AS JUDGE KOH JUSTEXPLAINED TO YOU, ARE PATENTS THE U.S. GOVERNMENTAWARDS TO NEW AND NOVEL DESIGNS.IN MAY 2009, APPLE WAS AWARDED A PATENT,THE D'087 THAT COVERS THE DESIGN SHOWN IN THESEFEATURES.THE DESIGN INCLUDES THE FLAT FRONT FACE,ALONG WITH THE BEZEL THAT SURROUNDS THE FRONT FACE19OF THE IPHONE.THE BEZEL IS THE METAL PIECE THAT20212223SURROUNDS THE FACE THAT'S HIGHLIGHTED NOW IN THEPICTURE.LOOK AT THE SAMSUNG VIBRANT, WHICH ISJUST ONE OF THE SAMSUNG PHONES THAT WE ACCUSE OF24INFRINGING.IT HAS THE SAME FLAT FRONT SURFACE AND25A BEZEL SURROUNDING THE FRONT FACE.

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page46 of 2743281IN JUNE 2010, APPLE WAS AWARDED -- YOU2WILL HAVE THESE, BY THE WAY.YOU WILL HAVE THESE3PHONES IN THE JURY ROOM.YOU'LL HAVE THE PHYSICAL4567PHONES THEMSELVES SO THAT YOU CAN COMPARE THEM ANDMAKE YOUR DETERMINATION AT THE END OF TRIAL.IN JUNE 2010, APPLE WAS AWARDED THE D'677PATENT THAT COVERS THE DESIGNS SHOWN IN THESE8FIGURES.THE DESIGN INCLUDES THE FLAT BLACK910TRANSPARENT GLASS FRONT FACE OF THE IPHONE.HERE'S A DIFFERENT SAMSUNG PHONE, THE11FASCINATE.IT HAS THE SAME BLACK -- I CAN'T SAY1213141516THIS -- SAME FLAT BLACK TRANSPARENT GLASS FRONTFACE THAT RUNS EDGE TO EDGE ACROSS THE ENTIRESURFACE.IN NOVEMBER 2009, APPLE WAS AWARDED APATENT THAT COVERS THE DESIGNS SHOWN IN THESE17FIGURES.I ALREADY SHOWED YOU ONE OF THE SAMSUNG181920INTERNAL DOCUMENTS THAT SHOWS SAMSUNG'S DECISION TOCOPY THIS DESIGN.AND HERE IS ANOTHER SAMSUNG PHONE, THE21GALAXY S I9000.IT HAS ROWS OF ICONS AND SQUARES22232425WITH ROUNDED CORNERS AND IT HAS THE BOTTOM ROW OFICONS THAT NEVER CHANGES -- IT'S CALLED A DOCK --THAT IS OFFSET AGAINST A DIFFERENT BACKGROUND, JUSTLIKE THE D'305 DESIGN PATENT.

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page47 of 274329123456789101112131415161718192021AND FINALLY, IN MAY 2005, APPLE WASAWARDED THE D'889 PATENT, A PATENT THAT COVERS THETABLET DESIGN SHOWN IN THESE FIGURES.AND HERE IS THE GALAXY, SAMSUNG GALAXYTAB 10.1 WHICH HAS THE SAME RECTANGULAR SHAPE WITHFOUR EVENLY ROUNDED CORNERS AND AN EDGE TO EDGETRANSPARENT FRONT SURFACE.OBVIOUSLY I CAN'T ANTICIPATE ALL OF THEARGUMENTS SAMSUNG IS GOING TO RAISE TO EXPLAIN WHATIT HAS DONE, AND YOU WILL HEAR FROM SAMSUNG'SLAWYER AS SOON AS I SIT DOWN -- WELL, AS SOON ASWE'RE DONE.BUT I DO KNOW ONE THING THAT THEY'REGOING TO SAY AND I WANT TO MENTION IT NOW.SAMSUNG IS GOING TO TELL YOU THAT APPLE'SDESIGNS ARE FUNCTIONAL, NOT ORNAMENTAL, AND THATEVERYONE WHO WANTS TO DESIGN A PHONE HAS TO DO ITIN THE WAY THAT APPLE HAS CHOSEN TO DO IT.I THINK OF THIS AS THEDEVIL-MADE-ME-DO-IT DEFENSE.FIRST, DON'T GET CONFUSED BY THE22LANGUAGE.JUST BECAUSE A PRODUCT HAS A FUNCTION,232425JUST BECAUSE YOU DO SOMETHING WITH IT DOESN'T MEANTHAT THERE IS ONLY ONE WAY TO DESIGN IT.YOU'VE ALREADY SEEN, AND YOU'VE -- YOU'VE

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page48 of 2743301ALREADY SEEN 20 DIFFERENT DESIGNS FOR IPHONES, CELL23PHONES.OBVIOUSLY THERE ARE MANY WAYS TO DO THAT.IT CANNOT BE TRUE THAT SAMSUNG HAD TO45678910COPY APPLE'S DESIGNS.THE NEXT THREE PATENTS ARE UTILITYPATENTS, AND THEY COVER USER INTERFACE DESIGNS THATHELP TO DEFINE A DISTINCTIVE WAY IN WHICH APPLE'STOUCH SCREEN RESPONDS TO INPUTS FROM THE USER.THE FIRST IS THE '381 PATENT. THE '381PATENT COVERS WHAT WE'VE BEEN CALLING THE BOUNCE11BACK FEATURE.EVERYONE WHO HAS EVER USED AN APPLE1213DEVICE RECOGNIZES THAT WHEN THEY GET TO THE EDGE OFAN ELECTRONIC DOCUMENT, THE IMAGE GETS PULLED OUT14AND THEN BOUNCES BACK TO ITS BORDER.IT WORKS FOR151617PICTURES, LISTS, WEB PAGES, AND OTHER TYPES OFELECTRONIC DOCUMENTS.WE WILL PROVE THAT SAMSUNG IS INFRINGING18CLAIM 19 OF THE '381 PATENT.CLAIM 19 SETS OUT IN19202122232425VERY PRECISE LANGUAGE THE USE OF A TOUCH SCREENDISPLAY TO SHOW WHEN SOMEONE HAS REACHED THE EDGEOF AN ELECTRONIC DOCUMENT BY SHOWING THE AREABEYOND THE EDGE OF THE DOCUMENT AND THEN HAVING THEDOCUMENT APPEAR TO BOUNCE BACK.UNFORTUNATELY, PATENTS TEND TO BE WRITTENIN TECHNICAL LANGUAGE, BUT YOU'RE GOING TO GET HELP

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page49 of 274331123456UNDERSTANDING THE TERMS FROM TWO DIFFERENT SOURCES.FIRST, AS SHE TOLD YOU YESTERDAY,JUDGE KOH HAS DEFINED SEVERAL OF THE TERMS IN THECLAIMS THAT YOU JUST SAW FOR YOU AND YOU'LL FINDTHOSE DEFINITIONS IN YOUR JURY BINDER.SECOND, WE'RE GOING TO CALL EXPERTS TO7WORK THROUGH THE CLAIMS WITH YOU.FOR THIS PATENT,8WE'RE GOING TO CALL DR. RAVIN BALAKRISHNAN.HE910WILL EXPLAIN THAT THE WORD, FOR EXAMPLE, THAT THEWORD "TRANSLATE" IN THIS CLAIM MEANS "MOVE" IN11PLAIN ENGLISH.SO THIS CLAIM COVERS MOVING AN1213141516ELECTRONIC DOCUMENT.LET ME SHOW YOU A VIDEO OF HOW THIS WORKSON THE IPHONE.(WHEREUPON, A VIDEOTAPE WAS PLAYED INOPEN COURT OFF THE RECORD.)1718MR. MCELHINNY:FEATURE IS FASCINATING.THE HISTORY OF THISI THINK I TOLD YOU ABOUT19THIS A MINUTE AGO.YOU'LL HEAR ABOUT THIS FROM202122232425SCOTT FORSTALL, WHO IS THE HEAD OF THE OPERATINGSYSTEMS AT APPLE.BUT WHEN THEY WERE PLAYING WITH THIS, IFYOU DIDN'T DO THAT, IF IT JUST DIDN'T MOVE ANYMORE, YOU WOULD THINK THAT YOUR SCREEN HAD STUCK ORYOU WOULD THINK THAT YOUR COMPUTER -- THAT YOUR

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page50 of 2743321234567891011121314151617PHONE HAD BROKEN.SO THEY WANTED TO GIVE YOU A SIGN WHEREIT ENDS, PARTICULARLY IF YOU WERE SCROLLING THROUGHA LIST AND ALL OF A SUDDEN, IT COMES TO A DEADHALT, IT WASN'T A NATURAL REACTION.BUT IF YOU DON'T DO THAT AND THE SCREENDISAPPEARS OFF AND YOU'RE LEFT WITH JUST WHITESPACE, THEY HAD WHAT THEY CALLED ALOST-IN-THE-DESERT EFFECT BECAUSE YOU DIDN'T KNOWWHICH WAY THEN TO NAVIGATE.AND SO COMING UP WITH AN ATTRACTIVE --YOU SAW IT IN THE SURVEY, IT SAYS IT CAUGHTPEOPLE'S ATTENTION, A WAY TO SIGNIFY, TO SHOW THATYOU'VE COME TO THE END OF A LIST WAS A SIGNIFICANTIMPROVEMENT IN THIS TECHNOLOGY.AS IT TURNS OUT, SAMSUNG'S INTERNALDOCUMENTS ACTUALLY DISCUSS THIS FEATURE IN GREAT18DETAIL.LET'S SEE WHAT THEY SAY.19THIS IS EXHIBIT 46.IT'S ANOTHER SAMSUNG202122232425REPORT SIMILAR TO THE ONES I SHOWED YOU EARLIER, ASERIES OF SIDE-BY-SIDE COMPARISONS BETWEEN THEIPHONE AND A SAMSUNG PHONE.PAGE 66 OF THIS REPORT MENTIONS THAT THEIPHONE, THIS TIME ON THE RIGHT, HAS A FEATURE,QUOTE, "WHERE IF A WEB PAGE IS DRAGGED TO THE EDGE

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page51 of 27433312345678910111213AND THE HAND IS RELEASED, A BOUNCING VISUAL EFFECTIS PROVIDED."ON THE OTHER HAND, TALKING ABOUT THEIROWN PHONE, ON THE LEFT THEY SAID IT'S PLAIN BECAUSEIT HAS NO SPECIAL EFFECTS.SO SAMSUNG'S DIRECTION OF IMPROVEMENT WASTO, QUOTE, "PROVIDE A FUN, VISUAL EFFECT WHENDRAGGING A WEB PAGE."SO WHAT FUN, VISUAL EFFECT DID SAMSUNGCHOOSE? LET'S LOOK AT THE VIDEO AGAIN. THIS ISTHE IPHONE.(WHEREUPON, A VIDEOTAPE WAS PLAYED INOPEN COURT OFF THE RECORD.)14MR. MCELHINNY:AND THIS IS THE BOUNCE15161718FEATURE USING THE SAME PICTURE ON A SAMSUNG VIBRANTPHONE.(WHEREUPON, A VIDEOTAPE WAS PLAYED INOPEN COURT OFF THE RECORD.)1920MR. MCELHINNY:PATENT, THE '163 PATENT.LET'S LOOK AT THE NEXT2122232425THE '163 PATENT COVERS MANY WAYS IN WHICHA USER CAN USE A GESTURE TO ZOOM INTO A PICTURE ORA DOCUMENT AND THEN USE A SECOND GESTURE TO CENTEROR EXPAND THE IMAGE.IN THIS PATENT, WE'LL BE TALKING ABOUT

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page52 of 2743341CLAIM 50.234567891011AGAIN, YOU CAN SEE THAT THE CLAIM TALKSABOUT USING A TOUCH SCREEN AND USING A FIRSTGESTURE -- IN THE CASE WE'RE TALKING ABOUT, THATFIRST GESTURE WILL BE WHAT'S CALLED A DOUBLE TAP --TO ENLARGE AND CENTER THE PICTURE AND THEN USING ASECOND GESTURE TO MOVE THE FOCUS TO A SECOND AREAOF THE PICTURE.THIS IS WHAT IT LOOKS LIKE ON THE IPHONE.(WHEREUPON, A VIDEOTAPE WAS PLAYED INOPEN COURT OFF THE RECORD.)12MR. MCELHINNY:THERE'S THE FIRST1314GESTURE, DOUBLE TAP.WEB PAGES, NEWSPAPERS.VERY USEFUL IF YOU'RE READINGIT MAKES IT EASY SO THAT151617YOU DON'T HAVE TO ZOOM BACK OUT, FIND A NEWARTICLE, AND MOVE.IT'S -- AGAIN, I WANT TO GO BACK TO HOW1819THESE PRODUCTS HAVE TO SELL THEMSELVES.TO BE INTUITIVE.THEY HAD202122232425ONCE AGAIN, IN THIS LITIGATION, SAMSUNGHAS PRODUCED DOCUMENTS THAT INESCAPABLY SHOW THEYCOPIED IT.THIS IS ITEM 53 -- WE'RE STILL TALKINGABOUT EXHIBIT 44 THAT I SHOWED YOU EARLIER -- ANDTHE PROBLEM THAT'S IDENTIFIED IS THAT A SINGLE

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page53 of 2743351DOUBLE TAP ONLY SUPPORTS ZOOM, BUT YOU COULD NOT23GET THE ZOOMED IN SCREEN TO MOVE.BACK OUT AGAIN TO MOVE INSIDE.YOU HAD TO GO456789101112131415ON THE LEFT-HAND SIDE OF THIS CHART, THEYNOTE THAT THE IPHONE ALLOWS THE USER TO ZOOM INTO APORTION OF THE SCREEN WHICH THE SAMSUNG GALAXY S ION THE RIGHT DIDN'T.SO WHAT WAS THE SUGGESTED IMPROVEMENT?"DOUBLE TAP ZOOM IN/OUT FUNCTION NEEDS TO BESUPPLEMENTED."HERE'S ANOTHER SAMSUNG DOCUMENT THATADDRESSES ZOOMING. THIS ONE IS EXHIBIT 38. THISDOCUMENT ACTUALLY IS IMPORTANT FOR A COUPLE OFREASONS.I DO KNOW THAT IN THIS TRIAL, SAMSUNG IS16GOING TO SAY, "HEY, WE DIDN'T COPY.WE SIMPLY17BENCHMARKED.WE SIMPLY COMPARED OUR PRODUCTS TO1819202122232425APPLE'S PRODUCTS AND EVERYBODY IN THE ELECTRONICSINDUSTRY BENCHMARKS."THEY'RE GOING TO SAY EVEN APPLEBENCHMARKS.BUT SAMSUNG'S DOCUMENTS SHOW US THATBENCHMARKING HAD A VERY SPECIAL MEANING AT SAMSUNG.HERE, AFTER VERY CAREFULLY COMPARING ITS PHONES TOTHE IPHONE, SAMSUNG ADOPTED THE FOLLOWING DESIGN

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page54 of 274336123456AND RESEARCH RECOMMENDATION CONCERNING BROWSERZOOMING METHODS.IT SAYS "ADOPT DOUBLE TAP AS ASUPPLEMENTARY ZOOMING METHOD."IT SAYS, "THE USER EXPERIENCE OF THEIPHONE CAN BE USED AS A DESIGN BENCHMARK."7THAT'S NOT A COMPARISON.THAT IS A8DIRECTION.91011LET'S LOOK AT THE IPHONE AGAIN.(WHEREUPON, A VIDEOTAPE WAS PLAYED INOPEN COURT OFF THE RECORD.)12MR. MCELHINNY:AND NOW WE'LL LOOK AT THE1314151617DOUBLE TAP TO ZOOM FEATURE ON A GALAXY -- ON ASAMSUNG GALAXY S II PHONE.(WHEREUPON, A VIDEOTAPE WAS PLAYED INOPEN COURT OFF THE RECORD.)MR. MCELHINNY: THEN WE HAVE THE '91518PATENT.YOU HAVE TO GO BACK AND REMEMBER, TOUCH192021SCREEN TECHNOLOGY ON THESE PHONES, A COMPREHENSIVETOUCH SCREEN SYSTEM WAS ENTIRELY NEW.SO THE TOUCH SCREEN HAD TO BE ABLE TO22TELL THE DIFFERENCE BETWEEN VARIOUS GESTURES.IT232425HAD TO BE ABLE TO INTERPRET WHAT PEOPLE WERE DOINGWITH THEIR FINGERS ON THE SCREEN.THE '915 PATENT COVERS A UNIQUE FEATURE

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page55 of 2743371234567THAT LETS THE DEVICE DISTINGUISH BETWEEN TWODIFFERENT GESTURES SO THAT THE DEVICE KNOWS WHENTHE USER WANTS TO SCROLL TO THE NEXT DOCUMENT ORSCROLL FASTER OR WHEN THE USER WANTS TO ZOOM IN ONTHE DOCUMENT IN FRONT OF IT.IN THIS PATENT WE'RE ASSERTING CLAIM 8.FORGIVE ME, BUT I THINK THIS CLAIM IS8ACTUALLY RELATIVELY EASY TO UNDERSTAND.IT TALKS910111213ABOUT RECEIVING A USER INPUT AND THEN DETERMININGWHETHER THE USER WANTS A SCROLL, WHICH WOULD BE ASINGLE INPUT ON THE TOUCH SENSITIVE DISPLAY, OR AGESTURE, WHICH IT WOULD BE CALLED IF THE USERTOUCHED AT TWO OR MORE POINTS.14LET ME SAY THAT IN ENGLISH.ONE FINGER15ON THE SCREEN GETS YOU A SCROLL.TWO OR MORE16171819202122FINGERS ON THE SCREEN GETS YOU A GESTURE THAT DOESSOMETHING DIFFERENT.THIS IS THE PATENTED FEATURE AS SHOWN ONTHE IPHONE. ONE FINGER, SCROLL. TWO FINGEREXPANDS THE PICTURE.(WHEREUPON, A VIDEOTAPE WAS PLAYED INOPEN COURT OFF THE RECORD.)23MR. MCELHINNY:AND THIS IS THE SAME2425FEATURE AS SHOWN ON THE SAMSUNG GALAXY S II PHONE.(WHEREUPON, A VIDEOTAPE WAS PLAYED IN

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page56 of 2743381OPEN COURT OFF THE RECORD.)23MR. MCELHINNY:GOING TO SAY ABOUT THIS?AGAIN, WHAT IS SAMSUNGAGAIN, I DON'T KNOW45EVERYTHING THEY'RE GOING TO SAY.HEAR FROM THEM.WE'LL HAVE TO678910111213141516BUT I DO KNOW THAT IN THIS CASE THEY HAVEDESCRIBED THESE INVENTIONS AS TRIVIAL.LET'S THINK ABOUT THAT FOR A MINUTE.FIRST, AND WE'LL ASK THEIR WITNESSES, IFTHESE WERE TRIVIAL, WHY DID THEY SHOW UP IN YOURCUSTOMER SURVEYS AND WHY DID YOU COPY THEM?BUT, TWO, THE REAL ANSWER IS MUCH,MUCH -- IT TIES TO WHAT I'M TALKING ABOUT ABOUT THEIMPORTANCE OF PEOPLE INTUITIVELY BEING ABLE TO USETHESE DEVICES.THERE ARE NO CLASSES ON HOW TO USE AN17IPAD.MY FOUR-YEAR-OLD GRANDDAUGHTER TAUGHT1819202122232425HERSELF HOW TO USE AN IPAD BECAUSE IT JUST WORKSNATURALLY.WHEN YOU PUT YOUR FINGER ON THE SCREEN OFAN IPAD TO SCROLL A LIST, IT'S AS THOUGH YOU'REPUTTING YOUR FINGER THROUGH THE SCREEN AND ACTUALLYMOVING THE LIST ITSELF.WHEN YOU PUT YOUR FINGERS ON TO EITHEREXPAND OR CONTRACT A PICTURE, IT'S AS THOUGH YOU

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page57 of 2743391WERE ACTUALLY MANIPULATING THE PICTURE ITSELF.2THESE WERE INVENTIONS.THESE ARE3CRITICAL TO THE SUCCESS OF THESE PRODUCTS.THEY45HAD NEVER BEEN SEEN BEFORE.ON THEM.AND APPLE GOT PATENTS678910111213SO FAR, WE HAVE DISCUSSED DESIGN PATENTSAND UTILITY PATENTS AND YOU'RE THINKING I SHOULD BEDONE, BUT I HAVE ONE MORE GROUP THAT I HAVE TO TALKABOUT.YOU'RE ALSO GOING TO FIND THAT SAMSUNGHAS INFRINGED AND DILUTED WHAT THE LAW CALLS THETRADE DRESS OF CERTAIN APPLE PRODUCTS.JUDGE KOH DEFINED IT FOR US YESTERDAY IN14HER PRELIMINARY INSTRUCTIONS.IT'S JUST GENERALLY1516171819202122232425THE WAY A PERSON PRESENTS THEIR PRODUCT TO THEMARKETPLACE, EVEN WHEN THEY DON'T HAVE A SPECIFICPATENT, SO THAT THE MARKETPLACE RECOGNIZES THESOURCE OF THAT PRODUCT.WE HAVE ASSERTED SEVERAL CLAIMS RELATEDTO THE IPHONE TRADE DRESS AND IPAD TRADE DRESS.THESE ARE THE ELEMENTS OF THE TRADE DRESSTHAT ARE RELATED TO THE IPHONE.IT IS A RECTANGULAR PRODUCT WITH FOUREVENLY ROUNDED CORNERS; IT HAS A FLAT CLEAR SURFACECOVERING THE FRONT OF THE PRODUCT; IT HAS THE

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page58 of 27434012345678910111213141516APPEARANCE OF A METALLIC BEZEL AROUND THE FLATCLEAR SURFACE; IT HAS A DISPLAY SCREEN UNDER THECLEAR SURFACE; UNDER THE CLEAR SURFACE, SUBSTANTIALBLACK BORDERS ABOVE AND BELOW THE DISPLAY SCREENAND NARROW BLACK BORDERS ON EITHER SIDE OF THESCREEN; WHEN THE DEVICE IS ON, IT HAS A ROW OFSMALL DOTS ON THE DISPLAY SCREEN; AND IT HAS AMATRIX OF COLORFUL SQUARE ICONS WITH ROUNDEDCORNERS; AND AT THE BOTTOM, A DOCK OF COLORFULSQUARE ICONS SET OFF FROM OTHER ICONS THAT DOES NOTCHANGE AS OTHER PAGES OF THE USER INTERFACE AREVIEWED.WHENEVER A CUSTOMER SEES AN ELECTRONICDEVICE WITH THESE CHARACTERISTICS, THEY THINK THEYARE SEEING AN APPLE PRODUCT.BUT ONCE AGAIN, SAMSUNG HAS SIMPLY17ADOPTED APPLE'S DISTINCTIVE WORK.THIS IS THE1819GALAXY S 4G USING APPLE'S IPHONE TRADE DRESS.WE HAVE ALSO ASSERTED A CLAIM RELATED TO20THE IPAD TRADE DRESS.THAT TRADE DRESS INCLUDES A2122232425RECTANGULAR PRODUCT WITH FOUR EVENLY ROUNDEDCORNERS; A FLAT CLEAR SURFACE COVERING THE FRONT OFTHE PRODUCT; THE APPEARANCE OF A METALLIC RIMAROUND THE FLAT CLEAR SURFACE; A DISPLAY SCREENUNDER THE CLEAR SURFACE; UNDER THE CLEAR SURFACE,

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page59 of 274341123456789101112SUBSTANTIAL NEUTRAL BORDERS ON ALL SIDES OF THEDISPLAY SCREEN; AND WHEN THE DEVICE IS ON, A MATRIXOF COLORFUL SQUARE ICONS WITH ROUNDED CORNERSWITHIN THE DISPLAY.WHENEVER A CUSTOMER SEES AN ELECTRONICDEVICE WITH THESE CHARACTERISTICS, THEY THINK THEYARE LOOKING AT AN APPLE PRODUCT.THIS, HOWEVER, IS A GALAXY, SAMSUNGGALAXY TAB 10.1 USING EVERY ELEMENT OF APPLE'SDISTINCTIVE IPAD TRADE DRESS.YOU WILL HEAR THAT APPLE DID NOT SITQUIETLY BY WHEN SAMSUNG STARTED SELLING ITS1314INFRINGING PRODUCTS.TO COME OUT --WHEN THESE PRODUCTS STARTED1516REMEMBER, WE ARE A LARGE CUSTOMER.WHEN THESE PRODUCTS CAME OUT, APPLE MET WITHAND171819202122232425SAMSUNG, AND YOU'LL HEAR ABOUT THIS, ON SEVERALOCCASIONS TO POINT OUT THAT SAMSUNG WAS ACTINGILLEGALLY AND TO DEMAND THAT SAMSUNG DEVELOP ITSOWN DESIGNS AND ITS OWN USER INTERFACE.THAT IS, YOU CAN AND WILL SEE THESEMEETINGS HAD NO POSITIVE EFFECT ON SAMSUNG.AT THE CONCLUSION OF THIS TRIAL, WE'REGOING TO ASK YOU TO FIND THAT SAMSUNG HAS INFRINGEDOUR DESIGN PATENTS, INFRINGED OUR UTILITY PATENTS,

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page60 of 2743421234567891011121314AND INFRINGED AND DILUTED OUR TRADE DRESS.THEN, AS A SEPARATE QUESTION, WE AREGOING TO ASK YOU TO FIND THAT SAMSUNG'SINFRINGEMENT WAS WHAT THE JUDGE WILL DEFINE FOR YOUAS WILLFUL.THE EVIDENCE WILL BE THAT EVEN THOUGHSAMSUNG KNEW WE HAD THESE PATENTS, IT FAILED TOTAKE REASONABLE STEPS TO MAKE SURE THAT IT DID NOTINFRINGE.WE ARE ABOUT TO START THIS TRIAL BECAUSESAMSUNG REFUSES TO STOP USING APPLE'S INTELLECTUALPROPERTY.UNDER U.S. LAW, A PERSON WHO INFRINGES APATENT HAS TO PAY DAMAGES TO MAKE THE PATENT OWNER15WHOLE.THESE DAMAGES CAN INCLUDE THE PROFITS THAT161718192021222324SAMSUNG MADE USING APPLE'S DESIGNS, THE PROFITSAPPLE LOST BECAUSE SAMSUNG USED ITS UTILITYPATENTS, WHAT THE LAW CALLS A REASONABLE ROYALTY,OR SOME COMBINATION OF THREE.NOW, I'LL BE HONEST WITH YOU THROUGHOUTTHE ENTIRE TRIAL, BUT I'LL START RIGHT NOW.ACTUALLY, I STARTED A LITTLE WHILE EARLIER, BUTI'LL START RIGHT NOW.THERE ARE PEOPLE, PEOPLE WHO COMMONLY SAY25TO APPLE, "WE DON'T GET IT.YOU'RE A VERY

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page61 of 2743431SUCCESSFUL COMPANY.YOU'RE SELLING A LOT OF2345678PRODUCTS. YOU'RE MAKING A LOT OF MONEY. WHAT DOYOU REALLY CARE IF SOMEBODY IS USING THESE DESIGNS?WHY DO YOU CARE ABOUT THAT?"TO PUT IT QUITE BLUNTLY, PEOPLE SAY, "WHYARE YOU MAKING A FEDERAL CASE OUT OF IT?"AND YOU WILL HEAR THE EVIDENCE, YOU WILLHEAR THE ANSWERS TO THOSE QUESTIONS FROM THE PEOPLE9WHO WORKED ON THESE DESIGNS.AND THERE'S TWO.10FIRST, THE EVIDENCE WILL SHOW YOU EXACTLY11WHAT I SAID:SAMSUNG HAS TAKEN OUR PROPERTY.1213SOME PROPERTY IS PHYSICAL, LIKE A CAR.WHEN SOMEBODY TAKES YOUR CAR, THERE'S NO QUESTION14THAT YOU USE IT.IT DOESN'T MATTER HOW MUCH MONEY151617YOU MAKE OR HOW SUCCESSFUL YOU ARE, YOU DON'T LAUGHTHAT OFF.SOME PROPERTY IS ART, LIKE THE DESIGNS OF18THESE PRODUCTS.AND AGAIN, I'LL TELL YOU THAT19202122ARTISTS DON'T LAUGH THAT OFF WHEN PEOPLE STEALTHEIR DESIGNS.AND SOME PRODUCTS, SOME INVENTIONS, ARENOT PHYSICAL. THEY'RE SOFTWARE. THEY'RE THE23DIRECTIONS THAT MAKE PRODUCTS WORK.THEY'RE CLEVER2425IDEAS THAT END UP MAKING PRODUCTS SUCCESSFUL INFIELDS WHERE OTHER PRODUCTS HAVE NOT BEEN

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page62 of 27434412345678910111213141516171819202122232425SUCCESSFUL.AND IT DOES NOT MATTER WHETHER THEPROPERTY IS PHYSICAL OR ART, SOFTWARE OR AN IDEA.WE ALL KNOW, AND OUR WITNESSES WILL TELL YOU THEYFEEL THIS WAY, PEOPLE SHOULD NOT USE WHAT YOUINVENTED WITHOUT PERMISSION.BUT IN ADDITION, YOU WILL ALSO HEAR THATSINCE SAMSUNG INTRODUCED THE GALAXY VIBRANT IN2010, SAMSUNG HAS SOLD OVER 22 MILLION INFRINGINGPHONES AND TABLETS IN THE UNITED STATES, PHONES ANDTABLETS THAT ARE USING APPLE'S INVENTIONS.SAMSUNG'S SALES HAVE TAKEN SALES AWAYFROM APPLE AND THEY HAVE GENERATED MORE THAN $2BILLION WORTH OF PROFIT FOR SAMSUNG, PROFIT, AS THEEVIDENCE WILL SHOW, THAT THEY MADE USING OURINTELLECTUAL PROPERTY.AT THE END OF THIS TRIAL, WE WILL ASK YOUTO AWARD TO APPLE THE DAMAGES TO WHICH IT ISENTITLED UNDER THE LAW.SAMSUNG WILL TELL YOU THAT THEY DON'T --THAT THEY SHOULDN'T HAVE TO PAY BECAUSE, INADDITION TO THE OTHER THINGS I MENTIONED, THEY'REGOING TO SAY IN EVERY SINGLE CASE, IN THE CASE OFEVERY SINGLE ONE OF THESE PATENTS, THE U.S. PATENTAND TRADEMARK OFFICE MADE A MISTAKE AND ISSUED TO

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page63 of 2743451234567891011121314151617APPLE A PATENT THAT SHOULDN'T HAVE ISSUED.THEY WILL SAY OUR DESIGNS ARE FUNCTIONAL;THEY WILL SAY THEY CAN'T UNDERSTAND SOME OF OURPATENTS; THEY'LL SAY THAT SOME OF OUR INVENTIONSWERE OBVIOUS.BUT THEY WILL CONCLUDE IN EVERY CASE THATTHE ISSUANCE OF THIS PATENT WAS A MISTAKE.YOU WILL HEAR CONTRARY EVIDENCE, AND ATTHE END OF THE TRIAL, WE DON'T THINK YOU WILLREJECT THE DECISIONS THAT WERE MADE BY THE PATENTAND TRADEMARK OFFICE.SO, AT THE END, WE'LL ASK YOU TO FINDTHAT THERE WAS INFRINGEMENT AND WE WILL ASK YOU TOAWARD US DAMAGES.WHAT NOW SEEMS LIKE THREE YEARS AGO WHENI STARTED TALKING TO YOU, I TOLD YOU THAT THEREWERE TWO QUESTIONS.18NOW I'M GOING TO MOVE -- NO.I TOLD YOU19202122THAT THERE WERE TWO QUESTIONS, AND THE FIRSTQUESTION IS SIMPLY, HOW DID SAMSUNG GET FROM HEREIN 2006 TO HERE IN 2011?I'VE SHOWN YOU SOME OF THE EVIDENCE THAT2324WILL ANSWER THAT QUESTION.YOU WILL HEAR MORE.OVER THE NEXT FEW WEEKS25BUT THE CASE DIDN'T END THERE BECAUSE, AS

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page64 of 2743461234YOU NOW KNOW, WHEN APPLE FILED THIS LAWSUIT,SAMSUNG FILED ITS OWN PATENT INFRINGEMENT CASEAGAINST APPLE.SO THAT BRINGS US TO WHAT ACTUALLY IS THE5SECOND QUESTION:WHEN DID SAMSUNG FIRST ACCUSE678910APPLE OF INFRINGING SAMSUNG'S PATENTS?MY FRIEND BILL LEE IS GOING TO ANSWERTHAT QUESTION.THE COURT: ALL RIGHT. THE TIME IS NOW10:29.1112LET'S TAKE A 15-MINUTE BIO BREAK.AGAIN, PLEASE KEEP AN OPEN MIND.OKAY?DON'T1314DISCUSS THE CASE WITH ANYONE.RESEARCH.PLEASE DON'T DO ANY15OKAY.THANK YOU.161718(WHEREUPON, A RECESS WAS TAKEN.)(WHEREUPON, THE FOLLOWING PROCEEDINGSWERE HELD OUT OF THE PRESENCE OF THE JURY:)19MR. VERHOEVEN:YOUR HONOR, ONE20HOUSEKEEPING MATTER REALLY BRIEFLY?21THE COURT:YES.22MR. VERHOEVEN:I DIDN'T KNOW EXACTLY232425WHAT MR. MCELHINNY WAS GOING TO SAY ON HIS SLIDES,YOUR HONOR, DURING OPENING.BUT IF YOU TURN TO SLIDE 24 -- I DON'T

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page65 of 274347123456KNOW IF WE CAN PUT THAT UP -- 24, PLEASE -- YOURHONOR, THIS IS THE F700.CAN WE GO TO 23?WHAT MR. MCELHINNY SAID, YOUR HONOR, TOTHE JURY WAS THIS IS WHAT THE SAMSUNG PHONES LOOKEDLIKE BEFORE THE IPHONE WAS ANNOUNCED.7THE COURT:WE'VE ALREADY RULED -- I'VE8910ALREADY RULED ON MULTIPLE OBJECTIONS AS TO ALL OFTHESE SLIDES, SO IF THIS IS NOT SOMETHING NEW, I'MGOING TO ASK THAT WE MOVE ON.11MR. VERHOEVEN:IT'S A STATEMENT THAT WAS1213MADE, YOUR HONOR.LODGE AN OBJECTION.I JUST WANT, FOR THE RECORD, TO14THE COURT: OKAY, GO AHEAD. WHAT IS IT?15MR. VERHOEVEN:HE SAID, "THIS CHART16SHOWS WHAT SAMSUNG'S PHONES LOOKED LIKE BEFORE THE17IPHONE.THERE'S A PHONE IN THERE THAT LOOKS LIKE1819THE PALM, AND SEE THE ONE THAT LOOKS LIKE THEBLACKBERRY?"20AND THEN HE WENT TO SLIDE 24."THIS2122CHART SHOWS THE PHONES SAMSUNG INTRODUCED RIGHTAFTER THE IPHONE CAME OUT," AND HE GOES TO THIS23SLIDE AND SHOWS THE F700."THE ONE THAT IS CALLED2425AN F700 IS WHAT'S CALLED A SLIDER PHONE."AND THE SUGGESTION HE MADE TO THE JURY,

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page66 of 27434812345678910111213141516171819202122232425YOUR HONOR, IS THAT THE F700 -- THAT SAMSUNG COPIEDTHE IPHONE WITH THE F700.THAT WAS MADE -- THAT WAS STATED TO THEJURY, I READ IT, YOUR HONOR.AND THE F700 IS THE PHONE THAT WASRELEASED BASED ON THE DEVELOPMENT DOCUMENTS YOURHONOR EXCLUDED US FROM USING.SO I SUBMIT HE'S OPENED THE DOOR NOW.HE'S ACCUSED THIS PHONE OF COPYING THE IPHONE INTHIS SLIDE, YOUR HONOR.AND THE DOCUMENTS THAT, THAT SHOW THEDEVELOPMENT OF THIS VERY PHONE, THE F700, ARE THOSEDOCUMENTS THAT PREDATE THE IPHONE THAT SHOW THATEXACT SAME FRONT FACE, YOUR HONOR.SO I WOULD SUBMIT HE'S OPENED THIS DOORAND WE HAVE TO BE ABLE TO REBUT IT.MR. MCELHINNY: MAY I?THAT'S A NICE TRY, BUT WHAT I SAID WASTHESE WERE THE PHONES THAT WERE RELEASED AFTER THEIPHONE.I DIDN'T ACCUSE ANY OF THOSE BECAUSE ISAID THEN WE GOT THE ONE, THE S900, THE NEXT SLIDE,WHICH I SAID WAS THE IPHONE CLONE.THAT'S WHERE WE STARTED ACCUSING THEM OFINFRINGEMENT.

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page67 of 27434912IF YOU GO BACK AGAIN -- WE HAVEN'TACCUSED -- IF YOU GO BACK ONE, PLEASE.3NONE OF THOSE ARE INFRINGING.WE SAID45THEY CAME OUT AFTER AND THEN WE GOT TO THEINFRINGING PHONES.6MR. VERHOEVEN:THE CLEAR IMPLICATION TO789THE JURY, IF WE GO BACK TO SLIDE -- GO BACK,PLEASE, TO THE PREVIOUS SLIDE, 23.THE TIMELINE OF SAMSUNG PHONES BEFORE THE1011SMARTPHONE.PHONES.THEY SHOW A BUNCH OF DIFFERENT LOOKING1213NEXT SLIDE, PLEASE, 24.TIMELINE AFTER, THEY ALL HAVE THESE BIG14SCREENS.151617181920THE F700, YOUR HONOR, WAS DEVELOPED --THE ONE THAT LOOKS THE MOST LIKE THIS PHONE, YOURHONOR, WAS DEVELOPED BEFORE THE IPHONE WAS EVERANNOUNCED AND WE SHOULD BE ABLE -- IN FAIRNESS --THE COURT: ALL RIGHT. I'VE ALREADYRULED ON THIS OBJECTION.21MR. VERHOEVEN:OKAY.22THE COURT:YOU'VE MADE YOUR RECORD AND23THE OBJECTION IS OVERRULED.2425YOUR HONOR.MR. JACOBS:QUICK HOUSEKEEPING MATTER,

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page68 of 27435012THE COURT:MR. JACOBS:YES.WE HAVE THE -- I THINK YOU34567NOTICED, BUT JUST FOR THE RECORD, THE DESIGN PATENTCLAIM CONSTRUCTIONS WERE AGREED UPON BY THE PARTIESAND SO THEY'RE READY TO GO IN THE JUROR NOTEBOOKS.AND I'M LOOKING AT THE JURY NOTEBOOK ANDI SEE THE TABLE OF CONTENTS SHOULD BE ADJUSTED,8TOO.WE'LL MEET AND CONFER WITH THE OTHER SIDE AND91011121314151617GET A CHANGED TABLE OF CONTENTS FOR THAT AS WELL.THE COURT: ALL RIGHT. WELL, WHY DON'TWE -- AFTER ALL OF THE OPENINGS, WE CAN JUST PLACETHIS ON THEIR CHAIRS SO THEY CAN PUT IT IN THEIROWN BOOKS.I DON'T WANT ANYONE TOUCHING THE JURYNOTEBOOKS BECAUSE THEY MAY HAVE ALREADY STARTEDTAKING NOTES AND IT WOULDN'T BE APPROPRIATE FORANYONE AT THIS TIME TO SEE THAT.18ALL RIGHT.THERE WAS SO MUCH MOVING1920212223AROUND, I'M GOING TO ASK, I THINK THERE MUST HAVEBEEN SIX OR SEVEN QUINN PEOPLE GOING IN AND OUT, INAND OUT.CAN I ASK, IF YOU NEED TO GO OUT, CAN YOUSTEP OUT NOW AND JUST NOT COME IN UNTIL THE OPENING24IS DONE?BECAUSE IT'S VERY DISRUPTIVE, MULTIPLE25PEOPLE GOING IN AND OUT OF THE COURTROOM.

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page69 of 2743511234567I'M GOING TO MAKE THE SAME REQUEST OF THEAPPLE ATTORNEYS, WHEN SAMSUNG IS MAKING THEIROPENING, WOULD YOU PLEASE NOT HAVE PEOPLE WALKINGAROUND AND TALKING TO EACH OTHER, JUST OUT OFRESPECT FOR EACH OTHER'S OPENING.IF ANYONE ON YOUR TEAM NEEDS TO STEP OUT,PLEASE DO IT NOW, AND DON'T COME IN UNTIL THEY'RE89DONE.OKAY?SAME FOR, I KNOW YOU HAD A COUPLE OF GUYS10COMING IN AND OUT, IN AND OUT.CAN YOU JUST LET111213141516THEM KNOW THAT WHEN THEY'RE IN OPENING STATEMENT,PLEASE NOT DO THAT.IF SOMEONE NEEDS TO COME IN, JUST HAVETHEM COME IN RIGHT NOW AND PASS WHATEVER NOTE ORTHUMB DRIVE OR ANYTHING, JUST HAVE THEM COME INRIGHT NOW.17MR. VERHOEVEN:OUR PARALLEL IS IN THERE.1819THE COURT: ALL RIGHT. THEN WHY DON'T WEWAIT UNTIL SHE COMES OUT TO START THE OPENINGS?20MR. VERHOEVEN:I'M NOT SURE WHERE SHE212223IS, YOUR HONOR, SO IT MIGHT BE POSSIBLE THAT SHEMIGHT WALK IN DURING THE OPENING.CAN SOMEBODY GO OUT THERE?24THE COURT:IF ANYONE IN THAT ROOM?25BECAUSE I WANT TO BE ABLE TO LET THEM COME OUT.

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page70 of 2743521MR. VERHOEVEN:NO, THEY'RE NOT.2345THE COURT: OKAY. SO WHOEVER YOU NEED TOCOME IN AND OUT, JUST HAVE THEM DO IT RIGHT NOW,PLEASE.DO YOU NEED ANYONE ELSE TO COME IN?6MR. VERHOEVEN:WE DO NOT, YOUR HONOR.7THE COURT:IF YOU CAN LET THEM KNOW,891011121314THERE HAVE BEEN A LOT OF PEOPLE COMING AND OUT, ANDI'VE BEEN VERY LENIENT, BUT IT DOES GET VERYDISRUPTIVE, ESPECIALLY WITH THIS MANY PEOPLE COMINGIN AND OUT.ALL RIGHT. ARE WE READY TO START? YOUHAVE USED ONE HOUR AND SIX MINUTES. YOU HAVE 24MINUTES LEFT.15ALL RIGHT.BRING IN THE JURY, PLEASE.16MR. MCELHINNY:YOUR HONOR, WE THINK YOU17181920MAY HAVE DONE A MATHEMATICAL -- WE THINK WE HAVETEN MINUTES MORE THAN THAT.THE COURT: NO. IT'S 9:33 TO 10:29.MR. MCELHINNY: RIGHT. THAT WOULD BE 342122MINUTES, YOUR HONOR.THE COURT:I'M SORRY.OH, YOU'RE RIGHT.2324(WHEREUPON, THE FOLLOWING PROCEEDINGSWERE HELD IN THE PRESENCE OF THE JURY:)25THE CLERK:THERE'S ONE STILL IN THE REST

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page71 of 2743531ROOM.2THE COURT:OKAY.345(PAUSE IN PROCEEDINGS.)THE COURT: ALL RIGHT. GO AHEAD, PLEASE.IT IS NOW 10:52.6MR. LEE:YOUR HONOR, MIGHT I ASK FOR A78TEN MINUTE WARNING WHEN I HAVE TEN MINUTES LEFT OFMY TIME?910THE COURT:MR. LEE:OKAY.THANK YOU.1112(WHEREUPON, MR. LEE GAVE HIS OPENINGSTATEMENT ON BEHALF OF APPLE.)13MR. LEE:GOOD MORNING, LADIES AND141516GENTLEMEN.BILL LEE.AS YOU KNOW FROM YESTERDAY, MY NAME ISMR. MCELHINNY HAS JUST DISCUSSED WITH YOU171819202122232425THE EVIDENCE THAT WILL DEMONSTRATE THAT SAMSUNG HASINTENTIONALLY COPIED APPLE'S INNOVATIONS ANDINVENTIONS.BUT AS HER HONOR EXPLAINED TO YOUYESTERDAY LATE IN THE DAY, SAMSUNG HAS ALREADYASSERTED FIVE PATENTS AGAINST APPLE.IN THIS PORTION OF THE OPENING, WHICHI'LL GET DONE IN THE 30 MINUTES OR SO THAT I HAVE,I'M GOING TO DISCUSS THOSE CLAIMS BY SAMSUNG

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page72 of 27435412345AGAINST APPLE.AND AS WE REVIEW THE EVIDENCE, THEEVIDENCE THAT GOES TO THESE CLAIMS, I'D LIKE TO ASKYOU TO KEEP IN MIND THE QUESTION, THE SECONDQUESTION THAT MR. MCELHINNY ASKED OF YOU, AND THAT6IS THIS:WHEN DID SAMSUNG FIRST ACCUSE APPLE OF7891011INFRINGING ITS PATENTS?THE ANSWER, THE EVIDENCE WILLDEMONSTRATE, IS THAT SAMSUNG NEVER SAID A WORDABOUT THESE PATENTS UNTIL APPLE, AS MR. MCELHINNYTOLD YOU, WENT TO SAMSUNG, ITS BUSINESS PARTNER,1213AND SAID, "STOP COPYING."PATENTS ASSERTED.AND ONLY THEN WERE THESE14151617181920NOW, I'M GOING TO COME BACK TO THATQUESTION AT THE END OF MY OPENING.BUT NOW THAT SAMSUNG HAS SUED, NOW THATSAMSUNG HAS BROUGHT THESE PATENTS AGAINST APPLE,LET'S TAKE A LOOK AT THE PATENTS THEMSELVES.THE SLIDE ON THE SCREEN RIGHT NOW HASINFORMATION ON EACH OF THE FIVE ASSERTED PATENTS.212223THERE'S A LOT OF INFORMATION THERE.INFORMATION THAT JUST SUMMARIZES WHAT'S IN YOURJUROR NOTEBOOKS.IT'S2425FOR EACH PATENT YOU CAN SEE WHEN SAMSUNGFILED THEIR ORIGINAL PATENT APPLICATION IN KOREA,

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page73 of 2743551234567891011WHEN IT FILED ITS UNITED STATES APPLICATION, ANDWHEN THE UNITED STATES PATENTS WERE ISSUED.NOW, YOU KNOW THAT SAMSUNG IS A KOREANCOMPANY AND IT NATURALLY FILED ITS PATENTS FIRST INKOREA, AND THEN IT LATER FILED ITS PATENTS IN THEUNITED STATES.NOW, WHAT YOU CAN'T SEE FROM THE CHARTTHAT'S ON THE SCREEN BEFORE YOU NOW IS EVERY KOREANAPPLICATION, EVERY ONE OF THESE INVENTIONS WASFILED BEFORE THE END OF AUGUST 2005.NOW, THE EVIDENCE WILL DEMONSTRATE THAT12TECHNOLOGY MOVES QUICKLY.LIVING HERE IN NORTHERN131415CALIFORNIA, YOU KNOW THAT WHAT IS TODAY'STECHNOLOGY MAY TOMORROW BE OLD NEWS.WELL, THESE PATENTS, AS YOU WILL LEARN,16WERE FILED SEVEN YEARS AGO.AND IN THIS PARTICULAR171819202122232425CASE, THEY WERE FILED ON OLDER TECHNOLOGIES USED INPHONES BEFORE THE IPHONE REVOLUTIONIZED THE MARKET.SO WHAT WILL THE EVIDENCE SAY ABOUT THESEPATENTS?YOU WILL LEARN THESE PATENTS DESCRIBEOLDER TECHNOLOGIES THAT APPLE, APPLE'S ACCUSEDPRODUCTS, THE IPAD, THE IPOD TOUCH, THE IPHONE, DONOT USE.YOU WILL LEARN THAT THERE IS NO EVIDENCE

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page74 of 27435612345678910111213141516171819202122232425OF COPYING BY APPLE OF THESE PATENTS OR THESEFEATURES.IN FACT, YOU WILL HEAR NO EVIDENCE THATANYONE AT APPLE EVEN KNEW ABOUT THESE PATENTS ATTHE TIME THAT THEY WERE SITTING DOWN TO DESIGN THEIPAD AND THE IPHONE.YOU WILL NOT SEE ANY DOCUMENTS LIKEMR. MCELHINNY JUST SHOWED YOU COMPARING THE IPHONEWITH THE SAMSUNG PRODUCT AND SUGGESTING THAT IT BECOPIED.YOU WILL SEE NO APPLE DOCUMENTS SAYING,LIKE THE ONE EXHIBIT SHOWN, "EASY TO COPY."YOU WILL ALSO LEARN FROM THE EVIDENCETHAT THESE INVENTIONS ARE NOT NEW AND IMPORTANT.IN FACT, LADIES AND GENTLEMEN, YOU WILLLEARN THAT IN AT LEAST TWO OF THE CASES, SAMSUNGITSELF DOES NOT EVEN USE THESE PATENTS IN THEIR OWNPRODUCTS TODAY.NOW, I'M GOING TO PUT THE SAMSUNGPRODUCTS INTO TWO BUCKETS FOR YOU, OR TWO GROUPS.THE FIRST ARE THE '941 AND '516, WHICHARE AT THE TOP OF THE CHART BEFORE YOU.SAMSUNG WILL TELL YOU THAT THESE AREPATENTS CRUCIAL FOR MODERN PHONES, THAT PHONES WILLNOT WORK WITHOUT THEM, AND SAMSUNG IS GOING TO

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page75 of 274357123456REQUEST FROM YOU DAMAGES ON THESE TWO PATENTS THATARE TEN TIMES MORE THAN THEIR THREE OTHER PATENTS.SO WHAT WILL THE EVIDENCE SHOW?WELL, BOTH OF THESE PATENTS ARE -- RELATETO SOMETHING CALLED A STANDARD.WHAT WILL THE EVIDENCE SHOW IS THE7STANDARD?SOME OF YOU MIGHT BE FAMILIAR WITH891011121314STANDARDS BASED UPON THE INFORMATION YOU GAVE US HEHAD WHY.BUT A STANDARD IS A SET OF TECHNICALRULES THAT ARE DEVELOPED IN A COLLABORATIVE PROCESSTHAT INCLUDES MANY COMPANIES AND OTHERPARTICIPANTS.AND STANDARD SETTING ORGANIZATIONS HAVE15RULES.THEY HAVE RULES THAT ARE DESIGNED TO MAKE1617181920212223SURE THAT COMPANIES THAT WORK TOGETHER DO SO FAIRLYAND SQUARELY AND THAT THE PRODUCTS THAT RESULTBENEFIT THE PUBLIC AT LARGE AND ALL OF THEPARTICIPANTS.HERE'S A REALLY SIMPLE EXAMPLE OF ASTANDARD THAT IS FROM A LOWER TECHNOLOGY TIME.IT IS AN ELECTRICAL OUTLET IN A WALL.THERE IS A STANDARD THAT SAYS, IN AMERICA, OUR24OUTLETS HAVE A PARTICULAR SIZE AND SHAPE.BECAUSE25WE HAVE THIS STANDARD, I CAN PLUG IN A LIGHT, A

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page76 of 274358123456789101112TELEVISION, A MICROWAVE, ALL INTO THE SAME OUTLETBECAUSE THERE'S A STANDARD.NOW, IN WIRELESS COMMUNICATIONS THAT WEBEGAN TALKING TO YOU ABOUT YESTERDAY AND WE'REGOING TO TALK TO YOU ABOUT IN THE NEXT COUPLE OFWEEKS, THERE ARE STANDARDS, TOO, STANDARDS THATALLOW PHONES TO CONNECT TO ONE ANOTHER, STANDARDSTHAT ALLOW PHONES TO CONNECT OVER A WIRELESSNETWORK.SO WHO SETS THESE STANDARDS?THE EVIDENCE WILL PROVE THAT ONE STANDARDORGANIZATION IS SOMETHING CALLED ETSI, THE EUROPEAN13TELECOMMUNICATIONS STANDARDS INSTITUTE.IT'S A BIG14DEAL STANDARDS BODY.IT HELPED DEVELOP SOME OF THE15161718192021222324MOST POPULAR STANDARDS FOR WIRELESS COMMUNICATIONSIN THE WORLD.SAMSUNG IS A MEMBER, AND HAS BEEN.APPLE IS A MEMBER.MOST IMPORTANTLY, THE EVIDENCE WILLESTABLISH THAT THE MEMBERS AGREE TO A SET OF RULES,RULES THAT THEY WILL ALL LIVE BY, RULES THAT THEYWILL ABIDE BY, RULES THAT ARE DESIGNED TO ENSURETHAT PEOPLE ACT FAIRLY AND SQUARELY.NOW, ETSI HELPED DEVELOP A STANDARD YOU25WILL LEARN CALLED UMTS.UMTS IS SOMETIMES REFERRED

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page77 of 27435912TO, AND YOU MAY HAVE SEEN IT, AS 3GPP.PURPOSES, THEY ARE CLOSE TO THE SAME.FOR OUR345TOGETHER.PROPOSALS.ENGINEERS FROM DIFFERENT COMPANIES CAMETHEY DISCUSSED DIFFERENT TECHNICALTHEY DECIDED WHAT TO INCLUDE IN THE678910111213141516171819202122232425STANDARD, WHAT WAS GOING TO BE THEIR EQUIVALENT OFTHE SOCKET.AND THE GOAL WAS TO COME UP WITH ASTANDARD THAT EVERYBODY COULD USE TOGETHER AND ITWOULD PROMOTE COMPETITION.NOW, SAMSUNG CLAIMS THAT THE TWO PATENTS,THE '941 AND THE '516, ARE ESSENTIAL TO USING UMTS.SAMSUNG IS GOING TO TELL YOU IN JUST A FEW MINUTESTHAT IF YOU USE UMTS, YOU USE THESE PATENTS AND YOUINFRINGE.WELL, WHAT'S THE EVIDENCE GOING TO SHOWYOU ABOUT THIS ARGUMENT?FIRST, THE EVIDENCE IS GOING TO SHOW THAT"DECLARED ESSENTIAL" MEANS SIMPLY THAT SAMSUNG HASSAID SO.THE EVIDENCE WILL ESTABLISH THAT NO ONE,NOT ETSI, NOT ANYONE ELSE, HAS EVER DECIDED THATTHAT'S, IN FACT, TRUE.YOU WILL BE THE FIRST PEOPLE TO DECIDEWHETHER SAMSUNG'S STATEMENT THAT ITS PATENTS WERE

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page78 of 2743601234567891011121314151617181920ESSENTIAL IS TRUE.WE WILL CALL PROFESSORS EDWARD KNIGHTLYFROM RICE AND PROFESSOR HYONG KIM FROM CARNEGIEMELLON UNIVERSITY, TWO VERY WELL KNOWN ANDREPUTABLE COMPUTER SCIENTISTS AND ENGINEERS, ANDTHEY WILL EXPLAIN TO YOU THAT THEY HAVE LOOKED ATSAMSUNG'S PATENTS AND THEY ARE, IN FACT, NOTESSENTIAL TO UMTS, THAT, IN FACT, APPLE DOES NOTUSE THEM.BUT SECOND, YOU WILL ALSO LEARN THAT THEENTIRE UMTS STANDARD IS THOUSANDS OF PAGES LONG.IF I HAD IT IN THIS COURTROOM, IT WOULD GO FROMHERE TO THAT WALL AND PROBABLY BACK AGAIN.OUT OF THAT ENTIRE SPECIFICATION, YOUWILL LEARN, THESE TWO PATENTS, EVEN UNDER SAMSUNG'SCONTENTIONS, RELATE TO TWO PAGES.NOW, I'D LIKE TO SHOW YOU JUST WHAT IT ISIN THE IPHONE THAT SAMSUNG SAYS INFRINGES THESE TWOPATENTS THAT IS ESSENTIAL TO WIRELESSCOMMUNICATIONS.21I HAVE ANOTHER IPHONE.MR. MCELHINNY HAD22ONE.I'VE TAKEN OFF THE BACK AND WHAT YOU'LL232425SEE -- YOU'LL SEE SEVERAL OF THESE DURING THECOURSE OF THE TRIAL -- ARE THE INSIDES.BUT UNDERNEATH THE BLACK THAT I'M SHOWING

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page79 of 27436112345678910111213141516YOU NOW IS A HOST OF A COMPUTER CHIP AND THECONNECTIONS AND THE COMPONENTS THAT MAKE THE IPHONETHE MAGICAL DEVICE THAT IT IS (INDICATING).IF I WERE TO PULL OFF THIS BLACK, YOU CANSEE AT THE TOP RIGHT HERE, IF I WERE TO PULL THATOFF, YOU WOULD GET WHAT'S CALLED THE MOTHERBOARD(INDICATING).AND YOU CAN SEE ON THE MOTHERBOARD ASERIES OF CHIPS, A SERIES OF CONNECTIONS, ALL OFWHICH CONTRIBUTE TO WHAT MR. MCELHINNY DESCRIBED TOYOU.NOW, YOU CAN'T SEE IT NOW -- WE'LL PASSTHIS TO YOU WHEN IT GOES INTO EVIDENCE -- BUT IHAVE TWO LITTLE DOTS HERE, AND RIGHT ABOVE THOSETWO LITTLE DOTS, I'M PUTTING MY FINGER ON THISLITTLE SQUARE HERE, NOT EVEN AS BIG AS MY FINGER.17WHAT IS THAT?THAT'S THE BASEBAND18PROCESSOR.THAT IS SOMETHING THAT APPLE BUYS FROM19INTEL.IT'S SOMETHING THAT INTEL MAKES FOR APPLE20AND A HOST OF OTHER DIFFERENT CUSTOMERS.IT IS THE2122232425DEVICE THAT ACTUALLY PERFORMS WHAT SAMSUNG SAYS ISINFRINGING, THE INTEL CHIP.IT IS A CHIP, IT IS A CHIP THAT APPLEBUYS FOR AROUND $10 APIECE, AND I'D ASK YOU TO KEEPTHAT IN MIND BECAUSE I'M GOING TO COME BACK TO THE

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page80 of 27436212345AMOUNT OF MONEY THAT SAMSUNG IS ASKING ON THESE TWOPATENTS.NOW, I EXPECT THAT IN A FEW MINUTES, I'MSURE IN A FEW MINUTES SAMSUNG IS GOING TO GET UPAND SAY, "WE PLAYED AN IMPORTANT ROLE IN DEVELOPING6THIS CELLULAR TELECOMMUNICATION SYSTEM.THESE78910111213141516171819PATENTS THAT ARE IN THIS BASEBAND PROCESSOR YOU BUYFROM INTEL WERE OURS AND CRITICAL TO THEINFORMATION HIGHWAY."WELL, LET ME SHOW YOU WHAT ONE OF THEHEADS OF SAMSUNG'S LICENSING DEPARTMENT, AGENTLEMAN NAMED DR. AHN, TESTIFIED UNDER OATH ONTHIS VERY ISSUE.DR. AHN REPORTS DIRECTLY TO THE CHIEFEXECUTIVE OFFICER OF SAMSUNG AND HERE'S WHAT HESAID."DO YOU HAVE ANY KNOWLEDGE AS TO WHETHEROR NOT SAMSUNG PLAYED AN IMPORTANT ROLE INDEVELOPING THE CELLULAR TELECOMMUNICATION SYSTEM?20"ANSWER:NO, I DO NOT REALLY KNOW."2122232425THE DIRECT REPORT TO THE CEO WAS ASKEDTHAT QUESTION WHEN THIS CASE BEGAN AND THE ANSWERWAS I DON'T KNOW.NOW, WHAT YOU'RE GOING TO LEARN IS THATSAMSUNG DID PARTICIPATE IN THIS RULE-BASED STANDARD

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page81 of 2743631234SETTING PROCESS, AND WHAT YOU'RE GOING TO LEARN ISTHAT IN DOING SO, SAMSUNG ACTUALLY BROKE THE RULES,THE RULES THAT WERE ADOPTED TO ENSURE THE STANDARDPROCESS WAS FAIR AND SQUARE.5NOW, WHAT WERE THOSE RULES?THERE WERE6TWO.78910THE FIRST RULE IS THE RULE THAT REQUIRESEVERYONE WHO HAS A PATENT THAT THEY SAY MIGHT BEESSENTIAL TO THE STANDARD TO DISCLOSE IT.WHAT WILL THE EVIDENCE SHOW IS THE11REASON?THINK ABOUT MY SIMPLE EXAMPLE OF THE PLUG,12131415161718192021OF THE WALL SOCKET.IF I HAD A PATENT APPLICATION, A SECRETPATENT APPLICATION LIKE THE VIDEO TOLD YOU ON AWALL SOCKET, AND I THEN WENT TO THE STANDARD ANDSAID, "LET'S ALL GET TOGETHER, THE TEN OF US, ANDADOPT AS A STANDARD THIS PARTICULAR CONFIGURATION,"AND WE ALL GOT TOGETHER, THE TEN OF US, AND WEADOPTED THIS CONFIGURATION, AND THEN EVERYBODY INTHE WORLD MADE THEIR WALL SOCKETS THAT WAY, ANDTHEN A FEW YEARS LATER, I SAID, "I FORGOT TO TELL222324YOU.ME."I HAVE A PATENT AND NOW YOU ALL HAVE TO PAYWELL, ETSI HAS RULES TO PREVENT JUST25THAT, AND YOU WILL SEE RULE 4.1, AND I'M GOING TO

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page82 of 2743641234567FOCUS YOU JUST ON THE SECOND SENTENCE WHICH SAYS,"IN PARTICULAR, A MEMBER SUBMITTING A TECHNICALPROPOSAL FOR A STANDARD SHALL, ON A BONA FIDEBASIS, DRAW THE ATTENTION OF ETSI TO ANY OF THATMEMBER'S IPR WHICH MIGHT BE ESSENTIAL IF THATPROPOSAL IS ADOPTED."THREE THINGS YOU'LL LEARN ABOUT THAT VERY8IMPORTANT SIMPLE SENTENCE.THE FIRST IS IPR MEANS9PATENTS AND PATENT APPLICATIONS, INTELLECTUAL10PROPERTY RIGHTS.IT INCLUDES BOTH.111213141516THE SECOND IS IT SAYS IF THAT MIGHT BEESSENTIAL, AND THE THIRD IS IT SAYS IF THE PROPOSALIS ADOPTED.SO IT MEANS BEFORE THE FOLKS HAVE SETTLEDON THE WALL SOCKET.THE EVIDENCE WILL DEMONSTRATE THAT17SAMSUNG IGNORED THIS RULE.IT FILED PATENT181920APPLICATIONS WHICH WERE KEPT SECRET.IT THEN WENT TO STANDARDS BODY AND MADEPROPOSALS THAT IT THOUGHT WERE COVERED BY ITS21PATENTS.IT SAT IN THE ROOM WHEN THE CHAIR SAID,22232425"IF YOU HAVE PATENTS OR PATENT APPLICATIONS,DISCLOSE THEM," AND THEY DID NOT.THE CHRONOLOGY WILL BE UNDISPUTED -- I'MGOING TO PUT IT ON THE SCREEN NOW -- FOR BOTH OF

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page83 of 274365123456THESE TWO PATENTS.LET ME JUST TAKE THE '941 PATENT.FOR THE '941 PATENT, SAMSUNG FILED APATENT APPLICATION ON MAY 4TH, 2005.FIVE DAYS LATER, LADIES AND GENTLEMEN,FIVE DAYS LATER, THE THREE INVENTORS WENT TO THE7STANDARD SETTING BODY.THEY SAT IN A ROOM WHILE8910THE CHAIRMAN SAID, "IF YOU HAVE A PATENT OR PATENTAPPLICATION, DISCLOSE IT" AND NEVER SAID A WORD.THEN THE STANDARD IS FROZEN AND ADOPTED,11AND WHAT HAPPENS TWO YEARS LATER?SAMSUNG SAYS,1213"OH, WE HAVE A PATENT.NOW."EVERYBODY SHOULD PAY US14NOW, YOU WILL LEARN THAT AS TO THE '516,15THE CHRONOLOGY WAS THE SAME.I'M NOT GOING TO GO16THROUGH IT NOW.IT'S ON SCREEN.1718BUT IT ACTUALLY HAPPENED TWICE.HAPPENED ONCE IN 2004 AND ONCE IN 2005.IT1920ACCIDENT.NOW, THIS WAS NOT, YOU WILL LEARN, ANTHE EVIDENCE WILL SHOW THIS ACTUALLY WAS2122232425A CONSCIOUS, CORPORATE POLICY ADOPTED AT THEHIGHEST LEVELS OF SAMSUNG.NOW, WE'RE NOT SAYING, AND YOU WON'T HEARUS SAY, THAT THOSE ENGINEERS BY THEMSELVES WENTINTO THE MEETINGS AND HAD TO MAKE THE DISCLOSE BY

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page84 of 274366123456THEMSELVES.BUT SOMEONE FROM SAMSUNG DID.AND WHAT WILL THE EVIDENCE SHOW YOU?EVIDENCE WILL SHOW YOU THAT SAMSUNG ADOPTED ACORPORATE POLICY OF SENDING EMPLOYEES TO THESEMEETINGS.THE78SOME OF THESE EMPLOYEES, YOU WILL LEARN,ARE INVENTORS ON THE TWO PATENTS YOU WILL LEARN9ABOUT.THESE EMPLOYEES, YOU WILL LEARN, HAVE NEVER10DESIGNED A PRODUCT.THEIR WHOLE PURPOSE, THEIR111213141516171819202122232425JOB, WAS TO GO TO THE MEETINGS AND TRY TO GETPATENTS ON WHAT THE STANDARDS FOLKS WEREDISCUSSING.YOU WILL, IN FACT, LEARN THAT SAMSUNG SETTARGETS FOR THEM, GOALS, FOR THE NUMBER OF PATENTSTHEY HAD TO GET THAT COVERED THE STANDARD AND ITAFFECTED THEIR COMPENSATION.AND YOU WILL FIND THAT THESE GROUPS OFSAMSUNG EMPLOYEES WENT TO THE MEETING, IT INCLUDEDMANY LAWYERS, THEY CAME HOME, AND THEY DRAFTEDPATENT APPLICATIONS OR TRIED TO AMEND PATENTAPPLICATIONS TO COVER THE STANDARDS.NOW, BY FAILING TO TIMELY DISCLOSE,SAMSUNG BROKE RULE 4.1.SAMSUNG IS GOING TO SHOW YOU SOME OTHER

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page85 of 27436712RULES. THE FOCUS HERE IS RULE 4.1.BUT YOU'RE NOT GOING TO HAVE TO TAKE OUR3WORD FOR IT.SAMSUNG HIRED AN EXPERT IN THIS CASE,456THEIR EXPERT, SOMEONE THEY'RE GOING TO PAY, NAMEDKARL HEINZ ROSENBROCK.HE WAS THE FORMER DIRECTOR GENERAL OF7ETSI.THEIR EXPERT TESTIFIED UNDER OATH THAT8910111213SAMSUNG FAILED TO ABIDE BY THE LETTER OF RULE 4.1.THAT WILL BE CONFIRMED BY OUR EXPERT,DR. MICHAEL WALKER, WHO ACTUALLY WAS THE CHAIRMANOF THE BOARD OF ETSI DURING THIS TIME PERIOD.NOW, WHAT WILL THE EVIDENCE TELL YOUABOUT WHY SAMSUNG DIDN'T TELL PEOPLE ABOUT THE14PATENTS?WHY DIDN'T THEY, IN ANSWER TO THE CALL,1516SAY "WE HAVE THE PATENT APPLICATION"?YOU WON'T HAVE TO WONDER.HERE IS THE17181920TESTIMONY WHICH SAMSUNG OFFERED FROM A CORPORATEREPRESENTATIVE ON THIS VERY ISSUE.(WHEREUPON, A VIDEOTAPE WAS PLAYED INOPEN COURT OFF THE RECORD.)21MR. LEE:"A STUPID THING."2223NOW, WHAT IS THE SECOND RULE THAT THEEVIDENCE WILL DEMONSTRATE THAT SAMSUNG BROKE?24THERE'S ANOTHER RULE CALLED FRAND.FRAND25IS AN ACRONYM.IT MEANS FAIR, REASONABLE, AND

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page86 of 27436812NON-DISCRIMINATORY.WHAT'S THIS MEAN?IT MEANS IF YOU'RE345678910111213141516171819202122232425GOING TO BE PART OF THIS GROUP, THE TEN OF US WHOARE COMING UP WITH THIS WALL SOCKET, WE'RE ALLGOING TO AGREE THAT TO THE EXTENT WE HAVE PATENTS,WE'RE GOING TO MAKE THEM AVAILABLE BECAUSE WE WANTPEOPLE TO USE THEM, AND SO WE'LL PROMISE TO LICENSETHEM, IF WE HAVE PATENTS, ON FAIR, REASONABLE, ANDNON-DISCRIMINATORY TERMS.THIS IS IMPORTANT BECAUSE, AS YOU WILLLEARN FROM THE EVIDENCE, THERE ARE LITERALLYTHOUSANDS OF PATENTS THAT PEOPLE HAVE DECLAREDESSENTIAL.AGAIN, AS I SAID, YOU WILL LEARN THATTHOSE CLAIMS BY PEOPLE HAVE NOT BEEN TESTED FOR THEMOST PART.BUT FRAND IS ANOTHER RULE OF ETSI THAT ISDESIGNED TO PREVENT PEOPLE FROM ENGAGED IN THE KINDOF CONDUCT DESCRIBED AND, AT THE END, SAY, "I WANTA LOT OF MONEY IF YOU'RE GOING TO USE MY PATENT."NOW, MR. MCELHINNY TOLD YOU ABOUT SOMEAPPLE PATENTS THAT COVER UNIQUE FEATURES OF THEIPHONE AND IPAD.THOSE YOU WILL LEARN ARE IDEAS ANDINVENTIONS THAT MADE THE IPHONE AND THE IPAD

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page87 of 274369123DIFFERENT FROM OTHERS.THE TWO PATENTS I'M TALKING ABOUT NOW ARERELATED TO FEATURES THAT ARE THE SAME AMONG4PRODUCTS.THEY ARE FEATURES THAT ARE THE WIRELESS56COMMUNICATION, ELECTRICAL PLUG.SO WHAT IS SAMSUNG SAYING?ONCE SAMSUNG78910111213141516171819202122WAS ASKED TO STOP COPYING, ONCE IT ASSERTED THESEPATENTS, WHAT DID IT SAY AND WHAT WILL IT TELL YOUIT SHOULD BE PAID FOR THESE TWO PATENTS?WELL, SAMSUNG IS GOING TO TRY TO CONVINCEYOU THAT IT SHOULD GET 2.4 PERCENT OF EVERY IPHONEAND IPAD FOR THESE TWO PATENTS.NOW, LADIES AND GENTLEMEN, YOU WILL LEARNTHAT THAT'S ABOUT $12 FOR EVERY IPHONE AND IPAD.IT'S HUNDREDS OF MILLIONS OF DOLLARS.REMEMBER I SHOWED YOU THE BASEBANDPROCESSOR THAT HAS ALL OF THESE FUNCTIONS? $10?SAMSUNG WANTS $12 FOR A COMPONENT THATAPPLE PAYS $10 FOR.NOW, YOU MAY BE ASKING YOURSELF, WELL,HAS ANYBODY PAID SAMSUNG FOR THESE PATENTS BEFORE?THE EVIDENCE WILL SHOW YOU THAT NO ONE2324HAS.NO ONE HAS PAID A PENNY FOR THESE PATENTS.SOME COMPANIES HAVE ENGAGED IN25CROSS-LICENSES WITH SAMSUNG.ONE COMPANY GIVES

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page88 of 274370123456SAMSUNG PATENTS, SAMSUNG GIVES THE OTHER COMPANYPATENTS.BUT SAMSUNG HAS NEVER BEEN PAID.IN FACT, WHEN THE PAYMENT HAS BEEN MADE,SAMSUNG HAS BEEN PAYING IT.AND YOU'LL RECALL THE LAST TWO LETTERS OF7MY FRAND, NON-DISCRIMINATORY.NON-DISCRIMINATORY8MEANS IN THIS CONTEXT JUST WHAT IT MEANS TO YOU ON910AN EVERY DAY BASIS.TREATED THE SAME.IT MEANS EVERYBODY GETS111213WHAT WILL THE EVIDENCE SHOW ABOUT WHETHERSAMSUNG HAS EVER MADE THIS DEMAND OF ANYONE ELSE?THE DEMAND WAS ONLY MADE AFTER APPLE SAID "STOP1415COPYING."NOT MADE TO ONE OTHER PERSON, EVER.THAT'S NOT FAIR, IT'S NOT REASONABLE, AND1617181920212223IT'S NOT NON-DISCRIMINATORY.AND WE WILL CALL A VERY EXPERIENCEDLICENSING EXECUTIVE, RICHARD DONALDSON, ANECONOMIST FROM NEW YORK UNIVERSITY WHO WILL EXPLAINTO YOU THE CONSEQUENCES OF THIS TYPE OF CONDUCT.BUT IN THE END, IT WILL NOT BE, WESUBMIT, SURPRISING THAT SAMSUNG FAILED TO COMPLYWITH FRAND, WITH THESE RULES.24WHY?BECAUSE AS I TOLD YOU, SAMSUNG'S25STRATEGY IS AT THE VERY TOP OF THE COMPANY.

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page89 of 274371123LET ME SHOW YOU SOME MORE TESTIMONY FROMDR. AHN, WHO RUNS SAMSUNG'S INTELLECTUAL PROPERTYCENTER, THE I.P. CENTER AT SAMSUNG.4"QUESTION:DR. AHN, AS HEAD OF LICENSING5678AT SAMSUNG, HAVE YOU PERSONALLY TAKEN ANY STEPS TOENSURE THAT SAMSUNG COMPLIES WITH ITS FRANDCOMMITMENTS?"THOSE ARE THE RULES.9"ANSWER:I AM THE HEAD OF THE I.P.10CENTER AND I HAVE NOT TAKEN SUCH STEPS."11121314THE COURT:MR. LEE:"ANSWER:SOMEBODY DOES."NINE MINUTES.THERE WAS ANOTHER QUESTION.I HAVE NEVER VERIFIED WHETHER1516171819202122232425LADIES AND GENTLEMEN, YOU CAN'T FOLLOWTHE RULES IF YOU DON'T TRY.NOW, THE CONSEQUENCES OF THIS STANDARDSETTING MISCONDUCT REALLY ARE THREE.AT THE END, AFTER WE PUT THIS EVIDENCEBEFORE YOU, WE WILL ASK YOU TO FIND THAT THESEPATENTS ARE UNENFORCEABLE BECAUSE THEY DIDN'T ACTFAIRLY AND SQUARELY.WE WILL ASK YOU TO FIND THAT THEYBREACHED THEIR CONTRACTUAL COMMITMENTS TO ETSI ANDTHE OTHER PEOPLE PARTICIPATING IN ETSI.

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page90 of 27437212345678910111213141516AND WE WILL ASK YOU TO FIND THAT THISTYPE OF CONDUCT IS PRECISELY WHAT OUR ANTITRUSTLAWS SAY THEY CAN'T DO.NOW, LET ME MOVE TO THE LATTER THREEPATENTS, THE ONES THAT, BY SAMSUNG'S OWN DAMAGESAWARDS, DAMAGES CLAIMS IS ABOUT A TENTH OR LESS INIMPORTANCE.THERE ARE THREE OF THEM, THE '711, THE'893, AND THE '460.TWO OF THESE, THE '893 AND THE '460, AREDIRECTED TO AN OLDER APPROACH OF DESIGNING PHONES.THESE ARE THE OLDER PHONES THAT YOU SAW INMR. MCELHINNY'S SLIDES.IN BOTH PATENTS, THE PHONES CAN BE PUTINTO PARTICULAR MODES, PHOTO MODE AND CAMERA MODE.WHEN THAT DEVICE IS IN THAT MODE, THAT'S1718IT.IT CAN'T BE ANYWHERE ELSE.IT'S JUST LIKE THE OLD MODES ON YOUR19WASHING MACHINE.YOU HAVE A HOT WATER MODE, WARM20WATER MODE, COLD WATER MODE.YOU CAN PICK ONE, BUT21THAT'S WHERE YOU ARE.YOU'RE IN THAT MODE.2223YOUR RADIO, THE OLD RADIOS, F.M. MODE,A.M. MODE, RIGHT? TWO MODES. BUT WHEN YOU PICKED24ONE, YOU WERE IN IT.PICK ONE, THAT WAS IT.25THAT'S THE WAY THESE OLD PRODUCTS THAT

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page91 of 2743731SAMSUNG DESIGNED OPERATED BECAUSE COMPUTING POWER2WAS NOT WHAT IT IS TODAY, AS YOU WILL LEARN.YOU3456HAD TO PICK ONE MODE OR THE OTHER, GO THERE, ANDTHAT WAS IT.THE IPHONE AND THE IPAD HAVE MUCH MORESOPHISTICATED COMPUTER SYSTEMS, COMPUTING POWER7AND, THEREFORE, THEY CAN DO MUCH MORE.THEY CAN89101112131415RUN HUNDREDS OF THOUSANDS OF APPLICATIONS AND APPSAT THE SAME TIME.NOW, SOME OF THE APPS MAY HAVE MODESWITHIN THEM, BUT THE APPLICATIONS ARE WHAT'SDIFFERENT FROM THESE OLDER MODES.YOU HAVE HEARD ABOUT APPLE'S APP STORE.THIS IS WHERE USERS CAN CHOOSE FROM AMONG MANY OFTHE APPS AVAILABLE, RANGING FROM A SEARCH APP TO A1617GAME APP TO A MUSIC APP.THE SAME TIME.AND THESE APPS ARE RUN AT18WHY?YOU WILL LEARN IT'S BECAUSE APPLE19202122232425HAS INVENTED A DESIGN, A SYSTEM THAT ALLOWED FOR AFLEXIBLE AND DYNAMIC APPROACH THAT USES THEPOWERFUL COMPUTING POWER OF TODAY, BUT USES THEINVENTIONS THAT MR. MCELHINNY HAS DESCRIBED TO YOUTO ALLOW PROCESSING CAPABILITY AND FEATURES THAT GOSO FAR BEYOND WHAT WAS DEVELOPED A DECADE AGO.SO LET ME SHOW YOU CLAIM 10 OF THE '893

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page92 of 2743741PATENT.2YOU'LL REMEMBER THAT HER HONOR SAID THAT3THE CLAIMS ARE THE DESIGNED INVENTIONS.I KNOW45HAVING THE INSTRUCTIONS, LONG INSTRUCTIONS FOR THEFIRST TIME AT 4:00 O'CLOCK ON A MONDAY AFTERNOON IS6NOT EASY.THE CLAIMS WILL BE COMING IN DURING THE789101112COURSE OF THE TRIAL.I'M NOT GOING TO GO THROUGH THIS WHOLECLAIM, BUT WHAT I'M HIGHLIGHTING FOR YOU NOW IS ALLTHE DIFFERENT PLACES WHERE IT REQUIRES A MODE.FIGURE 1 OF THE '893 PATENT ILLUSTRATESTHESE OLDER MODES. IT'S A CAMERA. THERE'S A MODE1314DIAL.YOU CAN DIAL BETWEEN TWO DIFFERENT MODES.BUT WHEN YOU'RE IN ONE, IF YOU'RE F.M.,1516YOU'RE F.M., AND IF YOU'RE A.M., YOU'RE A.M.CAN'T DO BOTH.YOU17181920NOW, LET'S LOOK AT THE IPHONE, AND LET'SLOOK AT THE APPS OF THE IPHONE.EVERY ICON REPRESENTS A DIFFERENT APP.SOME OF THEM ARE IN YOUR IPHONE WHEN YOU BUY IT AND21OPEN IT UP FOR THE FIRST TIME.THE CAMERA APP, YOU22WILL LEARN, IS.THE PHOTO APP, YOU WILL LEARN, IS.232425OTHERS CAN BE DOWNLOADED THROUGH THE APPSTORE FROM THE HUNDREDS OF THOUSANDS OF APPS THATPEOPLE ALL OVER THE WORLD HAVE DESIGNED.

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page93 of 274375123456789101112AND USERS HAVE THE ABILITY TO USE MANY ASTHIS ANIMATION WILL SHOW YOU.YOU CAN HAVE THE MUSIC APP PLAY MUSIC.AT THE SAME TIME AS THE MUSIC APP IS PLAYING, WECAN SEND A TEXT MESSAGE, AND THE ANIMATION COULD GOON FOR THE OTHER THINGS YOU COULD DO.THE '460 PATENT IS VERY MUCH THE SAME.IF I GO TO THE NEXT SLIDE, THIS IS CLAIM 1 OF THE'460, AND YOU WILL SEE IT'S ALL ABOUT MODE ANDSUB-MODE, MODES AND SUB-MODES THAT YOU WILL LEARNARE DIFFERENT FROM APPLE'S APPS.YOU WILL HEAR FROM AN APPLE ENGINEER13NAMED EMILIE KIM.SHE ACTUALLY WAS AN APPLE141516171819202122232425ENGINEER, MOVED ON TO ANOTHER JOB, BUT SHE'S GOINGTO COME AND EXPLAIN TO YOU JUST HOW APPLE DEVELOPEDITS CAMERA AND PHOTO APPS AND JUST HOW THEY WORK.AND WE WILL THEN CALL TWO EXPERTS,PROFESSOR PAUL DOURISH FROM U.C. IRVINE ANDPROFESSOR MANI SRIVASTAVA FROM UCLA, AND THEY WILLCOME AND EXPLAIN TO YOU THE DIFFERENCE BETWEEN THEOLD APPS, THE OLD MODES, AND THE APPS OF THE IPHONEFROM 2007 ON.BUT THE BEST EVIDENCE THAT YOU WILLRECEIVE ABOUT WHY THESE PATENTS -- THE BESTEVIDENCE YOU WILL RECEIVE ABOUT WHY THESE PATENTS

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page94 of 27437612ARE NOT WHAT SAMSUNG SAYS IS THIS:NOT USE THEM ITSELF.SAMSUNG DOES345678HER HONOR ESTABLISHED SOME RULES WHERE WEHAD TO TELL EACH OTHER FACTS AND CONTENTIONS.UNDER HER HONOR'S RULES, SAMSUNG HAD TO TELL USWHICH OF THEIR PRODUCTS HAD THESE INVENTIONS INTHEM.YOU WILL SEE THE SUBMISSION AND, FOR910THOSE TWO PATENTS, IT'S ONE BIG BLANK.EVEN USE IT THEMSELVES.THEY DON'T11NOW, LET ME TURN TO THE LAST OF THE12SAMSUNG PATENTS, THE '711 PATENT.THIS IS ALSO131415SOMETHING THAT IS DIRECTED TO AN OLDER TECHNOLOGY.I'M GOING TO PUT CLAIM 9 ON THE SCREEN --AND FOR EACH OF THESE CLAIMS, YOU WILL HEAR MORE16ABOUT THE OTHER WORDS.FOR EACH OF THE CLAIMS I'VE171819202122232425SHOWN YOU, YOU WILL ACTUALLY LEARN THAT MUCH OF THEWORDS DESCRIBE WHAT OTHERS HAD DONE BEFORE AND THATWAS NOT NEW, AND THE QUESTION WILL BECOME, WELL, IFTHAT'S ALL TRUE, WHAT IS IT THAT SAMSUNG SAYS ISNEW?NOW, THIS PATENT DESCRIBES PLAYINGBACKGROUND MUSIC WHILE MULTITASKING ON A MOBILEDEVICE, JUST LIKE I SHOWED YOU THE APPLE PHONECOULD DO.

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page95 of 27437712345BUT THAT'S NOT WHAT THIS INVENTION IS,AND SAMSUNG CONCEDES THAT, BEFORE IT EVER MADE THISINVENTION, OTHERS HAD MOBILE DEVICES THAT PLAYEDBACKGROUND MUSIC AND MULTITASKED.SO WHAT DID SAMSUNG TELL THE PATENT6OFFICE?AND YOU'LL SEE THIS IN WORDS.7THE CLAIM REFERS TO AN APPLET.YOU SEE891011THAT ONE WORD I'VE HIGHLIGHTED THERE, APPLET.SAMSUNG SAID TO THE PATENT OFFICE, THISIS WHAT IS NEW.NOW, YOU'RE GOING TO LEARN THAT APPLETS1213ACTUALLY WERE PRETTY OLD THEMSELVES.INVENTED BY OTHERS.THEY WERE1415161718YOU WILL ALSO LEARN THAT THE NAME HASNOTHING TO DO WITH APPLE, NOTHING TO DO WITHAPPLE'S APPS.AND IN FACT, HER HONOR HAS GIVEN THISTERM, "APPLET," A VERY SPECIFIC DEFINITION.1920THE COURT:MR. LEE:YOU HAVE ONE MINUTE.THANK YOU.2122232425"AN APPLICATION DESIGNED TO RUN WITHIN ANAPPLICATION MODULE."THAT IS NOT -- THAT IS NOT WHAT APPLEDOES.NOW, I SAID AT THE BEGINNING THAT I WOULD

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page96 of 27437812345678COME BACK TO THE QUESTION THAT MR. MCELHINNY POSED:WHEN DID SAMSUNG FIRST ASSERT THESE PATENTS?WE NOW KNOW THESE PATENTS WERE ALL FILEDBY 2007.WHEN THE IPHONE CAME TO THE MARKET IN2007, WHAT WILL THE EVIDENCE SHOW SAMSUNG DID? DIDIT SAY, "APPLE, WE APPRECIATE YOUR BUSINESS.APPLE, WE APPRECIATE THE BILLIONS OF DOLLARS YOU'RE9PAYING US.BUT YOU SHOULD KNOW, WE'VE GOT PATENTS,101112131415161718192021PATENTS THAT COVER YOUR IPHONE."NOT A WORD. NOT A WORD IN 2008. NOT AWORD IN 2009. NOT A WORD IN THE FIRST HALF OF 2010UNTIL APPLE SAID, "STOP COPYING."AND ONLY THEN DID THESE PATENTS, WHICHTHE EVIDENCE WILL SHOW DESCRIBED OLD TECHNOLOGIES,TECHNOLOGIES THAT APPLE DOESN'T USE, ONLY THEN WERETHEY ASSERTED AGAINST APPLE.NOW, I'M AT THE END OF OUR OPENING.MR. MCELHINNY AND ME, WE KNOW THAT A LOT OFINFORMATION HAS BEEN PROVIDED TO YOU.I WANT TO END WHERE MR. MCELHINNY BEGAN,2223WHICH IS BY THANKING YOU FOR YOUR JURY SERVICE.KNOW IT IMPOSES GREAT BURDENS ON YOU PERSONALLY.WE2425AT TIMES YOU'RE GOING TO FEEL LIKE YOU'RE TAKING ININFORMATION LIKE YOU'RE DRINKING WATER FROM A FIRE

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page97 of 27437912HOSE.BUT IT'S OUR JOB TO MAKE IT UNDERSTANDABLE.AT THE CONCLUSION OF THE CASE, HER HONOR345678910111213141516171819202122IS GOING TO PROVIDE YOU THE RULES AND THE LAW BOTH.HER WORD IS THE FINAL WORD BECAUSE WE ARE A COUNTRYOF LAWS AND RULES.THE EVIDENCE WILL DEMONSTRATE THATSAMSUNG HAS REFUSED TO ABIDE BY THE RULES OFUTILITY PATENTS.THE EVIDENCE WILL DEMONSTRATE THATSAMSUNG HAS REFUSED TO ABIDE BY THE RULES OF DESIGNPATENTS.THE EVIDENCE WILL DEMONSTRATE THATSAMSUNG HAS REFUSED TO ABIDE BY THE RULES OF TRADEDRESS.AND THE EVIDENCE WILL DEMONSTRATE THATSAMSUNG BROKE ETSI'S RULES.WE WILL COME BACK TO YOU AT THECONCLUSION OF THE EVIDENCE AND ASK YOU TO RETURN AVERDICT FOR APPLE AGAINST SAMSUNG ON ALL OF THEVARIOUS CLAIMS THAT ARE BEFORE YOU.THANK YOU FOR YOUR TIME AND ATTENTION.THE COURT: ALL RIGHT. IT'S 11:25.2324ALL RIGHT.SAMSUNG'S OPENING.LET'S GO FORWARD WITH25MR. VERHOEVEN:YOUR HONOR, MAY I

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page98 of 2743801INQUIRE, ARE WE GOING TO BREAK FOR LUNCH AT NOON?2THE COURT:AT NOON PLEASE.3MR. VERHOEVEN:THANK YOU, YOUR HONOR.4THE COURT:THANK YOU.5MR. VERHOEVEN:MAY I PROCEED, YOUR6HONOR?7THE COURT:PLEASE.89(WHEREUPON, MR. VERHOEVEN GAVE HISOPENING STATEMENT ON BEHALF OF SAMSUNG.)10MR. VERHOEVEN:GOOD MORNING, MEMBERS OF111213141516THE JURY. MY NAME IS CHARLIE VERHOEVEN. I'MCOUNSEL FOR THE APPLE DEFENDANTS ANDCROSS-CLAIMANTS IN THIS CASE, AND I'LL BEPRESENTING OUR OPENING STATEMENT.NOW, YESTERDAY YOU HEARD FROM THE JUDGETHAT IT'S VERY IMPORTANT TO KEEP AN OPEN MIND IN17THIS CASE.BOTH MR. MCELHINNY AND MR. LEE ARE VERY18GOOD TRIAL LAWYERS.I'M SURE THAT THEY SOUNDED19202122232425QUITE PERSUASIVE TO YOU.BUT YOUR JOB, AS THE JUDGE INSTRUCTEDYOU, IS TO KEEP AN OPEN MIND, AND I ASK YOU TO DOTHAT NOT JUST TO HEAR MY OPENING STATEMENT, BUTTHROUGHOUT ALL THE EVIDENCE AND UNTIL THE END OFTHE TRIAL BECAUSE, MEMBERS OF THE JURY, THERE'SMORE TO THE STORY THAN WHAT YOU'VE JUST HEARD.

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page99 of 2743811234567891011121314SO PLEASE KEEP AN OPEN MIND UNTIL YOUHEAR THE WHOLE STORY.FOR EXAMPLE -- IF WE CAN GO TO SLIDE 8.YOU HEARD FROM MR. MCELHINNY THAT APPLE'SDESIGN FOR THE IPHONE WAS REVOLUTIONARY; THERE WASNOTHING LIKE IT BEFORE; THAT IT HAD NEVER BEEN SEENBEFORE.BUT WHAT YOU WEREN'T TOLD WAS THAT, INFACT, WE'RE TALKING ABOUT THE DESIGN OF THE IPHONE,THERE WERE, IN PATENT PUBLICATIONS -- EXCUSE ME --IN PATENT PUBLICATIONS THAT PRE-DATED THE IPHONEMANY PATENTS THAT HAD LARGE RECTANGULAR SCREENS.SO, FOR EXAMPLE, HERE IN 2005, BEFORE THEIPHONE IS RELEASED, A JAPANESE PATENT, THE '38315PATENT.LARGE, RECTANGULAR SCREEN, YOU SEE IT16171819RIGHT THERE, SIMILAR TO THE IPHONE SCREEN; BIGRECTANGULAR FORM FACTOR, THE SCREEN TAKES UP MOSTOF THE, OF THE FORM FACTOR; ROUNDED, DEEPLY ROUNDEDCORNERS; AND MINIMALIST DESIGN.2021ALREADY OUT THERE.APPLE DIDN'T INVENT THAT.THAT WAS22232425AND ANOTHER JAPANESE PATENT, JP368, YOUSEE HERE AS WELL, VERY SIMILAR. THE LARGE, REAL --MOST OF THE REAL ESTATE IN THAT PHONE THERE, PHONEDESIGN, IS THE SCREEN; IT'S GOT A LARGE RECTANGULAR

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page100 of 2743821234567891011121314151617FORM FACTOR; IT'S GOT ROUNDED CORNERS; IT'S GOT AVERY MINIMALIST DESIGN; JUST ONE LOZENGE-SHAPED EARHOLE THERE.THERE'S ANOTHER, KR547, A DESIGN PATENTFILED BEFORE ANY OF THE DESIGN PATENTS IN THISCASE.AGAIN, LARGE RECTANGULAR SCREEN;RECTANGULAR FORM FACTOR WITH ROUNDED CORNERS;MINIMALIST DESIGN WITH JUST A LOZENGE-SHAPED EARHOLE.AND THEN THE LG PRADA, THIS IS AN ACTUALPICTURE OF A PRODUCT FROM 2006, A SMARTPHONE, LARGERECTANGULAR SCREEN; SAME FORM FACTOR; ROUNDEDCORNERS; MINIMALIST DESIGN.SO THE FACTS WILL SHOW THAT THERE'S ADISTINCTION BETWEEN A PRODUCT WITH ALL OF ITSACCOUTREMENTS THAT BECOMES VERY POPULAR AND THE18QUESTION OF WHAT DID YOU INVENT?WERE YOU THE19FIRST TO DO IT?DID SOMEBODY ELSE DO IT BEFORE?202122232425THERE'S A DISTINCTION, THE EVIDENCE WILLSHOW, BETWEEN COMMERCIAL SUCCESS AND INVENTINGSOMETHING.NOW, I'D LIKE TO SHOW YOU ALSO THE IPAD.IF WE CAN GO TO THE NEXT SLIDE.AGAIN, THE CLAIM WAS MADE, THE EVIDENCE

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page101 of 2743831234567WILL SHOW THE IPAD REVOLUTIONIZED DESIGN.BUT IF YOU LOOK AT THE EVIDENCE -- IF YOULOOK AT WHAT THE EVIDENCE IN THIS CASE WILL SHOW,THESE HERE ARE PRIOR ART TABLETS THAT HAVE SIMILARFORM FACTORS.HERE WE SEE THAT, IN 1994, THE FIDLERTABLET. YOU WEREN'T TOLD ABOUT THAT. THAT WAS8YEARS BEFORE THE IPAD CAME OUT IN 2010.THE FIDLER91011PATENT HAD A LARGE SCREEN; RECTANGULAR SHAPE;MINIMALIST DESIGN; ROUNDED CORNERS.HEWLETT-PACKARD, TC1000 PRE-DATED THE12IPAD.LARGE RECTANGULAR SCREEN; TAKES UP MOST OF13141516171819THE SPACE OR THE REAL ESTATE ON THE FRONT OF THEIPAD -- EXCUSE ME -- ON THE TABLET; RECTANGULAR INSHAPE; ROUNDED CORNER; MINIMALIST DESIGN.U.S. DESIGN PATENT '802, SIMILAR.JAPANESE DESIGN PATENT, '127.THE EVIDENCE IS GOING TO SHOW THAT APPLEDIDN'T INVENT THE RECTANGULAR SHAPED FORM FACTOR20THAT YOU KEEP SEEING.APPLE DIDN'T INVENT HAVING A2122232425LARGE TOUCH SCREEN IN A RECTANGLE WITH ROUNDEDCORNERS.THE EVIDENCE WILL SHOW THAT APPLE'S OWNEXPERTS ADMIT THAT APPLE HAS NO RIGHT TO CLAIM AMONOPOLY ON A RECTANGLE WITH ROUNDED CORNERS OR A

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page102 of 2743841234567891011121314151617181920212223LARGE SCREEN.NOW, ANOTHER THING YOU WEREN'T TOLD --LET ME RESTATE THAT.YOU WERE TOLD, OR AT LEAST IT WASIMPLICATED, THAT MY CLIENT, SAMSUNG, WAS PURSUINGONE TYPE OF DESIGN FOR A PHONE AND THEN THE IPHONECAME OUT AND THEN THEY SWITCHED AND JUST COPIED THEIPHONE.WELL, THE EVIDENCE IS GOING TO SHOW THATYOU DIDN'T HEAR THE WHOLE STORY THERE, EITHER.HERE, MEMBERS OF THE JURY, IS ADEMONSTRATIVE SLIDE THAT DEPICTS THE SAMSUNGPRE-IPHONE PHONES AND POST-IPHONE DESIGNS.WE PUT A LINE RIGHT THROUGH THE MIDDLE OFTHIS SLIDE SO YOU CAN SEE THAT'S WHEN THE IPHONEWAS ANNOUNCED, JANUARY 2007.NOW, AS YOU CAN SEE, BEFORE THE IPHONEWAS EVEN ANNOUNCED, SAMSUNG'S BUSINESS MODEL WAS TOMAKE A NUMBER OF DIFFERENT TYPES OF PHONES.UNLIKE APPLE, THE EVIDENCE WILL SHOW,SAMSUNG MAKES MANY PHONES FOR MANY DIFFERENT TYPESOF PEOPLE BECAUSE, AS WE HEARD DURING JURYSELECTION, DIFFERENT PEOPLE HAVE DESIRES FOR24DIFFERENT TYPES OF PHONES.SOME JUST WANT A PHONE25THAT DOES NOTHING ELSE.SOME WANT TO BE ABLE TO

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page103 of 27438512345TYPE A LOT, SO THEY WANT A PHYSICAL KEYBOARD.LIKE TO HAVE THE TOUCH SCREEN PHONE.WELL, UNLIKE APPLE THAT JUST MAKESBASICALLY ONE KIND OF PHONE, SAMSUNG MAKES ALLKINDS OF PHONES FOR ALL KINDS OF PEOPLE.SOME6789AND SO THERE'S A FOLDER-TYPE PHONE THATSAMSUNG MADE BEFORE THE IPHONE AND MAKES NOW.THERE'S THE BAR-TYPE IPHONE -- EXCUSEME -- BAR-TYPE PHONE THAT SAMSUNG MADE BEFORE THE10IPHONE.SAMSUNG STILL MAKES THE BAR-TYPE PHONE.1112131415IT DIDN'T SWITCH AND ONLY MAKE TOUCH SCREEN PHONESAFTER THE IPHONE CAME OUT.THERE'S THE SLIDE-TYPE IPHONE, THE SLIDERPHONE. SAMSUNG MADE THOSE BEFORE THE IPHONE. ITDIDN'T STOP MAKING THOSE WHEN THE IPHONE CAME OUT1617AND SWITCH TO JUST TOUCH SCREENS.SLIDER-TYPE PHONES.IT STILL MAKES181920212223AND IMPORTANTLY, BEFORE THE IPHONE CAMEOUT, SAMSUNG ALSO MADE PHONES THAT WERE RECTANGULARIN SHAPE WITH ROUNDED CORNERS THAT HAD LARGE TOUCHSCREENS ON THEM, AND CONTINUED TO MAKE THOSE AFTERTHE IPHONE CAME OUT.WHAT YOU SAW IN MR. MCELHINNY'S OPENING24WAS A LITTLE BIT UNFAIR.WHAT YOU SAW WAS POINTING25TO A BAR-TYPE IPHONE AND SAYING, "WELL, THAT'S

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page104 of 27438612345PRE-IPHONE," AND THEN POINTING TO ONE OF THESETOUCH SCREEN PHONES AFTER THE IPHONE AND SAYING,"OH, WELL, THEY SWITCHED AND THEY STOPPED DOINGTHIS AND STARTED DOING THAT."BUT THAT'S NOT THE -- THAT'S NOT THE6WHOLE STORY.IF YOU LOOK AT THE PHONES THAT7891011121314SAMSUNG MAKES, THAT'S A DISTORTION -- THE EVIDENCEWILL SHOW THIS -- OF WHAT HAPPENED.IN FACT, WHAT THE EVIDENCE WILL SHOW ISTHERE'S AN EVOLUTION IN TECHNOLOGY, IN SMARTPHONETECHNOLOGY, AND THE EVIDENCE WILL SHOW THAT AS THEGUTS OF THESE PHONES GOT MORE SOPHISTICATED ANDMORE SOPHISTICATED, YOU COULD DO MORE THINGS.IT USED TO BE YOU COULD JUST MAKE A PHONE15CALL.THEN IT WAS YOU CAN MAKE A PHONE CALL AND16171819202122232425TEXT MESSAGE.BUT THEN TECHNOLOGY GOT BETTER AND BETTERAND THESE PHONES TURNED INTO MINICOMPUTERS AND YOUCOULD WATCH VIDEOS ON THEM, YOU COULD PLAY MOVIES,YOU COULD LISTEN TO MUSIC, YOU COULD TALK TOSOMEBODY ELSE VIA VIDEO, ALL KINDS OF DIFFERENTTHINGS.AND AS THAT FUNCTIONALITY INCREASED, THEENTIRE INDUSTRY MOVED TOWARDS SCREENS THAT WEREMUCH, MUCH LARGER BECAUSE NO ONE IS GOING TO WANT

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page105 of 27438712TO WATCH A MOVIE ON A TINY LITTLE SCREEN IN APHONE.3IT'S NOT JUST SAMSUNG.THE EVIDENCE WILL456SHOW THE ENTIRE INDUSTRY MOVED THIS WAY.IS THAT INFRINGEMENT?THE EVIDENCE IS GOING TO SHOW, NO, IT'S7COMPETITION.IT'S PROVIDING THE CONSUMER WHAT THE8910CONSUMER WANTS.AND THAT IS WHAT SAMSUNG HAS DONE.SAMSUNG FOLLOWS ITS BUSINESS MODEL IS TO MEET ITS11CONSUMER'S DEMANDS.IF THE CONSUMERS DESIRE TO1213141516HAVE PHONES WITH TOUCH SCREENS THAT ARE LARGE ONTHE FRONT FACE, SAMSUNG PROVIDES THEM.IF THE CONSUMERS WANT TO HAVE AFOLDER-TYPE PHONE, SAMSUNG PROVIDES IT.IT'S NOT OUT THERE, LIKE SOME1718JOHNNY-COME-LATELY, JUST COPYING KNOCK-OFFS.DEVELOPING TECHNOLOGY FOR WHAT PEOPLE WANT.IT'S1920NOW, WE'RE NOT STANDING HERE TELLING YOU,MEMBERS OF THE JURY, THAT THE IPHONE WASN'T21COMMERCIALLY SUCCESSFUL.WE'RE NOT SAYING THAT IT22232425WASN'T A GREAT PRODUCT. IT WAS. IT WAS ANINSPIRING PRODUCT TO EVERYONE, INCLUDING THECOMPETITION.BUT BEING INSPIRED BY A GOOD PRODUCT AND

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page106 of 274388123456789101112SEEKING TO MAKE EVEN BETTER PRODUCTS IS NOT -- IT'SCALLED COMPETITION. IT'S NOT COPYING. IT'S NOTINFRINGEMENT.EVERYBODY DOES IT IN THE COMMERCIALMARKETPLACE.THE QUESTION FOR YOU, MEMBERS OF THEJURY, ARE THE INSTRUCTIONS HER HONOR IS GOING TOGIVE YOU ON TRADE DRESS INFRINGEMENT, ON DESIGNPATENT INFRINGEMENT, ON UTILITY PATENT INFRINGEMENTWHERE YOU HAVE SPECIFIC RULES AND YOU APPLY THOSERULES.IT'S NOT WHETHER OR NOT PEOPLE ARE1314COMPETING AGAINST EACH OTHER.WRONG WITH THAT.THERE'S NOTHING1516171819202122232425NOW, I'D LIKE TO SPEND JUST A MINUTETALKING ABOUT MY CLIENT, SAMSUNG, BEFORE I GET INTOTHESE TRADE DRESS AND DESIGN PATENT, UTILITY PATENTISSUES.IF WE CAN GO BACK TO SLIDE 3, PLEASE.SAMSUNG HAS BEEN IN THE MOBILE TECHNOLOGYINDUSTRY SINCE 1991, WELL BEFORE APPLE DECIDED TOENTER THE INDUSTRY IN 2007.SAMSUNG WAS ONE OF THE FOUNDATIONALTECHNOLOGY COMPANIES THAT BUILT THE STANDARDS THATALLOW YOU TO LISTEN TO MUSIC AND DO ALL THESE GREAT

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page107 of 2743891234567THINGS WITH YOUR SMARTPHONES.SAMSUNG HAS INVESTED, JUST FROM 2005 TO2010, $35 BILLION IN RESEARCH AND DEVELOPMENT TOHELP BUILD THIS INFRASTRUCTURE, TO HELP BUILD THESESMARTPHONES. THAT'S JUST FROM 2005 TO 2010.THERE'S OVER 20,000 ENGINEERS DEDICATEDAT SAMSUNG TO TELECOMMUNICATIONS RESEARCH AND8DEVELOPMENT WORLDWIDE.OVER 1,000 DESIGNERS91011DESIGNING THOUSANDS OF ELECTRONIC PRODUCTS EACHYEAR.SAMSUNG IS NOT SOME COPYIST, SOME12JOHNNY-COME-LATELY WHO'S DOING KNOCK-OFFS.SAMSUNG131415IS A MAJOR TECHNOLOGY COMPANY THAT DEVELOPS ITS OWNINNOVATIONS.SAMSUNG ALSO HAS OFFICES RIGHT HERE IN16SAN JOSE.SAMSUNG HAS ITS MOBILE COMMUNICATIONS1718LAB WITH 90 ENGINEERS WHO WORK CLOSELY WITH GOOGLETO OPTIMIZE THE ANDROID OPERATING SYSTEM FOR19SAMSUNG'S PHONES.SAMSUNG'S PHONES OPERATE ON THE202122232425ANDROID OPERATING SYSTEM IN LARGE PART.IN SAN JOSE ALSO IS THE SAMSUNG DESIGNAMERICA GROUP WHERE DESIGNERS AND ENGINEERS WORKCLOSELY WITH OTHER DIVISIONS CREATING THE DESIGNAND USER INTERFACE OF SAMSUNG'S PHONES AND TABS.FINALLY IN SAN JOSE IS THE MEDIA SOLUTION

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page108 of 27439012345678910CENTER-AMERICA WHICH DEVELOPS AND MANAGES THEPLATFORMS THAT DELIVER CONTENT AND SERVICES TOMOBILE DEVICES.GO TO SLIDE 7, PLEASE.NOW, MR. MCELHINNY AND MR. LEE ALLUDED TOTHIS, BUT I WANT TO -- I WANT TO PAUSE ON ITBECAUSE IT'S IMPORTANT -- IT'S SOMEWHAT IMPORTANT.THE EVIDENCE WILL SHOW THAT IT IS SAMSUNGTHAT SUPPLIES 20 PERCENT OF THE COMPONENT COSTS FORTHE IPHONE.11THINK ABOUT THAT.THE GUTS THAT MAKE1213141516171819202122232425THIS PHONE WORK, THE FLASH MEMORY IN THE PHONE, THEMAIN MEMORY IN THE PHONE, THE APPLICATION PROCESSORIN THE PHONE, THEY ARE ALL SUPPLIED BY SAMSUNG.APPARENTLY APPLE THINGS THAT SAMSUNG HASINVENTED SOMETHING BECAUSE IT'S BUYING ITS PRODUCTSFROM IT TO PUT IT IN ITS OWN PHONE.WITH RESPECT TO THE IPAD, THE EVIDENCEWILL SHOW THAT SAMSUNG MANUFACTURES THE A5XPROCESSOR IN THE IPAD, AND IT IS THE SOLE AND ONLYQUALIFIED SUPPLIER FOR APPLE FOR ITS MUCH VALUEDAND MARKETED RETINA DISPLAY ON THE NEWEST IPAD.APPLE IS OUT THERE MARKETING ITSELF AS ANINNOVATOR AND THE ONLY COMPANY TO ACTUALLY PROVIDETHIS RETINA DISPLAY IS SAMSUNG.

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page109 of 2743911WHO'S THE REAL INNOVATOR?ASK YOURSELF234THAT QUESTION WHEN YOU HEAR THE EVIDENCE.NOW, THE SUGGESTION WAS MADE THAT THERE'SSOMETHING WRONG WITH LOOKING TO SOMEBODY ELSE TO BE5INSPIRED.MR. MCELHINNY WENT THROUGH AND SHOWED67891011YOU SOME DOCUMENTS WHERE SOME SAMSUNG PEOPLE WHOWERE DOING COMPETITIVE ANALYSIS WERE LOOKING AT THEIPHONE.I'LL GET TO WHAT THE EVIDENCE WILL SHOWABOUT APPLE DOING THAT IN A MINUTE, BUT THEEVIDENCE IS GOING TO SHOW, MEMBERS OF THE JURY,12THERE'S NOTHING WRONG WITH THAT.IT'S CALLED13COMPETITION.ALL COMPETITORS DO THAT.1415161718192021222324AND THERE'S NOTHING WRONG WITH BEINGINSPIRED BY SOMEBODY ELSE'S DESIGN.COULD WE GO TO THE NEXT SLIDE HERE?OOPS.FOR EXAMPLE, IN THIS CASE -- IN THIS VERYCASE WITH RESPECT TO THE CREATION OF THE DESIGN OFTHE IPHONE, THE INITIAL IPHONE, THE EVIDENCE WILLSHOW THAT APPLE ITSELF WAS INSPIRED BY THEFUNCTIONALITY OF ANOTHER COMPANY'S DESIGN, SONY.THIS IS EXHIBIT 562 ON THE SCREEN.YOU SEE THE PICTURE HERE, MEMBERS OF THE25JURY.ON THE BOTTOM RIGHT, THAT'S -- THE EVIDENCE

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page110 of 2743921IS GOING TO SHOW THAT WAS REFERRED TO AS THE2EXTRUDO SHAPE DESIGN.YOU SEE HERE IT SAYS3456"EXTRUDO SHAPE" IN THE E-MAIL.ON THE LEFT-HAND SIDE IS A DIFFERENTDESIGN, ONE THAT LOOKS A LOT MORE LIKE WHAT THEORIGINAL IPHONE, THE INITIAL IPHONE WHEN IT WAS7RELEASED LOOKED LIKE:ROUNDED CORNERS, BLACK, AN89101112IPHONE SET UP VERY SIMILAR TO WHAT YOU SAW FOR THEINITIAL IPHONE.WELL, THE EVIDENCE IS GOING TO SHOW THATTHAT DESIGN WAS -- AND ITS FUNCTIONALITY INSPIREDAPPLE TO CHANGE COURSE WITH THE DESIGN OF ITS13INITIAL IPHONE.APPLE WAS INSPIRED BY SONY.1415THIS E-MAIL IS DATED MARCH 8TH, 2006 FROMRICHARD HOWARTH, WITHIN APPLE, TO JONATHAN IVE,1617WHO'S THE HEAD OF THE DESIGN GROUP AT APPLE.MARCH 8, 2006.DATED1819202122232425THEY'RE STILL WORKING -- THE EVIDENCEWILL SHOW THEY WERE STILL WORKING ON THE DESIGN OFTHE IPHONE. THEY HADN'T FINISHED IT. THEY HADN'TCOMPLETED IT.THE EVIDENCE IS GOING TO SHOW, MEMBERS OFTHE JURY, THIS EXTRUDO SHAPE IS WHAT THEY WEREGOING WITH UNTIL IT BECAME INSPIRED BY THESONY-STYLE DESIGN FUNCTIONALITY.

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page111 of 27439312345678910111213AND HERE IT SAYS "HI JONY, I'M WORRIEDABOUT THE EXTRUDO SHAPE WE'RE USING FOR P2."P2, THE EVIDENCE WILL SHOW, IS CODE NAME,THE INTERNAL CODE NAME THAT APPLE USED FOR ITSINTERNAL PROJECT FOR DEVELOPING THE IPHONE."I'M WORRIED ABOUT THE EXTRUDO SHAPEWE'RE USING FOR P2 ET CETERA LOOKING AT WHAT SHIN'SDOING" -- AND THAT SHIN IS REFERRING TO SHINNISHIBORI, WHICH IS -- WHO WAS ANOTHER DESIGNERWITHIN THE APPLE DEPARTMENT -- "LOOKING AT WHATSHIN'S DOING WITH THE SONY-STYLE CHAPPY, HE'S ABLETO ACHIEVE A MUCH SMALLER-LOOKING PRODUCT WITH AMUCH NICER SHAPE TO HAVE NEXT TO YOUR EAR AND IN1415YOUR POCKET.IT GOES ON.ALSO NOTE THAT IT'S ONLY --" AND THEN16171819SO RIGHT THERE IN APPLE'S OWN DOCUMENTSWE SEE APPLE ITSELF WAS INSPIRED, AS PART OF ITSDESIGN PROCESS, TO MOVE FROM THE EXTRUDO SHAPE TOSOMETHING THAT WAS MORE SONY-LIKE.20THERE'S NOTHING WRONG WITH THAT.THAT21DOESN'T MEAN THEY'VE INFRINGED SOME SONY PATENT OR22DESIGN PATENT.IT JUST MEANS THAT THEY WERE232425COMPETING AND THEY WERE INSPIRED BY A COMPETITOR.POINTING TO DOCUMENTS THAT ARE SIMILARWITHIN THE SAMSUNG INTERNAL DOCUMENTS DOESN'T SHOW

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page112 of 2743941ANYTHING MORE.THERE'S NOTHING WRONG WITH BEING23INSPIRED -- THERE'S NOTHING WRONG WITH LOOKING ATWHAT YOUR COMPETITORS DO OR SOMETHING INSPIRED BY45THEM.THAT'S NOT WHAT WE'RE HERE FOR.WE'RE HERE TO ASSESS THE SPECIFIC CLAIMS678910111213MADE IN THIS CASE WITH RESPECT TO TRADE DRESSINFRINGEMENT, DESIGN PATENT INFRINGEMENT, UTILITYPATENT INFRINGEMENT.THE EVIDENCE IS ALSO GOING TO SHOW THATAPPLE -- DESPITE MR. MCELHINNY'S CLAIMS, APPLEWASN'T FIRST.THIS IS AN E-MAIL FROM APRIL 6TH, 2010FROM STEVEN SINCLAIR, WHO WAS THE IPHONE PRODUCT14MARKETING MANAGER.AND IN THIS E-MAIL, HE SAYS,15"IT'S TOUGH TO APPROACH THIS WITH THE CRITERIA OF16BEING THE 'FIRST.'I DON'T KNOW HOW MANY THINGS WE17CAN COME UP WITH THAT YOU COULD LEGITIMATELY CLAIM18WE DID FIRST.CERTAINLY WE HAVE THE FIRST19202122232425COMMERCIALLY SUCCESSFUL VERSIONS OF MANY FEATURES,BUT THAT'S DIFFERENT THAN LAUNCHING SOMETHING TOMARKET FIRST."THAT POINT MADE BY APPLE'S OWN PRODUCTMARKETING MANAGER, STEVEN SINCLAIR, IS VERYIMPORTANT BECAUSE THERE IS A DIFFERENCE BETWEENINVENTING SOMETHING THAT'S NEW AND DOING IT FOR THE

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page113 of 274395123456789101112131415161718192021FIRST TIME VERSUS MAKING SOMETHING POPULAR.IF YOU MAKE SOMETHING POPULAR, THATDOESN'T GIVE YOU A RIGHT TO EXCLUDE EVERYONE ELSEFROM DOING IT.IN ORDER TO EXCLUDE PEOPLE, AS THE JUDGEWILL INSTRUCT YOU AT THE END, YOU NEED TO HAVE APATENT OR A TRADE DRESS THAT'S INFRINGED.HERE THE EVIDENCE IS GOING TO SHOW, THEREISN'T INFRINGEMENT OF THESE PATENTS THAT ARE BEINGASSERTED.AND WHETHER OR NOT THESE COMPETITORS WEREINSPIRED BY EACH OTHER IS IRRELEVANT.THE QUESTION IS WHETHER THERE'SINFRINGEMENT.NOW, AGAIN, YOU WERE SHOWN INTERNALDOCUMENTS THAT SAMSUNG -- WHERE SAMSUNG WAS LOOKINGAT THE IPHONE AND COMPARING IT AND THE SUGGESTIONWAS MADE THAT THAT MEANS THAT THEY'RE EVILCOPYISTS.BUT AS I SAID, THE EVIDENCE WILL SHOWTHAT EVERYBODY DOES THAT IN THE SMARTPHONE22BUSINESS.EVERYONE BENCHMARKS AGAINST EACH OTHER.232425THEY ALL DO COMPETITIVE ANALYSIS.AND THE EVIDENCE WILL SHOW APPLE'S OWNDOCUMENTS AND EMPLOYEES AGREE WITH ME.

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page114 of 2743961234567891011121314151617HERE IS GREG JOSWIAK, VICE-PRESIDENT OFIPHONE PRODUCT MARKETING IN A SWORN DEPOSITIONTAKEN IN THIS CASE."MY GROUP, FOR EXAMPLE, WOULD HAVE APRODUCT MANAGER WHEN A NEW PRODUCT COMES OUT,PURCHASE IT, YOU KNOW, UNDERSTAND, YOU KNOW, HOWMUCH OF A THREAT IT IS, ARE THEY BETTER ATANYTHING, ARE THEY BETTER AT ANYTHING THAN US TOASSESS THE THREAT."AND THEN HE CONTINUES, "IF YOU'RE GOINGTO BE THE BEST AT SOMETHING, YOU HAVE TO KNOW WHATYOUR COMPETITION IS DOING."THERE'S NOTHING WRONG WITH THAT, ANDTHERE'S NOTHING WRONG WITH SAMSUNG DOING THAT ASWELL. IT'S CALLED COMPETITION. THAT'S WHAT WE DOIN AMERICA.DUNCAN KERR, APPLE DESIGN INVENTOR, HIS18DEPOSITION WAS TAKEN IN THIS CASE.HE TESTIFIED,1920212223UNDER OATH, "I THINK FROM A DESIGN PERSPECTIVE IT'SINTERESTING TO SEE WHAT OTHER COMPANIES ARE DOING."AND THERE'S OTHER, MORE TESTIMONY THATWE'RE GOING TO SEE IN THE TRIAL THAT SUPPORTS THISFROM APPLE'S OWN WITNESSES.2425AND THEN WE HAVE APPLE'S DOCUMENTS.SAW A DOCUMENT OF SAMSUNG LOOKING AT THE APPLEYOU

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page115 of 27439712IPHONE.APPLE DOES THE SAME THING.HERE'S A TEARDOWN DOCUMENT, IT'S CALLED3MINI-TEARDOWN OF THE SAMSUNG GALAXY S PERFORMED ON45AUGUST 10TH, 2010, MEMBERS OF THE JURY.ACCUSED PRODUCT IN THIS CASE.THIS IS AN6WELL, THIS IS AN APPLE DOCUMENT FROM78APPLE'S INTERNAL FILES.SAMSUNG GALAXY S.YOU SEE, MINI-TEARDOWN,9AND WHAT ARE THEY DOING?THEY'RE101112131415161718CONDUCTING A DETAILED TEARDOWN OF THE DOCUMENT TODETERMINE THE PRODUCT SPECS, ITS FEATURES, THEDISASSEMBLY, THE COMPONENTS, THE SOFTWARE, AND THEADDITIONAL COMPONENTS, AND THEY GO THROUGH ITMETICULOUSLY, JUST LIKE IN THE DOCUMENT THATMR. MCELHINNY SHOWED YOU.DOES THAT MEAN THAT APPLE IS A COPYIST?NO. IT MEANS IT'S A COMPETITOR. THAT'S NOTHINGWRONG WITH THAT.19SAME THING WITH THE TAB.APPLE'S OWN202122232425DOCUMENTS, SAMSUNG GALAXY -- THIS IS AN APPLEDOCUMENT, EXHIBIT 717, DATED MAY 24TH, 2011 WHEREAPPLE DOES A TEARDOWN OF THE ACCUSED PRODUCT, TABPRODUCT IN THIS CASE, THE GALAXY TAB 10.1, AND IT'STITLED -- THE DOCUMENT IS TITLED "SAMSUNG GALAXYTAB 10.1 TAKE-APART," AND THEY EVEN HAVE PICTURES

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page116 of 274398123OF SOMEONE TAKING THE THING APART AND EXAMINING ITAND STUDYING IT.DOES THAT MEAN THAT APPLE DID SOMETHING45WRONG?NO.AND TO SUGGEST BY POINTING TO SIMILAR6DOCUMENTS WITHIN SAMSUNG THAT THAT MEANS WE'RE AN7INFRINGER IS IRRELEVANT.IT'S A COMPETITIVE891011121314ANALYSIS. IT'S DONE ALL THE TIME. THERE'S NOTHINGWRONG WITH IT.NOW, WITH THAT I'D LIKE TO TURN TO THECLAIMS THAT ARE MADE IN THIS CASE AGAINST MYCLIENT, AND THE FIRST IS TRADE DRESS INFRINGEMENT.AND I HOPE YOU DON'T MIND, MEMBERS OF THEJURY, BUT I HAVE A PROBLEM WITH MY BACK, SO I HAVE15A STOOL HERE.I THINK I'M GOING TO HAVE TO SIT ON1617THE STOOL WHILE I DO THIS.IF THAT'S OKAY WITH YOUR HONOR?18THE COURT:PLEASE, GO AHEAD.19MR. VERHOEVEN:SO LET'S START WITH202122232425APPLE'S TRADE DRESS, MEMBERS OF THE JURY.NOW, HER HONOR ALREADY GAVE YOU APRELIMINARY INSTRUCTION ON TRADE DRESS AND I JUSTWANT TO GO OVER IT BEFORE WE LOOK AT THE EVIDENCE."'INFRINGEMENT' REFERS TO ANOTHERCOMPANY'S USE SIMILAR TO THE OWNER'S TRADE DRESS

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page117 of 27439912THAT IS LIKELY TO CAUSE CONFUSION IN THEMARKETPLACE."3MR. MCELHINNY:EXCUSE ME, YOUR HONOR.4I'M SORRY.BUT I'VE BEEN LISTENING PATIENTLY, BUT56YOU HAVE A SPECIFIC ORDER THAT SAID THATINSTRUCTIONS WERE NOT SUPPOSED TO BE DEALT WITH IN78OPENING AND ARGUING THE LAW.PARAGRAPH OF YOUR ORDER.IT'S THE LAST910MR. VERHOEVEN:WAS NOT OBJECTED TO.YOUR HONOR, THIS SLIDE11THE COURT:BUT MY ORDER DID SAY THAT12131415THERE SHOULDN'T BE ANY DISCUSSION OF THE LAW.YOU KNOW, I'M GOING TO OVERRULE THEOBJECTION.PLEASE MAKE THIS SHORT.16MR. VERHOEVEN:THANK YOU, YOUR HONOR.17ALL I DID WAS THE PRELIMINARY INSTRUCTIONS.18THE COURT:OKAY.19MR. VERHOEVEN:SO THAT'S THE STANDARD202122232425WHEN YOU'RE LOOKING AT THE ISSUE OF TRADE DRESSINFRINGEMENT.IN THIS CASE, APPLE HAS CLAIMED THATSAMSUNG'S TABLET PRODUCT INFRINGES APPLE'S TRADEDRESS, AND SO THE STANDARD IS, IS THERE LIKELY --ONE OF THE STANDARDS IS, IS THERE A LIKELIHOOD OF

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page118 of 2744001CONFUSION AS TO THE SOURCE OF WHO MAKES IT?IS2SOMEONE GOING TO BUY IT THINKING IT'S AN APPLE3TABLET?OR ARE THEY GOING TO KNOW WHEN THEY BUY IT4567THAT IT'S A SAMSUNG TABLET?WELL, THE EVIDENCE IS GOING TO SHOW OFCOURSE EVERYONE'S GOING TO KNOW IT'S A SAMSUNGTABLET. IT'S A VERY EXPENSIVE PRODUCT. PEOPLE89RESEARCH IT BEFORE THEY EVEN GO TO THE STORE.GET ON-LINE AND THEY LOOK AT ALL THE DIFFERENTTHEY10TABLETS THAT ARE OUT THERE.THEY COMPARE THEM,111213141516171819202122232425THEY ASK QUESTIONS, WHAT KIND OF FUNCTIONALITY DO IWANT IN THEM?THEY HAVE DIFFERENT TYPES OFFUNCTIONALITY, DIFFERENT TYPES OF FEATURES,DIFFERENT TYPES OF FORM FACTORS.SOME ARE LANDSCAPE, SOME HAVE STYLUSES,SOME ARE DESIGNED SPECIFICALLY FOR READING.IT'S NOT SOMETHING THAT A PERSON WALKSINTO THE STORE AND JUST CASUALLY PICKS UP AND MAKESA MISTAKE.IN FACT, THE EVIDENCE IS GOING TO SHOW,MEMBERS OF THE JURY, THAT APPLE'S OWN DESIGNERS ATDEPOSITION ADMITTED THEY'RE NOT AWARE OF ANYCONFUSION.MATT ROHRBACH, APPLE DESIGN INVENTOR, SO

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page119 of 27440112345HE'S AN INVENTOR ON SOME OF THE DESIGN PATENTS INTHIS CASE, WE TOOK HIS DEPOSITION."ARE YOU AWARE OF ANY INSTANCE WHERE ACONSUMER HAS CONFUSED A SAMSUNG TABLET COMPUTER FORAN IPAD?6"ANSWER:NO."7891011121314EUGENE WHANG, ANOTHER APPLE DESIGNINVENTOR IN THIS CASE, HIS DEPOSITION WAS TAKEN."ARE YOU AWARE OF OR KNOW OF ANYINSTANCES WHERE A CONSUMER CONFUSED A SAMSUNG ANDAN APPLE TABLET?"NO."ANOTHER APPLE DESIGN INVENTOR IN THISCASE, DANIEL -- I'LL PROBABLY MISPRONOUNCE HIS LAST1516NAME -- BUT DANIEL DE IULIIS, I GUESS.DEPOSITION WAS TAKEN.HIS17"QUESTION:HAVE YOU EVER HEARD OF ANY1819CONSUMERS MISTAKENLY PURCHASING GALAXY TABSTHINKING THEY WERE IPADS?20"ANSWER:I DON'T RECALL HEARING THAT."2122232425THE EVIDENCE WILL SHOW THAT BASICALLYTHERE IS NO EVIDENCE.REMEMBER, THIS IS APPLE'S CLAIM, APPLE'SBURDEN OF PROOF BY A PREPONDERANCE OF EVIDENCE ASTHE COURT INSTRUCTED YOU DURING PRELIMINARY

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page120 of 2744021INSTRUCTIONS.THEY HAVE TO SHOW YOU BY A2345PREPONDERANCE OF THE EVIDENCE THAT THERE IS ALIKELIHOOD OF CONFUSION.WELL, THE EVIDENCE IS GOING TO SHOW,MEMBERS OF THE JURY, THAT THEY CAN'T MEET THAT6BURDEN.THERE IS NO EVIDENCE THAT YOU'LL SEE IN78THIS CASE THAT MEETS THAT BURDEN.NOW LET ME TURN TO THE ISSUE OF DILUTION,9TRADE DRESS DILUTION.THAT'S ANOTHER CLAIM THAT1011APPLE IS MAKING IN THIS CASE.PART OF THEIR CLAIM IS BASED ON WHAT12WE'RE LOOKING AT ON THE SCREEN RIGHT HERE.THIS IS131415161718A TRADE DRESS REGISTRATION THAT WAS FILED BY APPLE.AND AS YOU CAN SEE, WHEN YOU LOOK AT THISTRADE DRESS REGISTRATION -- I'M NOT GOING TO READTHE WHOLE THING, IT'S KIND OF HARD TO READ -- BUTIT'S VERY DETAILED.IT SAYS -- IT TALKS ABOUT THE -- IT SHOWS19THE BOTTOM PORTION WITH THE BUTTON THERE.IT SAYS202122232425"THE MARK CONSISTS OF THE CONFIGURATION," AND ITGOES THROUGH EACH OF 17 DIFFERENT ICONS ANDSPECIFICALLY DESCRIBES EACH OF THOSE 17 DIFFERENTICONS AND WHAT EACH OF THEM DOES.YOU CAN SEE HERE, THE FIRST ICON, SECONDICON, THIRD ICON, FOURTH ICON, AND EACH OF THEM

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page121 of 2744031SAYS WHAT IT DOES.THE FOURTH ICON DEPICTS A2345678910CAMERA LENS WITH A BLACK BARREL AND THE BLUE GLASSON A SILVER BACK.AND EACH ONE OF THESE DIFFERENT CALL OUTSIN THIS REGISTRATION TALKS ABOUT A SPECIFIC ICONAND WHAT IT LOOKS LIKE, AND THIS IS A SPECIFICCONFIGURATION.THAT IS THE REGISTRATION THAT THEY'REUSING TO SAY, WITH RESPECT TO THE IPHONE, THATTHERE IS DILUTION, TRADE DRESS DILUTION.11WHAT WILL THE EVIDENCE SHOW?THE1213141516EVIDENCE WILL SHOW THAT SAMSUNG'S PHONES AREDIFFERENT, THEY'RE DIFFERENT FROM THAT REGISTRATIONAND THEY'RE DIFFERENT FROM THE IPHONE.HERE YOU CAN -- IN FACT, SAMSUNG MAKES SOMANY DIFFERENT TYPES OF PHONES THAT THEY'RE17DIFFERENT AMONGST EACH OTHER.HERE WE'VE GOT THE1819202122232425CONTINUUM THAT'S GOT ONE SHAPE AND ONE LOOK; WEHAVE GOT THE DROID CHARGE THAT'S SHAPED DIFFERENTLYWITH A DIFFERENT HOME SCREEN; THE GALAXY S 4GSHAPED DIFFERENTLY WITH A DIFFERENT SCREEN; AND THEEPIC 4G.LET'S TAKE THESE APART A LITTLE BIT ANDLOOK AT THEM.IF YOU LOOK AT THE BOTTOMS, THE SAMSUNG

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page122 of 27440412PHONES ARE CLEARLY DIFFERENT.FOUR DIFFERENT ICONS ON THERE.YOU'VE GOT THESE3456ON THE CONTINUUM HERE, YOU'VE EVEN GOT AMESSAGING WINDOW THAT YOU DON'T SEE ANYWHERE IN THETRADE DRESS REGISTRATION OR IN THE INITIAL IPHONE.YOU'VE GOT VARIOUS INITIAL SHAPES AT THE7BOTTOM.LOOK AT THE DROID CHARGE HAS GOT A, ALMOST891011121314151617181920A V-SHAPE TO IT.THE EPIC 4G HAS A COMPLETELY DIFFERENTROUNDED SHAPE WITH FOUR DIFFERENT ICONS AND, OFCOURSE, BRANDED.THE SAMSUNG PHONES ARE DIFFERENT FROM THEIPHONE REGISTRATION.LOOK AT THE HOME -- WHEN YOU PULL OUT THEHOME SCREENS THAT YOU SEE WHEN YOU RAMP UP -- ANDBY THE WAY, REMEMBER, BEFORE A CONSUMER CAN EVENSEE THESE HOME SCREENS, WHAT DOES A CONSUMER DO?TURN ON THE PHONE.WHAT HAPPENS WHEN YOU TURN ON THE PHONE?YOU GET A WHOLE MINI MOVIE ADVERTISING THE CARRIER,2122ADVERTISING THE OEM MAKER, SAMSUNG.THAT BEFORE YOU EVEN SEE THIS.YOU SEE ALL232425BUT IF YOU LOOK AT THE HOME SCREENS OFTHESE PHONES, THEY DON'T LOOK ANYTHING LIKE THEHOME SCREEN OF THE IPHONE.

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page123 of 274405123456SAMSUNG PHONES ARE DIFFERENT.SAME THING WHEN YOU LOOK AT THE TOPS OFTHESE PHONES.NOW, DILUTION, ONE OF THE ISSUES OFDILUTION IS TO ASSESS WHETHER THE PRESENCE OF THEACCUSED PRODUCT IN THE MARKETPLACE DILUTES THE7TRADE DRESS.SO IT'S SORT OF LIKE JUST DILUTING A8LIQUID BY POURING WATER INTO IT.IT TAKES AWAY910FROM THE BRAND.THAT.AND THE JUDGE WILL STRUCK YOU ON11BUT WHAT I WANT TO GET TO IS THE EVIDENCE1213HERE WILL SHOW THERE IS NO DILUTION.DILUTION OF THE MARKETPLACE.THERE IS NO141516171819202122232425THIS IS FROM APPLE -- THIS IS AN IMAGEFROM APPLE'S OWN INTERNAL DOCUMENTATION FROMJULY 7TH OF 2011, AND IF YOU LOOK HERE, YOU CANSEE, THERE'S THE ACCUSED PRODUCT, THE GALAXY TAB 10ON THE LEFT.BUT THE MARKETPLACE IS FULL OF TABLETSTHAT ARE RECTANGULAR IN SHAPE WITH ROUNDED CORNERS,WITH LARGE TOUCH SCREENS, WITH MINIMALIST DESIGNS.WHETHER THE GALAXY IS IN THAT MIX OR NOTIS NOT GOING TO DILUTE APPLE'S TRADE DRESS BECAUSEEVERYONE'S OUT THERE WITH PRODUCTS THAT HAVE THATBASIC FORM FACTOR.

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page124 of 2744061SAME THING FOR SMARTPHONES.YOU'RE GOING23456789101112TO BE ASKED TO ANSWER THE QUESTION, DOES THEACCUSED SAMSUNG PHONE CAUSE DILUTION OF APPLE'STRADE DRESS?BUT WHEN YOU LOOK AT THE MARKETPLACE ANDYOU TAKE OUT THE APPLE, YOU STILL HAVE DOZENS ANDDOZENS AND DOZENS OF SMARTPHONES OUT THERE THATHAVE LARGE TOUCH SCREENS ON THEM, TAKE UP MOST OFTHE REAL ESTATE IN THE FRONT, THEY'RE RECTANGULARIN SHAPE WITH ROUNDED CORNERS, AND THEY HAVEMINIMALIST DESIGN.WHETHER SAMSUNG'S IN THERE OR NOT,13THEY'RE ALL OUT THERE.THERE'S NO DILUTION.141516BUT THE KICKER HERE, MEMBERS OF THE JURY,IS THE EVIDENCE IS GOING TO SHOW THAT APPLE'S OWNEXPERT WITNESS, ON THIS SUBJECT, ADMITTED, UNDER17OATH, THAT THERE'S NO DILUTION.I'LL SHOW YOU.1819202122232425THIS IS TESTIMONY OF APPLE'S WITNESSREGARDING THE LACK OF DILUTION, RUSSELL WINER.APPLE IS GOING TO CALL HIM TO TESTIFY ABOUTDILUTION.AND HE WAS ASKED AT HIS DEPOSITION, "MYQUESTION IS, DO YOU HAVE ANY EMPIRICAL EVIDENCE ORHARD DATA TO SHOW THAT SAMSUNG'S ACTIONS HASDILUTED APPLE'S BRAND?"

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page125 of 27440712345678AND HIS ANSWER WAS, "NO."REMEMBER, IT'S APPLE'S BURDEN OF PROOF.HE WAS ALSO ASKED, "DO YOU HAVE ANYQUANTIFICATION OF ANY HARM OR DILUTION OR LOSS OFANY KIND TO APPLE AS A RESULT OF SAMSUNG'SACTIONS?"AND UNDER OATH, HE SAID, "NO."SO APPLE'S OWN EXPERT ON TRADE DRESS9DILUTION HAS ADMITTED THERE ISN'T ANY.THERE'S NO10111213141516HARM, THERE'S NO DILUTION, THERE'S NO LOSS OF ANYKIND.THE EVIDENCE WILL SHOW, MEMBERS OF THEJURY, THAT APPLE'S TRADE DRESS CLAIMS FAIL ANDAPPLE CANNOT MEET ITS BURDEN WITH RESPECT TO THOSECLAIMS.IS NOW A GOOD TIME TO TAKE A BREAK?17THE COURT:THAT'S GREAT.1819BREAK FOR LUNCH.IT'S NOW 12:02.WE ARE GOING TO TAKE A20AGAIN, PLEASE DO NOT DISCUSS THE CASE21WITH ANYONE.DO NOT READ ANY MEDIA ACCOUNTS OR DO22232425ANY RESEARCH AND KEEP AN OPEN MIND.WE'LL SEE YOU -- IF YOU COULD PLEASEREASSEMBLE BACK HERE AT 1:00 O'CLOCK IN THE JURYROOM. ALL RIGHT? THANK YOU ALL.

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page126 of 27440812AND FOR FOLKS WHO GOT SEATS, YOU CANRESERVE YOUR SEATS OVER THE LUNCH HOUR SO YOU DON'T34HAVE TO STAND IN LINE AGAIN.PERSONAL ITEM ON THERE.YOU CAN LEAVE SOME5(WHEREUPON, THE LUNCH RECESS WAS TAKEN.)678910111213141516171819202122232425

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page127 of 2744091234567AFTERNOON SESSION(WHEREUPON, THE FOLLOWING PROCEEDINGSWERE HELD IN THE PRESENCE OF THE JURY:)THE COURT: WELCOME BACK. WE'LL CONTINUEWITH SAMSUNG'S OPENING STATEMENT.IT IS NOW 1:06.PLEASE GO AHEAD.8MR. VERHOEVEN:THANK YOU, YOUR HONOR.91011121314CAN WE GO TO SLIDE 66, PLEASE.GOOD AFTERNOON, MEMBERS OF THE JURY.BEFORE LUNCH WE HAD LEFT OFF AND I WASTALKING ABOUT APPLE'S TRADE DRESS CLAIMS.AND THERE'S, THERE'S TWO OTHER TYPES OFCLAIMS THAT APPLE IS MAKING AGAINST SAMSUNG IN THIS15CASE.THE SECOND ONE IS DESIGN PATENTS, AND THE161718192021222324THIRD ONE IS WHAT HER HONOR MENTIONED AS UTILITYPATENTS.I'M NOW GOING TO SWITCH TO THE DESIGNPATENT CLAIMS THAT APPLE HAS MADE AND ADDRESSTHOSE.AND THE FIRST OF THOSE PATENTS THAT I'DLIKE TO ADDRESS IS THE '889 DESIGN PATENT.NOW, YOU HEARD HER HONOR REFER THISMORNING TO DESIGN PATENTS AND EXPLAIN HOW THEY'RE25DIFFERENT FROM UTILITY PATENTS.FOR A UTILITY

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page128 of 2744101PATENT, IT'S SOMETHING THAT IS USEFUL AND NEW AND2HAS UTILITY.A DESIGN PATENT IS A NEW, ORIGINAL,34AND ORNAMENTAL DESIGN.TALKING ABOUT.AND SO THAT'S WHAT WE'RE5678910111213141516AND THIS IS THE '889 DESIGN PATENT THATAPPLE'S ASSERTED AGAINST MY CLIENT IN THIS CASE.AND AS YOU CAN SEE, IT'S A VERY SIMPLE DESIGN.IT'S A RECTANGLE WITH ROUNDED CORNERS, AND IN THEBACK, THERE'S NO ORNAMENTATION WHATSOEVER.NOW, IN ORDER FOR APPLE TO ASSERT THISCLAIM, THE DESIGN PATENT HAS TO BE NEW ANDORIGINAL.THE EVIDENCE IS GOING TO SHOW IN THISCASE THAT IT'S NOT, THAT THERE WAS PRIOR ART OUTTHERE THAT SHOWED THIS.FOR EXAMPLE, WE SAW EARLIER, IN 1994, A17TABLET DESIGN INVENTED BY ROGER FIDLER.HE EVEN18CALLED IT THE TABLET.AND YOU CAN SEE FOR192021YOURSELF, IT'S A LARGE RECTANGLE IN A TABLET SHAPE,ROUNDED CORNERS, AND A LARGE DISPLAY SCREEN.WHEN WE TOGGLE BACK TO THE '889, THE SAME22THING:LARGE RECTANGLE, ROUNDED CORNERS, MINIMAL232425ORNAMENTATION, TABLET FORM FACTOR.THE EVIDENCE IS ALSO GOING TO SHOW,MEMBERS OF THE JURY, THAT THE ACCUSED TABLET, WHICH

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page129 of 2744111234567IS THIS ONE RIGHT HERE (INDICATING), THE SAMSUNGTABLET, THAT AN ORDINARY OBSERVER, LOOKING AT THEACCUSED TABLET, COULD TELL THE DIFFERENCE BETWEENTHAT AND THIS '889 DESIGN PATENT.IN PARTICULAR, THE EVIDENCE IN THIS CASE,MEMBERS OF THE JURY, IS GOING TO SHOW THAT THEREWAS A PHYSICAL MODEL THAT APPLE CREATED INTERNALLY8WITHIN APPLE.IT'S REFERRED TO AS THE 035 MODEL,9AND I HAVE IT RIGHT HERE.YOU CAN SEE IT FOR1011YOURSELF (INDICATING).APPLE.THIS IS A MODEL CREATED BY1213141516171819202122232425THE EVIDENCE IS GOING TO SHOW THAT THISEXACT PHYSICAL MODEL WAS USED TO DRAW THE PICTURESTHAT WERE SUBMITTED RIGHT HERE FOR THE '889 DESIGNPATENT.IF YOU GO BACK AND LOOK AT THESEPICTURES, THE EVIDENCE IS GOING TO SHOW THESEPICTURES WERE TAKEN OF THIS MODEL AND SUBMITTED TOTHE PATENT OFFICE AS PART OF THE APPLICATION FORTHE '889 PATENT TO SHOW THAT THEY HAD A MODEL OFIT.AND, IN FACT, THE EVIDENCE WILL SHOW,IT'S UNDISPUTED, THAT THIS MODEL WAS USED TO DRAWTHE PICTURES.AND HERE ON THIS NEXT SLIDE, 71, THESE

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page130 of 27441212ARE PICTURES ON THE LEFT OF THIS ACTUAL MODEL,SOMEONE HOLDING IT; AND ON THE RIGHT, THESE ARE3IMAGES FROM THE ACTUAL '889 DESIGN PATENT.YOU CAN4SEE THE CORRESPONDENCE BETWEEN THE PHYSICAL MODEL5AND THE DRAWINGS.THIS IS THE PHYSICAL EMBODIMENT6789OF THE PICTURE IN THE '889 PATENT.NOW, I SUBMIT THE EVIDENCE WILL SHOW THATAN ORDINARY OBSERVER CAN TELL THE DIFFERENCEBETWEEN THE 035 MODEL AND THIS MUCH DIFFERENT1011ACCUSED TABLET.(INDICATING).YOU CAN SEE FOR YOURSELFTHESE ARE NOT SOMETHING THAT AN121314ORDINARY OBSERVER COULDN'T TELL THE DIFFERENCEBETWEEN.AND THAT'S -- THAT'S GOING TO BE YOUR15CHARGE.THE JUDGE WILL INSTRUCT YOU ON THE RULES161718FOR HOW TO DO THAT, BUT I SUBMIT THE EVIDENCE WILLSHOW THAT -- FOR EXAMPLE, HERE'S AN IMAGE THATWE'VE TAKEN OF THESE TWO PHYSICAL EXHIBITS AND YOU19CAN SEE THEY LOOK MUCH DIFFERENT.ONE IS MUCH202122232425THICKER. ONE IS MUCH BIGGER. THE ORDINARYOBSERVER COULD TELL THE DIFFERENCE.IN ADDITION TO THIS EVIDENCE, WE ALSOHAVE TESTIMONY FROM CHRISTOPHER STRINGER, WHO WILLBE THE FIRST WITNESS IN THIS CASE CALLED BY APPLE,AND AT HIS DEPOSITION, MR. STRINGER WAS ASKED,

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page131 of 27441312345678QUESTION, "PLEASE TELL ME ALL THE WAYS IN WHICH THEDESIGN, THAT'S DEPICTED HERE IN EXHIBIT 8" -- ANDI'LL REPRESENT EXHIBIT 8 IS THE DESIGN PATENT THATWE JUST LOOKED AT, THE '889 PATENT -- "PLEASE TELLME ALL THE WAYS IN WHICH THE DESIGN, THAT'SDEPICTED HERE IN EXHIBIT 8, WAS DIFFERENT FROM THEOTHER TABLET COMPUTER DESIGNS THAT EXISTED AS OFTHE TIME IT WAS CONCEIVED.9"ANSWER:WE EXTENDED THE CLEAR BEZEL101112ACROSS THE ENTIRETY OF THE FRONT FACE OF THEPRODUCT," SO THAT'S THIS PART RIGHT HERE(INDICATING), HE TESTIFIED, "WE EXTENDED THIS GLASS13BEZEL ALL THE WAY TO THE EDGES."SO THAT'S ONE OF141516THE THINGS THEY DID THAT HE THINKS MAKES ITDIFFERENT FROM WHAT WAS ALREADY OUT THERE.AND THEN THE SECOND THING HE SAYS IS17REALLY VERY IMPORTANT.HE SAYS, "AND WE SIMPLIFIED18192021222324THE REAR HOUSE TO GO TO A SINGLE PIECE."AND THEN HE CLARIFIED, "WE CHOSE TO HAVEA COMPLETE HOUSING THAT WITHOUT ANY BREAKS INPRODUCT LINES EXTENDS UP TO THE TOP SURFACE OF THEPRODUCT."SO THERE'S ONLY TWO THINGS THAT HEIDENTIFIED FOR THE '889 DESIGN THAT MADE IT NEW, IN25HIS VIEW, NEW AND UNIQUE.ONE WAS EXTENDING THE

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page132 of 27441412345GLASS BEZEL ALL THE WAY ACROSS THE EDGES; AND THESECOND THING WAS TO HAVE A SIMPLIFIED REAR HOUSEGOING TO A SINGLE PIECE WITHOUT ANY BREAKS INPRODUCT LINES.WELL, IF YOU LOOK AT THE 035 MODEL, IT'S67CONSISTENT WITH THAT.EDGE.THE GLASS EXTENDS TO THE8LOOK AT THE BACK.THERE'S A -- IT'S JUST9ONE PIECE.10NOW, IF YOU LOOK AT THE ACCUSED11PRODUCT --1213YOUR HONOR, WOULD IT BE OKAY IF I TOOK ACOUPLE STEPS CLOSER FOR THEM TO SEE?14THE COURT:WHY DON'T YOU STAY THERE,15PLEASE?16MR. VERHOEVEN:OKAY.171819202122232425IF YOU LOOK AT THE ACCUSED PRODUCT, YOUCAN SEE CLEARLY, IT HAD MULTIPLE PIECES(INDICATING).I'VE GOT A SLIDE THAT PULLS THAT OUT.BUT YOU CAN SEE, THERE'S A MULTIPLE PIECEHOUSING.SO THE SECOND OF THE ONLY TWO DESIGNELEMENTS THAT THE INVENTOR, WHO'S COMING TOTESTIFY, SAYS MAKES IT NEW AND UNIQUE DOES NOT

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page133 of 27441512EXIST IN THE ACCUSED PRODUCT.THE EVIDENCE WILL SHOW THAT AN ORDINARY3OBSERVER CAN TELL THE DIFFERENCE.AN ORDINARY456789OBSERVER CAN TELL THE DIFFERENCE BETWEEN THIS ANDTHIS (INDICATING).THE EVIDENCE IS ALSO GOING TO SHOW THATAPPLE'S OWN EXPERT ON THIS SUBJECT TESTIFIED UNDEROATH THAT THE INITIAL IPAD, WHICH IS THIS PRODUCTRIGHT HERE (INDICATING), IS NOT AN EMBODIMENT OF10THE '889 PATENT.THEIR OWN EXPERT TESTIFIED UNDER11OATH, THIS IS DIFFERENT FROM THE '889 PATENT12(INDICATING).THIS IS DIFFERENT.1314151617BUT APPLE CLAIMS THAT THIS IS SIMILAR.HOW CAN THIS BE DIFFERENT FROM THE 035 -- FROM THE'889 PATENT WHILE THIS ONE, WHICH IS EVEN THINNER,EVEN SMALLER WITH MULTIPLE PART HOUSING, IT'SSIMILAR (INDICATING)?18THE EVIDENCE DOES NOT ADD UP.AN1920212223ORDINARY OBSERVER COULD TELL THE DIFFERENCE.IN FACT, IF YOU GO TO SLIDE 78, APPLE'SOWN DESIGNERS, THE INVENTORS LISTED ON THE '889PATENT, MEMBERS OF THE JURY, TESTIFIED THAT THEYWEREN'T AWARE OF ANY PRODUCTS THAT EMBODIED THE24'889.THEY'RE NOT AWARE OF ANY PRODUCTS THAT APPLE25SELLS THAT EMBODY THIS.

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page134 of 2744161234MATTHEW ROHRBACH, APPLE DESIGN INVENTOR,"DID APPLE EVER MANUFACTURE OR PRODUCE A PRODUCTTHAT LOOKS LIKE THE DESIGN THAT'S SHOWN HERE IN THE'889 PATENT?5"ANSWER:I DON'T KNOW."6EUGENE WHANG, APPLE'S DESIGN INVENTOR.7"QUESTION:DID APPLE EVER MANUFACTURE AN89101112131415ELECTRONIC DEVICE THAT IN YOUR VIEW LOOKED LIKE THEDRAWINGS SHOWN HERE IN THE '889 DESIGN PATENT?"I CAN'T TELL."THESE ARE THE SAME DESIGNERS WHO DESIGNEDTHE IPAD AND THE IPAD 2 AND THEY TESTIFIED, UNDEROATH, LOOKING AT THE '889, THAT THEY'RE NOT AWAREOF ANY PRODUCTS THAT EMBODY IT.YET APPLE NOW IS SAYING THAT THE SAMSUNG16PRODUCT EMBODIES IT.IT DOESN'T ADD UP.171819202122232425WE BELIEVE THE EVIDENCE WILL SHOW THE'889 PATENT IS NOT INFRINGED.NOW I'D LIKE TO TURN TO TWO OTHER DESIGNPATENTS THAT HAVE BEEN ASSERTED.IF WE CAN GO TO SLIDE 46, PLEASE.APPLE'S ALSO ASSERTING TWO PATENTS FROMTHE IPHONE, THE '087, AND THE '677 PATENTS.THEY'RE BOTH DESIGN PATENTS AND THEY BOTH RELATE TOTHE INITIAL IPHONE THAT WAS RELEASED IN 2007.

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page135 of 27441712345MR. MCELHINNY SHOWED YOU THE PICTURES OFTHESE. THIS IS THE '087. IT'S JUST CLAIMING THISRECTANGULAR ROUNDED CORNER IMAGE HERE WITH THELOZENGE SLOT AND THE DISPLAY SCREEN.THE DOTTED LINES EVERYONE AGREES ARE NOT6BEING CLAIMED.IT'S JUST THE FRONT OF THE PHONE78AND THE BEZEL IS WHAT'S BEING CLAIMED.AND IN THE '677, IT'S JUST THIS FRONT9FACE RIGHT HERE.THOSE ARE TWO OTHER DESIGN1011PATENTS THAT APPLE IS ASSERTING AGAINST MY CLIENT.AGAIN, IN ORDER FOR THERE TO BE1213INFRINGEMENT, THESE PATENTS HAVE TO BE VALID.HAVE TO BE NEW, ORIGINAL, AND ORNAMENTAL.THEY14151617THE EVIDENCE IS GOING TO SHOW -- AND THISIS ANOTHER THING YOU WEREN'T TOLD BY APPLE'SCOUNSEL -- THAT THERE'S PRIOR ART OUT THERE, A LOTOF OTHER DESIGN PATENTS OUT THERE THAT HAVE THIS18BASIC SAME SHAPE.BIG SCREEN, ROUNDED CORNER,1920RECTANGULAR FORM FACTOR WITH THE LOZENGE.WE'VE ALREADY LOOKED AT THESE.THE21JP1638, JP1383, KR547 AND THE LG PRADA ALL ARE22PHONES THAT HAVE THIS BASIC SHAPE.THEY ALL232425PRE-DATED THESE TWO VERY SIMPLISTIC DESIGN PATENTS.THEY SHOW CONCLUSIVELY THAT THESE, THESE LIMITEDDESIGN PATENTS ARE NOT NEW, THEY'RE NOT UNIQUE IN

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page136 of 2744181ANY WAY.234567THE EVIDENCE IS ALSO GOING TO SHOW THATAN ORDINARY OBSERVER, LOOKING AT THESE PATENTS,COULD TELL THE DIFFERENCE BETWEEN THE ACCUSEDPRODUCTS AND THE DESIGN ELEMENTS OF THESE PATENTS.FOR EXAMPLE, APPLE'S FIRST WITNESS,MR. STRINGER, WILL TESTIFY AS TO WHAT THE DESIGN8ELEMENTS OF THESE PATENTS ARE.ONE OF THE DESIGN910111213141516171819202122232425ELEMENTS WAS VERY IMPORTANT, ACCORDING TO APPLE, TOHAVE A FLAT FRONT SURFACE.IF YOU LOOK RIGHT HERE IN THE SIDE VIEW,MEMBERS OF THE JURY, YOU'LL SEE IT'S FLAT ALL THEWAY ACROSS FROM END TO END.MR. STRINGER WILL TESTIFY THAT THEYWANTED TO MAKE SURE THE BEZEL -- THAT'S THIS BAND,THIS METAL BAND THAT GOES AROUND THE SIDE -- DIDNOT PROTRUDE BEYOND THE GLASS.IT WAS A DESIGN ELEMENT TO MAKE THATBEZEL FLUSH WITH THE GLASS FOR AESTHETIC REASONS,EVEN THOUGH FUNCTIONALLY, IT'S HARDER TO MAKE APHONE THAT HAS THAT; EVEN THOUGH, FUNCTIONALLY,HAVING A PROTRUDED BEZEL WILL PROTECT THE GLASS IFYOU PUT THE PHONE DOWN UPSIDE DOWN.FOR DESIGN REASONS, ACCORDING TOMR. STRINGER, THEY WANTED A GLASS TO HAVE A FLUSH

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page137 of 2744191BEZEL.2WHAT HAPPENS WHEN YOU LOOKED AT THE3ACCUSED PRODUCTS?WHEN YOU LOOK AT THE ACCUSED456PRODUCTS, MEMBERS OF THE JURY, YOU SEE THEY DON'THAVE THAT DESIGN ELEMENTS.THESE ARE TWO EXAMPLES OF MANY ACCUSED78PRODUCTS IN THIS CASE, MEMBERS OF THE JURY.FIRST IS THE INFUSE 4G.THE91011AND YOU'LL BE ABLE TO, DURING THE COURSEOF THIS TRIAL, GET A PHYSICAL COPY OF THIS PHONEAND RUN YOUR FINGERS ACROSS IT AND YOU'LL SEE THE12SURFACE IS NOT FLAT.THE HOUSING PROTRUDES ABOVE131415THE GLASS, THE OPPOSITE OF THE DESIGN ELEMENT THATTHE INVENTOR ON THIS DESIGN PATENT SAYS MADE ITNEW, MADE IT DIFFERENT FROM THE PRIOR ART.16SAME THING WITH THE VIBRANT.THE BEZELS1718PROTRUDE ABOVE THE GLASS.FRONT FLAT SURFACE.THERE'S NOT A COMPLETELY1920ANOTHER DESIGN ELEMENT THAT MR. STRINGERWILL TESTIFY TO IS -- IF YOU GO BACK TO SLIDE 46,21PLEASE -- IS THIS BEZEL ELEMENT OR RIM.HE SAID2223IT'S A VERY IMPORTANT DESIGN ELEMENT FOR THEINITIAL IPHONE TO HAVE THIS UNIFORM BEZEL OR RIM2425GOING AROUND THE FRONT OF THE PHONE.IT RIGHT HERE (INDICATING).YOU CAN SEE

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page138 of 274420123456789AND HE TESTIFIED THAT UNIFORM MEANT ITWAS THE SAME ALL THE WAY AROUND THE PHONE,INCLUDING UNIFORM THICKNESS ALL THE WAY AROUND THEPHONE, AND THAT WAS SOMETHING DIFFERENT, ACCORDINGTO THE INVENTOR, FROM THE PRIOR ART.WELL, LET'S TAKE THAT DESIGN ELEMENT ANDCOMPARE IT TO THE ACCUSED PHONES.IF YOU GO TO 52, PLEASE.HERE WE HAVE ON THE LEFT THE '087 PATENT.10THERE'S THE CONTINUOUS BEZEL.YOU CAN SEE IT'S1112EXACTLY AS DESCRIBED BY MR. STRINGER.UNIFORM THICKNESS.IT'S OF13NOW LET'S LOOK AT THE ACCUSED PRODUCTS.14WE'LL START WITH THE INFUSE 4G.THERE'S15NO BEZEL.THERE'S NO PIECE OF METAL THAT GOES1617AROUND THE RIM AT ALL.THIS IS A VERY SIMPLE DESIGN PATENT.IT1819DOESN'T HAVE VERY MUCH TO IT.HAS TO IT IS A UNIFORM BEZEL.ONE OF THE THINGS IT202122232425APPLE ACCUSES THIS INFUSE 4G OFINFRINGEMENT, BUT THE 4G DOESN'T EVEN HAVE A BEZEL.APPLE ALSO ACCUSES SOME PHONES THAT DOHAVE BEZELS, LIKE THE VIBRANT.BUT WHEN YOU DO THE APPROPRIATE ANALYSIS,THE EVIDENCE WILL SHOW, YOU CAN SEE THE BEZEL ON

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page139 of 27442112THE VIBRANT IS NOT OF UNIFORM THICKNESS.DIFFERENT DESIGN.IT'S A3AN ORDINARY OBSERVER, LOOKING AT THIS,4CAN TELL THE DIFFERENCE.THERE IS NO INFRINGEMENT.5THE '087 PATENT ALSO HAS VIRTUALLY NO67ORNAMENTATION.MINIMALISM.THAT IS A DESIGN ELEMENT,89WELL, IF YOU LOOK AT THE ACCUSEDPRODUCTS, THEY DON'T HAVE NO ORNAMENTATION.THEY10HAVE LOTS OF ORNAMENTATION.CAMERA INDICATORS,1112131415161718192021222324SENSOR INDICATORS, YOU'VE GOT WRITING ON THE TOP,YOU'VE GOT ICONS ON THE BOTTOM THAT YOU CAN SEEWHEN THE PHONE IS OFF, THE MENU ICON, THE HOMEICON, BACK ICON, SEARCH ICON.VIBRANT, YOU ALSO SEE MANY DIFFERENCESFROM THE '087 WHICH HAS VIRTUALLY NO ORNAMENTATION.THE ONLY OTHER THING BESIDES THE BEZELAND THE FLAT SURFACE AND THE LACK OF ORNAMENTATIONTHAT YOU EVEN SEE IN THE '087 PATENT IS YOU'VE GOTTHIS LOZENGE SHAPE, AND MR. STRINGER WILL TESTIFYTHAT WHAT WAS IMPORTANT ABOUT THIS DESIGN ELEMENTWAS THAT IT BE CENTERED HORIZONTALLY.WELL, WHEN YOU LOOK AT THE ACCUSEDPRODUCTS, THEY DO HAVE EAR HOLES SO THAT YOU CAN25HEAR.THE EVIDENCE IS GOING TO SHOW SMARTPHONES

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page140 of 2744221HAVE TO HAVE THAT.THE EVIDENCE IS GOING TO SHOW2THAT'S A FUNCTIONAL ELEMENT SO THAT YOU CAN HEAR.3BUT THEY'RE DIFFERENT.THEY DON'T LOOK4THE SAME. ON THE INFUSE, IT'S FLATTER. IT'S5LONGER.IT HAS 41 SEPARATE SMALL HOLES AND IT'S678910111213141516171819NOT CENTERED HORIZONTALLY.WHEN YOU LOOK AT THE VIBRANT, AGAIN,FLATTER, LONGER, 16 HOLES IN THE DESIGN, AND ITALSO IS NOT HORIZONTALLY CENTERED.IF THESE DESIGN PATENTS ARE VALID, THATIS, IF THEY AREN'T -- IF THEY DO HAVE ANYTHING THATMAKES THEM NEW OR UNIQUE OVER THOSE OTHER PATENTSWE LOOKED AT THAT ALSO HAD ROUNDED CORNERS ANDLARGE RECTANGLES, IT'S GOT TO BE SPECIFIC FEATURES:THIS BAND THAT'S UNIFORM; THAT LOZENGE THAT'SHORIZONTALLY ORIENTED; THE FLAT SURFACE WITH NOBEZEL RAISING OVER IT.BUT WHEN YOU ANALYZE IT WITH THAT LEVELOF APPROPRIATE CARE, MEMBERS OF JURY, THE EVIDENCE20212223WILL SHOW THERE ISN'T ANY INFRINGEMENT HERE.ORDINARY OBSERVER COULD TELL THE DIFFERENCE.REALLY QUICKLY WE'LL GO TO THE LASTDESIGN PATENT ASSERTED HERE, THE D'305 PATENT.THE2425AND THIS PATENT -- MR. MCELHINNY SHOWEDYOU THIS -- CONCERNS AN IMAGE, IT'S ACTUALLY THE

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page141 of 27442312345HOME SCREEN FROM THE INITIAL IPHONE, AND THEY'REASSERTING THIS IMAGE AGAINST THE SAMSUNG PHONES.AGAIN, THE EVIDENCE IS GOING TO SHOW HERETHAT AN ORDINARY OBSERVER COULD EASILY TELL THEDIFFERENCE.67HERE'S FIGURE 1 OF THE '305.HOME SCREEN OF THE INITIAL IPHONE.IT'S THE8TAKE A LOOK AT THE HOME SCREENS OF THE9ACCUSED PHONES.HERE'S THE CAPTIVE, DROID CHARGE,1011121314151617181920THE VIBRANT, GEM, MESMERIZE, SHOWCASE.EACH ONE OF THE PHONES IN AND OFTHEMSELVES HAS A DIFFERENT HOME SCREEN, ANDCERTAINLY AN ORDINARY OBSERVER COULD TELL THEDIFFERENCE BETWEEN THE HOME SCREENS ON THESE PHONESAND THE HOME SCREEN IDENTIFIED IN DESIGN PATENT'305.BUT APPLE SKIPS THESE HOME SCREENS ANDWHEN IT ACCUSES THAT IMAGE YOU SAW MR. MCELHINNYSHOW YOU FOR THE EVIDENCE OF INFRINGEMENT, THATWASN'T THE HOME SCREENS.21WHAT WAS IT?IT'S THE APPLICATION MENU.222324I'M SURE THOSE OF YOU WHO HAVESMARTPHONES KNOW THERE'S AN APPLICATION ICON YOUCAN HIT AND THEN THAT TAKES YOU TO ANOTHER SCREEN.25THAT'S WHAT THEY'RE ACCUSING.THEY'RE

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page142 of 274424123456789NOT EVEN ACCUSING THE EQUIVALENT HOME SCREEN FORTHE ACCUSED PHONES.SO A USER HAS GOT TO TURN ON THE PHONE,SEE ALL THE ADVERTISING THAT COMES ON WHEN THEPHONE COMES ON, SEE THE HOME SCREEN WHICH DOESN'TLOOK THE SAME, HIT THE APPLICATION BUTTON, AND THENONLY -- THEN AND ONLY THEN WILL THEY SEE THIS MENUTHAT APPLE IS ACCUSING, AND THEIR SUGGESTION IS ANORDINARY OBSERVER COULDN'T TELL THE DIFFERENCE.1011WELL, AN ORDINARY OBSERVER COULD.THINK THE EVIDENCE WILL SHOW THAT.WE1213141516171819202122232425SO I'D LIKE TO TURN NOW TO THE LAST OFTHE THREE CATEGORIES OF INTELLECTUAL PROPERTY THATAPPLE HAS ASSERTED, AND THAT'S UTILITY PATENTS.IF YOU GO TO SLIDE 80, PLEASE.APPLE IS ASSERTING THREE UTILITY PATENTSIN THIS CASE, THE '915, THE '163, AND THE '381.IN THE INTERESTS OF TIME, I'M NOT GOINGTO BE ABLE TO ADDRESS ALL OF THE ISSUES WITHRESPECT TO THESE PATENTS, BUT I'D LIKE TO COVER ACOUPLE OF POINTS IF I MAY.FIRST, YOU HEARD FROM HER HONOR THISMORNING FROM THE PRELIMINARY REMARKS THAT THE FACTTHAT THE PATENT OFFICE GRANTS A PATENT DOES NOTNECESSARILY MEAN THAT ANY INVENTION CLAIMED IN THE

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page143 of 2744251PATENT, IN FACT, DESERVES --2MR. MCELHINNY:EXCUSE ME, YOUR HONOR.3456AGAIN, YOU TOLD HIM BEFORE AND NOW WE'RE TALKINGABOUT THE REMARKS, THE BURDEN OF PROOF IN EVIDENCE.THE COURT: ALL RIGHT. PLEASE DON'TARGUE, MR. VERHOEVEN.7MR. VERHOEVEN:THANK YOU, YOUR HONOR.891011THE POINT I WAS GOING TO MAKE IS THEPATENT OFFICE IS PRESUMED -- WHEN A PATENT ISSUES,IT'S PRESUMED TO BE VALID.BUT THE PATENT OFFICE DOESN'T ALWAYS KNOW12EVERYTHING.SOMETIMES THERE'S PRIOR ART OUT THERE13141516171819202122232425THAT THE PATENT OFFICE IS NOT AWARE OF.THE EVIDENCE IS GOING TO SHOW, MEMBERS OFTHE JURY, THAT WITH RESPECT TO EACH OF THESEPATENTS, THAT'S THE CASE.I'D LIKE TO BRIEFLY GO THROUGH THAT, SOLET'S GO TO THE '913 -- THE '915 PATENT.THIS IS A PATENT THAT'S VERY SIMPLE.HERE'S AN ILLUSTRATION OF WHAT APPLE IS CLAIMINGTHEY INVENTED, A USER SCROLLING -- GO AHEAD -- ANDA USER USING TWO FINGERS TO CREATE A GESTURE.IN A NUTSHELL, THAT IS WHAT APPLE CLAIMSIT DESERVES A PATENT FOR IN THE '915 PATENT.THE EVIDENCE IS GOING TO SHOW, MEMBERS OF

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page144 of 274426123456789101112131415THE JURY, THAT OTHERS HAD ALREADY INVENTED THATBEFORE APPLE. IN PARTICULAR, NOVEMBER 25 OF 1998,THE NOMURA PATENT WAS FILED WHICH SHOWS THE EXACTSAME THING.IN 2004, MERL DEVELOPED AND DEMONSTRATEDA PRODUCT CALLED FRACTAL ZOOM THAT SHOWS THE SAMETHING.AND IN FEBRUARY OF 2006, JEFFERSON HANDEMONSTRATED HIS SYSTEM THAT SHOWS THE SAME THING.LET'S TAKE A LOOK AT THE FRACTAL ZOOMPRIOR ART.THIS IS A VIDEO -- CAN WE PAUSE HERE --OF THE FRACTAL ZOOM.(WHEREUPON, A VIDEOTAPE WAS PLAYED INOPEN COURT OFF THE RECORD.)16MR. VERHOEVEN:AND HERE IT SAYS RIGHT ON171819THE VIDEO, IT'S CALLED "DIAMONDTOUCH FRACTAL ZOOMDEMO CONTROLS."IT SAYS "TOUCH THE TABLE WITH TWO FINGERS20AND SPREAD THEM APART TO ZOOM IN.TOUCH THE TABLET2122232425WITH ONE FINGER OR GRAB THE IMAGE AND PULL TO PAN."WELL, THAT'S EXACTLY WHAT THIS PATENTCLAIMS YEARS LATER IT INVENTED.LET'S CONTINUE.(WHEREUPON, A VIDEOTAPE WAS PLAYED IN

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page145 of 2744271OPEN COURT OFF THE RECORD.)2MR. VERHOEVEN:THERE YOU SEE THE PERSON345678910ZOOMING -- OR PANNING, EXCUSE ME, AND THEN USINGTWO FINGERS TO DO WHAT'S CALLED A GESTURE IN THE'915 PATENT.THE SAME THING THAT APPLE SAYS IT'SENTITLED TO A PATENT ON WAS ALREADY DONE BY OTHERSIN THE FRACTAL ZOOM PRIOR ART.SAME THING WITH THE NOMURA PRIOR ART.THIS WAS A PATENT FILED IN 1998, YEARS BEFORE THE11APPLE PATENT.YOU CAN SEE HERE IN ILLUSTRATIONS1213FROM NOMURA, THIS IS ACTUAL PICTURES OUT OF THEPATENT SHOWING PANNING AND THEN PINCHING AND1415ZOOMING.LET'S GO AHEAD AND PLAY THAT.(WHEREUPON, A VIDEOTAPE WAS PLAYED IN16OPEN COURT OFF THE RECORD.)17MR. VERHOEVEN:SO THE NOMURA PATENT ALSO1819202122DISCLOSES USING ONE FINGER TO SCROLL OR PAN AND TWOFINGERS -- PLAY THAT -- TWO FINGERS TO PINCH ORZOOM, A GESTURE.(WHEREUPON, A VIDEOTAPE WAS PLAYED INOPEN COURT OFF THE RECORD.)23MR. VERHOEVEN:AND FINALLY, JEFFERSON24HAN'S PRIOR ART.THIS WAS PRESENTED IN FEBRUARY OF252006, THE MULTITOUCH SYSTEM AT A TED CONFERENCE,

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page146 of 2744281234AND HE DEMONSTRATED THE EXACT SAME FUNCTIONALITY.LET'S PLAY IT.(WHEREUPON, A VIDEOTAPE WAS PLAYED INOPEN COURT OFF THE RECORD.)5MR. VERHOEVEN:DO WE HAVE A TECHNICAL6PROBLEM?7I APOLOGIZE, YOUR HONOR.8THE COURT:NO PROBLEM.91011121314(PAUSE IN PROCEEDINGS.)(WHEREUPON, A VIDEOTAPE WAS PLAYED INOPEN COURT OFF THE RECORD.)MR. VERHOEVEN: STOP RIGHT THERE. PAUSE.(WHEREUPON, A VIDEOTAPE WAS PLAYED INOPEN COURT OFF THE RECORD.)15MR. VERHOEVEN:WELL, WE DIDN'T PAUSE16WHERE I WANTED TO.I APOLOGIZE.171819202122YOU SAW HE WAS MOVING VERY QUICKLY, BUTHE MOVED HIS FINGER AND THE ENTIRE SCREEN MOVED,AND THAT WAS THE PANNING OR SCROLLING.GO AHEAD AND CONTINUE.(WHEREUPON, A VIDEOTAPE WAS PLAYED INOPEN COURT OFF THE RECORD.)23MR. VERHOEVEN:WELL, THAT WASN'T THE24MOST SOPHISTICATED VIDEO THERE, BUT HE ALSO SHOWED25THIS VERY SAME FUNCTIONALITY.HE USED ONE FINGER,

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page147 of 2744291HAND, TO SCROLL.TWO FINGERS TO ZOOM.234VALID.THE PATENT THAT APPLE HAS ASSERTED IS NOTTHE EVIDENCE IS GOING TO SHOW IT.NOW LET'S GO TO THE '163 PATENT.5OKAY.I'M GOING TO SHOW YOU A QUICK6SUMMARY.THIS IS ANOTHER VERY SIMPLE PATENT THAT789APPLE IS ASSERTING AGAINST SAMSUNG IN THIS CASE,AND HERE IS ESSENTIALLY WHAT IT IS.TAKING YOUR FINGER, YOU HIT -- YOU HIT A1011BLOCK AND IT BECOMES CENTERED.MORE TIME.LET'S SHOW IT ONE1213(WHEREUPON, A VIDEOTAPE WAS PLAYED INOPEN COURT OFF THE RECORD.)14MR. VERHOEVEN:THIS IS THE TECHNOLOGY.1516YOU HIT A BLOCK, IT CENTERS.CENTERS.YOU HIT A BLOCK, IT171819202122232425WELL, THAT VERY SIMPLE PATENT WAS ALSODONE YEARS BEFORE APPLE FILED FOR ITS PATENTAPPLICATION.THE EVIDENCE IS GOING TO SHOW THAT INAPRIL OF 2005, LAUNCHTILE DEMONSTRATED THAT EXACTSAME FUNCTIONALITY AT A CHI CONFERENCE.IN SEPTEMBER OF 2005, MICROSOFT FILED APATENT APPLICATION FOR TILE SPACE USER INTERFACEWHICH ALSO DEMONSTRATED THAT SAME TECHNOLOGY.

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page148 of 2744301234THE LAUNCHTILE TECHNOLOGY DEVELOPED BYDR. BENJAMIN BEDERSON IN 2004 WAS DEMONSTRATED AT ACONFERENCE, THE EVIDENCE WILL SHOW, IN 2005.AND IT SHOWED THREE DIFFERENT VIEWS FOR5LAUNCHTILE.WE START WITH THE WORLD VIEW, THAT'S678910111213141516171819THE FIRST BOX YOU SEE THERE, AND YOU CLICK THAT BOXAND WHAT HAPPENS IS THAT BOX EXPANDS INTO THE ZONEVIEW IN THAT MIDDLE SCREEN THAT YOU SEE THERE.AND THEN IF YOU GO -- AND YOU CAN HIT ANYONE OF THESE FOUR QUADRANTS, BUT IF YOU HIT THE TOPRIGHT QUADRANT, WHICH I'VE LABELED THE SECOND BOX,THAT WOULD BE CENTERED AND GO INTO THE APPLICATIONUSE SCREEN.THAT'S EXACTLY WHAT THE PATENT IS TALKINGABOUT.AND HERE WE'LL SHOW YOU, YOU CAN SEE ITFOR YOURSELF BECAUSE WE HAVE THE SOFTWARE.(WHEREUPON, A VIDEOTAPE WAS PLAYED INOPEN COURT OFF THE RECORD.)20MR. VERHOEVEN:THE EVIDENCE IS GOING TO212223SHOW THAT THIS IS EXACTLY WHAT THE '163 PATENTCLAIMS, BUT IT WAS DONE BEFORE.IN ADDITION TO THIS LAUNCHTILE PRIOR ART,24WE HAVE THE MICROSOFT PRIOR ART.AGAIN, A PATENT25WAS FILED BEFORE THIS PATENT, AND THE MICROSOFT

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page149 of 274431123456PRIOR ART ALSO SHOWS CLICKING ON A BOX AND HAVINGTHE BOX THEN BECOME ENLARGED AND CENTERED.AND WE HAVE AN ILLUSTRATION OF THAT HERE,TOO.(WHEREUPON, A VIDEOTAPE WAS PLAYED INOPEN COURT OFF THE RECORD.)7MR. VERHOEVEN:SO WE SEE HERE THAT, AS891011121314151617WITH THE FIRST PATENT, THE SECOND PATENT ALSO HASART THAT INVALIDATES IT.LET'S TURN TO THE THIRD PATENT, THE '381PATENT.THIS PATENT AS WELL IS A VERY SIMPLEPATENT.GO TO SLIDE 105, PLEASE.AND WE'LL SHOW YOU WHAT IT IS CLAIMING.(WHEREUPON, A VIDEOTAPE WAS PLAYED INOPEN COURT OFF THE RECORD.)18MR. VERHOEVEN:THIS IS WHAT WAS REFERRED192021TO AS THE BOUNCE BACK PATENT BY MR. MCELHINNY, ORTHE SLIDE BACK.SO YOU PULL TO THE EDGE OF A DOCUMENT AND22YOU LET GO AND THERE'S AN EMPTY SPACE.YOU LET GO23AND IT BOUNCES BACK.THAT'S, IN A NUTSHELL, A HIGH2425LEVEL OF WHAT THE '381 PATENT IS TALKING ABOUT.WELL, THE EVIDENCE IS GOING TO SHOW,

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page150 of 27443212345678MEMBERS OF THE JURY, THAT OTHERS ALSO DID THIS,ALSO DEVELOPED THIS TECHNOLOGY BEFORE APPLE FILEDITS PATENT.THE SAME LAUNCHTILE PROGRAM THAT WELOOKED AT IN NOVEMBER 19 -- NOVEMBER OF 2004PERFORMED THAT FUNCTIONALITY.THERE WAS A PRODUCT -- OR A TECHNOLOGYCALLED TABLECLOTH THAT WAS CREATED IN 2005 THAT910ALSO PERFORMED THAT.AT TABLECLOTH.AND LET'S TAKE A LOOK BRIEFLY1112131415IN THE INTERESTS OF TIME, WE'RE NOT GOINGTO RELOOK AT THAT LAUNCH PAD.CAN WE PLAY IT?(WHEREUPON, A VIDEOTAPE WAS PLAYED INOPEN COURT OFF THE RECORD.)1617MR. VERHOEVEN:SAME THING BOUNCING BACK.HERE YOU SEE THE EXACTGO PAST THE EDGE OF THE18192021DOCUMENT, YOU HAVE A BLANK SPACE, YOU LET GO, ITBOUNCES BACK.(WHEREUPON, A VIDEOTAPE WAS PLAYED INOPEN COURT OFF THE RECORD.)22MR. VERHOEVEN:SO MEMBERS OF THE JURY,232425EACH OF THESE THREE VERY SIMPLE PATENTS THAT APPLEIS ASSERTING ON THE UTILITY PATENT SIDE, EACH ONEOF THEM, THE EVIDENCE IS GOING TO SHOW THAT OTHERS

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page151 of 2744331234567DID IT BEFORE, MULTIPLE OTHERS DID IT BEFORE.AND IF OTHER PEOPLE HAVE DONE WHAT YOUCLAIM YOU'VE INVENTED, YOU DON'T HAVE AN INVENTION.IT'S NOT VALID.AND THE EVIDENCE IS GOING TO SHOW THAT'STHE CASE.WE ALSO CONTEND THAT WE DON'T INFRINGE8THESE PATENTS.I DON'T HAVE ENOUGH TIME TODAY TO9101112131415161718192021GO THROUGH ALL OF OUR ARGUMENTS WITH RESPECT TOTHAT, BUT THE EVIDENCE IS ALSO GOING TO SHOW THAT.NOW, LET ME MOVE -- I'VE GOT ONE MOREMODULE, I'M SURE YOU'RE ALL VERY TIRED, THAT I NEEDTO SWITCH TO AND THEN I'LL BE DONE, AND THAT IS MYCLIENT, SAMSUNG'S, AFFIRMATIVE CASE, COUNTERCLAIMAND CLAIM AGAINST APPLE FOR PATENT INFRINGEMENT.NOW, I HEARD MR. MCELHINNY AND MR. LEESAY, "WELL, SAMSUNG DIDN'T SUE US ON THESE PATENTSUNTIL WE SUED THEM," AS IF THAT MEANS OUR PATENTSAREN'T ANY GOOD.WELL, THAT'S TRUE.IT'S ALSO TRUE THAT SAMSUNG HAD A MAJOR22BUSINESS RELATIONSHIP WITH APPLE.YOU SAW AT THE232425START OF MY OPENING STATEMENT WHEN I SHOWED YOU THEEVIDENCE THAT OVER 20 PERCENT OF THE COMPONENTPARTS THAT MAKE UP THE IPHONE IS TECHNOLOGY THAT'S

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page152 of 2744341234SUPPLIED BY SAMSUNG.SAMSUNG ISN'T IN THE HABIT OF SUING ITSBUSINESS PARTNERS, EVEN IF IT COULD.BUT SAMSUNG ISN'T THE ONE WHO LAUNCHED5THIS LITIGATION.SAMSUNG IS THE ONE WHO DECIDED TO6789COMPETE IN THE COURTROOM INSTEAD OF THEMARKETPLACE.AND SAMSUNG HAS EVERY RIGHT, AFTER IT'SBEEN ATTACKED BY APPLE, TO UTILIZE ITS OWN10INTELLECTUAL PROPERTY TO DEFEND ITSELF.THERE'S111213141516NOTHING WRONG WITH THAT, AND TO SUGGEST OTHERWISEIS WITHOUT MERIT.NOW, LET'S GO THROUGH QUICKLY SAMSUNG'SCLAIMS AGAINST APPLE FOR INFRINGEMENT OF THEUTILITY PATENTS.HERE WE HAVE TWO CATEGORIES OF PATENTS17I'M GOING TO ADDRESS.THE FIRST ARE WHAT I'LL CALL1819202122232425HIGH SPEED DATA PATENTS, THE '516 AND THE '941PATENTS.IN ADDITION, SAMSUNG IS ASSERTING THREECAMERA AND MUSIC PATENTS, THE '460, '893, AND 711.EACH OF THOSE PATENTS WAS FILED BEFOREAND PRE-DATES THE INTRODUCTION OF THE IPHONE.FIRST THE HIGH SPEED DATA PATENTS.THE FIRST OF THOSE IS THE '516. THE '516

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page153 of 2744351PATENT IS A METHOD AND APPARATUS FOR ACHIEVING2ENHANCED DATA UPLINK TRANSMISSIONS.THESE ARE THE345GUTS OF THE TRANSMISSIONS THAT GO BACK AND FORTHWITH THE CELL TOWER.THESE AREN'T MINOR FEATURES ON YOUR TOUCH67SCREEN.THESE ARE CORE INNOVATIONS.WITH THESE TYPES OF TECHNOLOGIES, MEMBERS89OF THE JURY, THAT ALLOWS COMPANIES LIKE APPLE TOMAKE PRODUCTS WHERE YOU CAN SEND PICTURES AND YOU10CAN SURF THE INTERNET AND MAKE VIDEO CALLS.YOU111213141516171819202122232425WOULDN'T BE ABLE TO DO THAT UNLESS YOU WERE ABLE TOACHIEVE VERY HIGH SPEEDS.IN A NUTSHELL -- THIS IS SOMEWHATCOMPLEX, SO I CAN'T GET INTO TOO MUCH DETAIL IN THEOPENING -- BUT IN THE A NUTSHELL, THERE WAS APROBLEM WITH THE 3G HIGH SPEED SYSTEMS IN TERMS OFTHEIR SPEED, AND THAT WAS YOU HAD SOMETHING CALLEDMAXIMUM POWER AND YOU COULDN'T -- YOU COULDN'T --EVERY MOBILE UNIT, EVERY HANDSET HAD -- IT WASASSIGNED A MAXIMUM POWER AND THEY CAN'T GO HIGHERTHAN THAT MAXIMUM POWER.BUT SOMETIMES THE PHONE WANTS TOCOMMUNICATE SO MUCH INFORMATION THAT THEY EXCEEDTHE MAXIMUM POWER, AND THAT'S WHAT YOU SEE HERE.THIS PMAX IS THE MAXIMUM POWER.

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page154 of 274436123AND IN THE PAST, THE WAY THAT THETECHNOLOGY DEALT WITH THIS WAS BY REDUCING THEPACKET TRANSMISSIONS, AND THEY WOULD REDUCE ALL OF4THEM.THEY WOULD REDUCE ENHANCED DATA CHANNELS5678THAT WERE RETRANSMITTED, AND THEY WOULD ALSO REDUCEVOICE DATA CHANNELS, WHICH WERE NOT RETRANSMITTED.SO FOR VOICE IT'S A LITTLE BIT DIFFERENTTHE WAY THE TRANSMISSION WORKS THAN DATA, AND IN9VOICE, THE PHONE WILL TRANSMIT ONCE.WITH DATA,1011YOU HAVE THE ABILITY TO RETRANSMIT MANY TIMES.THE WAY THE OLD SYSTEM WORKED IS IT WOULD12REDUCE EVERYTHING.IT WOULDN'T MAKE A DISTINCTION.1314AND THAT WAS A PROBLEM.IT WAS A PROBLEM WHY?BECAUSE THIS VOICE1516171819202122232425DATA CHANNEL DOESN'T GET RETRANSMITTED AND IT GOTLOST OCCASIONALLY AND YOU WOULD GET DROPPED CALLSOR PROBLEMS WITH TRANSMISSION.IT DIDN'T MATTER SO MUCH FOR THE ENHANCEDRETRANSMITTED DATA CHANNELS BECAUSE IT JUSTRETRANSMITS IF SOMETHING GETS LOST BECAUSE IT'SDATA.SAMSUNG CAME UP WITH A SOLUTION THATHELPED DEAL WITH THIS PROBLEM, AND THIS IS THE '516PATENT.THE SOLUTION WAS TO ONLY REDUCE CHANNELS

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page155 of 27443712345678910111213141516171819202122232425THAT ARE RETRANSMITTED, DATA CHANNELS, SO THEY CAMEUP WITH AN INVENTION THAT APPLIED INTELLIGENCE TOTHIS PROBLEM.AND YOU SEE HOW I'VE HIGHLIGHTED THEORANGE BOX HERE, AND THE SOLUTION UNDER THE '516PATENT, ONLY THE ENHANCED DATA CHANNELS THAT ARERETRANSMITTED GET REDUCED.THE VOICE CHANNEL DOES NOT GET REDUCEDANYMORE, AND THAT RESULTED IN A GREAT IMPROVEMENTBECAUSE YOU HAD FEWER VOICE DROPPED CALLS ORINTERRUPTIONS WITH YOUR VOICE TRANSMISSIONS THATYOU COULDN'T RECREATE BECAUSE THEY'RE NOT BEINGRETRANSMITTED, WHEREAS THE DROPPING THAT OCCURREDBECAUSE OF THE REDUCTION THAT WOULD HAPPEN IN THESERETRANSMITTED CHANNELS WOULDN'T BE AS BIG OF APROBLEM BECAUSE THEY KEEP GETTING RETRANSMITTED.IT'S A SIGNIFICANT INVENTION THAT THEEVIDENCE IS GOING TO SHOW APPLE IS USING.APPLE'S -- THIS INVENTION WAS SO USEFULTHAT IT GOT ADOPTED INTO THE 3GPP STANDARD.AND THIS JUST CITES THE EVIDENCE.5.1.2.6 OF THE STANDARD WHICH INCORPORATES THISTECHNOLOGY.WELL, THE EVIDENCE WILL SHOW, MEMBERS OFTHE JURY, THAT APPLE'S PRODUCTS PRACTICE THIS

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page156 of 27443812345PATENT, AND YOU HEARD MR. LEE GET UP AND MAKE HISPRESENTATION ABOUT APPLE'S DEFENSE TO THESEPATENTS.YOU DIDN'T HEAR ANYTHING ABOUT THEPATENTS OR WHAT THEY DID OR WHAT EVIDENCE WOULD6SHOW NON-INFRINGEMENT.HE DIDN'T TALK ABOUT THAT7AT ALL.THAT'S BECAUSE THE EVIDENCE SHOWS8910111213141516171819INFRINGEMENT.APPLE ADMITS IT PRACTICES THE STANDARD.IN ADDITION, WE'VE GOT EVIDENCE WHICHWE'LL SHOW YOU THAT THE INFINEON BASEBAND PROCESSORTHAT'S USED IN THE APPLE PRODUCTS PERFORMS THESTEPS THAT ARE CLAIMED IN THIS PATENT.WE'LL PRESENT EVIDENCE FROM MARKUSPALTIAN, AN INTEL ENGINEER, WHO WILL TESTIFY THATHE PROGRAMMED THE INTEL CHIPS TO PERFORM THE 3GPPSTANDARD, AND THAT THE CHIPS DO PERFORM THISREDUCTION THAT I TOLD YOU ABOUT.LET'S GO TO THE SECOND HIGH SPEED DATA2021PATENT.THIS IS THE '941 PATENT.THIS IS A PATENT -- THIS PATENT ALSO22232425DEALS WITH THE GUTS OF THE TRANSMISSION BETWEENHANDSETS AND CELL TOWERS, MUCH MORE FUNDAMENTALPATENT THAN LITTLE THINGS YOU CAN DO ON TOUCHSCREENS.

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page157 of 2744391234567891011THIS PATENT CONCERNS DATA TRANSMISSIONSAS OPPOSED TO VOICE, AND DATA TRANSMISSION GETSTRANSMITTED IN PACKETS.AND I DON'T KNOW HOW FAMILIAR YOU ALL AREWITH, FOR EXAMPLE, TCP OR I.P. ON THE INTERNET OROTHER TYPES OF PROTOCOLS, BUT WHEN YOU'RETRANSMITTING DATA, IT'S SORT OF LIKE THE U.S. MAIL.YOU BREAK THE DATA UP INTO PACKAGES AND THEN YOUPUT A LABEL ON IT AND INFORMATION ABOUT IT SO THEPACKAGE KNOWS WHERE TO GO.AND IN THE PARLANCE AND THE TECHNOLOGY,12THAT'S OFTEN REFERRED TO AS A HEADER.SO YOU HAVE13141516171819202122232425THE DATA IN THE PACKET AND THE PACKET HAS A HEADER.AND WHEN YOU WANT TO SEND, FOR EXAMPLE, AVIDEO, LIKE THIS VIDEO HERE OF A GIRL RIDING ABIKE, WHAT THE PHONE DOES IS IT BREAKS IT UP INTOPACKETS AND IT SENDS CHUNKS OF THAT DATA TO THECELL TOWER TO GET TRANSMITTED FURTHER.THE PROBLEM WITH THE ART BEFORE THE '941PATENT CAME ALONG IS THE HEADER -- AND THAT'SREPRESENTED IN THIS BOX HERE WITH THE RED SUBBOXESWITH THE BINARY NUMBERS, THAT'S THE HEADER -- THEPROBLEM IS THE HEADER WAS TOO BIG AND IT TOOK SPACEAWAY FROM THE DATA AND THE PACKET.SO HERE WE'RE TRYING TO SEND AN IMAGE,

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page158 of 274440123456BUT THE WHOLE IMAGE WON'T FIT INTO ONE PACKET, SOYOU HAVE TO BREAK IT UP, AND THEN YOU HAVE SOMEWASTED SPACE HERE BECAUSE OF HAVING TO BREAK IT UPTHIS WAY.WELL, THE INVENTORS AT SAMSUNG CAME UPWITH A SOLUTION WHERE THEY ELIMINATED THE NEED TO7HAVE SUCH A BIG HEADER.THEY CAME UP WITH A MORE8910EFFICIENT HEADER -- OOPS -- SO THAT YOU COULD FITMORE DATA INTO THE PACKAGES.AND THIS RESULTED IN MUCH MORE EFFICIENT11TRANSMISSIONS.IT RESULTED IN GETTING MORE DATA121314151617ACROSS WITH FEWER PACKETS AND ALLOWED FOR HIGHERSPEED DATA TRANSMISSION.THIS INVENTION WAS ALSO SIGNIFICANTENOUGH THAT IT WAS INCORPORATED INTO THE 3GPPSTANDARD.AND THE EVIDENCE WILL SHOW, MEMBERS OF1819THE JURY, THAT APPLE PRACTICES THIS PATENT.PRACTICES THE STANDARD.APPLE202122232425AND IN ADDITION TO THAT, WE WILL PRESENTEVIDENCE FROM AN INTEL ENGINEER, ANDRE ZORN, THATHE PROGRAMMED INTEL CHIPS, WHICH ARE USED IN THEAPPLE PRODUCTS, TO PERFORM THE 3GPP STANDARD.HE'LL TESTIFY THAT THE INTEL CHIPS HAVE THIS NEWE-BIT SOLUTION, WHICH IS THE SMALLER HEADER THAT I

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page159 of 274441123WAS TALKING ABOUT.NOW, AGAIN, YOU DIDN'T HEAR ANYTHINGABOUT THIS FROM MR. LEE WHEN HE WAS DESCRIBING THE4DEFENSE THAT APPLE HAD TO THESE PATENTS.YOU5DIDN'T HEAR ANY NON-INFRINGEMENT ARGUMENTS --6MR. LEE:YOUR HONOR, I OBJECT.7FIRST, THIS IS ARGUMENT; AND SECOND, I8DID ADDRESS IT.I SAID THEY WEREN'T COVERED.910THIS IS THE THIRD TIME HE'S MADE AREPRESENTATION ABOUT WHAT I SAID.11THE COURT:OVERRULED.12GO AHEAD, PLEASE.13MR. VERHOEVEN:THANK YOU, YOUR HONOR.141516171819202122232425WHAT YOU DID HEAR A LOT ABOUT WASSOMETHING CALLED FRAND AND ETSI.THE ALLEGATION WAS MADE, AND I'M NOTGOING TO GO INTO THE DETAILS OF IT, BUT THEEVIDENCE WOULD SHOW THAT THERE WAS SOME SORT OF ABREACH OF AN OBLIGATION TO THIS ORGANIZATION CALLEDETSI.WELL, MEMBERS OF THE JURY, THE EVIDENCEIS NOT GOING TO BEAR THAT OUT.IF WE CAN GO TO SLIDE 137, PLEASE.WHAT YOU WERE NOT TOLD ABOUT WITH RESPECTTO FRAND AND ETSI RULES IS THAT THE DUTY TO

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page160 of 27444212345DISCLOSE INTELLECTUAL PROPERTY RIGHTS DOES NOTAPPLY, UNDER ETSI RULES, FOR CONFIDENTIALINFORMATION, AND THE EVIDENCE IS GOING TO SHOW THATTHE APPLICATIONS, THE PATENT APPLICATIONS THATAPPLE IS POINTING TO WHICH THEY SAY SHOULD HAVE6BEEN DISCLOSED, WERE CONFIDENTIAL.THEY'RE78910111213141516171819CONFIDENTIAL KOREAN PATENT APPLICATIONS.THE EVIDENCE IS GOING TO SHOW THERE WASNO DUTY.ANOTHER THING YOU WEREN'T TOLD BY COUNSELFOR APPLE WAS THAT THEIR OWN EXPERT ON THISSUBJECT, DR. MICHAEL WALKER, TESTIFIED THAT THEREWAS NO VIOLATION OF ETSI POLICY.SECTION 14 OF THE ETSI RULES ENTITLED"VIOLATION OF POLICY," "ANY VIOLATION OF THE POLICYBY A MEMBER SHALL BE DEEMED TO BE A BREACH, BY THATMEMBER, OF ITS OBLIGATIONS TO ETSI," AND IT GOESON.DR. WALKER WAS ASKED UNDER OATH,20"QUESTION:JUST FOR THE RECORD, YOU HAVE NO2122OPINION AS TO WHETHER OR NOT THERE HAS BEEN AVIOLATION UNDER SECTION 14, CORRECT?23"ANSWER:THAT IS CORRECT."2425THAT'S THEIR EXPERT, APPLE'S EXPERT WHOWAS HIRED TO PROVE TO YOU THAT THERE IS SOME SORT

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page161 of 2744431234567OF BREACH OF FRAND ADMITTED UNDER OATH THAT HE'SNOT AWARE OF WHETHER THERE'S BEEN ANY VIOLATIONUNDER SECTION 14.SO THE EVIDENCE IS NOT GOING TO BEAR OUTTHIS FRAND DEFENSE THAT APPLE IS MAKING ON THESETWO PATENTS.VERY BRIEFLY -- TIME CHECK?8THE COURT:YOU HAVE EIGHT MINUTES.910YOUR HONOR.MR. VERHOEVEN:EIGHT MINUTES, THANK YOU,1112PATENTS.I'D LIKE TO ADDRESS THE CAMERA AND MUSICTHERE'S THREE OTHER PATENTS THAT SAMSUNG1314151617181920IS ASSERTING IN THIS CASE.THE FIRST IS THE '460 PATENT, WHICH IS APATENT CONCERNING SENDING AN E-MAIL WHILE YOUDISPLAY A PHOTO IN THE PHOTO GALLERY.SO THIS IS A UNIQUE WAY, AN IMPROVEMENTON BEING ABLE TO MANIPULATE YOUR PHONE TO USE TEXTAND PHOTOS TOGETHER.THE PATENT -- AND I'M SUMMARIZING HERE --21THE PATENT DESCRIBES THREE FUNCTIONS:SENDING AN22232425E-MAIL WITH A MESSAGE ONLY; SENDING AN E-MAILDISPLAYING A PHOTO AND A MESSAGE FROM THE PHOTOGALLERY; AND THEN ALSO GRAPHICALLY SCROLLINGTHROUGH PHOTOS.

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page162 of 2744441SO IT'S TALKING ABOUT A PHONE THAT HAS2MULTIPLE FUNCTIONALITIES THAT YOU CAN USE.SO IT3456IMPROVED ON PHONES PRIOR TO THAT TIME THAT YOUCOULDN'T DO ALL THESE THINGS TOGETHER.THE EVIDENCE WILL SHOW THAT SAMSUNGINVENTED THIS CAMERA PHONE TECHNOLOGY EIGHT YEARS7BEFORE THE RELEASE OF THE IPHONE.IT WAS FIRST TO8910111213IMPLEMENT THESE THREE CORE FUNCTIONS IN A CAMERAPHONE, THE FIRST TO ENABLE SENDING A PHOTO IN AMESSAGE IN THE BODY OF AN E-MAIL, AND FIRST TOOFFER A SEPARATE MODE FOR SENDING E-MAIL FROM PHOTOGALLERY ON A CAMERA PHONE.THE APPLE ACCUSED PRODUCTS DO ALL OF14THIS, THE EVIDENCE WILL SHOW.USING AN APPLE1516171819202122232425PRODUCT, YOU CAN SEND AN E-MAIL WITH A MESSAGEONLY, YOU CAN SEND AN E-MAIL WITH A PHOTO AND AMESSAGE, THERE'S A PICTURE OF IT RIGHT HERE FROMTHE IPHONE, AND GRAPHICALLY SCROLLING THROUGHPHOTOS.IN FACT, YEARS AFTER THIS PATENT WASFILED WHEN APPLE MARKETED ITS IPHONE, WHEN ITLAUNCHED ITS IPHONE, THIS FUNCTIONALITY WASIMPORTANT ENOUGH THAT APPLE, IN LAUNCHING THEIPHONE, IN ANNOUNCING THE IPHONE, HIGHLIGHTED IT.LET'S PLAY.

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page163 of 27444512(WHEREUPON, A VIDEOTAPE WAS PLAYED INOPEN COURT OFF THE RECORD.)3MR. VERHOEVEN:THAT'S THE -- THAT IS4COOL TECHNOLOGY.I ADMIT IT.5678THE ISSUE IS, SAMSUNG INVENTED IT YEARSBEFORE THE IPHONE WAS LAUNCHED.IT WAS IMPORTANT ENOUGH THAT WHEN THEYLAUNCHED THE IPHONE, THEY HIGHLIGHTED IT AS A9FEATURE.THE EVIDENCE IS GOING TO SHOW THAT10111213141516171819202122232425PATENT'S INFRINGED.NOW, TURNING TO THE '711 PATENT -- EXCUSEME -- THE '893 PATENT, VERY BRIEFLY, THE '893PATENT ALLOWS USERS TO BOOKMARK A PHOTO IN THEPHOTO GALLERY WHILE CAPTURING A NEW PHOTO.SO IF YOU THINK ABOUT IT, YOU'RE GOINGTHROUGH YOUR GALLERY OF PHOTOS, YOU GET HALFWAYTHROUGH, AND THIS ILLUSTRATION IS TRYING TOILLUSTRATE BY SHOWING SAY YOU'RE AT YOUR VACATIONPHOTOS HERE, AND SAY YOU'RE ON VACATION, AND ALL OFA SUDDEN -- YOU'RE LOOKING THROUGH YOUR PHOTOS ANDALL OF A SUDDEN YOU SEE SOMETHING YOU WANT TO TAKEA PICTURE OF.WHAT THIS PATENT ALLOWS TO YOU DO IS GETOUT OF YOUR GALLERY, TAKE THE PICTURE, GO BACK INYOUR GALLERY AND GO RIGHT BACK TO THE PLACE WHERE

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page164 of 2744461234YOU WERE BEFORE.IN THIS ILLUSTRATION, SAY YOU'RE VIEWINGTHE SUNSET WHILE YOU'RE ON THE BEACH THE NEXT DAYAND YOU SEE YOUR DAUGHTER MAKING A SAND CASTLE,5IT'S REALLY CUTE.YOU JUMP OUT, TAKE A PICTURE,6AND GO RIGHT BACK INTO YOUR GALLERY WHERE YOU WERE78WITHOUT HAVING LEFT OFF.FEATURE.THAT'S A COOL LITTLE9APPLE'S PRODUCTS DO THAT AS WELL.IN101112131415161718THIS EXAMPLE, AT THE OLYMPICS, WE TOOK A PICTURE OFA HIGH JUMPER -- OR MAYBE THAT'S NOT A HIGHJUMPER -- A GYMNAST AND YOU'RE GOING THROUGH YOURGALLERY THE NEXT DAY AND YOU WANT TO TAKE A PICTUREOF MORE GYMNASTICS AND YOU GO RIGHT BACK, IN THEAPPLE PRODUCT, TO YOUR GALLERY.FINALLY, VERY, VERY BRIEFLY, THE '711PATENT. THIS IS A MUSIC PATENT. THIS COVERSPLAYING MUSIC WHILE PERFORMING OTHER TASKS WITHOUT19A DEDICATED MUSIC PROCESSOR.AN INDICATOR ON THE202122232425DISPLAY LETS YOU KNOW YOU'RE PLAYING MUSIC IN THEBACKGROUND.HERE ALSO THE UNDISPUTED EVIDENCE SHOWSAPPLE PRACTICES THIS PATENT.(WHEREUPON, A VIDEOTAPE WAS PLAYED INOPEN COURT OFF THE RECORD.)

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page165 of 27444712MR. VERHOEVEN:AUDIO, YOUR HONOR.I APOLOGIZE FOR THE345678910SO WE PUT THAT IN REALLY QUICKLY, BUTTHAT WAS -- YOU TURNED ON THE MUSIC, YOU'RE ABLE TOGO AND DO OTHER THINGS ON YOUR PHONE WHILE THEMUSIC IS PLAYING, AND THERE'S AN INDICATOR AT THETOP THAT THE MUSIC IS PLAYING.CLEAR INFRINGEMENT WHICH THE EVIDENCE ISGOING TO SHOW.IN SUMMARY, MEMBERS OF THE JURY, I THANK11YOU VERY MUCH FOR YOUR TIME.I KNOW IT'S BEEN A1213141516171819202122232425VERY LONG OPENING STATEMENT BY BOTH SIDES.I THINK THE EVIDENCE IS GOING TO SHOWHERE THAT SAMSUNG HASN'T DONE ANYTHING WRONG.SAMSUNG IS AN INNOVATOR. IT'S A COMPETITOR. IFANYTHING, WHAT WE HAVE HERE IS INFRINGEMENT BYAPPLE OF CORE SAMSUNG PATENTS.NOW, I'M NOT GOING TO GET TO SPEAK TO YOUAGAIN UNTIL THE CLOSING STATEMENT, SO I WANT TOTHANK YOU VERY MUCH FOR YOUR TIME AND YOUR SERVICE.THE COURT: ALL RIGHT. IT'S 1:59.WHY DON'T WE TAKE A FIVE-MINUTE BREAK.SO WHOEVER IS GOING TO LEAVE AFTER THEOPENING STATEMENTS, IF YOU WOULD PLEASE, WE'LL TAKEA BREAK SO THAT WHATEVER CHANGES NEED TO BE MADE TO

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page166 of 2744481THE COURTROOM CAN BE MADE.2ALL RIGHT.LET'S TAKE JUST A FIVE-MINUTE3BREAK.456AGAIN, PLEASE KEEP AN OPEN MIND, DON'T DOANY OF YOUR OWN RESEARCH, AND PLEASE DON'T TALKABOUT THE CASE WITH ANYONE.7ALL RIGHT.THANK YOU.89101112(WHEREUPON, A RECESS WAS TAKEN.)(WHEREUPON, THE FOLLOWING PROCEEDINGSWERE HELD OUT OF THE PRESENCE OF THE JURY:)THE COURT: ALL RIGHT. PLEASE HAVE YOURFIRST WITNESS READY TO GO.13MR. MCELHINNY:THANK YOU, YOUR HONOR.14THE COURT:THANK YOU.15MR. MCELHINNY:YOUR HONOR, I JUST HAVE16171819NOTED THIS EARLIER, THERE'S A NOTE FOR THE RECORD.THE PARTIES HAVE STIPULATED AND INVOKED THE RULE SOTHAT POTENTIAL WITNESSES SHOULD NOT BE IN THECOURTROOM.20THE COURT:YES, YES.21MR. VERHOEVEN:YES, YOUR HONOR.2223THE COURT:POTENTIAL WITNESSES.THERE'S AN EXCLUSION OF ALL2425MR. MCELHINNY:MR. VERHOEVEN:OTHER THAN EXPERTS.YEAH, JUST PERCIPIENTS IS

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page167 of 27444912WHAT WE AGREED.THE COURT:SORRY.3MR. VERHOEVEN:PERCIPIENT WITNESSES.4567THE COURT: THAT'S FINE. WHATEVER YOUAGREED TO IS FINE.SO ANYONE WHO IS NOT A PERCIPIENT WITNESSWHO IS GOING TO TESTIFY CAN REMAIN IN THE8COURTROOM.IS THAT RIGHT?91011YOUR HONOR.MR. MCELHINNY:MR. VERHOEVEN:YES, YOUR HONOR.EXPERT WITNESSES, YES,1213141516THE COURT: ALL RIGHT. THAT'S FINE.LET'S TAKE A FEW MINUTE BREAK, PLEASE.(WHEREUPON, A RECESS WAS TAKEN.)(WHEREUPON, THE FOLLOWING PROCEEDINGSWERE HELD OUT OF THE PRESENCE OF THE JURY:)17THE COURT:I'VE LOOKED THROUGH THE18EXHIBITS THAT BOTH SIDES HAVE COLLATED FOR19CHRISTOPHER STRINGER.I KNOW ONE OF THEM IS AN2021APPLE DOCUMENT THAT I ORDERED EXCLUDED, SO YOU'RETAKING THAT OUT, RIGHT, 157?22MR. MCELHINNY:IT JUST WON'T EVER COME23UP.IT WON'T GET OFFERED, YOUR HONOR, THAT'S24RIGHT.25THE COURT: ALL RIGHT. AND THEN IN THE

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page168 of 274450123SAMSUNG, THERE'S 504, 623, 624, 628, 649, 678, AND690. I'M ASSUMING THOSE ARE NOT GOING TO COME UPAS WELL.4MR. VERHOEVEN:I THINK SO, YOUR HONOR.56I HAVE TO COMPARE THAT LIST YOU READ, BUTWE'RE TRYING TO TAKE YOUR ORDER AND THEN --7THE COURT:LET'S JUST GO THROUGH THEM8RIGHT NOW.9MR. VERHOEVEN:OKAY.10THE COURT: 504, 623, 624, 628, 649,11'678, AND 690.DO YOU WANT ME TO GO THROUGH THAT12LIST ONE MORE TIME? 504 --1314YOUR HONOR --MR. VERHOEVEN:THE ONLY QUESTION I HAVE,15THE COURT:YES.161718EXCUSE ME.MR. VERHOEVEN: -- IS YOU DID PERMIT --JUST A POINT OF CLARIFICATION.YOU DID PERMIT -- 562 IS THE ONE THAT HAS1920THIS (INDICATING).THE COURT:YES.21MR. VERHOEVEN:THE ONLY CLARIFICATION222324I'D REFER TO IS THE DOCUMENT, THAT SONY-STYLECHAPPY, AND THAT IS ACTUALLY A REFERENCE TO 523.THE COURT: YOU MEAN 623?25MR. VERHOEVEN:623, I APOLOGIZE.

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page169 of 2744511THE COURT:WHICH IS WHAT JUDGE GREWAL234567891011121314ALREADY EXCLUDED IN HIS ORDER WHICH I HAVE THENAFFIRMED ON THE RECONSIDERATION AND I'VE LOOKED ATAGAIN.SO WE'VE GONE THROUGH THIS THREE TIMES.OKAY?MR. VERHOEVEN: OKAY. I JUST WANTED TOLET YOU KNOW THAT THAT'S WHAT THAT'S REFERRING TO.THAT'S ALL.THE COURT: I UNDERSTAND. JUDGE GREWALEXPLICITLY EXCLUDED THIS, I AFFIRMED IT TWICE, ANDI DON'T WANT TO HAVE TO LITIGATE THIS FOUR TIMES,FOUR TIMES, FIVE TIMES, SIX TIMES, SEVEN TIMES,EIGHT TIMES.15MR. VERHOEVEN:THANK YOU, YOUR HONOR.16171819202122THE COURT: ALL RIGHT. THANK YOU.SO THE EXCLUDED ITEMS ARE APPLE 157,SAMSUNG 504, 623, 624, 628, 629, 678, AND 690.OKAY?NOW, I'M GOING TO MAKE A REQUEST IN THATWE ARE GETTING OBJECTIONS SOMETIMES AT MIDNIGHT.WE'RE TRYING TO RESPOND TO THIS AS QUICKLY AS23POSSIBLE.WE ISSUED THE ORDER ON THE MIDNIGHT2425OBJECTIONS DURING THE BREAK THIS MORNING.WHAT WOULD BE HELPFUL IS NOW THAT I SEE

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page170 of 2744521234567THAT YOU HAVE COLLATED ALL OF THE EXHIBITS FOR EACHWITNESS, IF WE COULD GET A COPY OF THIS WHEN YOUFILE YOUR OBJECTIONS, THAT WOULD BE VERY HELPFUL.BECAUSE OTHERWISE WE'RE TRYING TO FINDTHEM -- AND THIS ISN'T EVEN ALL THE BINDERS YOU'VEGIVEN US -- BUT THEN WE'RE TRYING TO GO AND FINDTHEM, GETTING SOMETIMES OBJECTIONS AT MIDNIGHT,89TRYING TO GET YOU ORDERS BY THE NEXT MORNING.VERY DIFFICULT.IT'S10MR. VERHOEVEN:ABSOLUTELY, YOUR HONOR.11THE COURT:SO IS THERE A POSSIBILITY121314THAT FOR YOUR DIRECT AND CROSS-EXAMINATIONEXHIBITS, YOU COULD PROVIDE THESE JUST TO OURCHAMBERS WHEN YOU FILE YOUR OBJECTIONS?151617MR. JACOBS:THE COURT:MR. JACOBS:ABSOLUTELY.OKAY.AS AN ASIDE, YOUR HONOR,1819202122WE'VE TAKEN A LOOK AT THE SCHEDULE -- WE DON'T HAVETO DO THIS NOW, MAYBE RIGHT AFTER TODAY'S TRIAL --WE THINK WE CAN TWEAK THIS TO MAKE IT EASIER FORTHE COURT AND WORK BETTER FOR THE PARTIES.THE COURT: THAT WOULD BE GREAT. THAT23WOULD BE GREAT.WE'RE TRYING TO GET THROUGH THIS24AS QUICKLY AS POSSIBLE, BUT IT'S CHALLENGING.25MR. JACOBS:YES.

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page171 of 274453123THE COURT: OKAY. SO IF YOU COULDPROVIDE US THESE -- I BELIEVE YOU'RE FILING YOUROBJECTIONS BY 8:00 A.M. THE DAY BEFORE THE WITNESS4TESTIFIES.IS THAT RIGHT?56MR. JACOBS:THINK THAT'S CORRECT.ON THE DIRECT EXHIBITS, I78BUT I THINK WHERE THE SYSTEM ISN'TWORKING WELL IS ON THE CROSS EXHIBITS.9MS. MAROULIS:YOUR HONOR, WE'VE BEEN101112131415TRYING TO FILE THEM EITHER BY 8:00 P.M. THE DAYBEFORE OR 8:00 A.M. THE NEXT DAY, BUT IT RESULTEDIN A ROLLING SERIES OF OBJECTIONS.SO WE'VE BEEN DISCUSSING DOING ONEDEADLINE FOR THE WITNESS RATHER THAN TWO SEPARATESETS.16THE COURT:THAT ACTUALLY WOULD BE GREAT,1718192021222324AND IF YOU COULD JUST MAKE SURE THAT -- THERE WEREA FEW OBJECTIONS WHERE PEOPLE WERE SORT OF TALKINGPAST EACH OTHER WITH THE THINGS THAT WERE FILEDYESTERDAY.IF THERE'S SOME WAY THAT THERE COULD BEJUST A MEETING OF THE MINDS AS TO WHAT EACH SIDE'SOBJECTIONS ARE AND WHAT EACH SIDE'S RESPONSES ARE,THAT WOULD BE HELPFUL AS WELL.25MR. JACOBS:YES.

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page172 of 2744541MS. MAROULIS:YES.23456THE COURT: OKAY. SO PLEASE MAKE APROPOSAL AS TO THE SCHEDULING ON THIS BECAUSE THISIS -- THIS IS CHALLENGING AND IF IT'S GOING TO BEFOUR WEEKS LIKE THIS, IT'S GOING TO BE VERYDIFFICULT FOR US JUST BECAUSE WE'RE A SHOESTRING7OPERATION ON THIS END COMPARED TO Y'ALL.OKAY?89101112ALL RIGHT. SO THEN THE OTHER ISSUE IS --AND I'M SORRY THIS IS --MR. MCELHINNY: EXCUSE ME. WHEN YOU READTHE LIST OF STRINGER OBJECTIONS, YOU DID NOTMENTION 743, AND THAT'S THE -- THE OBJECTION WAS13SUSTAINED.IT MAY JUST NOT BE IN THE BINDER, BUT14151617IT'S ON YOUR LIST OF SUSTAINED OBJECTIONS.THE COURT: IT'S NOT IN THIS BINDER. ITSKIPS FROM 740 TO 741 TO 1040, SO I ASSUME THATSAMSUNG DOES NOT ANTICIPATE USING THAT ONE.18OKAY.AND WHY DON'T WE -- WE'LL DO THIS19BEFORE EACH WITNESS.WE'LL JUST GO THROUGH AND20MAKE SURE EVERYONE IS IN AGREEMENT AS TO WHAT'S21BEEN EXCLUDED.OKAY?222324I JUST DON'T WANT THESE FIGHTS OCCURRINGIN FRONT OF THE JURY.MR. MCELHINNY: THE -- JUST --25THE COURT:YES.

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page173 of 2744551MR. MCELHINNY:I UNDERSTAND THAT.234567891011IN OPENING, I THOUGHT THAT THE QUESTIONOF WHAT WAS ADMISSIBLE FOR FUNCTIONALITY KIND OFGOT ABUSED, AND I DIDN'T OBJECT BECAUSE IT WAS THEOPENING.BUT WE MAY -- IF HE TRIES TO USE IT FORTHE SAME PURPOSE THAT HE DID IN THE OPENING, GIVENYOUR HONOR'S LIMITATION, WE'RE GOING TO HAVE SOMEOBJECTIONS.THE COURT: I UNDERSTAND. I THOUGHT THATCROSSED THE LINE AS WELL.12MR. MCELHINNY:THANK YOU, YOUR HONOR.1314151617THE COURT: OKAY. JUST A SMALLHOUSEKEEPING ISSUE IS THAT I WOULD APPRECIATE IT IFYOU COULD PROVIDE MORE CARTS BECAUSE I WILL HAVE ASEPARATE ONE OF THE WITNESS SPECIFIC BINDERSSEPARATE FROM THIS WHOLE LIST, WHICH IS NOT EVEN18ALL OF THEM.THERE ARE MORE DOWN IN MY CHAMBERS1920THAT WE NEED TO BRING UP.MR. MCELHINNY:MAY I -- DO YOU21222324UNDERSTAND WHAT THE JUDGE WANTS?YES, YOUR HONOR.THE COURT: I'M SORRY. WE JUST DON'THAVE, UNFORTUNATELY, THINGS AS SIMPLE AS THAT.25OKAY.SO ARE WE ALL SET ON WHAT'S COMING

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page174 of 27445612IN WITH MR. STRINGER?MR. MCELHINNY:WE ARE, YOUR HONOR.3THE COURT: OKAY. THEN ARE WE READY TO4PROCEED?5MR. MCELHINNY:ONE -- I JUST -- SO67THERE'S NO SURPRISES, I'M GOING TO SHOW HIM ANUMBER OF PHYSICAL MODELS.8THE COURT:OKAY.9MR. MCELHINNY:AND AT LEAST WITH ONE OF101112131415THE PHYSICAL MODELS, BECAUSE IT'S ON MY TIME, IWOULD LIKE TO ACTUALLY PASS IT AROUND THE JURY.THE COURT: ALL RIGHT. IS THERE ANYOBJECTION FROM SAMSUNG?MR. VERHOEVEN: I DON'T KNOW. WHICHMODEL IS IT?16THE COURT:WHY DON'T YOU GO AHEAD AND17PLEASE SHOW MR. VERHOEVEN THE EXHIBIT?1819MR. MCELHINNY:BEEN NO OBJECTION.IT'S ONE TO WHICH THERE'S2021(PAUSE IN PROCEEDINGS.)THE COURT: OKAY. IS THERE --22MR. VERHOEVEN:JUST A SECOND, YOUR23HONOR.24THE COURT:OH, PLEASE.25MR. VERHOEVEN: THERE IS AN ISSUE. WE'RE

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page175 of 2744571TRYING TO DETERMINE WHETHER THIS WAS EVER DISCLOSED2TO US, YOUR HONOR.WE JUST GOT IT HANDED TO US.3MR. ZELLER:THIS IS NEW TO US.4567MR. MCELHINNY: HERE. I'LL SHOW THE JURYTHIS ONE (INDICATING).(PAUSE IN PROCEEDINGS.)MR. MCELHINNY: THESE ARE --89EXHIBIT NUMBER?MS. MAROULIS:MR. MCELHINNY, WHAT'S THE10(DISCUSSION OFF THE RECORD BETWEEN11COUNSEL.)12MR. VERHOEVEN:YOUR HONOR, I DON'T THINK13141516WE'VE RECEIVED NOTICE THAT THEY'RE GOING TO TRY TOMARK PHYSICAL EXHIBITS FOR THIS WITNESS, AND THAT'SWHY WE'RE HAVING THE HICCOUGH HERE.THE COURT: GO AHEAD. TAKE YOUR TIME.1718MR. VERHOEVEN:THE WITNESS EXHIBIT LIST.THERE'S BEEN NO NOTICE INTHERE IS A DEMONSTRATIVE1920THAT THEY IDENTIFIED THAT THEY WERE GOING TO SHOW,BUT NO PHYSICAL EXHIBITS.21THE COURT:WERE THESE PRODUCED IN22DISCOVERY?23MR. MCELHINNY:OH, YES, YOUR HONOR, AND2425THEY'VE BEEN EXAMINED THREE TIMES, AS RECENTLY ASTHREE DAYS AGO, IN TERMS OF -- AND IT WAS

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page176 of 27445812345678ORIGINALLY SET UP WHERE WE WERE GOING TO PUT INPHOTOGRAPHS, BUT NOT PUT IN THE ACTUAL EXHIBITBECAUSE WE DIDN'T WANT THEM TO BECOME PUBLIC.NOW WE'RE PUTTING IN THE PHOTOGRAPHS ANDTHE DEMONSTRATIVE ITSELF BECAUSE WE WANT THEM TO BEPART OF THE RECORD SO THAT THE JURY WILL HAVE THEM.THE COURT: OH. I -- WASN'T IT ALSOBECAUSE SAMSUNG OBJECTED TO THE PHOTOGRAPHS?910THE PHOTOGRAPHS.MR. MCELHINNY:THEY ALSO DID OBJECT TO11THE COURT:WELL, I MEAN, THIS IS A12CATCH-22, RIGHT?IF YOU OBJECT TO THE PHOTOGRAPHS13141516BECAUSE YOU WANT THEM TO INTRODUCE THE ORIGINALSAND NOW THEY'RE INTRODUCING THE ORIGINALS BECAUSEYOU OBJECTED TO THE PHOTOGRAPHS, I'M KIND OFCREATING A --17MR. VERHOEVEN:WE DIDN'T HAVE NOTICE18192021THAT THEY WERE GOING TO INTRODUCE THE PHYSICALEXHIBITS.WE'RE TRYING TO FIGURE IT OUT, YOURHONOR.22THE COURT:OKAY.23(DISCUSSION OFF THE RECORD BETWEEN24COUNSEL.)25THE COURT: OKAY. DO WE HAVE A

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page177 of 27445912RESOLUTION?MR. MCELHINNY:I BELIEVE WE HAVE A34RESOLUTION.THEM.WE'RE PUTTING THE EXHIBIT STICKERS ON56THE COURT: OKAY. AT THE END OF EACHWITNESS, WHY DON'T YOU MOVE WHATEVER YOU'RE GOING789TO MOVE INTO EVIDENCE?WITNESS?MR. MCELHINNY:OKAY?AT THE END OF EACH10THE COURT: YEAH. OR I GUESS IF YOU WANT1112TO DO IT AT THE END, THAT'S FINE.UP A SYSTEM --I WANT TO MAKE1314WENT ALONG.MR. MCELHINNY:I WAS GOING TO DO IT AS I15THE COURT:THAT'S FINE.1617ON THE EXHIBITS.MR. MCELHINNY:I HAD ONE OTHER QUESTION181920212223ON WHAT WAS AN ITC EXHIBIT, 442, YOURHONOR RESERVED RULING UNTIL YOU ACTUALLY SAW THEPATENT.ON THE ONES THAT YOU HAD, YOU SUSTAINEDOBJECTIONS.THE COURT: ITC 442. AND WHICH --2425MS. KREVANS:THE COURT:IT'S THE '678 PATENT.I'M LOOKING THROUGH MY

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page178 of 274460123DIFFERENT ORDERS.WHAT'S THE NUMBER --MR. VERHOEVEN: CAN WE --4THE COURT:TELL ME WHICH OF THE5ORDERS -- WHICH OF THE ORDERS ARE YOU REFERRING TO?67MR. MCELHINNY:2012 ORDER, YOUR HONOR.THIS IS THE JULY 30TH,8THE COURT:DO YOU HAVE THE DOCKET91011121314NUMBER -- IS THAT DOCKET NUMBER 1522?MR. MCELHINNY: 1519.MS. MAROULIS: 1522.THE COURT: 1519, OKAY. WHAT NUMBER AREYOU REFERRING TO?MR. MCELHINNY: IT IS --15MS. KREVANS:IT DOESN'T HAVE THE EXHIBIT16NUMBER.17THE COURT:OKAY.1819MR. MCELHINNY:THE SECOND FROM THE TOP.ON THE LAST PAGE, IT'S20THE COURT: OKAY. APL-ITC-796? THAT21ONE.22MR. MCELHINNY:YES, YOUR HONOR.232425THE COURT: OKAY. LET ME SEE IT.MR. VERHOEVEN: YOUR HONOR, MAY I ASK --I CAN EXPLAIN EXACTLY WHAT, WHY THAT'S ON THE LIST,

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page179 of 2744611234BUT I'D PREFER IF THE WITNESS WAS SEQUESTERED FORTHAT IF THAT'S OKAY.THE COURT: ALL RIGHT. CAN WE PLEASEHAVE MR. STRINGER STEP OUTSIDE, PLEASE.56MR. VERHOEVEN:WHAT THAT IS, YOUR HONOR.I CAN TELL YOU EXACTLY7891011THE COURT: SURE. HE'S STILL IN HERE.LET'S WAIT UNTIL HE STEPS OUTSIDE.(MR. STRINGER NOT PRESENT.)THE COURT: OKAY. LET ME JUST LOOK ATTHE BRIEFING.12MR. VERHOEVEN:IT MIGHT BE HELPFUL FOR13141516ME TO TELL YOU WHY IT'S ON THE LIST.THE COURT: YES. AND GIVE ME JUST ONESECOND SO I CAN LOOK AT WHAT THE BRIEFING WAS ONTHIS PARTICULAR ISSUE.17MR. VERHOEVEN:SURE.18THE COURT:THE OBJECTION WAS THAT THIS19202122232425WAS ALREADY EXCLUDED BY MOTION IN LIMINE NUMBER 2.MR. MCELHINNY: THAT'S CORRECT. YOUMADE -- ON THE EXACT PREVIOUS EXHIBIT, ANOTHERPATENT, ON YOUR ORDER YOU SUSTAINED OUR OBJECTION,BUT ON THIS ONE, YOU SAID YOU DIDN'T ACTUALLY HAVETHE PATENT ITSELF.THE COURT: ALL RIGHT. WELL, LET ME HEAR

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page180 of 274462123WHAT IT'S BEING REFERRED TO FOR.MR. VERHOEVEN: YES. IT'S PURELY -- ITMIGHT BE SOMETHING THAT I WOULD NEED FOR4IMPEACHMENT, YOUR HONOR.THAT'S THE ONLY THING.56789101112131415161718192021222324AND I'LL TELL YOU EXACTLY WHAT IT IS.I'M GOING TO ASK MR. STRINGER, ISN'T ITTRUE THAT ONE OF THE DESIGN ELEMENTS IN THE '087PATENT THAT WAS IMPORTANT IS THAT IT HAD FOURCORNERS THAT WERE UNIFORM AND HAD EQUAL RADII?AND AS YOU -- THE '757 PATENT, YOURHONOR, IS A DESIGN PATENT ON THE ORIGINAL, OR THEINITIAL IPHONE, JUST LIKE THE '087.AND IN PREVIOUS TESTIMONY HE TESTIFIEDTHAT IT DID, THAT IN THE CONTEXT OF '757, THAT THEINITIAL IPHONE HAD FOUR EVENLY RADIUS CORNERS.I DON'T EXPECT HIM TO DEVIATE FROM THAT,YOUR HONOR. IT'S A CONTROL FOR ME. IF HE WERE TOSAY, "NO, THAT'S NOT NECESSARY," THIS WOULD BEIMPEACHMENT FROM THE PRIOR PROCEEDING WHERE HE USEDTHE SAME IMAGE BASICALLY, WITH THE FOUR ROUNDEDCORNERS, AND SAID AN IMPORTANT DESIGNCHARACTERISTIC WAS EQUAL RADII.SO IT'S SIMPLY -- BECAUSE WE HAD TO LISTALL POTENTIAL IMPEACHMENT EXHIBITS ON THE LIST,25THAT'S WHY IT'S ON THE LIST.I WOULD NOT USE IT

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page181 of 2744631FOR ANY OTHER PURPOSE, YOUR HONOR.2MR. MCELHINNY:WELL, TO BE CLEAR,34IMPEACHMENT EXHIBITS DON'T HAVE TO BE LISTED ON THELIST.56MR. VERHOEVEN:MR. MCELHINNY:THEY DON'T?BUT EVEN IF THEY'RE USED78910JUST FOR IMPEACHMENT, THEY WOULDN'T COME INTOEVIDENCE, YOUR HONOR.THE COURT: NO. I THINK IMPEACHMENTEXHIBITS NEED TO BE ON THE LIST.11MR. VERHOEVEN:WE ARGUED THAT AND WE12LOST.13THE COURT:YEAH.141516EXTENSIVELY.MR. VERHOEVEN:MR. MCELHINNY:WE ARGUED THATI GUESS I MAY BE WRONG.17I THOUGHT THAT WAS REBUTTAL, BUT --18THE COURT:THE APPLE MOTION IN LIMINE192021NUMBER 2 WAS TO EXCLUDE NON-PRIOR ART APPLE ORSAMSUNG DESIGN PATENTS, AND I'M UNDERSTANDING THATTHIS IS PRIOR TO --22MR. VERHOEVEN:WELL, THIS DOESN'T EVEN232425HAVE TO DO WITH OFFERING IT FOR THE TRUTH ORANYTHING.IT'S SIMPLY TO CONTROL THE WITNESS IF THE

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page182 of 27446412345678910111213WITNESS ALL OF A SUDDEN, WITH '087 -- WHICH IS THESAME SHAPE, IT'S THE SAME PHONE -- SAYS, "NO,THAT'S NOT AN IMPORTANT DESIGN ELEMENT."I THINK THIS IS AN APPROPRIATEIMPEACHMENT TO SHOW THAT THE WITNESS SAID, WITHRESPECT TO THAT EXACT -- FOR THE SAME PHONE, THESALE THING, THAT IT WAS.THE COURT: I'M SORRY. LET ME INTERRUPTYOU A SECOND.MOTION IN LIMINE NUMBER 2 WAS BASICALLYFOR SUBSEQUENTLY FILED DESIGN PATENT APPLICATIONS,AND THIS PARTICULAR ONE IS NOT A SUBSEQUENTLY FILEDONE.14MR. VERHOEVEN:THAT'S TRUE AS WELL.15THE COURT:SO WHY DOES MOTION IN LIMINE1617NUMBER 2 EVEN APPLY HERE?MR. MCELHINNY:BECAUSE IT COVERS PATENTS181920THAT WERE FILED ON THE SAME DAY OR SUBSEQUENT, YOURHONOR, AND THIS ONE WAS EITHER FILED ON THE SAMEDAY OR SUBSEQUENT.21THE COURT:WELL, THIS SAYS IT WAS FILED22PRIOR TO THE '677 AND THE '087, NOT AFTER.23MR. MCELHINNY:THEY ALL CONTINUE BACK TO2425THE SAME PRIORITY DATE, YOUR HONOR.THE COURT: GIVE ME THE DATES ON THE '677

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page183 of 2744651AND '087.23YOUR HONOR?MR. MCELHINNY:WHICH WOULD YOU LIKE,4THE COURT:I NEED TO GET THE ANSWER TO5THE QUESTION OF DOES MOTION IN LIMINE NUMBER 26APPLY HERE?IS THIS A SUBSEQUENT FILED PATENT, IN78WHICH CASE IT WOULD BE EXCLUDED; AND IF IT'S NOTSUBSEQUENTLY FILED, IT WOULD BE COMING IN.9MR. VERHOEVEN:I'VE GOT THE DATES HERE,101112YOUR HONOR. THE '757 WAS FILED JANUARY 5, 2007.YOUR HONOR?THE '677 -- IS THAT THE ONE IN QUESTION,13THE COURT:BOTH OF THEM, PLEASE.14MR. VERHOEVEN:FILED NOVEMBER 18TH,152008.16THE COURT:OKAY.17181920212223MR. VERHOEVEN: '087, FILED JANUARY --JULY 30TH, 2007.MR. MCELHINNY: BUT, YOUR HONOR --THE COURT: OKAY. I SEE YOUR POINT NOW.THIS -- THIS PATENT IS A DIVISIONAL AND ACONTINUATION OF AN APPLICATION THAT WAS GETTING APRIORITY DATE OF JANUARY 5TH, 2007.24MR. MCELHINNY:EXACTLY THE SAME.25THE COURT:THAT'S THE EARLIEST DATE THAT

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page184 of 2744661YOUR DESIGN PATENT WAS FILED.2MR. MCELHINNY:YES, YOUR HONOR.34EXCLUDE THIS.THE COURT: ALL RIGHT. THEN I'M GOING TO5MR. VERHOEVEN:FOR IMPEACHMENT PURPOSES6YOUR HONOR?I'M NOT OFFERING -- I WOULD NEVER78910111213141516171819202122232425OFFER -- I'M NOT OFFERING -- PROPOSING TO PUT THISINTO EVIDENCE.BUT THE WITNESS -- WHAT I'M SAYING TOYOUR HONOR IS IF I SHOW HIM '087 AND I SAY, "ISN'TIT TRUE THAT ONE DESIGN ELEMENT ON THE '087 WASHAVING EQUAL RADII ON EACH OF THE FOUR CORNERS?"AND HE SAYS NO AND HE TESTIFIED THE OPPOSITE ON THEEXACT SAME FORM FACTOR, THE EXACT SAME PHONE,THAT'S IMPEACHMENT.MR. MCELHINNY: THE --MR. VERHOEVEN: I'M NOT TALKING ABOUT --EXCUSE ME.I'M NOT TALKING ABOUT INTRODUCING IT INTOEVIDENCE, BUT SHOWING A PRIOR INCONSISTENTSTATEMENT IN THE CONTEXT OF TALKING ABOUT THAT SAMEPATENT THAT HAS THE SAME PRIORITY, THE SAME EXACTSHAPE.IT GOES TO CREDIBILITY AND IMPEACHMENT,YOUR HONOR, NOT -- I'M NOT PROPOSING TO INTRODUCE

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page185 of 27446712IT INTO EVIDENCE.MR. MCELHINNY:IF HE NEEDS TO IMPEACH3HIM, HE HAS THE TESTIMONY, YOUR HONOR.I DON'T45678KNOW WHAT HE'S TALKING ABOUT, BUT IF HE'S GOTSOMETHING IN WHICH HE SAID, "YES, THE FOUR CORNERSWERE CRITICAL TO THE DESIGN," HE'S GOT THETESTIMONY.THE COURT: ALL RIGHT. WELL, THE MOTION9IN LIMINE IS GOING TO STAND.OKAY?1011GO FORWARD?ALL RIGHT.ANY OTHER DISPUTES OR CAN WE1213MR. MCELHINNY:WITNESS NOW, YOUR HONOR.WE NEED TO GET THE14THE COURT:OKAY.1516171819(PAUSE IN PROCEEDINGS.)(WHEREUPON, THE FOLLOWING PROCEEDINGSWERE HELD IN THE PRESENCE OF THE JURY:)THE COURT: ALL RIGHT. WELCOME BACK.ON YOUR CHAIRS YOU HAVE TWO PIECES OF20PAPER.ONE IS THE DESIGN CLAIM CONSTRUCTION THAT21WAS REFERENCED YESTERDAY.THAT CAN JUST GO IN YOUR22232425JURY NOTEBOOKS UNDER CHART OF ASSERTED PATENTCLAIMS WHICH IS, I GUESS, TAB NUMBER 4, THE BIGONE.AND THEN YOU ALSO HAVE A PHOTOGRAPH OF

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page186 of 274468123456789101112131415THE FIRST WITNESS WHO IS GOING TO TESTIFY, AND THATYOU CAN PLACE IN THE TAB THAT'S THIRD FROM THE BACKWHICH SAYS WITNESS PHOTOS.SO EVERY WITNESS WHO TESTIFIES DURINGTHIS TRIAL IS GOING TO HAVE A PHOTOGRAPH TAKEN OFWHAT THEY LOOK LIKE AT THE TIME THAT THEY TESTIFYSO, DOWN THE ROAD, SEVERAL WEEKS FROM NOW, YOU CANGO BACK AND REFER TO WHAT EACH WITNESS SAID ANDWHAT THEY LOOKED LIKE BECAUSE YOU'LL REMINDYOURSELF OF WHO IS WHO.YOU CAN ALSO KEEP NOTES ON THEPHOTOGRAPHS IF YOU'D LIKE.AND IF YOU ALSO SAW, IN THE BACK OF THISNOTEBOOK, THE VERY LAST TAB IS JUST CLEAN LINEDPAPER IF YOU WOULD LIKE TO TAKE ANY NOTES.1617ALL RIGHT.YOUR FIRST WITNESS.WITH THAT, APPLE PLEASE CALL1819MR. MCELHINNY:CHRISTOPHER STRINGER.YOUR HONOR, WE CALL20THE CLERK:PLEASE STEP RIGHT UP HERE,21PLEASE.22232425WOULD YOU RAISE YOUR RIGHT HAND.CHRISTOPHER STRINGER,BEING CALLED AS A WITNESS ON BEHALF OF THEPLAINTIFF, HAVING BEEN FIRST DULY AFFIRMED, WAS

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page187 of 2744691EXAMINED AND TESTIFIED AS FOLLOWS:23THE WITNESS:THE CLERK:I AFFIRM.WOULD YOU HAVE A SEAT,4PLEASE.5STATE YOUR NAME, PLEASE, AND SPELL IT.6THE WITNESS:CHRISTOPHER STRINGER,789C-H-R-I-S-T-O-P-H-E-R, S-T-R-I-N-G-E-R.BY MR. MCELHINNY:DIRECT EXAMINATION101112QAARE YOU COMFORTABLE?I AM.THE COURT: I'M SORRY. THE TIME WAS13142:37. GO AHEAD.MR. MCELHINNY:THANK YOU.15QWOULD YOU PLEASE STATE YOUR NAME FOR THE16RECORD.17ACHRISTOPHER STRINGER.18Q THANKS. AND BY WHOM ARE YOU EMPLOYED?19202122AQAQAPPLE.HOW LONG HAVE YOU WORKED AT APPLE?SEVENTEEN YEARS IN SEPTEMBER.WHAT YEAR DID YOU START?23A 1995.2425QAWHAT IS YOUR CURRENT POSITION AT APPLE?I'M AN INDUSTRIAL DESIGNER.

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page188 of 2744701QSIR, CAN YOU TELL US JUST GENERALLY,2DEFINITIONALLY, WHAT DOES AN INDUSTRY DESIGNER DO?3AWELL, AT APPLE, OUR ROLE IS TO IMAGINE OBJECTS456789THAT DON'T EXIST AND TO GUIDE THE PROCESS THATBRINGS THEM TO LIFE.AND SO THAT INCLUDES DEFINING THEEXPERIENCE THAT A CUSTOMER HAS WHEN THEY TOUCH ANDFEEL OUR PRODUCTS.SO IT'S MANAGING THE OVERALL FORM AND THE1011MATERIALS, THE TEXTURES, THE COLORS.THE DETAILS.IT'S MANAGING1213141516AND IT'S ALSO WORKING WITH ENGINEERINGGROUPS TO, AS I SAY, BRING IT TO LIFE, TO BRING ITTO THE MARKET AND TO BUILDING THE CRAFTSMANSHIPTHAT IT ABSOLUTELY NEEDS TO HAVE TO HAVE THAT APPLEQUALITY.17QTELL US A LITTLE BIT ABOUT YOUR PROFESSIONAL18BACKGROUND BEFORE YOU JOINED APPLE.19ABEFORE I JOINED APPLE, I WORKED IN2021222324CONSULTANCIES IN SAN FRANCISCO, IN SIDNEY, ANDLONDON.AND PRIOR TO THAT, I -- MY EDUCATION WASCOMPLETED AT THE ROYAL COLLEGE OF ART WHERE I HAD AMASTER'S IN INDUSTRIAL DESIGN.25QWHAT IS A CONSULTANCY, SIR?

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page189 of 2744711AA CONSULTANCY WOULD BE A HIRED HAND FOR2INDUSTRIAL DESIGN.SO WE WORK WITH MULTIPLE3CORPORATIONS, BASICALLY PROJECT BY PROJECT.456QAQTO WHOM DO YOU CURRENTLY REPORT AT APPLE?JONATHAN IVE.WERE YOU INVOLVED IN THE DESIGN OF THE FIRST7IPHONE THAT WAS RELEASED BY APPLE?89AQYES, I WAS.HAVE YOU WORKED ON OTHER APPLE PRODUCTS?1011A YES. I'VE WORKED ON EVERY APPLE PRODUCT SINCEI JOINED APPLE IN 1995.12WE WORK AS A TEAM.WE TAKE THAT VERY13SERIOUSLY.WE DEDICATE TIME EVERY WEEK TO MAKE14SURE THAT WE ALL GET TOGETHER AND WE ALL DISCUSS15EVERY SINGLE PROJECT.SO EACH MEMBER OF THE DESIGN161718TEAM CONTRIBUTES TO ALL PROJECTS, PRODUCTS, WHICHIS WHY I'M CONFIDENT THAT I HAVE HAD INPUT IN EVERYPRODUCT THAT WE'VE SHIPPED SINCE 1995.19QARE YOU NAMED, SIR, AS AN INVENTOR ON ANY202122PATENTS?A YES, MANY. HUNDREDS. I HAVE NO IDEA HOWMANY.23QIF I'M LUCKY, YOU'LL HAVE A BINDER IN FRONT OF2425YOURSELF THAT SAYS EXHIBITS.DO YOU SEE THAT?

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page190 of 2744721234A YES. IT DOESN'T SAY EXHIBITS, BUT I HAVE ABINDER.Q OKAY. DOES IT HAVE EXHIBITS IN IT? CAN YOUFIND JX 1040, PLEASE?56789AQAIPAD.QYES, I HAVE IT HERE.WHAT IS THAT DOCUMENT?THIS IS A PATENT DOCUMENT THAT DEFINES THEAND CAN YOU TELL US THE LAST THREE NUMBERS OF10THE DOCUMENT, OF THE PATENT?111213AQA'889.ARE YOU A NAMED INVENTOR ON THAT PATENT?YES, I AM.1415MR. MCELHINNY:1040 INTO EVIDENCE.YOUR HONOR, I'D MOVE JX16THE COURT:ANY OBJECTION.17MR. VERHOEVEN:NO OBJECTION.18THE COURT:SO ADMITTED.1920212223(WHEREUPON, PLAINTIFF'S EXHIBIT NUMBER1040, HAVING BEEN PREVIOUSLY MARKED FORIDENTIFICATION, WAS ADMITTED INTOEVIDENCE.)BY MR. MCELHINNY:24QSIR, DO ANY APPLE PRODUCTS INCORPORATE THE25DESIGN OF THE '889 PATENT?

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page191 of 2744731A YES, IPAD 2 AND IPAD 3.2QWOULD YOU LOOK IN YOUR BINDER, PLEASE, TO3EXHIBIT JX 1041.456AQAYES, I SEE IT.WHAT IS THAT DOCUMENT?THIS IS A PATENT DOCUMENT THAT DESCRIBES THE7IPHONE.8QAND CAN YOU TELL US THE LAST THREE NUMBERS OF9THAT DOCUMENT?101112AQA'087.ARE YOU A NAMED INVENTOR ON THIS PATENT?YES, I AM.13MR. MCELHINNY:YOUR HONOR, I WOULD MOVE14EXHIBIT JX 1041 INTO EVIDENCE.15MR. VERHOEVEN:NO OBJECTION.1617181920THE COURT: ALL RIGHT. SO ADMITTED.(WHEREUPON, PLAINTIFF'S EXHIBIT NUMBER1041, HAVING BEEN PREVIOUSLY MARKED FORIDENTIFICATION, WAS ADMITTED INTOEVIDENCE.)2122THE COURT:BY MR. MCELHINNY:GO AHEAD, PLEASE.23QDO ANY APPLE PRODUCTS INCORPORATE THIS DESIGN?2425A YES. THE ORIGINAL IPHONE, THE IPHONE 3G, ANDTHE 3GS.

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page192 of 2744741Q WOULD YOU LOOK, PLEASE, AT EXHIBIT JX 1043.234AQAYES.WHAT IS THIS DOCUMENT?THIS IS A PATENT DOCUMENT THAT DESCRIBES5IPHONE.67QAI'M SORRY?THIS IS A PATENT DOCUMENT THAT DESCRIBES8910IPHONE.Q THANK YOU. WHAT ARE THE LAST THREE NUMBERS OFTHE PATENT?111213AQA'677.AND ARE YOU A NAMED INVENTOR ON THIS PATENT?YES, I AM.141516MR. MCELHINNY:1043 INTO EVIDENCE.MR. VERHOEVEN:YOUR HONOR, I MOVE JXNO OBJECTION.17THE COURT:SO ADMITTED.1819202122(WHEREUPON, PLAINTIFF'S EXHIBIT NUMBER1043, HAVING BEEN PREVIOUSLY MARKED FORIDENTIFICATION, WAS ADMITTED INTOEVIDENCE.)BY MR. MCELHINNY:232425QAQDO ANY APPLE PRODUCTS INCORPORATE THIS DESIGN?YES, ALL -- ALL IPHONES TO DATE.CAN YOU TELL US A LITTLE BIT ABOUT HOW THE

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page193 of 2744751DESIGN, THE INDUSTRIAL DESIGN GROUP AT APPLE WORKS?2AWE -- FIRST LET ME EXPLAIN THE GROUP A LITTLE.3WE'RE A VERY SMALL GROUP, SOMETHING AROUND 15 OR 164DESIGNERS.AS I SAID EARLIER, WE WORK AROUND -- WE567WORK TOGETHER LIKE AROUND THE KITCHEN TABLE.IT'S A VERY CULTURALLY DIVERSE GROUP.HAVE DESIGNERS FROM THE U.S., OF COURSE, BUT WEWE8ALSO HAVE AUSTRALIANS, JAPANESE, ENGLISH, I SHOULD910SAY BRITISH, GERMAN, AUSTRIAN.IT'S A VERY DIVERSE GROUP.YOU GET THE GIST.1112131415161718192021WE'VE BEEN TOGETHER FOR AN AWFULLY LONGTIME. MANY OF US HAVE BEEN THERE FOR 15 TO 20YEARS WORKING TOGETHER.SO IT'S A VERY FAMILIAR, SMALLENVIRONMENT WHICH I THINK IS REMARKABLE ABOUT ACOMPANY THE SIZE OF APPLE.WE REPORT DIRECTLY INTO THE HIGHESTLEVELS OF LEADERSHIP AT APPLE.AND WE HAVE OUR OWN, OUR ARMS AROUND ALLOF THE PROJECTS THAT WE SHIP 100 PERCENT.SO IN SOME WAYS, IT FEELS LIKE A SMALL22COMPANY.IT'S A VERY COMFORTABLE WORKING23ENVIRONMENT AND WE WORK REALLY HARD.24QSIR, WE HEARD THIS MORNING IN SAMSUNG'S25OPENING THAT SAMSUNG HAS A THOUSAND DESIGNERS.

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page194 of 27447612345678AND HOW MANY DOES APPLE HAVE?A 15 OR 16. I'M NOT QUITE SURE. I'VE NEVERCOUNTED.Q YOU MENTIONED WORKING AROUND A TABLE. ISTHAT -- IS THAT -- ARE YOU USING THAT AS SORT OF ASYMBOL FOR SOMETHING, OR ARE YOU TALKING ABOUTSOMETHING LITERAL?A THERE IS A TABLE IN THE KITCHEN. IT'S WHERE9WE'RE COMFORTABLE.IT'S WHERE WE ARE MOST10FAMILIAL.WE THROW IDEAS AROUND AND WE -- IT'S A11BRUTALLY HONEST CIRCLE OF DEBATE.WE'RE JUST VERY12COMFORTABLE THERE.THAT'S WHERE THE IDEAS HAPPEN.13QDOES THE INDUSTRIAL DESIGN GROUP AT APPLE1415INTERACT WITH OTHER GROUPS AT APPLE?A YES, WE DO. WE WORK WITH PRIMARILY TWO16GROUPS.WE WORK WITH MANY GROUPS, OF COURSE, BUT171819202122232425PRIMARILY TWO, ONE OF THEM BEING PRODUCT DESIGN,WHICH IS OFTEN REFERRED TO AS PD.THEY ARE RESPONSIBLE FOR PATENT DESIGNAND BUILDING, MANUFACTURING THE PRODUCTS, ORDESIGNING PATENT DESIGNS FOR MANUFACTURED PRODUCTS.WE ALSO WORK WITH THE OPERATIONS GROUPWHICH HAS MANY ENGINEERING ORGANIZATIONS UNDER ITSROOF, AND EACH OF THEM SPECIALIZE IN VARIOUSASPECTS OF MANUFACTURING ENGINEERING.

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page195 of 27447712FACTORIES.SO THAT MIGHT BE PROCURING EQUIPMENT FORIT MIGHT BE RUNNING MACHINE CENTERS,34567DESIGNING MACHINE PROGRAMS, HOGGING OUT -- I'MUSING COLLOQUIAL TERMS -- HOGGING OUT AT ANALARMING RATE.BASICALLY THE PEOPLE THAT REALLY PUT THESWEAT IN THE FACTORIES TO MAKE THIS HAPPEN.8QAND SO, JUST SO WE HAVE THE TERMINOLOGY, THE9INDUSTRY DESIGN GROUP IS DIFFERENT THAN THE PRODUCT10DESIGN GROUP?IS THAT RIGHT?1112AQYES.AT WHAT POINT IN THE DEVELOPMENT OF A1314PARTICULAR PRODUCT DOES INDUSTRIAL DESIGN STARTWORKING WITH PRODUCT DESIGN?15AUSUALLY WHEN WE GET SOME DEGREE OF CONFIDENCE16AROUND A GIVEN DESIGN DIRECTION.IT COULD BE17REALLY EARLY.WE MIGHT WORK WITH THEM TO COMPARE A1819FEW DIRECTIONS AND SORT OF BRAINSTORM HOW TO BUILDTHE DEVICES.20QCAN YOU GIVE US SOME PICTURE OF, OF THE2122PROCESS BY WHICH THE DESIGN PROCESS STARTS FORSOMETHING AT APPLE.23ATHERE ARE MANY INTERACTIONS OF SEVERAL2425PROCESSES.LET ME TRY TO BE CLEAR.WE CAN DISCUSS OUR OBJECTIVES, AND SO WE

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page196 of 2744781234567891011121314CAN JUST BE TALKING ABOUT WHAT WE WOULD WANT APRODUCT TO BE.THAT ORDINARILY BECOMES SKETCHING, SOWE'LL SIT THERE WITH OUR SKETCH BOOKS AND JUSTSKETCH IDEAS AND TRADE IDEAS AND GO BACK AND FORTH.AS I WAS SAYING BEFORE, THAT'S WHERE THEVERY HARD, BRUTAL, HONEST CRITICISM COMES IN AND WETHRASH THROUGH IDEAS UNTIL WE REALLY FEEL LIKEWE'RE GETTING SOMETHING THAT'S WORTH MODELING.AND MODELING IN CAD IS WHAT WE TYPICALLYDO NEXT, WHICH IS COMPUTER-AIDED DESIGN, WHICH ISTHE PROCESS OF INPUTTING INTO A COMPUTER SURFACESTO REPRESENT OUR WORK.THIS IS SOMETHING THAT WE DO NOT AT THE15KITCHEN TABLE, BUT WITH THE CAD SCULPTORS.THERE'S16171819202122232425A CAD GROUP THAT ARE EMPLOYED SPECIFICALLY TO BEMASTERS OF CAD SCULPTING AND WE WORK WITH THEM ANDWE MAKE SURE THAT OUR IDEAS ARE THOROUGHLYREPRESENTED IN THE CAD FORM.AND FROM THAT POINT WE WILL BRING THEMODEL MAKERS THESE CAD FILES AND PRODUCE 3-DPHYSICAL MANIFESTATIONS OF THESE IDEAS, WHICH COULDBE SIMPLISTIC BLOCK FORMS OR THEY COULD BE HIGHLYDETAILED, WHAT WE CALL SCRAP MODELS, WHICH MIGHT BEJUST A LITTLE CORNER OF A PRODUCT JUST TO REALLY

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page197 of 27447912345UNDERSTAND HOW YOU MIGHT WANT TO DETAIL A BUTTON,FOR EXAMPLE.SO THESE PROCESSES, THOUGH THEY SEEM VERYLINEAR, AND IN INSTANCES CAN BE, TYPICALLY AREN'TBECAUSE WE'LL GO BACK AND FORTH.6WE'LL EVEN SKETCH ON MODELS.WE'LL78COMBINE A PART MODEL AND A SKETCH FROM ANOTHERSKETCH BOOK FROM A DIFFERENT DESIGN SESSION.9IT'S BACK AND FORTH.IT'S NON-LINEAR.10111213IT WEAVES AND KNITS ITS WAY ALONG THE DESIGNPROCESS, ULTIMATELY TO A POINT WHERE WE FEEL REALLYSATISFIED THAT WE HAVE SOMETHING SPECIAL.Q I WANT TO FOCUS ON SOMETHING YOU SAID. YOU1415USED THE EXPRESSION TO "DETAIL A BUTTON."WHAT YOU JUST SAID?IS THAT1617AQYES.WHAT IS THAT -- FOR THOSE OF US WHO DON'T LIVE1819WITH YOU, WHAT DOES IT MEAN TO DETAIL A BUTTON?A WE'RE A PRETTY MANIACAL GROUP OF PEOPLE. WE20OBSESS OVER EVERY DETAIL.IF WE DESIGN A BUTTON,21THERE MIGHT BE 50 MODELS OF THE HOME BUTTON OR A22VOLUME SWITCH.WE LOOK AT THE EDGE DETAIL AND HOW23FAR OUT DOES IT PROTRUDE?DOES IT HAVE A SHAFT?24IS IT ROUND? IS IT METAL? IS IT PLASTIC? THE25SIZE, LENGTH, WIDTH, HEIGHT.EVERY SINGLE DETAIL

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page198 of 2744801IS VERY CLEVERLY CRAFTED.2QYOU ALSO MENTIONED -- YOU SAID THE PROCESS IS3NOT LINEAR.CAN YOU MAKE THAT REAL FOR US, PLEASE.456A YEAH. IT DOESN'T GO FROM THOUGHT TO SKETCH TOMODEL TO PRODUCTION EVEN THOUGH, IN SIMPLISTICTERMS, THAT IS THE GENERAL SEQUENCE OF EVENTS.7WE'LL GO BACK AND FORTH.WE'LL GO ALL891011THE WAY TO MODEL, WE'LL GO TO WORKING WITH THE PDAND OPERATIONS GROUPS ON THE ENGINEERING SIDE.WE'LL JUMP STRAIGHT BACK TO AN IDEA IF A BETTERIDEA IS CREATED.12QWOULD YOU LOOK IN YOUR BINDER, PLEASE, TO13EXHIBIT PX 163.14151617AQAQYES, I SEE IT.WHAT IS THIS DOCUMENT?THIS IS ONE PAGE FROM ONE OF MY SKETCH BOOKS.AND DO YOU -- DO YOU TRADITIONALLY SKETCH IN181920THE SKETCH BOOKS?A I TRY TO. I END UP SKETCHING EVERYWHERE.I'M NOT SO DISCIPLINED WITH REGARD TO MY21SKETCH BOOKS.I'LL SKETCH ON LOOSELEAF PAPER.22I'LL SKETCH ON MODELS.I'LL SKETCH ON, YOU KNOW,232425ANYTHING I CAN PUT MY HANDS ON, QUITE OFTEN ON TOPOF CAD OUTPUTS FOR WANT OF BETTER THINGS TO DO.SO YOU'RE WORKING WITH SOMETHING THAT

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page199 of 274481123ALREADY HAS THE PERSPECTIVE SET UP AND THE VIEWS INA WAY THAT YOU CAN SORT OF ADD IN LAVISH DETAILUPON THEM.4QAND WHAT DO THE SKETCHES ON THIS PARTICULAR5DOCUMENT, PX 163, TO WHAT DO THEY RELATE?6ATHESE ARE SKETCHES OF IPHONE IDEAS.789PX 163, PLEASE.MR. MCELHINNY:MR. VERHOEVEN:YOUR HONOR, I WOULD MOVENO OBJECTION, YOUR HONOR.10111213141516THE COURT: ALL RIGHT. SO ADMITTED.(WHEREUPON, PLAINTIFF'S EXHIBIT NUMBER163, HAVING BEEN PREVIOUSLY MARKED FORIDENTIFICATION, WAS ADMITTED INTOEVIDENCE.)BY MR. MCELHINNY:Q SIR, IF YOU'D OPEN YOUR BINDER TO PX 164.17AYES, I SEE IT.18Q WHAT IS PX 164?19ATHE FIRST PAGE IS A SCREEN SHOT OF A20DIRECTORY, WHICH IS THE CAD FILE DATABASE.IT2122232425LISTS DATE MODIFIED, WHICH MEANS THE LAST DATE THATYOU WORKED ON THIS PARTICULAR FILE.AND ALSO A CODE NAME, A THREAD.BASICALLY, THAT HELPS YOU FIND IT IN THE DATABASE.SUBSEQUENT PAGES ARE SCREEN SHOTS OF

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page200 of 2744821THESE CAD MODELS.2QYOU MENTIONED IN AN EARLIER ANSWER, YOU SAID3SOMETHING ABOUT A CAD OUTPUT.IS THIS WHAT YOU45WERE REFERRING TO AS A CAD OUTPUT?A YES. THERE ARE VARYING DEGREES OF6SOPHISTICATION.THIS IS A FAIRLY CRUDE SET OF WHAT7I WOULD CALL CAD OUTPUT.8QCAN YOU TELL, BY LOOKING AT THE DIRECTORY, THE91011DATE OF THESE DRAWINGS?A MARCH 15TH, 2006.Q AND, SIR, DO YOU -- DO YOU WORK WITH THE --1213LET ME ASK YOU THIS:CAD SYSTEM?DO YOU PERSONALLY OPERATE THE141516AQANO, I DO NOT.WHO DOES THE CAD DRAWINGS AT APPLE?WE HAVE A DEDICATED TEAM OF CAD SCULPTORS.1718THERE ARE A FEW DESIGNERS THAT ARE CAPABLE OFCREATING CAD THEMSELVES, BUT IT'S NOT A19REQUIREMENT.IN FACT, MOST OF US DON'T.2021222324IT'S -- IT REALLY IS A SKILL THAT YOUNEED TO DEDICATE SIGNIFICANT TIME TO JUST TOUNDERSTAND THE CRAFT OF CAD.SO WE PREFER OUR DESIGNERS TO BETHINKING, SO WE HAVE A DEDICATED TEAM FOR THIS.25MR. MCELHINNY:YOUR HONOR, I WOULD MOVE

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page201 of 27448312PX 164 INTO EVIDENCE.MR. VERHOEVEN:NO OBJECTION, YOUR HONOR.3THE COURT:SO ADMITTED.45678(WHEREUPON, PLAINTIFF'S EXHIBIT NUMBER164, HAVING BEEN PREVIOUSLY MARKED FORIDENTIFICATION, WAS ADMITTED INTOEVIDENCE.)BY MR. MCELHINNY:9QSO AFTER CAD MODELS, WHAT COMES NEXT, SIR, IN1011A DESIGN PROCESS, ASSUMING THAT YOU WERE GOINGLINEARLY AS OPPOSED TO JUMPING BACKWARDS?12AIF WE FIND THAT WE AGREE, THAT WE WANT TO131415161718PURSUE AN IDEA THAT WE SEE IN THE CAD SURFACES INPHYSICAL FORM, WE MODEL IT, WHICH IS TO CNC,COMPUTER NUMERICALLY CONTROLLED.THAT IS THREE OR FIVE MACHINING, WHICHESSENTIALLY CUTS FROM A SOLID BLOCK A PHYSICALLIKENESS OF WHAT WE BUILD IN CAD.19QTHIS PROCESS THAT YOU'VE DESCRIBED FOR US, IS2021THAT AN ACCURATE DESCRIPTION OF THE PROCESS THATLED TO THE ORIGINAL IPHONE?2223AQYES.AND IS IT AN ACCURATE DESCRIPTION OF THE24PROCESS THAT LED TO THE IPAD?25AYES.

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page202 of 27448412QLET'S TALK ABOUT THE IPHONE FOR A MINUTE.WHAT -- IF YOU CAN DESCRIBE IT FOR US,34WHAT, IF ANYTHING, WERE YOU TRYING TO ACHIEVE INDESIGNING THE IPHONE?5AWE -- WE WERE LOOKING FOR A NEW, ORIGINAL, AND6789BEAUTIFUL OBJECT, SOMETHING THAT WOULD REALLY WOWTHE WORLD.WE WERE ENTERING A CATEGORY THAT WE'DNEVER PARTICIPATED IN BEFORE, AND THE CATEGORY THAT1011WE DID NOT ENJOY.WE LOVED.THERE WERE NO CELL PHONES THAT121314151617181920212223SO THIS WAS SOMETHING THAT WE REALLYCARED DEEPLY AND PASSIONATELY ABOUT, PRODUCINGSOMETHING FOR OURSELVES.WE -- AS ALWAYS, WE WANTED TO CREATESOMETHING THAT SEEMED SO, SO WONDERFUL THAT YOU,YOU CAN'T IMAGINE HOW YOU COULD FOLLOW IT.OF COURSE, YOU CAN BECAUSE IF YOU LOOK ATTHE HISTORY OF OUR PRODUCTS, WE'VE DONE THAT TIMEAND TIME AGAIN.BUT YOU WANT TO CREATE THE SIMPLEST,PUREST MANIFESTATION OF WHAT THAT OBJECT CAN BE,SOMETHING THAT PEOPLE CAN LOVE.24QDO YOU RECALL APPROXIMATELY HOW LONG YOU25WORKED ON THE DESIGN OF THE IPHONE?

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page203 of 2744851A I HAVE NO IDEA. I'D HAVE TO LOOK AT2DOCUMENTATION FOR THIS.BUT IT WAS A LONG TIME.34QAYEARS?I THINK SO.56Q LET ME SHOW YOU PX 165.MAY I APPROACH, YOUR HONOR?7THE COURT:YES.8910MR. MCELHINNY:THE WITNESS:BY MR. MCELHINNY:(HANDING).THANK YOU.1112QAWHAT IS PX 165, SIR?THIS IS ONE OF THE EARLY MODELS THAT WE BUILT131415ON M68, WHICH WAS A CODE NAME THAT WE USED FOR THEORIGINAL IPHONE.Q I'M SORRY. THAT'S M68?1617AQTHAT'S CORRECT.WHEN YOU SAY "WE BUILT THIS MODEL," WHO ARE18YOU TALKING ABOUT?19A"WE" BEING THE INDUSTRIAL DESIGN GROUP, WHICH20WOULD INCLUDE THE CAD AND THE MODEL MAKING TEAMS.21QAND IS THIS MODEL THAT YOU'RE LOOKING AT, WAS22THIS ORIGINAL APPLE WORK?23AABSOLUTELY, YES.24MR. MCELHINNY:YOUR HONOR, I WOULD MOVE25EXHIBIT PX 165 INTO EVIDENCE.

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page204 of 2744861MR. VERHOEVEN:I HAVE A POINT OF2QUESTION.3CAN I CONFER WITH COUNSEL?4THE COURT:YES, GO AHEAD, PLEASE.5(DISCUSSION OFF THE RECORD BETWEEN6COUNSEL.)7MR. VERHOEVEN:SUBJECT TO YOUR HONOR'S89RULING, YOUR HONOR'S ALREADY RULED ON THESEDOCUMENTS -- I DON'T KNOW IF WE CAN HAVE A1011SIDE-BAR, YOUR HONOR.DON'T WAIVE ANYTHING.I JUST WANT TO MAKE SURE I1213THE COURT: OKAY. I THOUGHT THIS WASWORKED OUT BEFORE THE JURY CAME OUT.14LET'S DO THAT.UNFORTUNATELY, THE151617MICROPHONE IS NOT WORKING, SO WE'LL HAVE TOMEMORIALIZE IT AFTER.LET'S GO AHEAD.18MR. VERHOEVEN:THAT'S OKAY.19202122232425(SIDE-BAR DISCUSSION OFF THE RECORD.)THE COURT: OKAY. THE -- I UNDERSTANDTHAT THE SAME OBJECTION WAS RESERVED, BUT IT'SOVERRULED.THIS IS ADMITTED.(WHEREUPON, PLAINTIFF'S EXHIBIT NUMBER165, HAVING BEEN PREVIOUSLY MARKED FOR

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page205 of 27448712IDENTIFICATION, WAS ADMITTED INTOEVIDENCE.)3THE COURT:GO AHEAD.4MR. MCELHINNY:THANK YOU, YOUR HONOR.5MAY I PUBLISH THIS TO THE JURY?6THE COURT:GO AHEAD.78BY MR. MCELHINNY:(PAUSE IN PROCEEDINGS.)9QMR. STRINGER, LET ME SHOW YOU AN EXHIBIT10THAT'S BEEN MARKED AS PX 166 (HANDING).111213AQAYES.WHAT IS THAT DEVICE, SIR?THIS IS ALSO AN EARLY IPHONE MODEL, ALSO UNDER1415ITSELF CODE NAME M68.Q IS IT THE SAME OR DIFFERENT THAN THE 165?16ASIMILAR, BUT DIFFERENT.1718Q OKAY. AND WHAT DOES IT SAY ON THE BACK OF IT,SIR?1920AQAPPLE PROTO 1015 -- OH, IPOD.AND WHY DOES IT SAY IPOD ON A PROTOTYPE OF AN2122232425IPHONE, SIR?A ONE OF TWO REASONS. EITHER WE HAD NOT YETCOINED THE TERM "IPHONE" AND WE WANTED TO SEESOMETHING GRAPHICALLY REPRESENTED ON THE BACK; ORWE WERE TRYING TO DISGUISE ITS IPHONE IDENTITY.

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page206 of 274488123MR. MCELHINNY:P166 INTO EVIDENCE.MR. VERHOEVEN:YOUR HONOR, I WOULD MOVEYOUR HONOR, YOUR HONOR'S45678910ALREADY RULED ON THE EXHIBITS FOR THIS WITNESS ANDWE RESERVE WITH RESPECT TO THAT.AND IN GENERAL, GOING FORWARD WITH THATRESERVATION, THERE'S NO OBJECTION.AND I'LL JUST SAY, IF IT'S OKAY, THATWE'LL MAKE THAT RESERVATION FOR ALL EXHIBITS WITHTHIS WITNESS.11THE COURT:THAT'S FINE.12MR. VERHOEVEN:THANK YOU, YOUR HONOR.131415161718THE COURT: ALL RIGHT. THAT'S ADMITTED.(WHEREUPON, PLAINTIFF'S EXHIBIT NUMBER166, HAVING BEEN PREVIOUSLY MARKED FORIDENTIFICATION, WAS ADMITTED INTOEVIDENCE.)BY MR. MCELHINNY:19QSIR, NOW, THIS, AS YOU TESTIFIED, 166 THAT202122SAYS IPOD ON THE BACK, IS A MODEL THAT YOU MADEWHILE YOU WERE DEVELOPING THE ORIGINAL IPHONE; ISTHAT CORRECT?2324AQTHAT IS CORRECT.AFTER THE IPHONE, THE ORIGINAL IPHONE CAME25OUT, DID YOU EVER COME BACK TO THIS MODEL?

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page207 of 2744891AWE COME BACK TO MODELS CONTINUALLY, ONES LIKE2THAT, CERTAINLY.POSSIBLY THAT ONE SPECIFICALLY.3QAND WHAT WAS -- WHAT, IF ANYTHING, RESULTED4FROM GOING BACK AND REVISITING EARLIER IDEAS?5AULTIMATELY NOT THAT MODEL, BUT ANOTHER, WE67891011WERE GOING DOWN ONE PATH IN SOME DEPTH, BUT AS IWAS EXPLAINING EARLIER, WE'RE ALWAYS DOUBTING,WE'RE ALWAYS QUESTIONING.WE, AT TIMES, LOOK THROUGH OUR STOCKPILEOF MODELS -- AS I SAID EARLIER, WE MAKE SO MANY OFTHEM -- DID WE LEAVE ANYTHING ON THE TABLE?12AND WE DETERMINED THAT WE DID.WE PULLED1314OUT A MODEL THAT LOOKS VERY, VERY SIMILAR TO THEPRODUCT THAT WE SHIPPED.1516QAAS WHAT, SIR?WE PULLED OUT AN IPHONE, EARLY PROTOTYPE,171819WHICH HAS, I THINK, EXACTLY THE SAME SURFACES, ORSURFACES VERY SIMILAR TO THE ONES THAT WE SHIPPEDFOR THE IPHONE.2021QTHANK YOU.IF YOU WOULD LOOK, PLEASE, AT EXHIBIT2223P168 (HANDING).WHAT IS THAT DEVICE, SIR?24ATHIS IS ANOTHER MODEL IN THE SAME PROJECT, FOR25IPHONE.

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page208 of 2744901QCAN YOU HOLD IT UP AND SORT OF SHOW IT SO THE2JURY CAN SEE IT?34AQ(INDICATING.)AND DID THAT PARTICULAR MODEL HAVE A5PARTICULAR NAME?6AWE CALLED IT THE EXTRUDED LOZENGE, THE REASON789BEING FROM AN END VIEW, IT IS LOZENGE IN SHAPE ANDIT'S EXTRUDED, WHICH MEANS IT'S, IT'S BASICALLYSTRETCHED IN THE LONG AXIS.10QTHE OTHER MODELS WE LOOKED AT FELT LIKE THEY1112WERE MADE OUT OF PLASTIC.OUT OF IT?WHAT IS THAT ONE MADE13ATHIS ONE IS MADE OUT OF ALUMINUM.141516MR. MCELHINNY:PX 168 INTO EVIDENCE.MR. VERHOEVEN:YOUR HONOR, I WOULD MOVENO OBJECTION.171819202122THE COURT: ALL RIGHT. THAT'S ADMITTED.(WHEREUPON, PLAINTIFF'S EXHIBIT NUMBER168, HAVING BEEN PREVIOUSLY MARKED FORIDENTIFICATION, WAS ADMITTED INTOEVIDENCE.)BY MR. MCELHINNY:23QMR. STRINGER, LET ME SHOW YOU WHAT HAS BEEN2425MARKED AS PX 167 (HANDING).CAN YOU TELL ME WHAT THAT IS, PLEASE?

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page209 of 2744911ATHIS IS ANOTHER MODEL FROM THAT SAME PERIOD.2345IT'S ANOTHER SPIN ON THE IDEA OF EXTRUSIONS, NOTLOZENGE SHAPED IN THIS INSTANCE, BUT IT'S MORE OF ARECTANGULAR EXTRUSION, BUT IN THE SAME FAMILY OFIDEAS.6QAND DID YOU ULTIMATELY PURSUE THAT TYPE OF7MODEL?89AQNO, WE DID NOT.WHY NOT, SIR?1011121314151617A WE FOUND SOMETHING MORE BEAUTIFUL. AS I WASEXPLAINING BEFORE, AS WE WENT THROUGH OUR ARCHIVES,WE FOUND SOMETHING THAT WE'D OVERLOOKED, SOMETHINGTHAT WE, ONCE ADDING DETAIL TO IT AND REALLYSPENDING SOME TIME WITH IT, DECIDED THAT IT WAS THEABSOLUTE BEST CHOICE FOR US AT THAT TIME.MR. MCELHINNY: YOUR HONOR, I MOVE PX 167INTO EVIDENCE.18MR. VERHOEVEN:NO OBJECTION.19THE COURT:THAT'S ADMITTED.2021222324(WHEREUPON, PLAINTIFF'S EXHIBIT NUMBER167, HAVING BEEN PREVIOUSLY MARKED FORIDENTIFICATION, WAS ADMITTED INTOEVIDENCE.)BY MR. MCELHINNY:25QSIR, AGAIN, BACK IN YOUR BINDER, COULD YOU

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page210 of 2744921LOOK, PLEASE, AT EXHIBIT PX 162.2AYES, I SEE IT.3Q AND WHAT IS PX 162?4ATHESE ARE IMAGES FROM CAD, PRECEDED BY A56SNAPSHOT OF THE DIRECTORY WHICH IDENTIFIES IT ASTHE ORIGINAL IPHONE.7QCAN YOU TELL, SIR, FROM THIS CAD ANYTHING89101112ABOUT THE DATE ON WHICH YOU COMPLETED THE DESIGN OFTHE FRONT FACE AND BEZEL OF THE IPHONE?A APRIL 20, 2006.MR. MCELHINNY: YOUR HONOR, I MOVE PX 162INTO EVIDENCE. 162.13MR. VERHOEVEN:NO OBJECTION, YOUR HONOR.14THE COURT:THAT'S ADMITTED.1516171819(WHEREUPON, PLAINTIFF'S EXHIBIT NUMBER162, HAVING BEEN PREVIOUSLY MARKED FORIDENTIFICATION, WAS ADMITTED INTOEVIDENCE.)BY MR. MCELHINNY:20QSIR, I'M GOING TO SHOW YOU AGAIN THE MODELS21THAT WERE MARKED AS 165 AND 166 (HANDING).2223AQOKAY.CAN YOU TELL US WHETHER THE FORM OF THOSE2425MODELS, THE DESIGN OF THOSE MODELS, ENDED UP IN THEORIGINAL IPHONE DESIGN?

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page211 of 27449312AQNO.DID THEY END UP IN THE DESIGN OF ANY34SUBSEQUENT IPHONE?A IT'S MUCH CLOSER TO THE IPHONE 4.56QTHANK YOU, SIR.MR. STRINGER, LET ME HAND YOU WHAT HAS78BEEN MARKED AS EXHIBIT JX 1000 (HANDING).CAN YOU TELL ME WHAT THAT IS, SIR?910AQTHIS IS THE IPHONE, THE ORIGINAL.CAN YOU TELL US HOW, HOW OF THESE VARIOUS11121314MODELS AND PICTURES THAT WE'VE LOOKED AT, HOW DIDYOU COME ABOUT TO SELECT THAT DESIGN AS THE FINALDESIGN FOR THE IPHONE?A IT'S VERY SIMPLE. IT WAS THE MOST BEAUTIFUL15OF OUR DESIGNS.WE SOMETIMES DON'T RECOGNIZE IT16INSTANTLY.IT MAY TAKE SOME ENERGY AND ADDING1718DETAIL.IT.BUT WHEN WE REALIZED WHAT WE HAD, WE KNEW19QAT ANY TIME DURING THE DEVELOPMENT OF THE202122232425IPHONE, DID -- WERE THERE ANY DOUBTS ABOUT WHETHEROR NOT YOU WERE GOING TO BE SUCCESSFUL WITH THATPRODUCT?A ABSOLUTELY. I'M AWARE THAT STEVE JOBS HIMSELFHAD DOUBTS.WE WERE DOING SOMETHING UNPRECEDENTED.

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page212 of 2744941THE WORLD HAD NEVER SEEN ANYTHING LIKE THIS.THERE23WAS LEGIONS OF PHONES AVAILABLE.SATISFYING.NONE WERE VERY4AND THIS BROKE NEW GROUND.IT WAS MORE5THAN A PHONE.SMARTPHONES EXISTED, BUT THEY WERE67MORE LIKE TINY LITTLE COMPUTERS.WE CAME UP WITH SOMETHING THAT WAS89BREATHTAKING.Q CAN YOU --IT WAS A REVOLUTION.10AAND THE CHALLENGES IN TERMS OF PRODUCING THAT11PRODUCT WERE ENORMOUS.1213QCAN YOU GIVE -- I'M SORRY.CAN YOU GIVE US SOME EXAMPLES OF THE1415PRODUCTION PROBLEMS?A PRODUCTION PROBLEMS, WE HAD MANY. PRODUCING16THE GLASS WAS VERY CHALLENGING.WE WERE PUTTING17GLASS IN CLOSE PROXIMITY TO HARDENED STEEL.IF YOU18DROP THIS, YOU DON'T HAVE TO WORRY ABOUT THE GROUND19HITTING THE GLASS.YOU HAVE TO WORRY ABOUT THE2021222324BAND OF STEEL SURROUNDING THE GLASS HITTING THEGLASS.SO THERE WAS AN ENORMOUS AMOUNT OF ENERGYPUT INTO THE ENGINEERING OF THAT INTERFACE.SECONDLY, WE WERE PUTTING HOLES IN THE25GLASS.I THINK WE -- PEOPLE THOUGHT WE WERE CRAZY.

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page213 of 27449512ISSUES.BUT WE, WE JUST SOLVED THE ENGINEERINGIT WAS A HUGE, HUGE AMOUNT OF WORK.3THE BAND ITSELF WAS CHALLENGING.WE456789101112INSISTED ON THIS HIGH POLISHED STEEL, CONTINUOUSBAND AROUND THE PRODUCT, AND IF WE IGNORE THEANTENNA ISSUES OF THAT GENERATION, WHICH WEREENORMOUS AT THAT POINT IN TIME, AND FOCUS ON THEMANUFACTURING ISSUES ALONE, THERE'S A LONG LIST OFCHALLENGES THERE.IN ORDER TO, TO MAKE IT WORK, WE HAD TOUSE A VERY HIGH, HIGH GRADE OF STEEL BECAUSE WECOULDN'T HAVE IT SORT OF DEFLECTING INTO THE GLASS.1314THAT WAS INCREDIBLY HARD TO POLISH.WAS ONCE YOU GOT THE SHAPE RIGHT.THAT151617IT WAS VERY, VERY DIFFICULT TO MACHINE,AND MACHINING THESE VOLUMES WAS UNPRECEDENTED ATTHAT TIME.18QWERE ANY OF THE DESIGN DECISIONS THAT YOU MADE1920ABOUT THE IPHONE, WERE THEY MADE IN ORDER TO MAKETHE IPHONE CHEAPER OR EASIER TO MANUFACTURE?2122AQNO.WERE YOU EVER TOLD BY ANYONE -- WERE ANY OF2324THE DESIGN CHOICES THAT YOU MADE, MADE IN ORDER TOMAKE IT WORK BETTER AS A TELEPHONE?25ANO.

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page214 of 2744961QWERE YOU EVER TOLD BY ANYONE THAT YOU HAD TO234PICK PARTICULAR DESIGNS BECAUSE OF REQUIREMENTSFROM THE COMPONENTS OR THE INTERNAL ELEMENTS OF THEPHONE?56AQNO.HOW -- WHO WAS IN CONTROL OF YOUR DESIGN7PROCESS ULTIMATELY?89AQWE WERE IN CONTROL OF OUR DESIGN PROCESS.IS THERE A REASON WHY YOU DIDN'T PUT THE APPLE1011LOGO ON THE FRONT FACE -- ON THE FRONT FACE OF THEFACE?1213AFIRST OF ALL, IT -- IT DIDN'T LOOK GOOD.AND WE ALSO KNEW FROM OUR EXPERIENCE WITH14IPOD, IF YOU MAKE A STARTLINGLY BEAUTIFUL AND15ORIGINAL DESIGN, YOU DON'T NEED TO.IT STANDS FOR16ITSELF.IT BECOMES A CULTURAL ICON.1718QSIR?WHAT DO YOU MEAN WHEN YOU USE THE WORD "ICON,"1920212223A ICON, IT'S A HARD CREDENTIAL, REALLY. I THINKTHAT BECOMES TRUE WITH ENORMOUS SUCCESS.BUT IF YOU SEE SOMETHING ACROSS THE ROOMAND YOU KNOW WHAT IT IS AND YOU CAN SIMPLY DESCRIBEIT, IT'S AN ICON.2425MR. MCELHINNY:JX 1000 INTO EVIDENCE.YOUR HONOR, I WOULD MOVE

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page215 of 2744971MR. VERHOEVEN:NO FURTHER OBJECTION.2345678THE COURT: OKAY. IT'S ADMITTED.(WHEREUPON, PLAINTIFF'S EXHIBIT NUMBER1000, HAVING BEEN PREVIOUSLY MARKED FORIDENTIFICATION, WAS ADMITTED INTOEVIDENCE.)(PAUSE IN PROCEEDINGS.)BY MR. MCELHINNY:910QSIR, I'VE HANDED YOU THREE EXHIBITS.WOULD YOU LOOK AT THE ONE, PLEASE, THAT111213HAS THE NUMBER ON THE BACK JX 1001.ME WHAT THAT IS, PLEASE?A THIS IS IPHONE 3G.CAN YOU TELL1415INTO EVIDENCE.MR. MCELHINNY: YOUR HONOR, I MOVE 100116MR. VERHOEVEN:NO FURTHER OBJECTION.171819202122THE COURT: OKAY. THAT'S ADMITTED.(WHEREUPON, PLAINTIFF'S EXHIBIT NUMBER1001, HAVING BEEN PREVIOUSLY MARKED FORIDENTIFICATION, WAS ADMITTED INTOEVIDENCE.)BY MR. MCELHINNY:23QWOULD YOU LOOK, PLEASE, AT THE ONE THAT'S BEEN24NUMBERED JX 1002?25AYES.

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page216 of 274498123QAWHAT IS THAT PHONE, SIR?I BELIEVE IT'S THE 3GS.MR. MCELHINNY: YOUR HONOR, I'D MOVE 100245INTO EVIDENCE.MR. VERHOEVEN:NO FURTHER OBJECTION.6THE COURT:IT'S ADMITTED.7891011(WHEREUPON, PLAINTIFF'S EXHIBIT NUMBER1002, HAVING BEEN PREVIOUSLY MARKED FORIDENTIFICATION, WAS ADMITTED INTOEVIDENCE.)BY MR. MCELHINNY:12QWOULD YOU LOOK AT THE ONE THAT HAS 1003 ON IT,13PLEASE.1415AQYES.AND WHAT IS THAT?161718A IPHONE 4.INTO EVIDENCE.MR. MCELHINNY: YOUR HONOR, I'D MOVE 100319MR. VERHOEVEN:NO FURTHER OBJECTION.20THE COURT:IT'S ADMITTED.2122232425(WHEREUPON, PLAINTIFF'S EXHIBIT NUMBER1003, HAVING BEEN PREVIOUSLY MARKED FORIDENTIFICATION, WAS ADMITTED INTOEVIDENCE.)BY MR. MCELHINNY:

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page217 of 274499123QAQSIR, LET'S TALK ABOUT THE IPAD FOR A MOMENT.OKAY.WHAT, IF ANYTHING, DID YOU WANT TO ACHIEVE IN4DESIGNING THE IPAD?5AWE WANTED TO, AGAIN, MAKE A, A BREATHTAKINGLY678SIMPLE, BEAUTIFUL DEVICE, SOMETHING THAT YOU REALLYWANT, AND SOMETHING THAT'S VERY EASILYUNDERSTANDABLE.9QWHAT DOES THAT MEAN TO YOU?101112A SOMETHING THAT'S VERY IMMEDIATE. YOU PICK ITUP, YOU USE IT, SOMETHING THAT'S JUST -- IT NEEDSNO EXPLANATION.13QDO YOU RECALL APPROXIMATELY HOW LONG THE141516DESIGN PROCESS LASTED FOR THE IPAD BEFORE IT WASRELEASED?A IT WAS AN ENORMOUS AMOUNT OF TIME. WE STARTED17THE IPAD BEFORE WE STARTED THE IPHONE.THAT'S WHEN1819WE FIRST STARTED ON THE MULTITOUCH TECHNOLOGY ANDPRODUCTS ASSOCIATED.20QWOULD YOU LOOK IN YOUR BINDER, PLEASE, AT21222324EXHIBIT PX 171.OH, NEVER MIND.LET ME HAND YOU THIS, WHICH IS PX 171(HANDING).25AYES.

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page218 of 27450012QACAN YOU TELL ME WHAT THAT IS, PLEASE?THIS IS, I WOULD THINK, A VERY, VERY EARLY3MODEL OF IPAD.4QAGAIN, WE DON'T HAVE TIME TO PASS IT AROUND,567BUT CAN YOU HOLD IT UP SO THAT PEOPLE CAN SEE IT?CAN SEE IT?CAN YOU HOLD THE BACK UP SO THAT PEOPLE89A(INDICATING.)MR. VERHOEVEN: EXCUSE ME, COUNSEL. I1011DON'T THINK YOU SHOWED THAT TO ME PREVIOUSLY, IFYOU DON'T MIND.12MR. MCELHINNY:SORRY.13(PAUSE IN PROCEEDINGS.)1415BY MR. MCELHINNY:MR. VERHOEVEN:THANK YOU.16QWAS THE DESIGN GROUP FAVORABLY IMPRESSED WITH17THIS DESIGN, SIR?18AI DON'T RECALL US LOOKING AT IT FOR VERY LONG.192021MR. MCELHINNY:PX 171 INTO EVIDENCE.MR. VERHOEVEN:YOUR HONOR, I WOULD MOVENO FURTHER OBJECTION.22THE COURT:THAT'S ADMITTED.232425(WHEREUPON, PLAINTIFF'S EXHIBIT NUMBER171, HAVING BEEN PREVIOUSLY MARKED FORIDENTIFICATION, WAS ADMITTED INTO

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page219 of 27450112EVIDENCE.)THE COURT:WHY DON'T WE TAKE A BREAK AT3ABOUT 3:30, SO ABOUT FIVE OR TEN MINUTES.4MR. MCELHINNY:PERFECT, YOUR HONOR.5THE COURT:AND IF FOLKS NEED678CAFFEINATION, THERE ARE DRINKS IN THE FRIDGE IN THEJURY ROOM, AND YOU CAN GO TO THE BATHROOM.BY MR. MCELHINNY:91011121314151617QAQIT?AQAQAWHAT IS PX 170, SIR?THIS IS A MODEL WE BUILT FOR IPAD.AGAIN, CAN YOU HOLD IT UP SO THE JURY CAN SEE(INDICATING.)AND WHAT DOES IT SAY ON THE BACK?IPOD.AND WHY DOES IT SAY IPOD, SIR?I'M ASSUMING SIMILARLY TO THE DISCUSSION ABOUT1819202122THE PHONE, WE EITHER HAD NOT COINED THE TERM YETOR -- ACTUALLY, IT'S HARD TO BELIEVE WE WERECONSIDERING THIS IDENTITY, BUT MY STRONG SUSPICIONIS THAT WE WERE NOT AWARE OF THE NAME AND WE NEEDEDTO REPRESENT SOMETHING GRAPHICALLY.232425QAQDOES APPLE HAVE A THING ABOUT SECRECY?YES.OH, OKAY.

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page220 of 27450212LET ME SHOW YOU JX 1004.YOUR HONOR, I WOULD MOVE PX 170.3MR. VERHOEVEN:NO FURTHER OBJECTION.45THE COURT: ALL RIGHT. THAT'S ADMITTED.THAT'S 170, IS THAT RIGHT?6MR. MCELHINNY:YES, YOUR HONOR.7THE COURT:OKAY.891011121314(WHEREUPON, PLAINTIFF'S EXHIBIT NUMBER170, HAVING BEEN PREVIOUSLY MARKED FORIDENTIFICATION, WAS ADMITTED INTOEVIDENCE.)BY MR. MCELHINNY:Q LET ME SHOW YOU PX 1004.WHAT IS THAT, MR. STRINGER?1516AQTHIS IS THE IPAD.HOW DID YOUR GROUP SELECT THE FINAL DESIGN FOR1718192021222324THE IPAD?A WE -- WE HAD TRIED SO MANY THINGS. IT WAS ALONG PROJECT AND IT TRACKED THE COURSE OF EVENTS OFIPHONE.DURING THE DESIGN OF IPHONE, AS WE WENTTHROUGH VARIOUS FORM FACTORS, WE WOULD MODEL IPADSIN SIMILAR SORT OF FAMILY APPEARANCES.YOU SEE, THIS IS KIND OF THE EXTRUDED25FORM.WE DID THAT, I'M QUITE CONFIDENT, AT THE

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page221 of 274503123SAME TIME THAT THE PHONE WAS GOING THROUGH ITSEXTRUDED PHASE.Q I'M SORRY. WHEN YOU SAID "THE EXTRUDED FORM,"45YOU'RE HOLDING UP PX 170?A EXCUSE ME. YES.IS THAT CORRECT?67QAOKAY.SO, YES, WE DID THIS WHILE WE WERE DOING THE891011EXTRUDED PHONE.THERE WERE OTHER MANIFESTATIONS OF THISDESIGN ALSO.BUT AT THE END OF THE DAY, WE REALIZED IT12NEEDED TO BE ITS OWN SELF.WE CAN'T COPY13OURSELVES.WE WANTED A UNIQUE FORM OF THIS DEVICE.1415IT DESERVED ITS OWN IDENTITY.AND AS WE CHOSE THIS, WE LIKED THE16DESIGNS.IT CAPTIVATED ALL OF THE FEATURES ON THIS171819202122PERIMETER, WHICH LEFT THE REAR SURFACE ENTIRELYCLEAN.SO AS I WAS EXPLAINING EARLIER WITH THESIMPLIFICATION, IT WAS A VERY ANONYMOUS OBJECT, NOTPLAYING ALONG WITH THE LINES OF CONSUMERELECTRONICS AT ALL.23IT FELT LIKE AN ENTIRELY NEW THING.IT2425DIDN'T FEEL LIKE A DEVICE.OBJECT.IT FELT LIKE A NEW

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page222 of 2745041QDID YOU PICK THE DESIGN FOR FUNCTIONAL REASONS2BECAUSE YOU THOUGHT IT WOULD WORK BETTER AS A TAB?3ANO.456MR. MCELHINNY:1004 INTO EVIDENCE.MR. VERHOEVEN:YOUR HONOR, I'D MOVE JXNO OBJECTION.7THE COURT:THAT'S ADMITTED.8910111213141516(WHEREUPON, PLAINTIFF'S EXHIBIT NUMBER1004, HAVING BEEN PREVIOUSLY MARKED FORIDENTIFICATION, WAS ADMITTED INTOEVIDENCE.)BY MR. MCELHINNY:Q SIR, I'M HANDING YOU EXHIBIT JX 1005(HANDING).LET ME CLEAN HOUSE HERE.WHAT IS JX 1005?17ATHIS IS THE SECOND GENERATION OF IPAD.18MR. MCELHINNY:YOUR HONOR, I MOVE JX191005.20MR. VERHOEVEN:NO OBJECTION.21THE COURT:THAT'S ADMITTED.22232425(WHEREUPON, PLAINTIFF'S EXHIBIT NUMBER1005, HAVING BEEN PREVIOUSLY MARKED FORIDENTIFICATION, WAS ADMITTED INTOEVIDENCE.)

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page223 of 2745051BY MR. MCELHINNY:2QAGAIN, WERE THERE PARTICULAR ENGINEERING3456789101112CHALLENGES INVOLVED IN THE CONSTRUCTION OF THEIPAD 2?A OF COURSE. THERE WERE MANY. ONE AREA THATTOOK US A HUGE AMOUNT OF EFFORT IN THE FACTORIESWAS GETTING THE GAPS, OR THE REVEALS, TO BE ASTIGHT AS THEY ARE.IF YOU LOOK AROUND THE PERIMETER OF THEPRODUCT, YOU'LL SEE WHERE THE GLASS MEETS THEHOUSING, WE WANTED TO JUST REDUCE THAT AND MAKE ITSEEM LIKE IT WAS SEALED TIGHT.13QWHERE THE GLASS MEETS THE HOUSING, IS THAT14WHAT YOU'RE CALLING A GAP OR A REVEAL?1516AQYES.OKAY.17181920YOUR HONOR, I WOULD MOVE --OH, WAS THE DESIGN OF THE IPAD 2 DRIVENIN ANY WAY TO MAKE IT CHEAPER OR EASIER TOMANUFACTURE?212223AQNO, ABSOLUTELY NOT.THANK YOU.MR. STRINGER, WHERE WERE YOU PHYSICALLY2425ON JANUARY 7TH WHEN THE ORIGINAL IPHONE WASRELEASED?

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page224 of 2745061ATHE ENTIRE DESIGN TEAM, OR AT LEAST A23SUBSTANTIAL PORTION, THOSE THAT COULD BE THERE,WERE AT THE APPLE STORE IN SAN FRANCISCO.4QAND WHY WERE YOU THERE?5A WE WERE EXCITED. WE HAD SOMETHING NEW. THERE6WAS AN INCREDIBLE BUZZ.PEOPLE WERE ANTICIPATING78SOMETHING, I THINK, STARTING WITH THE SEQUENCE OFEVENTS.9BUT WE ANNOUNCED IT.PEOPLE KNEW THAT1011121314THERE WAS SOMETHING COMING THAT THEY WANTED.AND THERE WAS AN ENORMOUS CROWD OUTSIDE.WE WANTED TO FEEL THAT ENTHUSIASM AND SEE PEOPLE,SEE THEIR EYES WHEN THEY GET THESE NEW PRODUCTS,THE FIRST PEOPLE TO GET THEM.15QAND WHAT DID YOU OBSERVE WHEN THE DOORS1617OPENED, SIR?A MAYHEM. IT WAS LIKE A CARNIVAL.18QAND WHAT WAS YOUR REACTION TO THAT?1920212223A OVERWHELMED. WE WERE OBVIOUSLY VERY, VERYPROUD. WE'D WORKED REALLY HARD. IT WAS -- THEREWAS AN ENORMOUS NUMBER OF PEOPLE THAT PUT INPERSONAL SACRIFICE AND IT WAS PAYING OFF IN SPADES.IT WAS A BEAUTIFUL DAY.2425TIME, YOUR HONOR?MR. MCELHINNY:WOULD THIS BE A GOOD

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page225 of 2745071234THE COURT: THAT'S FINE. IT'S 3:29.JUST A TEN-MINUTE BREAK, SEVENTH INNINGSTRETCH SO PEOPLE CAN STAND UP AND USE THE RESTROOM.5OKAY.THANK YOU.67(WHEREUPON, A RECESS WAS TAKEN.)THE COURT: ALL RIGHT. THE TIME IS NOW83:43.910PLEASE GO AHEAD.MR. MCELHINNY:THANK YOU, YOUR HONOR.1112JUMP ALL OVER YOU.BOY, YOU TAKE A BREAK AND THE NITPICKERS13QLET ME GO BACK TO SOMETHING TO MAKE SURE WE'VE1415GOT IT RIGHT IN THE RECORD.PLEASE, AT JX 1043.IF YOU WOULD LOOK,16171819AQAQYES.THIS IS THE '677 PATENT?THAT'S RIGHT.I ASKED YOU WHICH IPHONES INCORPORATED THIS20DESIGN, AND WHAT WAS YOUR ANSWER, SIR?212223AQAI BELIEVE MY ANSWER WAS ALL IPHONES.DID YOU SAY TODAY OR TO DATE?TO DATE.2425Q TO DATE. THANK YOU.AND THEN MY MISTAKE.WHEN YOU WENT TO

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page226 of 27450812THE OPENING OF THE ORIGINAL IPHONE, WAS THAT IN THESUMMER OF 2007?3AI DON'T RECALL THAT.456Q OKAY. HAS THE APPLE -- HAS THE DESIGN OF THEIPHONE RECEIVED ANY PROFESSIONAL AWARDS FOR DESIGN?A IT'S RECEIVED MANY. AWARDS ARE NOT OUR7MOTIVATION.IT'S NOT WHY WE GET UP IN THE MORNING.891011BUT IT'S CERTAINLY SOMETHING WE DON'T MIND.THE ONLY ONE THAT REALLY WAS OF ANY REALIMPORTANCE TO MYSELF IS THE DNAD, AND WE RECEIVED AGOLD PENCIL FOR THAT.12131415QAQAWHAT IS DNAD?DESIGNERS AND ART DIRECTORS.AND WHY IS THAT SIGNIFICANT TO YOU, SIR?WE JUST HAVE A HIGH REGARD FOR THE JURY16SELECTION PROCESS FOR THAT.WE HAVE A PEER JUDGING17COMMITTEE AND IT'S A VERY CREDIBLE AWARD.18QDO YOU KNOW WHETHER OR NOT YOUR DESIGNS FOR19202122YOUR PRODUCTS HAVE BEEN MADE PARTS OF DISPLAYS INMUSEUMS?A YEAH. I'VE SEEN OUR PRODUCTS AT S.F. MOMA;I'VE SEEN THEM AT THE SMITHSONIAN IN WASHINGTON.23I KNOW THERE'S NUMEROUS OTHERS.I DON'T2425SEEK THEM OUT, BUT IT'S FLATTERING TO KNOW THATTHEY'RE THERE.

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page227 of 2745091QHAS YOUR DESIGN GROUP RECEIVED AWARDS FOR THE2DESIGN OF THE IPAD?3AYES, AGAIN, IT'S RECEIVED THE DNAD, AMONGST4OTHERS.5QSIR, HAVE YOU EVER BECOME AWARE THAT OTHER678PHONE MAKERS STARTED USING DESIGNS THAT WERESIMILAR TO YOURS?MR. VERHOEVEN: OBJECTION. LEADING.910THE COURT:BY MR. MCELHINNY:SUSTAINED.11QSIR, TO YOUR KNOWLEDGE, DO YOU UNDERSTAND1213WHETHER OR NOT OTHER PHONE MAKERS, AFTER THE IPHONEWAS ISSUED, STARTED TO USE THAT DESIGN?14MR. VERHOEVEN:OBJECTION.15THE COURT:WHAT'S THE BASIS?16MR. VERHOEVEN:IMPROPER OPINION17TESTIMONY FROM A PERCIPIENT WITNESS, YOUR HONOR.181920THE COURT:GO AHEAD.BY MR. MCELHINNY:OVERRULED.2122232425QAQYOU.DO YOU HAVE THE QUESTION IN MIND?COULD YOU REPEAT THE QUESTION?I CAN'T, BUT THE -- WELL, I'LL GIVE IT BACK TOAFTER THE IPHONE CAME OUT, DID YOU EVER

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page228 of 27451012345COME TO A DETERMINATION, IN YOUR OWN HEAD, ABOUTWHETHER OR NOT OTHER COMPETITORS WERE USING YOURDESIGNS?A YES. WE'VE BEEN RIPPED OFF. IT'S PLAIN TOSEE.678QAQBY WHOM, SIR?SAMSUNG IN PARTICULAR.AND WHAT IS YOUR REACTION TO THAT AS AN91011ARTIST?A IT'S OFFENSIVE. AS I WAS EXPLAINING, IT'S AHUGE LEAP OF IMAGINATION TO COME UP WITH SOMETHING12ENTIRELY NEW.THAT'S SOMETHING THAT WE DID.1314151617IT'S A PROCESS BY WHICH YOU HAVE TODISMISS EVERYTHING YOU KNOW, TRY TO FORGETEVERYTHING YOU KNOW, WHICH MAKES IT VERY DIFFICULT,BECAUSE IF YOU PAY ATTENTION TO THE COMPETITION,YOU END UP FOLLOWING.18AND THAT'S NOT WHAT WE DO.WE WANTED TO19CREATE ORIGINALITY.IT'S A VERY DIFFICULT PROCESS.202122IT TAKES A HUGE AMOUNT OF TIME AND RESOURCES ANDCONVICTION TO DO SO.SO WE -- WE WERE OFFENDED.2324TIME, YOUR HONOR.MR. MCELHINNY:NOTHING FURTHER AT THIS25THE COURT: ALL RIGHT. IT'S NOW 3:48.

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page229 of 27451112CROSS-EXAMINATION, PLEASE.(PAUSE IN PROCEEDINGS.)3MR. VERHOEVEN:ONE SECOND, YOUR HONOR,4AS I GET ORGANIZED IF THAT'S OKAY.5THE COURT:ALL RIGHT.6(PAUSE IN PROCEEDINGS.)7MR. VERHOEVEN:CAN I HAVE JUST ONE8910SECOND, YOUR HONOR, AND I'LL BE READY.DEFENSE COUNSEL.)(DISCUSSION OFF THE RECORD BETWEEN1112MAY I PROCEED?MR. VERHOEVEN:THANK YOU, YOUR HONOR.13141516THE COURT: PLEASE. IT'S 3:49.GO AHEAD.CROSS-EXAMINATIONBY MR. VERHOEVEN:17181920QAQGOOD AFTERNOON, MR. STRINGER.GOOD AFTERNOON.GOOD TO SEE YOU AGAIN.I'D LIKE TO START BY PUTTING UP THE '087212223PATENT, WHICH IS JX 1041.CAN WE HAND OUT THE CROSS BINDER?MAY I APPROACH, YOUR HONOR?24THE COURT:PLEASE, GO AHEAD.25MR. VERHOEVEN:THIS IS OUR EXHIBITS

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page230 of 2745121(HANDING).2QIF WE COULD GO TO THE NEXT PAGE AND3HIGHLIGHT -- NO, NO, NO.PLEASE GO BACK TO THE45PAGE, THE FRONT PAGE. GO TO THE NEXT PAGE. KEEPGOING. ONE MORE. ONE MORE.6ALL RIGHT.YOU TESTIFIED ON DIRECT ABOUT7THE '087 DESIGN PATENT, SIR; CORRECT?89AQYES.AND YOU ARE ONE OF THE INVENTORS LISTED ON10THAT PATENT; CORRECT?1112AQYES.AND THE '087 DESIGN PATENT IS EMBODIED BY THE13INITIAL IPHONE; IS THAT RIGHT?14AYES.151617Q OKAY. AND DO YOU SEE HERE ON FIGURE 3 -- I'MPOINTING ON THE BIG SCREEN IF YOU WANT TO LOOK ATMY POINTER. LOOK AT FIGURE 3.1819AQYES.THAT'S THE FRONT FACE OF THE DESIGN; IS THAT20CORRECT?2122AQTHAT IS CORRECT.AND I WANT TO MAKE SURE I GET THE RIGHT2324FIGURE. IT'S FIGURE 11, PLEASE, ON PAGE 433.THIS IS ANOTHER DEPICTION, BUT THIS ONE25DOESN'T CLAIM THE CIRCULAR HOME BUTTON.DO YOU SEE

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page231 of 274513123THAT?AQYES.DO YOU UNDERSTAND THAT THE LINES HERE MEANS4IT'S NOT BEING CLAIMED?56AQTHAT'S CORRECT.AND THEN FIGURE 15 AND 16 ARE SIDE VIEWS OF7THAT SAME DESIGN PATENT; IS THAT RIGHT?8AYES.910Q OKAY. NOW I'M GOING TO ASK YOU A FEWQUESTIONS ABOUT THE DESIGN ELEMENTS WITH RESPECT TO11THE '087 PATENT.OKAY?121314IN YOUR VIEW, ONE IMPORTANT DESIGN ASPECTOF THE '087 PATENT, AND THE INITIAL IPHONE, WASTHAT IT HAD FOUR EVENLY RADIUS CORNERS; CORRECT?1516AQYES.AND THAT'S DEPICTED RIGHT HERE ON EACH OF17THESE CORNERS IN FIGURE 11; CORRECT?1819AQYES.ANOTHER IMPORTANT DESIGN FEATURE WITH RESPECT2021TO THE INITIAL IPHONE AND THE '087 PATENT WAS THATIT HAD THIS CONTINUOUS RIM, OR BEZEL I THINK IS THE22WORD YOU USED.IS THAT RIGHT?2324AQYES.AND YOU AGREE WITH ME, THAT WAS AN IMPORTANT25ASPECT OF THIS DESIGN; RIGHT?

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page232 of 27451412AQYES.AND THE -- IT WAS IMPORTANT THAT THE BEZEL GO34CONTINUOUSLY AND UNIFORMLY AROUND THE RIM OF THEPHONE; RIGHT?56AQYES.AND IT WAS ALSO IMPORTANT THAT THE BEZEL BE OF7UNIFORM THICKNESS; CORRECT?89AQYES.ANOTHER DESIGN ASPECT -- OR AN ASPECT OF THE10111213DESIGN IN THE '087 PATENT THAT WAS IMPORTANT TO YOUAND YOUR TEAM AS DESIGNERS WAS THAT THE FRONTSURFACE, FOR EXAMPLE, IF YOU LOOK AT FIGURE 16 ORFIGURE 15, YOU CAN SEE IT, THE FRONT SURFACE WAS1415COMPLETELY FLAT ALL THE WAY ACROSS THE FRONT.WAS AN IMPORTANT DESIGN ELEMENT; RIGHT?THAT1617AQYES.IN FACT, I BELIEVE YOU TESTIFIED TO THIS, BUT1819ISN'T IT TRUE THAT THE DESIGN HERE INTENTIONALLYWAS THAT THE BEZEL, OR THIS RIM, WAS INTENTIONALLY2021DESIGNED TO BE NOMINALLY FLUSH WITH THE GLASS?THAT RIGHT?IS2223AQYES.AND YOU COULD HAVE DESIGNED A PHONE WHERE THE2425BEZEL PROTRUDED BEYOND THE GLASS, BUT YOUINTENTIONALLY CHOSE NOT TO DO THAT; RIGHT?

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page233 of 27451512AQYES.EVEN THOUGH IT WAS MORE EXPENSIVE TO DO IT34567THAT WAY; RIGHT?LET ME ASK YOU, WOULD YOU -- WOULD ITHAVE BEEN MORE EXPENSIVE -- WOULD IT HAVE BEEN LESSEXPENSIVE TO DO A BEZEL THAT PROTRUDED BEYOND THEGLASS?8ATHAT'S -- I DON'T UNDERSTAND HOW YOU CAN9DETERMINE THE COST ASSOCIATED WITH THAT DETAIL.10QYOU DON'T UNDERSTAND HOW YOU COULD EXAMINE THE11COSTS?YOU REMEMBER ON DIRECT YOU TESTIFIED ABOUT12HOW CERTAIN DESIGN ASPECTS COST MORE? COULD YOU --13ACOULD YOU PLEASE REPEAT YOUR QUESTION?1415161718Q SURE. SO ONE OF THE THINGS THAT WAS IMPORTANTABOUT THIS DESIGN PATENT, CORRECT ME IF I'M WRONG,WAS THAT YOU WANTED TO HAVE COMPLETELY FLAT, ALLTHE WAY ACROSS THE FRONT SURFACE, AND THE BEZEL BEFLUSH WITH THE GLASS FRONT SURFACE, WOULDN'T19PROTRUDE ABOVE IT.FAIR?20212223AQAQTHAT'S CORRECT.AND THAT WAS IMPORTANT TO YOUR DESIGN?YES.SOMETHING THAT DISTINGUISHED IT FROM OTHER24DESIGNS PREVIOUSLY; RIGHT?25ATHIS -- THAT WAS OUR DESIGN.

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page234 of 27451612Q OKAY. AND DOING THAT ACTUALLY WAS MOREEXPENSIVE, WASN'T IT?3AIT CREATED ISSUES WITH -- IN TERMS OF456ENGINEERING.BUT I CANNOT SAY IT WAS MORE EXPENSIVE.IT WAS MORE DIFFICULT.7QWOULD YOU SAY THAT IT'S FAIR TO SAY THAT891011POSITIONING THE GLASS FLUSH WITH THE SURROUNDINGBEZEL PRESENTED MANUFACTURING DIFFICULTIES DUE TOTHE FRAGILE MATERIAL THAT YOU DECIDED TO USE,NAMELY, THE GLASS?1213AQNOT MANUFACTURING DETAILS.WELL, DO YOU REMEMBER YOU SUBMITTED A WITNESS1415STATEMENT EARLIER WITH RESPECT TO THE INITIALIPHONE?161718AQYES.CAN WE LOOK AT -- IS THAT IN THE BINDER?DO YOU REMEMBER IN AN ITC CASE ON THE1920'796 YOU SUBMITTED A WITNESS STATEMENT WITH RESPECTTO THE INITIAL IPHONE?21AYES, I DO.22232425Q OKAY. AND CAN WE --MR. MCELHINNY: DO YOU HAVE A COPY? OH,OKAY.MR. VERHOEVEN: CAN WE PUT UP --

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page235 of 2745171QYOU WERE AT -- THE WITNESS STATEMENT HAD23QUESTIONS AND ANSWERS IN WRITTEN FORM.DO YOU REMEMBER THAT?4567AQAQYES.AND YOU SIGNED IT; RIGHT?YES.YOU SWORE THAT WHAT WAS IN THERE WAS TRUE AND8CORRECT?9AYES.1011Q OKAY. I'D LIKE TO PUT UP QUESTION 76 IN ANDYOUR ANSWER FROM THAT WITNESS STATEMENT.12THE COURT:IS THIS AN EXHIBIT?13MR. VERHOEVEN:THIS WAS DESIGNATED, YOUR14HONOR.15MR. MCELHINNY:IT'S NOT AN EXHIBIT16THAT'S BEING USED FOR IMPEACHMENT.I THOUGHT171819MR. VERHOEVEN JUST ESTABLISHED THAT RULE.BINDER?THE COURT: OKAY. SO IT'S NOT IN THIS20MR. MCELHINNY:IT'S NOT, YOUR HONOR.21THE COURT:OKAY.2223MR. MCELHINNY:THAT REASON, YOUR HONOR.AND WE OBJECT TO IT FORIT VIOLATES THE RULES.24THE COURT:WE'LL WORK THIS OUT LATER.25OVERRULED.

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page236 of 27451812GO AHEAD.MR. VERHOEVEN:THANK YOU, YOUR HONOR.34Q DO YOU SEE YOU WERE ASKED, "QUESTION: DID YOUFACE MANUFACTURING DIFFICULTIES IN DESIGNING THE56ORIGINAL IPHONE?EXAMPLES?"CAN YOU PLEASE PROVIDE SOME7AND YOU PROVIDED AN ANSWER?89AQYES.AND IT'S A MULTI-PART ANSWER AND I'M JUST101112GOING TO DIRECT YOUR ATTENTION TO THE FOURTH PARTOF YOUR ANSWER WHERE IT SAYS FOURTH HERE.DO YOU SEE THAT, SIR?13AYES.1415Q I'LL READ IT INTO THE RECORD. "FOURTH, WEPOSITIONED THE GLASS TO BE FLUSH WITH THE16SURROUNDING BEZEL.EACH OF THESE DESIGN CHOICES17181920PRESENTED MANUFACTURING DIFFICULTIES DUE TO THEFRAGILE NATURE OF THE MATERIAL THAT WE HAD DECIDEDTO USE, NAMELY, GLASS."DO YOU SEE THAT?212223AQAYES.AND THAT'S AN ACCURATE STATEMENT; RIGHT?YES.2425Q OKAY. SO YOU WOULD AGREE WITH ME THATPOSITION -- CAN WE GO BACK TO THE '087 FIGURES WE

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page237 of 27451912345WERE LOOKING AT, PLEASE.AND AGAIN, LOOKING AT FIGURE 16 AND 15,THE SIDE VIEWS, POSITIONING -- AN IMPORTANT DESIGNELEMENT HERE WAS POSITIONING THE GLASS FLUSH WITHTHE BEZEL; RIGHT?67AQYES.EVEN THOUGH THAT MIGHT PRESENT SOME8MANUFACTURING DIFFICULTIES; CORRECT?9AI AGREE.10Q OKAY. NOW, LET'S TURN TO THE FRONT FACE --11ACTUALLY, CAN WE GO BACK A PAGE, PLEASE.ONE MORE.12LET'S GO TO THE '677 PATENT, WHICH SHOULD13BE IN YOUR BINDER.I'M SORRY, '678.14151617I APOLOGIZE, YOUR HONOR.(PAUSE IN PROCEEDINGS.)MR. VERHOEVEN: HERE IT IS. IT'S IN YOURBINDER AT 1043.1819MR. MCELHINNY:MR. VERHOEVEN:WHAT EXHIBIT ARE YOU ON?IT'S JOINT TRIAL EXHIBIT201043. AND LET'S GO TO -- A PAGE INTO THE FIGURE.21QTHIS IS ANOTHER DESIGN PATENT THAT YOU22TESTIFIED ABOUT ON DIRECT.DO YOU REMEMBER?2324AQYES.AND THIS IS ALSO A DESIGN PATENT THAT25CORRESPONDS TO THE INITIAL IPHONE; IS THAT RIGHT?

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page238 of 27452012AQYES.AND DO YOU SEE THERE'S THIS ELEMENT UP HERE,3I'M CIRCLING IT AT THE TOP OF THE PHONE THERE?4567AQAQYES.CAN YOU DESCRIBE FOR THE JURY WHAT THAT IS?THAT IS THE RECEIVER DETAIL.IS THAT THE LOZENGE SHAPE DESIGN ELEMENT ON8THE PHONE?910AQYES, THAT'S THE OPENING FOR THE RECEIVER.AND THAT'S ANOTHER DESIGN ELEMENT IN THE11MINIMALIST DESIGN FOR THE INITIAL IPHONE; CORRECT?1213AQCORRECT.AND IT WAS IMPORTANT FOR YOUR DESIGN TEAM,1415WITH RESPECT TO THAT DESIGN ELEMENT, TO MAKE SUREIT WAS CENTERED HORIZONTALLY; IS THAT CORRECT?16ACAN YOU BE MORE SPECIFIC OF WHAT YOU MEAN BY171819"CENTERED HORIZONTALLY"?Q SURE. SO IF THIS IS HORIZONTAL FROM THEBOTTOM TO THE TOP OF THE PHONE, DO YOU FOLLOW ME?20ATHAT IS VERTICAL TO ME, BUT, YES, IT'S2122CENTERED ON THAT AXIS.Q OKAY. LET'S SAY CENTERED VERTICALLY THEN.2324AQYES.CAN I ASK THE QUESTION ONE MORE TIME FOR THE25RECORD?

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page239 of 27452112AQPLEASE DO.IT WAS IMPORTANT TO YOU, AS THE DESIGN TEAM,34THAT THAT LOZENGE SHAPED DESIGN ELEMENT BE CENTEREDVERTICALLY ON THE PHONE; RIGHT?56AQYES.AND THAT -- AND THAT'S BETWEEN THE TOP OF THE7DISPLAY ELEMENT, WHICH WE SEE RIGHT HERE, AND THE8TOP OF THE PHONE?IS THAT CORRECT?9ACENTERED THAT WAY ALSO, YES.10Q OKAY. SO IT'S CENTERED IN BOTH WAYS?11AYES.1213Q OKAY. AND THAT WAS AN IMPORTANT DESIGNELEMENT FOR THE INITIAL IPHONE; CORRECT?14AYES.1516Q OKAY. IT WAS ALSO IMPORTANT TO YOU AND THEDESIGN TEAM OF THE INITIAL IPHONE THAT THE DESIGN17BE MINIMALISTCI.FAIR?18ATHAT'S NOT THE WORD THAT I WOULD USE.1920Q NOT HAVE A LOT OF BUTTONS ON IT? NOT HAVE ALOT OF ORNAMENTATION ON IT?212223AQTO BE SIMPLE.TO BE SIMPLE.IN FACT, YOU WANTED TO CREATE A PRODUCT24THAT EMBODIED THE SIMPLEST OF ICONS, AND ONE KEY25IMAGE WAS THAT OF A DARK, OILY POND.IS THAT

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page240 of 2745221RIGHT?23AQYES.THAT WAS YOUR DESIGN GOAL; RIGHT?4A THAT WAS ONE --5678QAYES.QGO AHEAD.THAT WAS ONE DESCRIPTION OF A DESIGN GOAL,YOU DIDN'T WANT TO PUT MULTIPLE BUTTONS ON THE9FACE OF THE PHONE; CORRECT?101112AQACORRECT.YOU WANTED IT TO BE AS SIMPLE AS POSSIBLE?YES.1314151617181920Q ALL RIGHT. LET'S TURN TO THE '889 DESIGNPATENT, WHICH YOU'RE ALSO LISTED AS AN INVENTOR ON.THIS IS JX 1040 IN YOUR WITNESS BINDER IFYOU'D LIKE.AND IF WE COULD GO TO PAGE 146 OF JX1040.JUST FOR THE RECORD, YOU'RE AN INVENTORON THE '889 DESIGN PATENT; CORRECT?21222324AQAQYES.AND YOU'RE FAMILIAR WITH THIS DESIGN PATENT?YES.NOW, WITH RESPECT TO THE '889 DESIGN PATENT,25ISN'T IT CORRECT THAT THE DESIGN TEAMS' OBJECTIVES

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page241 of 274523123WERE TO REDUCE THE PRODUCT TO WHAT WAS ESSENTIALLYA SINGLE, SEAMLESS VESSEL, WHICH WAS THE REARHOUSING?45AQTHAT WAS THE INSPIRATION OF THIS DESIGN, YES.AND ANOTHER IMPORTANT DESIGN GOAL WAS TO HAVE6789JUST ONE GAP IN THE PRODUCT BETWEEN THE BACKHOUSING AND WHAT YOU REFER TO AS THE CLEAR GLASSBEZEL THAT EXTENDS ALL THE WAY ACROSS THE FRONT;RIGHT?10AYES.11Q SORRY. WAS THAT YES?1213AQYES.YOU WANTED A SINGLE PIECE OF REAR HOUSING;14RIGHT?15ATHAT WAS THE INSPIRATION FOR THE DESIGN, YES.161718Q NOW --MAY I APPROACH THE WITNESS WITH APHYSICAL EXHIBIT, YOUR HONOR?19THE COURT:PLEASE, GO AHEAD.202122MR. VERHOEVEN:THE WITNESS:MR. MCELHINNY:(HANDING.)THANK YOU.I DON'T BELIEVE THAT23EXHIBIT HAS BEEN MARKED, YOUR HONOR.24MR. VERHOEVEN:YOUR HONOR, THE EXHIBIT25HAS BEEN IN THE EXCLUSIVE CUSTODY OF APPLE AND

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page242 of 2745241THEY'VE RETAINED POSSESSION OF IT.WE'D BE HAPPY2TO MARK IT WITH THE NEXT APPROPRIATE NUMBER.3MR. MCELHINNY:I'M NOT OBJECTING TO IT.4I'M TRYING TO GET MR. VERHOEVEN A CLEAR RECORD.5THE COURT:WHAT NUMBER SHOULD IT BE?67MARKED AS DX 741.MR. VERHOEVEN:WELL, IT'S ACTUALLY BEEN89REPEAT THAT, PLEASE?THE COURT: DX? I'M SORRY. CAN YOU10MR. VERHOEVEN:DX 741, YOUR HONOR.11THE COURT:OKAY.121314BY MR. VERHOEVEN:(WHEREUPON, DEFENDANT'S EXHIBIT NUMBER741 WAS MARKED FOR IDENTIFICATION.)15QNOW, YOU'VE SEEN THIS -- I'VE BEEN REFERRING1617TO THIS AS APPLE MODEL 035.THAT'S WHAT I'M REFERRING TO?WILL YOU UNDERSTAND181920AQAYES.IT SAYS IT RIGHT ON THE BACK; RIGHT?ABSOLUTELY.2122Q SO DX 741 IS APPLE MODEL 035. FAIR?A EXCUSE ME. WHAT WAS THE FIRST NUMBER AGAIN?23QTHE EXHIBIT NUMBER WE JUST MARKED THAT AS, DX24741, CORRESPONDS TO APPLE MODEL 035? FAIR?25AI BELIEVE SO.

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page243 of 2745251QAND YOU'VE SEEN THIS MODEL 035 BEFORE;2CORRECT?34AQYES.AND IF YOU LOOK AT -- IF WE CAN PUT ON THE567SCREEN DX 740, HERE WE HAVE -- AND THIS SHOULD BEIN YOUR BINDER AS WELL IF YOU'D LIKE TO LOOK AT THEHARD COPY IMAGES, SIR.89AQYES, I SEE IT.I DON'T HAVE MY HARD COPY YET, SO I'M GOING TO1011GET MY HARD COPY, TOO.MR. MCELHINNY:YOUR HONOR, THIS EXHIBIT1213HAS NOT BEEN MOVED INTO EVIDENCE.SHOULD BE PUBLISHED.I'M NOT SURE IT14THE COURT:IS THERE GOING TO BE AN15OBJECTION?16MR. MCELHINNY:IT DEPENDS ON WHETHER OR171819NOT THERE'S A FOUNDATION THAT'S LAID, YOUR HONOR.FOUNDATION, PLEASE.THE COURT: ALL RIGHT. LAY THE20MR. VERHOEVEN:OKAY.21QYOU'VE SEEN THESE IMAGES BEFORE, THESE PHOTOS;22RIGHT, SIR?2324AQI BELIEVE I MAY HAVE SEEN THEM IN DEPOSITION.AND YOU'VE STUDIED THOSE PHOTOS AND YOU25COMPARED THEM TO THE APPLE MODEL 035, WHICH IS

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page244 of 2745261MARKED AS DX 741; CORRECT?23AQI BELIEVE THAT IS TRUE.AND IT'S YOUR OPINION, IN FACT, YOU'RE4CONVINCED FROM STUDYING THEM BOTH THAT THEY ARE ONE5AND THE SAME?IN OTHER WORDS, THE PHOTOS ARE6PICTURES OF APPLE MODEL 035; RIGHT?7AI DO RECALL SUCH AN EXERCISE OF COMPARING THE8MODEL AND THE PHOTOS.I THINK THESE ARE THOSE910111213PHOTOS, I THINK THIS IS THAT MODEL, SO IT FEELSTRUE.Q OKAY. AND YOU AGREE WITH ME THAT THE APPLEMODEL 035 AND THE CORRESPONDING PICTURES AREEMBODIMENTS OF THE '889 DESIGN PATENT; RIGHT?14MR. MCELHINNY:OBJECTION, YOUR HONOR.15CALLS FOR A LEGAL CONCLUSION FROM THIS WITNESS.16MR. VERHOEVEN:YOUR HONOR, ON DIRECT THE171819WITNESS TESTIFIED TO THE EXACT QUESTION WITHRESPECT TO OTHER APPLE PHYSICAL EXHIBITS --MR. MCELHINNY: NO, WE'RE --202122BY MR. MCELHINNY.MR. VERHOEVEN:MR. MCELHINNY:-- IN TESTIMONY ELICITEDTHE WORD "EMBODIMENT,"2324WHICH IS A LEGAL WORD, WAS NEVER USED IN ANYQUESTION THAT I ASKED.25THE COURT:WHY DON'T YOU REPHRASE THE

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page245 of 27452712345QUESTION, PLEASE?BY MR. VERHOEVEN:Q THE SPECIFIC PHYSICAL MODEL, APPLE MODEL 035,IS THE SAME MODEL OR MOCK-UP APPEARS IN PHOTOGRAPHSTHAT WERE SUBMITTED TO THE PATENT OFFICE TOGETHER67WITH THE '889 PATENT APPLICATION?SIR?ISN'T THAT TRUE,8MR. MCELHINNY:AGAIN, THAT LACKS9FOUNDATION FROM THIS WITNESS, YOUR HONOR.10THE COURT:IF YOU KNOW, SIR, GO AHEAD.1112AND IF YOU COULD LAY THE FOUNDATION.BUT IF YOU KNOW, SIR, YOU CAN ANSWER.13THE WITNESS:YOU -- COULD YOU REPEAT THE14QUESTION?YOU WERE ASKING ABOUT PHOTOGRAPHS WITH1516THE PATENT APPLICATION?BY MR. VERHOEVEN:17QYOU'RE AWARE THAT PHOTOGRAPHS WERE TAKEN OF1819THE APPLE MODEL 035; RIGHT?A I SEE PHOTOGRAPHS OF 035.20QAND THOSE PHOTOGRAPHS WERE SUBMITTED TO THE2122PATENT OFFICE AS PART OF THE PROSECUTION OF WHATBECAME THE '889 PATENT; ISN'T THAT TRUE, SIR?23AI DON'T RECALL THE SPECIFICS OF SUCH AN24ATTACHMENT.25QWELL, YOU'RE AN INVENTOR ON THE PATENT; RIGHT?

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page246 of 2745281MR. MCELHINNY:ARGUMENTATIVE, YOUR2HONOR.3THE COURT:OVERRULED.4YOU CAN ANSWER.GO AHEAD.567THE WITNESS:BY MR. VERHOEVEN:Q IN YOUR --YES, I AM.8910111213JUST ONE SECOND, YOUR HONOR.(DISCUSSION OFF THE RECORD BETWEENDEFENSE COUNSEL.)BY MR. VERHOEVEN:Q ALL RIGHT. WOULD YOU AGREE WITH ME, SIR, THATAPPLE MODEL 035 INCORPORATES THE '889 DESIGN?14AI BELIEVE THAT THE '889 PATENT REPRESENTS THIS151617DESIGN.Q OKAY. NOW, YOU TESTIFIED AT THE END OF YOURDIRECT TESTIMONY ABOUT SAMSUNG PHONES.1819AQCORRECT.YOU'VE SEEN THE FOUR SOFT BUTTONS AT THE20BOTTOM OF SAMSUNG PHONES?2122AQWOULD YOU LIKE TO SHOW ME WHAT YOU MEAN?WELL, YOU'RE THE ONE WHO TESTIFIED ON DIRECT23ALL ABOUT HOW IT WAS A RIP OFF. DO YOU REMEMBER --2425BY MR. VERHOEVEN:MR. MCELHINNY:EXCUSE ME, YOUR HONOR.

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page247 of 2745291QDO YOU REMEMBER, SIR, LOOKING AT SOFT BUTTONS2AT THE BOTTOM OF THE SAMSUNG PHONES?345MR. MCELHINNY:THAT'S NOT A QUESTION.WITNESS.OBJECTION, YOUR HONOR.HE'S ARGUING WITH THE6THE COURT:OVERRULED.7YOU CAN ANSWER.8910THE WITNESS:QUESTION, PLEASE?BY MR. VERHOEVEN:COULD YOU REPEAT THE11QDO YOU REMEMBER, YES OR NO, WHEN YOU LOOKED AT1213141516THE SAMSUNG PHONES TO FORM THE OPINION AND THETESTIMONY THAT YOU GAVE BEFORE THE JURY, WHETHERTHEY HAD FOUR SOFT BUTTONS AT THE BOTTOM?A I HAVE SEEN MANY SAMSUNG PHONES. I DO NOTREMEMBER THE EXACT DETAILS OF SOFTWARE BUTTONS.17QSO YOU DON'T REMEMBER WHETHER THEY HAD BUTTONS18ON THE BOTTOM?19AI -- LIKE I SAID, I'VE SEEN MANY SAMSUNG20PHONES.I DO NOT KNOW THAT THEY'RE ALL THE SAME IN21TERMS OF THEIR BUTTON ARRANGEMENTS AT THE BOTTOM.22QHAVE YOU EVER SEEN ANY SAMSUNG PHONES THAT2324HAVE FOUR SOFT BUTTONS AT THE BOTTOM?A I WOULD LIKE YOU TO SHOW ME THE PHONE. THIS25COULD BE A TRICK QUESTION.I DON'T KNOW.

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page248 of 2745301QI'M JUST ASKING YOU, HAVE YOU EVER SEEN A23SAMSUNG PHONE THAT HAD FOUR SOFT BUTTONS AT THEBOTTOM?4AIF YOU SHOWED ME THE PHONE, I COULD DETERMINE5678910THAT THERE ARE FOUR SOFT BUTTONS.Q THAT'S NOT MY QUESTION, SIR. MY QUESTION IS,HAVE YOU SEEN A SAMSUNG PHONE THAT HAD FOUR SOFTBUTTONS AT THE BOTTOM?A I CANNOT RECALL IT IT'S THREE OR FOUR. ICANNOT RECALL.11QHAVE YOU SEEN ANY PHONE, ANY SMARTPHONE THAT12HAD FOUR SOFT BUTTONS AT THE BOTTOM?13141516AQAQQUITE POSSIBLY.DID YOU THINK THEY WERE BEAUTIFUL?CLEARLY THEY DID NOT STICK IN MY MIND.NOW, YOU TESTIFIED ON DIRECT ABOUT BUTTONS AND17HOW SOMETIMES YOU MIGHT DO 50 DIFFERENT MODELS OF A18BUTTON.DO YOU REMEMBER THAT?192021AQATHAT'S CORRECT.HOW MANY MODELS DID YOU DO OF THE HOME BUTTON?I COULD NOT GIVE YOU AN EXACT NUMBER, BUT I'M22SURE THERE WERE MANY.2324QAOVER TEN?VERY LIKELY.25Q OVER 100?

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page249 of 2745311234AQAQMAYBE NOT.WHAT'S YOUR BEST ESTIMATE?I WILL NOT ESTIMATE BECAUSE I DO NOT KNOW.DID YOU WORK ON THE DIFFERENT MODELS OF THE5HOME BUTTON?67AQYES.AND WHY WERE THERE SO MANY MODELS OF THE HOME8BUTTON DONE?9101112AQAQTO GET IT EXACTLY RIGHT.BECAUSE SMALL DETAILS MATTER; RIGHT?ABSOLUTELY.AS AN APPLE INDUSTRIAL DESIGNER, YOU TESTIFIED1314ABOUT THE WORK YOU DID TO COME UP WITH YOUR DESIGNSON DIRECT.15DO YOU REMEMBER THAT?YOU TESTIFIED1617GENERALLY ABOUT SITTING AROUND THE KITCHEN TABLEAND ALL THAT.1819AQYES.ONE OF THE THINGS THAT YOU ALSO DO AS AN202122INDUSTRIAL DESIGNER IS YOU PAY ATTENTION TO MOBILEPHONES AND SMARTPHONES MANUFACTURED AND SOLD BYYOUR COMPETITORS, DON'T YOU?2324AQON OCCASION WE PAY SOME ATTENTION.YOU ACTUALLY GET COMPETITIVE ANALYSES DONE AND25REVIEW THOSE OF YOUR COMPETITION, DON'T YOU?

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page250 of 2745321ATHERE IS A COMPETITIVE ANALYSIS EXERCISE2THAT'S PERFORMED BY OUR PRODUCT DESIGN.3QAND YOU OCCASIONALLY REQUEST THAT SO YOU CAN4567891011SEE WHAT THE COMPETITION IS DOING AS PART OF YOURDESIGN WORK; RIGHT?A VERY RARELY DO WE MAKE ANY SUCH REQUESTS. WEARE SHOWN THESE COMPETITIVE ANALYSIS.Q WELL, LET'S LOOK AT DX 687. AND IF WE COULDBLOW UP THE TOP PART OF THIS.DO YOU SEE -- DO YOU SEE YOUR NAME IS UPTHERE, CHRIS STRINGER?1213AQI SEE THAT.AND IF WE COULD GO TO PAGE 2 OF THIS DOCUMENT14151617AND ABOUT A THIRD OF THE WAY DOWN WHERE IT SAYS "ONJANUARY 19TH, 2011," CAN WE BRING THAT UP?THIS IS AN E-MAIL STRING, THIS DOCUMENT;RIGHT?18192021AQAQYES, IT IS.SO THIS IS PART OF THE E-MAIL STRING?YES, IT IS.AND THIS PART OF IT IS AN E-MAIL THAT YOU22WROTE ON JANUARY 19TH, 2011 AT 2:14 P.M.; CORRECT?23ATHAT IS CORRECT.24Q AND YOU SENT IT TO PAUL. WHO'S PAUL?25APAUL IS -- I BELIEVE HIS TITLE IS ENGINEERING

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page251 of 2745331PROGRAM MANAGER.HE WORKS IN THE IPAD DIVISION.2QAND YOU SAID TO PAUL, QUOTE, "I NEED YOUR345LATEST SUMMARY OF OUR ENEMIES FOR AN I.D.BRAINSTORM ON FRIDAY."DO YOU SEE THAT, SIR?6789AQAQI SEE THAT.I.D. STANDS FOR?INDUSTRIAL DESIGN.SO YOU HAD AN INDUSTRIAL DESIGN BRAINSTORMING10SESSION COMING UP ON FRIDAY; RIGHT?1112AQTHAT'S WHAT IT SAYS.AND YOU'RE ASKING PAUL TO GIVE YOU HIS LATEST1314SUMMARY OF, QUOTE, "OUR ENEMIES," CLOSED QUOTE.YOU SEE THAT?DO151617AQATHAT'S CORRECT.IS THAT SAMSUNG?IN THIS INSTANCE, YES.181920Q OKAY. AND THE SUMMARY -- THIS IS IN YOURBINDER IF YOU WANT TO LOOK AT IT -- WE CAN GO TOPAGE 9.2122AQWHAT IS THE EXHIBIT NUMBER?687, SIR.23GO TO PAGE 9, PLEASE.AND HIGHLIGHT THE24TOP PART, BRING IT OUT.CAN YOU MOVE IT OVER A25LITTLE BIT?THANK YOU.

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page252 of 27453412THIS SUMMARY LISTS A NUMBER OF YOURCOMPETITORS, DOESN'T IT?3AIT DOES.45Q THERE'S THE PLAYBOOK --WHY DON'T WE HAVE THIS ON THE SCREEN?6MR. MCELHINNY:BECAUSE IT'S NOT IN7EVIDENCE.8MR. VERHOEVEN:OH, IT'S NOT IN EVIDENCE.910YOUR HONOR, I MOVE THIS INTO EVIDENCE.THE WITNESS HAS AUTHENTICATED IT.11THE COURT:ANY OBJECTION.12MR. MCELHINNY:NO OBJECTION, YOUR HONOR.13THE COURT: I DIDN'T HEAR YOU. WHAT? NO14OBJECTION?15MR. MCELHINNY:NO OBJECTION.16THE COURT:IT'S ADMITTED.17181920(WHEREUPON, DEFENDANT'S EXHIBIT NUMBER687, HAVING BEEN PREVIOUSLY MARKED FORIDENTIFICATION, WAS ADMITTED INTOEVIDENCE.)2122SCREEN YET?MR. VERHOEVEN:SO IT HASN'T BEEN ON THE2324OKAY.COMPLETENESS.LET'S GO BACK, JUST FOR25I APOLOGIZE, YOUR HONOR.I THOUGHT IT

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page253 of 27453512WAS ON THE SCREEN.GO TO PAGE 2. AND BRING OUT --3QTHIS IS WHAT WE WERE JUST TALKING ABOUT FROM4PAGE 2; RIGHT?56AQYES.WHERE YOU SAID, "PAUL, I NEED YOUR LATEST789SUMMARY OF OUR ENEMIES FOR THE I.D. BRAINSTORM ONFRIDAY."DO YOU SEE THAT?1011AQI DO.AND THEN IF WE GO TO 9, PAGE 9, AND HIGHLIGHT1213THAT AGAIN ONE MORE TIME, PLEASE.THAT'S A LITTLE BIT HARD TO READ.MAYBE14WE COULD JUST HIGHLIGHT THE TOP FEW ROWS SO WE CAN15SEE BETTER.THAT DOESN'T LOOK MUCH BETTER.1617PLAYBOOK.BUT YOU CAN SORT OF SEE THERE'S THEDO YOU SEE THAT, MR. STRINGER?1819AQYES.WHO MAKES THE PLAYBOOK?20A COULD YOU ZOOM IN? I CAN'T READ IT.2122QAYOU DON'T KNOW WHO MAKES THE PLAYBOOK?NOT OFF THE TOP OF MY HEAD.2324Q OKAY. AND THEN THERE'S THE GALAXY TAB. DOYOU SEE THAT?25AYES.

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page254 of 2745361QAND THAT'S ONE OF THE PRODUCTS THAT'S BEING2ACCUSED IN THIS CASE?3AYES.456Q RIGHT? AND ON THE LEFT-HAND SIDE, IT SAYS OS,PROCESSOR, RAM, AND A BUNCH OF OTHER DETAILS.DO YOU SEE THAT?78AQYES.SO ISN'T IT TRUE THAT YOU WANTED THIS9101112INFORMATION FOR YOUR BRAINSTORMING SESSION SO YOUCOULD ASSESS AND YOU AND THE OTHER DESIGN TEAMMEMBERS COULD ASSESS WHAT YOUR COMPETITORS AREDOING?13AWE WERE INTERESTED IN UNDERSTANDING THE1415FEATURE SETS AND OVERALL DIMENSIONS OF COMPETITIVEPRODUCTS.16QYOU WERE INTERESTED IN KNOWING WHAT THEY WERE17DOING?18AWE WERE INTERESTED IN UNDERSTANDING THOSE19FACTS.20QSO YOU ANALYZED THEIR PRODUCTS AND THE21PARAMETERS OF THEIR PRODUCTS, DIDN'T YOU?22AWE PAID ATTENTION TO THE FEATURE SET AND WE23WERE VERY INTERESTED IN THE DIMENSIONS.2425QAIS THERE ANYTHING WRONG WITH DOING THAT?NO.

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page255 of 2745371MR. VERHOEVEN:PASS THE WITNESS, YOUR2HONOR.3THE COURT:YOU'RE DONE?4MR. VERHOEVEN:PASS THE WITNESS.5THE COURT: OKAY. ALL RIGHT. IT IS NOW64:20.78MR. MCELHINNY:QUESTION, YOUR HONOR.I HAVE ONE REDIRECT910THE COURT: ALL RIGHT. GO AHEAD. IT'S4:20. IT'S ALL YOURS.11MR. MCELHINNY:I'M ON THE CLOCK HERE.1213BY MR. MCELHINNY:REDIRECT EXAMINATION14QSIR, THE LAST DOCUMENT THAT WAS VIEWED, WAS1516THAT USED FOR DESIGN INSPIRATION ON HOW TO DESIGNSOME NEW APPLE PRODUCT?17AABSOLUTELY NOT.18MR. MCELHINNY:NOTHING FURTHER, YOUR19HONOR.20THE COURT:ALL RIGHT.21ANY RECROSS, MR. VERHOEVEN?22MR. VERHOEVEN:JUST ONE SECOND, YOUR2324HONOR.I'M SORRY.(DISCUSSION OFF THE RECORD BETWEEN25DEFENSE COUNSEL.)

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page256 of 2745381MR. VERHOEVEN:JUST SOME HOUSEKEEPING2MATTERS.I'VE BEEN INFORMED I FAILED TO MOVE IN34EXHIBIT 740.THE COURT:ANY OBJECTION?5MR. MCELHINNY:NO OBJECTION.6THE COURT:IT'S ADMITTED.7891011(WHEREUPON, DEFENDANT'S EXHIBIT NUMBER740, HAVING BEEN PREVIOUSLY MARKED FORIDENTIFICATION, WAS ADMITTED INTOEVIDENCE.)MR. VERHOEVEN: AND 741.12THE COURT:ANY OBJECTION?13MR. MCELHINNY:NO OBJECTION.14THE COURT:SO ADMITTED.15161718(WHEREUPON, DEFENDANT'S EXHIBIT NUMBER741, HAVING BEEN PREVIOUSLY MARKED FORIDENTIFICATION, WAS ADMITTED INTOEVIDENCE.)19THE COURT:IS THAT IT, MR. VERHOEVEN?20MR. VERHOEVEN:WELL, THAT -- 741 IS A21222324STIPULATION ABOUT THE PHOTOGRAPHS FROM THE MODEL.AT SOME POINT I'D LIKE TO READ IT INTOTHE RECORD. I COULD DO THAT NOW. IT'S ADMITTEDINTO EVIDENCE, YOUR HONOR.25THE COURT:THAT'S FINE.

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page257 of 2745391MR. VERHOEVEN:IT STATES, QUOTE, "APPLE,2INC., THROUGH ITS COUNSEL, STIPULATES AS FOLLOWS:3PARAGRAPH 1.THE SPECIFIC PHYSICAL MODEL456789IDENTIFIED BY APPLE INDUSTRIAL DESIGNERCHRISTOPHER STRINGER DURING THE NOVEMBER 4TH, 2011DEPOSITION IDENTIFIES APPLE MODEL 035 IS THE SAMEMODEL OR MOCK-UP APPEARING IN THE PHOTOGRAPHS OFTHE D'889 PATENT PROSECUTION HISTORY PRODUCED BYAPPLE.10PARAGRAPH 2.THE PHOTOGRAPHS FROM THE11121314'889 PATENT PROSECUTION HISTORY PRODUCED BY APPLEARE THE HIGHEST QUALITY THAT IT HAS FOUND."AND THAT CONCLUDES THE STIPULATION, YOURHONOR.15THE COURT:ALL RIGHT.16ANYTHING FURTHER FOR MR. STRINGER OR IS17HE EXCUSED?IS HE EXCUSED?18MR. MCELHINNY:HE'S EXCUSED, YOUR HONOR.19THE COURT: ALL RIGHT. AND NOT WITH2021ANY -- HE'S JUST EXCUSED, PERIOD?RECALL?NOT SUBJECT TO22232425MR. MCELHINNY: HE'S EXCUSED. WE ARE NOTGOING TO HAVE HIM IN THE COURTROOM IN CASE THERE'SA REBUTTAL ISSUE.THE COURT: ALL RIGHT. YOU'RE EXCUSED.

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page258 of 2745401THE WITNESS:THANK YOU.2345DO YOU HAVE YOUR NEXT WITNESS?MR. MCELHINNY: I HAVE HIM READY. IT'LLTAKE US A COUPLE MINUTES TO GET THE BINDERS OUT,YOUR HONOR.6THE COURT:ALL RIGHT.7(PAUSE IN PROCEEDINGS.)8THE COURT:WHO'S YOUR NEXT WITNESS,9PLEASE?10MR. MCELHINNY:MR. PHILIP SCHILLER, YOUR11HONOR.121314THE COURT: OKAY. WE'RE ONLY GOING TO GOUNTIL 4:30, BUT I FIGURE EVEN IF THERE'S SOMEPRELIMINARY STUFF WE CAN DO TODAY, LET'S DO IT.1516PHILIP SCHILLER.MR. MCELHINNY:YOUR HONOR, APPLE CALLS17THE COURT: OKAY. THE TIME IS 4:23.18THE CLERK:RAISE YOUR RIGHT HAND,19PLEASE.20212223PHILIP SCHILLER,BEING CALLED AS A WITNESS ON BEHALF OF THEPLAINTIFF, HAVING BEEN FIRST DULY SWORN, WASEXAMINED AND TESTIFIED AS FOLLOWS:2425THE WITNESS:THE COURT:I DO.WOULD YOU HAVE A SEAT UP

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page259 of 2745411234THERE, PLEASE.MR. MCELHINNY:PASSING OUT THE BINDERS.ON MY TIME, PLEASE.YOUR HONOR, WE'RE STILLIF I CAN HAVE THAT NOT BE5(PAUSE IN PROCEEDINGS.)678THE CLERK:PLEASE, AND SPELL IT?THE WITNESS:WOULD YOU STATE YOUR NAME,PHILIP WILLIAM SCHILLER,9THAT'S P-H-I-L-I-P, W-I-L-L-I-A-M, S-C-H-I-L-L-E-R.10THE CLERK:THANK YOU.1112BY MR. MCELHINNY:DIRECT EXAMINATION13141516171819QAQAQSIR?AGOOD AFTERNOON, MR. SCHILLER.GOOD AFTERNOON.BY WHOM ARE YOU EMPLOYED?APPLE.AND WHAT IS YOUR CURRENT POSITION AND TITLE,I AM THE SENIOR VICE-PRESIDENT OF WORLDWIDE20MARKETING.21QAND DOES APPLE HAVE SOMETHING THAT THEY CALL22THE EXECUTIVE TEAM?232425AQAYES, WE DO.AND WHAT IS THE EXECUTIVE TEAM?IT IS THE GROUP OF EXECUTIVES AT APPLE THAT

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page260 of 274542123ARE THE MOST SENIOR PEOPLE WHO RUN THE COMPANY ANDWORK FOR THE CEO DIRECTLY, AND WE MEET WEEKLY ANDARE RESPONSIBLE FOR THE BUSINESS OF THE COMPANY.456789QAQAQMIND.ARE YOU A MEMBER OF THE EXECUTIVE TEAM, SIR?YES, I AM.TO WHOM DO YOU REPORT AT APPLE?TO THE CEO, TIM COOK.SIR, JUST TO CONNECT VARIOUS LITTLE PIECES INTODAY SAMSUNG'S COUNSEL SHOWED US A VIDEO OF101112131415THE INTRODUCTION AT MAC WORLD OF THE IPHONE AND INTHAT VIDEO, IT SHOWED MR. JOBS SENDING A PICTURE, ITHINK OF A HAWAIIAN VACATION, TO SOME GUY NAMEDPHIL IN THE AUDIENCE.DO YOU KNOW THAT MR. PHIL THAT WAS IN THEAUDIENCE?16ATHAT WOULD BE ME.17181920Q OKAY. THANK YOU.CAN YOU -- CAN YOU DESCRIBE FOR US,PLEASE, WHAT YOU WERE -- WHAT YOUR JOBRESPONSIBILITIES ARE AT APPLE?21ASO I RUN THE MAJORITY OF MARKETING AT APPLE22COMPUTERS, SO FOR ME, THAT'S A PRETTY LARGE23ORGANIZATION.IT'S MADE UP OF A NUMBER OF2425MARKETING FUNCTIONS, SOMETHING WE CALL PRODUCTMARKETING, THE MARKETING OF ALL OF OUR PRODUCTS;

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page261 of 2745431234DEVELOPER PROGRAMS; MARKETING COMMUNICATIONS;INTERNATIONAL MARKETING; BUSINESS MARKETING;EDUCATION MARKETING; MARKETING FINANCE; LAUNCH,PRODUCT LAUNCH MARKETING; AND MANY OTHER FUNCTIONS.5QDOES APPLE HAVE A SPECIFIC PROCESS BY WHICH IT678910111213141516171819202122DEVELOPS NEW PRODUCTS?A YES, WE DO. WE HAVE SOMETHING WE CALL,CONVENIENTLY, THE APPLE NEW PRODUCT PROCESS, ORANPP, AND IT IS A WELL-DEFINED MANAGED PROCESS BYWHICH WE WORK ON ALL OF THE PRODUCTS AT APPLE.THE PROCESS IS MADE UP OF ALL THE KEYFUNCTIONS AT APPLE THAT ARE RESPONSIBLE FOR MAKINGA PRODUCT, SO HARDWARE ENGINEERING, SOFTWAREENGINEERING, MARKETING, OPERATIONS, FINANCE, ANDSUPPORT.AND TOGETHER THAT CROSS-FUNCTIONAL TEAMOF PEOPLE WORK ON EVERY NEW PRODUCT AT APPLETHROUGH A SERIES OF LOGICAL STEPS, STEPS LIKEINVESTIGATION, CONCEPT, DESIGN, PRODUCTION, ANDTHAT ALL WORKS TOGETHER.AND I THINK THAT'S THE, THAT'S THE WAYTHE TEAM WORKS --23MR. PRICE:YOUR HONOR, THIS IS BEYOND2425THE SCOPE OF THE QUESTION AND A NARRATIVE AT THISPOINT.

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page262 of 274544123NOT HAVE THAT.BY MR. MCELHINNY:THE COURT: OVERRULED. BUT PLEASE LET'S45QLET ME BREAK IT UP, PLEASE.IN THIS NEW PRODUCT PROCESS, COULD YOU67PLEASE TELL ME WHAT ROLE YOUR GROUP, THE MARKETINGGROUP, PLAYS IN THAT PROCESS?8AMARKETING IS REPRESENTED AS ONE OF THE MEMBERS9OF THE TEAM ON EVERY NEW PRODUCT WE CREATE.WE ARE10MEMBERS OF THE APPLE NEW PRODUCT PROCESS TEAM.1112QAWHY IS THAT?IT'S VERY IMPORTANT AT APPLE THAT THE NEEDS OF1314151617THE CUSTOMER AND NEEDS TO COMPETE IN THEMARKETPLACE ARE CONSIDERED WHEN WE CREATE A PRODUCTRIGHT FROM THE BEGINNING, AND SO MARKETING IS ANEQUAL MEMBER OF THE TEAM CREATING OUR PRODUCTS,ALONG WITH THE ENGINEERING AND OPERATIONS TEAM.18QHAVE YOU EVER HEARD, FROM ANY SOURCE, THE192021SUGGESTION THAT APPLE DOESN'T LISTEN TO ITSCUSTOMERS IN TERMS OF WHAT THE PRODUCTS SHOULD LOOKLIKE IN THE FUTURE?22AYES, I HAVE HEARD THAT QUITE FREQUENTLY.23MR. PRICE:OBJECTION, YOUR HONOR.24RELEVANCE AND CALLS FOR HEARSAY.25THE COURT:SUSTAINED.

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page263 of 2745451BY MR. MCELHINNY:2QSIR, WHAT -- WHAT ROLE DOES CUSTOMER INTEREST34AND DESIRE PLAY IN THIS NEW PRODUCT PROCESSING --PROCESS THAT YOU DISCUSSED?5AWE DON'T USE ANY CUSTOMER INPUT INTO THE6CREATION OF OUR PRODUCTS.WE DON'T USE SURVEYS OR7891011FOCUS GROUPS OR TYPICAL THINGS OF THAT NATURE THATI'VE HEARD MANY OF MY FRIENDS AT OTHER COMPANIESUSE.AT APPLE, THAT PLAYS NO PART IN THECREATION OR DESIGN OF THE PRODUCTS.12QSO WHEN YOU SAID YOU REPRESENT THE CUSTOMER'S13VIEW, WHAT DOES THAT MEAN?14ATHAT OVER OUR YEARS OF DOING MARKETING OF1516171819202122232425PRODUCTS AT APPLE, WE HAVE A LOT OF OPPORTUNITY TOHAVE CONTACT WITH CUSTOMERS, REVIEWERS, MANY IN OURINDUSTRY, AND YOU USE THAT ACCUMULATED KNOWLEDGE TOFORMULATE YOUR OWN INSTINCTS, YOUR OWN GUT FEELING,YOUR OWN BELIEF OF WHAT THE RIGHT THING TO DO IS.BUT YOU NEVER GO AND ASK A CUSTOMERDIRECTLY, "WHAT FEATURES DO YOU WANT IN THE NEXTPRODUCT?"IT'S NOT A CUSTOMER'S JOB TO KNOW THAT,SO WE DON'T ASK THEM THAT.WE NEED TO ACCUMULATE THAT KNOWLEDGE

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page264 of 27454612OURSELVES AND USE THAT TO THEN DEFINE THE PRODUCTSTHAT WE'RE GOING TO CREATE.3MR. MCELHINNY:YOUR HONOR, I AM ABOUT TO4567START THE STORY OF THE DEVELOPMENT OF THE IPHONEAND WE ONLY HAVE THREE MINUTES LEFT.THE COURT: ALL RIGHT. WELL, I HAVE 4:29AS THE TIME.8MR. MCELHINNY:THANK YOU, YOUR HONOR.9THE COURT: ALL RIGHT. THAT'S FINE.10OKAY.SO THANK YOU FOR YOUR PATIENCE11121314151617TODAY. YOU'RE GOING TO HAVE TWO DAYS OFF. WE WILLNOT BE IN SESSION TOMORROW OR THURSDAY, SO WE WILLSEE YOU NEXT BACK ON FRIDAY MORNING, 9:00 O'CLOCK.PLEASE REPORT TO THE JURY ROOM.IF YOU WOULD, PLEASE, LEAVE YOUR JURYNOTEBOOKS, YOU CAN LEAVE THEM IN THE JURY ROOM.BUT PLEASE DO NOT TAKE THEM HOME.18AND SAME ADMONITION.PLEASE DON'T DO ANY19202122232425RESEARCH, ANY READING ABOUT THE CASE, DON'T TALK TOANYONE ABOUT IT, AND PLEASE KEEP AN OPEN MIND UNTILTHE VERY, VERY END AND UNTIL YOU STARTDELIBERATING.OVER THE NEXT FEW DAYS, WHEN PEOPLE FINDOUT YOU'RE A JUROR ON THIS CASE, FAMILY MEMBERS,FRIENDS, NEIGHBORS ARE GOING TO WANT TO GIVE YOU A

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page265 of 274547123PIECE OF THEIR MIND.I'M ASKING YOU AGAIN TO PLEASE TELL THEM,"I'M SORRY. I CAN'T LISTEN TO THIS. I CAN TALK4WITH YOU WHEN THE CASE IS OVER."ALL RIGHT?5OKAY.THANK YOU SO MUCH.67891011121314151617(WHEREUPON, THE FOLLOWING PROCEEDINGSWERE HELD OUT OF THE PRESENCE OF THE JURY:)THE COURT: ALL RIGHT. THE RECORD SHOULDREFLECT THE JURORS HAVE LEFT THE COURTROOM.THERE ARE A COUPLE OF ISSUES THAT WE NEEDTO RESOLVE AND THAT IS THE ISSUE OF IMPEACHMENTEXHIBITS.WHEN I ISSUED MY ORDER BACK ON JULY 24TH,I DIDN'T MAKE ANY EXCLUSION FOR IMPEACHMENTEXHIBITS AND I BELIEVE WE HAD A FULL ARGUMENT ONTHIS ISSUE.SO -- AND I MADE A RULING ON THIS ISSUE.1819THE BINDERS?SO WHAT'S GOING ON?WHY ARE THEY NOT IN202122FORWARD.AND THIS IS A PROBLEM ON BOTH SIDES GOINGLET'S FIX IT NOW.LET ME ASK, MR. VERHOEVEN, YOU SAID THAT23YOU LOST THE ARGUMENT THAT IMPEACHMENT EXHIBITS HAD2425TO BE DISCLOSED AND IN THE BINDERS.THAT IN THIS --WHY WASN'T

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page266 of 27454812MR. VERHOEVEN:I'M SORRY, YOUR HONOR.THAT WAS IN OUR BINDERS.3THE COURT:OKAY.4MR. VERHOEVEN:IT'S ACTUALLY ITEM NUMBER567895 -- IT'S IN YOUR RULINGS. IT'S ON PAGE 3 OF YOURJULY 30TH ORDER.I CAN HAND THIS UP TO YOU IF YOU WANT TOLOOK AT IT, BUT IT'S ITC 796, WITNESS STATEMENT,CHRIS STRINGER.10WE DISCLOSED IT TO THE OTHER SIDE.THEY1112OBJECTED.YOU OVERRULED THE OBJECTION, YOUR HONOR.AND THE ONLY REASON I DIDN'T HAVE IT IN13141516171819202122THE BINDER IS THAT WE KIND OF SCREWED UP WITH THEBINDERS.THE COURT: ALL RIGHT. WELL, THAT'S NOPROBLEM.BUT JUST GOING FORWARD, I WANT TO MAKESURE THERE'S AN UNDERSTANDING FROM BOTH PARTIESTHAT YOUR CROSS-EXAMINATION BINDERS ARE GOING TO BECOMPLETE AND INCLUDE IMPEACHMENT.I WANT TO MAKE SURE, MR. MCELHINNY, YOUARE IN AGREEMENT ON THAT ON AS WELL.2324THAT, YOUR HONOR.MR. MCELHINNY:I AM IN AGREEMENT ON25THE COURT:ALL RIGHT.

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page267 of 27454912MR. VERHOEVEN: ONE QUICK THING. IMISSPOKE AGAIN. I APOLOGIZE, YOUR HONOR. IT WAS3IN THE WITNESS BINDER.IT DOESN'T HAVE AN EXHIBIT456NUMBER BECAUSE IT WAS IMPEACHMENT.SO I DON'T KNOW IF YOU WANT US TO ASSIGNEXHIBIT NUMBERS TO IMPEACHMENT DOCUMENTS.7THE COURT:I THINK THAT WOULD BE8HELPFUL.TELL ME WHERE IT IS.9MR. VERHOEVEN:SO IT'S IN -- CAN YOU10COME UP AND HELP ME.WE'RE KIND OF PLAYING1112TELEPHONE BECAUSE I DIDN'T ASSEMBLE THE BINDER,YOUR HONOR, SO --13MR. HALL:SCOTT HALL, H-A-L-L.141516171819202122232425THERE ARE TWO BINDERS, THECROSS-EXAMINATION MATERIALS AND THE TESTIMONYCOLLECTION.THE FOURTH TAB IN THE TESTIMONYCOLLECTION BINDER IS THE MAY 2ND, 2012 ITC WITNESSSTATEMENT OF CHRISTOPHER STRINGER, AND WE PASSEDTHAT UP.THE COURT: OKAY. DID YOU WANT THISMARKED FOR IDENTIFICATION?MR. VERHOEVEN: THAT WOULD BE GREAT. HOWABOUT -- YEAH, THAT WOULD BE TERRIFIC, YOUR HONOR.AND IN THE FUTURE WE'LL MARK FOR

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page268 of 2745501234IDENTIFICATION ON IMPEACHMENT IF THAT'S THE BESTWAY TO GO.(DISCUSSION OFF THE RECORD BETWEENCOUNSEL.)5THE COURT:OKAY.678MR. VERHOEVEN: YOUR HONOR --THE COURT: ALL RIGHT. CAN I HAVE THECROSS-EXAMINATION BINDERS FOR MR. SCHILLER?910YOUR HONOR --MR. VERHOEVEN:WHILE WE'RE GETTING THAT,11THE COURT:YES.12MR. VERHOEVEN:-- WOULD -- WOULD YOU1314WANT US TO MARK FOR IDENTIFICATION THE IMPEACHMENTMATERIALS GOING FORWARD AND JUST KEEP A RUNNING15LIST OF THEM?OR DO YOU WANT TO DO IT IF AND WHEN1617WE NEED TO USE THEM?THE COURT:IF AND WHEN WE NEED TO USE1819THEM -- I MEAN, IT WOULD BE HELPFUL THAT I JUSTHAVE EVERYTHING.20MR. VERHOEVEN:CORRECT.21THE COURT:IN CASE THERE'S ANY22232425OBJECTION, I'D RATHER HASH IT ALL OUT IN ADVANCEAND NOT IN FRONT OF THE JURY, SO I WOULD LIKE TOHAVE IT.SO IF YOU COULD IDENTIFY WHAT IT IS, AND

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page269 of 27455112345THEN WHEN WE ACTUALLY GO THROUGH AND USE IT, ITHINK IT WOULD BE HELPFUL TO AT LEAST MARK FORIDENTIFICATION EVEN IF IT'S NOT GOING TO BEADMITTED JUST SO THE RECORD IS CLEAN AS TO WHATDOCUMENT WAS USED.67YOUR HONOR.MR. VERHOEVEN:I TOTALLY UNDERSTAND,8THE COURT:YEAH.9MR. VERHOEVEN:DO YOU WANT TO MAINTAIN101112131415THAT LIST, BECAUSE IT'S GOING TO -- WE'RE NOT GOINGTO KNOW WHAT WE'RE GOING TO USE DEPENDING UNTIL THEWITNESS GIVES AN ANSWER THAT NEEDS TO BE IMPEACHED.SO SHOULD WE, THE PARTIES, MAINTAIN THATLIST OR WOULD YOUR HONOR WANT TO DO THAT, THEIDENTIFICATION LIST FOR IMPEACHMENT?16THE COURT:YOU MEAN AFTER IT'S DONE?17MR. VERHOEVEN:AFTER IT'S DONE.18THE COURT:OH, I'M KEEPING MY OWN LIST.1920I MEAN, WE CAN GO THROUGH IT. I HAVE 18EXHIBITS ADMITTED BY -- ON THE PLAINTIFF'S SIDE21TODAY.I HAVE THREE EXHIBITS ADMITTED ON THE222324DEFENSE SIDE TODAY, AND THEN THE ONE EXHIBIT THATWAS MARKED FOR IDENTIFICATION BUT NOT ADMITTED.ARE YOU ALL IN AGREEMENT?25MR. VERHOEVEN:YES.

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page270 of 2745521THE COURT:OKAY.2MR. VERHOEVEN:SO HERE'S WHAT I WAS34THINKING WE'D DO GOING FORWARD, JUST TO RUN IT BYEVERYONE --5THE COURT:OKAY.6MR. VERHOEVEN:-- IS WE'LL DO WHAT WE7DID TODAY.WE'LL HAVE THE BINDER, BUT IT WON'T891011HAVE THE EXHIBITS ON IT, BECAUSE WE'RE PROBABLY NOTGOING TO USE 90 PERCENT OF IT.THE COURT: THAT'S FINE. JUST IDENTIFYIT SO I CAN LOOK AT IT WHILE WE'RE GOING.12MR. VERHOEVEN:AND THEN AFTER WE USE IT,13WE'LL ASSIGN THE IDENTIFICATION NUMBER IN REAL1415TIME.THE PARTIES WILL KEEP TRACK OF THAT.THE COURT: WELL, EVEN IF YOU USE IT --1617WE CAN JUST SAY DEFENSE EXHIBIT 4 FORIDENTIFICATION WHILE YOU'RE USING IT.18MR. VERHOEVEN:EXACTLY.19THE COURT:AND THEN THE RECORD WILL BE20CLEAN.WE'LL KNOW WHAT IT WAS THAT THE WITNESS21LOOKED AT.22MR. VERHOEVEN:THAT WORKS FOR US, YOUR23HONOR.2425THE COURT: OKAY. ALL RIGHT.AND THEN YOU ALL ARE GOING TO WORK OUT A

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page271 of 2745531SYSTEM --2MR. VERHOEVEN:WE'RE GOING TO WORK ON3THAT.4THE COURT:-- ON TIMING ON THE56OBJECTIONS AND RESPONSES?MR. VERHOEVEN:YES.7THE COURT:AND I WOULD LIKE COPIES OF8THOSE.9ALL RIGHT.WHAT ELSE DO WE NEED TO DO10TODAY?OTHERWISE WE'RE DONE FOR TODAY, TOMORROW,1112AND THURSDAY AND I DON'T SEE YOU BACK HERE AGAINUNTIL 8:30 ON FRIDAY.13MR. MCELHINNY:I WANT TO PUT ON THE1415RECORD RIGHT NOW BECAUSE I JUST FOUND OUT ABOUTTHIS RIGHT NOW.16THE COURT:WHAT'S THAT?17MR. MCELHINNY:THIS MORNING WHEN18MR. QUINN DID HIS PRESENTATION, I WAS A LITTLE1920TAKEN ABACK.ON.I COULDN'T FIGURE OUT WHAT WAS GOING2122232425AS YOUR HONOR WILL LEARN, AND AS I JUSTLEARNED, IMMEDIATELY AFTER THAT, SAMSUNG ISSUED APRESS RELEASE IN SAN JOSE IN WHICH IT PUBLISHED ALLOF THE INFORMATION AND ITS ARGUMENTS ABOUT THEEVIDENCE WHICH YOUR HONOR HAS EXCLUDED FROM

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page272 of 2745541234567891011EVIDENCE, AND AN ARGUMENT THAT SAYS, "FUNDAMENTALFAIRNESS REQUIRES THAT THE JURY DECIDE THE CASEBASED ON ALL THE EVIDENCE."THIS IS, ON PERCEPTION, AN INTENTIONALATTEMPT TO POLLUTE THIS JURY IN A WAY, FRANKLY,THAT I'VE NEVER -- I FORGET HOW MANY YEARSMR. QUINN SAID HE PRACTICED, BUT I'M FIVE MORE.THE COURT: 35. WHERE IS HE?MR. MCELHINNY: I DON'T KNOW. I JUST GOTTHIS.YOUR HONOR WILL SEE MOTION PRACTICE ON12IT.I'M NOT SURE EXACTLY WHAT THE RIGHT REMEDY OR1314PENALTY IS.BUT THIS IS CONTEMPT OF COURT.I'VE JUST15161718NEVER SEEN ANYTHING AS INTENTIONAL AS THIS IN MYENTIRE CAREER.THE COURT: CALL MR. QUINN. I'D LIKE TOSEE HIM TODAY.19MR. PRICE:YOUR HONOR, IF I MAY.2021OR WHERE IS HE?THE COURT: YEAH. IS HE AT THE FAIRMONT2223MR. PRICE:ATTENDING A FUNCTION.I BELIEVE HE'S IN LOS ANGELESHE LEFT THIS MORNING.2425THERE'S A FUNCTION WITH THE MOTION PICTURE ACADEMYTHAT HE HAD A BOARD OF DIRECTORS' MEETING THAT HE

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page273 of 2745551234HAD TO BE AT.THE COURT: ALL RIGHT. I WANT HIM TOFILE A DECLARATION TOMORROW ABOUT HOW THATHAPPENED.5MR. PRICE:ALL RIGHT.67O'CLOCK.THE COURT: TOMORROW MORNING BY 9:00I WANT TO KNOW WHO RELEASED IT, WHO8AUTHORIZED IT, WHO DRAFTED IT.910MR. PRICE:THE COURT:I'M SORRY?I WANT TO KNOW WHO DRAFTED1112THE PRESS RELEASE, WHO AUTHORIZED IT FROM YOURLEGAL TEAM.1314MR. PRICE:THE COURT:CERTAINLY.AND I WANT MR. QUINN'S15DECLARATION AS TO WHAT HIS ROLE WAS.16ALL RIGHT.WHAT ELSE FOR TODAY?1718YOUR HONOR.MR. MCELHINNY:NOTHING FURTHER FROM US,19THE COURT:ANYTHING ELSE?20OKAY.THANK YOU ALL.21(WHEREUPON, THE EVENING RECESS WAS22TAKEN.)232425

Case5:11-cv-01846-LHK Document1547 Filed08/02/12 Page274 of 2741234CERTIFICATE OF REPORTER56789101112131415161718I, THE UNDERSIGNED OFFICIAL COURTREPORTER OF THE UNITED STATES DISTRICT COURT FORTHE NORTHERN DISTRICT OF CALIFORNIA, 280 SOUTHFIRST STREET, SAN JOSE, CALIFORNIA, DO HEREBYCERTIFY:THAT THE FOREGOING TRANSCRIPT,CERTIFICATE INCLUSIVE, CONSTITUTES A TRUE, FULL ANDCORRECT TRANSCRIPT OF MY SHORTHAND NOTES TAKEN ASSUCH OFFICIAL COURT REPORTER OF THE PROCEEDINGSHEREINBEFORE ENTITLED AND REDUCED BY COMPUTER-AIDEDTRANSCRIPTION TO THE BEST OF MY ABILITY.192021222324/S/_____________________________LEE-ANNE SHORTRIDGE, CSR, CRRCERTIFICATE NUMBER 9595DATED: JULY 31, 201225

Apple Inc. v. Samsung Electronics Co. Ltd. et al, Docket No. 5:11-cv-01846 (N.D. Cal. Apr 15, 2011), Court DocketGeneral InformationCase NameDocket NumberCourtApple Inc. v. Samsung Electronics Co. Ltd. et al5:11-cv-01846United States District Court for the Northern District of CaliforniaPrimary Date 2011-04-15 00:00:00Nature of SuitRelated Opinion(s)Property Rights: Patent2012 BL 165088 2012 BL 178771 2012 BL 205637 2012 BL263360 2012 BL 280780 2012 BL 330890 2013 BL 25223 2013BL 25225 2012 BL 56912 282 F.R.D. 259 2012 BL 92184 2012BL 100476 2012 BL 112507 2012 BL 119408 103 U.S.P.Q.2d1401 2012 BL 162535 2012 BL 173112 2012 BL 173061 881F. Supp. 2d 1132 2012 BL 209113 2012 BL 265144 2012 BL266278 2012 BL 273568 2012 BL 281306 2012 BL 2584642013 BL 25314 2013 BL 63524 2011 BL 304343 2012 BL238801© Bloomberg Finance L.P. All rights reserved. For terms of service see bloomberglaw.com // PAGE 1Document Link: http://www.bloomberglaw.com/ms/document/X1Q6LJBLEO82?documentName=1563.pdf&fmt=pdf