Professional Documents
Culture Documents
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PLAINTIFFS’ REPLY TO DEFENDANT
18 QUALCOMM’S OPPOSITION TO
MOTION FOR PRELIMINARY
19 INJUNCTION
20
CLASS ACTION
21
Date: Thursday, August 30, 2018
22 Time: 1:30 p.m.
Place: Courtroom 8
23
First Amended Consolidated
24 Class Action Complaint filed June 13, 2018
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1 TABLE OF CONTENTS
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TABLE OF CONTENTS
Case 5:17-md-02773-LHK Document 620 Filed 07/19/18 Page 3 of 19
1 TABLE OF AUTHORITIES
2
3
FederalCases
4
Ashlow Ltd. v. Morgan Const. Co.,
5 672 F.2d 371 (4th Cir. 1982)........................................................................................................ 8
Balsley v. San Jose Dev. Corp.,
6 1995 WL 108207, at *3 (N.D. Cal. Mar. 3, 1995) ..................................................................... 11
7 Bates v. United Parcel Serv., Inc.
511 F.3d 974, 985 (9th Cir. 2007) ............................................................................................... 3
8 Blue Shield of Va. v. McCready,
457 U.S. 465, 482 (1982) ............................................................................................................ 4
9
Boardman v. Pac. Seafood Grp.,
10 822 F.3d 1011 (9th Cir. 2016)...................................................................................................... 6
Cal. Motor Transp. Co. v. Trucking Unlimited,
11 404 U.S. 508 (1972) ................................................................................................................... 13
12 Cheminor Drugs, Ltd. v. Ethyl Corp.,
168 F.3d 119 (3d Cir. 1999) ....................................................................................................... 13
13 City of Los Angeles v. Lyons,
461 U.S. 95, 111 (1983) .............................................................................................................. 3
14
Federated Conservationists of Westchester Cty., Inc. v. City of Yonkers,
15 117 F. Supp. 2d 371 (S.D.N.Y. 2000) ........................................................................................ 11
Hazardous Waste Treatment Council v. S.C.,
16 945 F.2d 781 (4th Cir. 1991)........................................................................................................ 6
17 Huawei Tech., Co. Ltd. v. Samsung Elec. Co., Ltd.,
Case No. 3:16-cv-02787-WHO, Dkt. 280 (N.D. Cal. Apr. 13, 2018) ....................................... 10
18 In re Baldwin-United Corp.,
770 F.2d 328 (2d Cir. 1985) ....................................................................................................... 10
19
In re BRCA1-, BRCA2-Based Hereditary Cancer Test Patent Litig.,
20 3 F. Supp. 3d 1213 (D. Utah) ....................................................................................................... 7
In re Cathode Ray Tube (CRT) Antitrust Litig. (“CRT”),
21 738 F. Supp. 2d 1011, 1023 (N.D. Cal. 2010) ............................................................................ 4
22 In re Convertible Rowing Exerciser Patent Litig.
616 F. Supp. 1134 (D. Del. 1985) ................................................................................................ 8
23 In re Netflix Antitrust Litigation,
506 F. Supp. 2d 308 (N.D. Cal. 2007) ......................................................................................... 3
24
In re TFT-LCD (Flat Panel) Antitrust Litig.,
25 586 F. Supp. 2d 1109, 1120-24 (2008) .................................................................................... 3-4
In re Uranium Antitrust Litig.,
26 617 F.2d 1248 (7th Cir. 1980)...................................................................................................... 8
27 In re Volkswagen "Clean Diesel" Mktg., Sales Practices, & Prod. Liab. Litig.,
No. MDL 2672 CRB (JSC), 2017 WL 2212783, at *27 (N.D. Cal. May 17, 2017) ................... 8
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TABLE OF AUTHORITIES
Case 5:17-md-02773-LHK Document 620 Filed 07/19/18 Page 5 of 19
1 As the ITC proceedings between Qualcomm and Apple draw to a close, the prospect of an
2 exclusion or cease and desist order threatens this Court’s flexibility to afford Plaintiffs
3 meaningful relief.1 Plaintiffs and Class Counsel—on behalf of a putative class of indirect
4 purchasers—need to safeguard against marketplace changes sought by Qualcomm that could
5 perpetuate and further entrench the anticompetitive conduct raised before this Court. If an
6 exclusion or cease and desist order were issued, in the short term, this would result in great
7 financial harm to the consumers whom Plaintiffs represent who want to purchase cellular devices.
8 In the long term, an exclusion order would perpetuate Qualcomm’s continued position as a
9 monopoly power in the premium LTE and emerging 5G markets for baseband processors, and
10 thereby stagnate innovation, drive up costs, and reduce the welfare of the Plaintiffs and class
11 members.
12 Testimony in the first of the ITC proceedings has recently concluded, and there is now a
13 very real threat that the ITC will issue an exclusion or cease and desist order at the expense of
14 Plaintiffs, who will suffer direct economic harm as a result. To preserve this Court’s flexibility to
15 fully remedy the harm Plaintiffs have already suffered and to prevent continued harm in the
16 future, Plaintiffs request the Court invoke the All Writs Act to prevent Qualcomm from enforcing
17 an exclusion or cease and desist order, should one issue. Such action is needed to protect this
18 Court’s exclusive jurisdiction over Plaintiffs’ Sherman Act claims until this case is resolved.
19 I. Plaintiffs Have Not Delayed
20 At the time Plaintiffs filed their initial public interest statement in conjunction with the
21 ITC proceeding, they were aware of the potential for the ITC proceeding to impact the Court’s
22 flexibility to fashion effective relief for Qualcomm’s antitrust violations. However, the ITC trial
23 was nearly a year away and there were numerous ways that the ITC proceeding could have ended
24 (e.g., based on a motion to dismiss or settlement by the parties). Plaintiffs continued to monitor
25
1
An initial ruling is expected in September with a final judgment in early 2019, which is why this
26 issue is ripe for review. Declaration of Kalpana Srinivasan (“Srinivasan Decl.”), Ex. 1; Chuck
Stanley, “Apple Pushes Monopoly Concerns in ITC Fight,” Law 360, June 19, 2018, available at:
27 https://www.law360.com/articles/1055440/apple-pushes-monopoly-concerns-in-qualcomm-itc-
fight.
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1 the proceedings to determine whether a finding of infringement was imminent before bringing the
2 issue to the Court’s attention. The issue is now appropriately before the Court; the ITC staff
3 attorneys have indicated that a finding of infringement as to one of the patents is likely and Judge
4 Pender has stated that “[i]t’s very likely there will be a violation found.” Srinivasan Decl., Ex. 2,
5 Susan Decker, “Apple, Qualcomm Hearing Hinges on 5G and National Security,” BLOOMBERG,
6 available at: https://www.bloomberg.com/news/articles/2018-06-15/apple-qualcomm-trade-
7 hearing-hinges-on-5g-and-national-security (June 15, 2018).
8 The ITC proceeding—as well as the development of discovery and expert analyses in this
9 case—have highlighted numerous issues regarding the public interest considerations that are also
10 directly related to this Court’s jurisdiction, including the imminent and irreparable harm to
11 competition in 4G and 5G that will harm the Class (and consumers) in the form of increased
12 prices and decreased innovation. The ITC staff lawyers have acknowledged Plaintiffs’ concerns.
13 Staff lawyer Lisa Murray commented: “If Intel is taken out of the 5G race, this would slow the
14 pace of U.S. innovation.” Id. She recommended exempting future iPhones from a potential
15 import ban so that “Apple and Intel would have continued incentive to invest in 5G.” Id. While
16 the ITC is cognizant of these issues, it is unclear whether the ITC will find those public interest
17 issues sufficient to preserve the status quo. Id. (“Whether or not the public interest will be
18 sufficient to outweigh that, I can’t predict that. I don’t see a result here being perfect for
19 anyone.”).
20 The ITC’s evaluation of public interest factors, of course, differs from this Court’s
21 exclusive jurisdiction over Plaintiffs’ Sherman Act claims. If the ITC were to find entry of an
22 exclusion or cease and desist order appropriate notwithstanding public interest considerations, the
23 impact of such an order would irreparably harm the competitive landscape for the baseband
24 processor market and would hinder this Court’s flexibility to effectuate relief under the Sherman
25 Act. Plaintiffs’ decision to respect the Court’s and the parties’ resources by waiting to seek an
26 injunction until (1) the ITC proceeding actually reached a stage in which it was likely the
27 Administrative Law Judge would make a determination; and (2) there was an indication that the
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1 determination could be to issue an exclusion or cease and desist order, was appropriate. And
2 given that Plaintiffs seek only to place the enforcement of such an order on hold, there is no
3 substantive difference to Qualcomm whether Plaintiffs moved now or 11 months ago.
4 Moreover, Qualcomm’s arguments in its Opposition contradict each other. On the one
5 hand, Qualcomm argues that Plaintiffs waited too long to try to halt the ITC proceedings. On the
6 other hand, Qualcomm asserts that Plaintiffs have run afoul of the Noerr-Pennington doctrine by
7 attempting to halt Qualcomm from seeking redress from the government. In fact, Plaintiffs
8 perfectly timed this Motion; Plaintiffs have given Qualcomm the opportunity to present its ITC
9 arguments consistent with Noerr-Pennington, but then have immediately sought this limited relief
10 upon the conclusion of that ITC hearing.
11 II. Qualcomm’s Anticompetitive Conduct Has Harmed Plaintiffs And An Exclusion
12 Order Would Magnify That Harm
13 Qualcomm’s arguments that Plaintiffs do not have standing because they have failed to
14 demonstrate how they would be harmed by an exclusion or cease and desist order is belied by the
15 twelve pages of evidence and argument provided in Plaintiffs’ opening brief detailing how
16 Qualcomm’s anticompetitive conduct has harmed Plaintiffs (e.g., increased prices, decreased
17 innovation) and how such an order would further entrench Qualcomm’s monopoly and thereby
18 continue (and indeed exacerbate) those harms. To establish standing for prospective injunctive
19 relief, Plaintiffs must demonstrate that are “threatened with a ‘concrete and particularized’ legal
20 harm ... coupled with ‘a sufficient likelihood that [they] will again be wronged in a similar way.’
21 ” Bates v. United Parcel Serv., Inc. 511 F.3d 974, 985 (9th Cir. 2007) (quoting City of Los
22 Angeles v. Lyons, 461 U.S. 95, 111 (1983)). Plaintiffs unquestionably meet this standard.
23 The fact that Apple and Intel are also impacted by Qualcomm’s antitrust violations is no
24 matter – Plaintiffs are representing their own interests and that of a putative class. See In re TFT-
25 LCD (Flat Panel) Antitrust Litig., 586 F. Supp. 2d. 1109, 1120-24 (2008) (rejecting defendants’
26 argument that indirect purchasers were not injured because there were a “variety of
27
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1 manufacturing, distribution, and retail sales channels separat[ing] the indirect plaintiffs’ alleged
2 injury from the allegedly restrained markets”).
3 Qualcomm’s claim that Plaintiffs are merely “standing in the shoes” of Intel and Apple
4 ignores the direct economic impact of an exclusion order on Plaintiffs. See Blue Shield of Va. v.
5 McCready, 457 U.S. 465, 482 (1982) (“an increase in price resulting from a dampening of
6 competitive market forces is assuredly one type of injury for which [the Clayton Act] potentially
7 offers redress”)); In re Cathode Ray Tube (CRT) Antitrust Litig. (“CRT”), 738 F. Supp. 2d 1011,
8 1023 (N.D. Cal. 2010) (indirect purchasers’ purchases “at inflated prices due to Defendants’
9 unlawful conduct . . . is the type of injury the antitrust laws were intended to address”). For
10 example, the American Consumer Institute for Citizen Research estimates that consumers would
11 face $9.9 billion in harm, or would pay an extra $47 per unit sold if Qualcomm secured an
12 exclusion order. Srinivasan Decl., Ex. 3, “ITC Decision Could Be Costly For Consumers,”
13 American Consumer Institute for Citizen Research, available at:
14 http://www.theamericanconsumer.org/wp-content/uploads/2017/11/Costly-for-Consumers.pdf.
15 According to the CCIA, 29.3 million Apple smartphones would be banned under the exclusion
16 order, which would create a sizeable shortage in the market. Id. It would take manufacturers at
17 least six months to make up this shortage, and even then, they would only be able to do so by
18 manufacturing phones that contain Qualcomm chips. Id.
19 And while consumers would feel an immediate impact of the cellular phone shortage, the
20 long-term ramifications on them would be even more severe. If the ITC were to grant Qualcomm
21 the relief it seeks—exclusion of Intel-based chipsets—then Qualcomm would effectively be the
22 only supplier of premium LTE chipsets in the United States. That de facto monopoly will create
23 the same harms and anticompetitive conditions that existed in the past. Even Qualcomm
24 witnesses in the ITC were forced to acknowledge the harms to Plaintiffs and other consumers:
25 Q. In fact, you agree that having Intel as a competitor in that market is good for
competition; correct? A. I do agree. Q. Having Intel as a competitor in that
26 premium chipset market is good for quality of chipsets; correct? A. Generally
competition is good, yeah. Q. And competition from Intel in particular is good;
27 correct? A. Yes. Q. It’s good for pricing; correct? A. Yes. Q. It’s good for
28 innovation; correct? A. Yes. Q. Good for innovation as we move into 5G; right?
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While Plaintiffs’ experts have prepared detailed analysis identifying the substantial economic
26 harm to Plaintiffs of Qualcomm’s monopoly power, Qualcomm’s own witnesses
acknowledgment that Intel’s exit from the market will have an effect on these interests justifies
27 delaying the implementation of an exclusion order that will create those very harms until after this
Court has decided the issue and determined a remedy.
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4 The end impact here is on consumers – who are left with lower quality, higher price
5 devices but the ongoing anticompetitive conduct. Dr. Scott Morton, Apple’s expert in the field
6 of economics and competition, including entry and exits into markets, testified about the harm
7 consumers would face if an exclusion order were issued. Srinivasan Decl., Ex. 6, Tr. [Morton] at
8 1282:3-10 (“Q. Now, you say that consumers will be harmed by the proposed exclusion order
9 here because they would sacrifice new features and upgraded performance that comes with the
10 latest release of the iPhone; is that correct? A. That’s one reason, yes. Q. And in your public
11 interest analysis, that constitutes harm; correct? A. Yes.”). Id. at 1285:25-1286:3 (“Q. Now you
12 said, I believe, that an increase in OEM's costs would be passed on to consumers in the form of
13 higher price -- higher device prices; correct? A. That’s right.”).
14 Further, an exclusion or cease and desist order that effectively leaves Qualcomm as the
15 only competitor in the premium LTE baseband chipset market threatens to hamper the relief
16 Plaintiffs seek in this action: an end to Qualcomm’s monopolistic practices and greater
17 competition among chip manufacturers. Subjecting Intel-based Apple products to an exclusion
18 order would force Apple back into an exclusive relationship with Qualcomm—the very
19 circumstances that have led to multiple pending antitrust lawsuits and investigations. If the ITC
20 excludes all Apple mobile electronic devices that do not incorporate a Qualcomm brand baseband
21 processor modem, the effect will be to further entrench Qualcomm’s monopoly and recreate
22 Qualcomm’s exclusive relationship with Apple.
23 Enforcement of an exclusion or cease and desist order will frustrate the court’s flexibility
24 to provide an antitrust remedy, which includes providing “measures effective to restore
25 competition.” United States v. E.I. du Pont de Nemours & Co., 366 U.S. 316, 326 (1961). See
26 also, Doc. No. 507-6 (Intel ITC Publ. Int. St.) at 4 (Intel will be “fence[d] . . . out”); Doc. No.
27 507-10 (CCIA ITC Publ. Int. St.) at 5. The high barriers to entry, including the time it takes to
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1 redesign a product to use a different baseband processor, could require years for Intel or a new
2 competitor to reenter, even if the Court curtails Qualcomm’s illegal anticompetitive conduct.
3 Plaintiffs have an interest in having the opportunity for the Court to address its claims and
4 provide proper relief in a timely manner. Boardman v. Pac. Seafood Grp., 822 F.3d 1011, 1024
5 (9th Cir. 2016) (“The ‘purpose of a preliminary injunction is to preserve the status quo ante litem
6 pending a determination of the action on the merits.’”) (citations omitted); see also, Hazardous
7 Waste Treatment Council v. S.C., 945 F.2d 781, 788 (4th Cir. 1991) (“‘The rationale behind a
8 grant of a preliminary injunction has been explained as preserving the status quo so that a court
9 can render a meaningful decision after a trial on the merits’” (citations omitted)).
10 In addition to these specific harms, courts have also found that excluding a competitor
11 from the market constitutes irreparable harm. See, e.g., United States v. BNS Inc., 848 F.2d 945,
12 947 (9th Cir.), supplemented, 858 F.2d 456 (9th Cir. 1988) (“The court found that its jurisdiction
13 under the APPA would be hindered and irreparable harm to competition in the aggregate market
14 threatened if the transaction was completed before it reviewed the consent decree.”); In re
15 BRCA1-, BRCA2-Based Hereditary Cancer Test Patent Litig., 3 F. Supp. 3d 1213, 1250 (D.
16 Utah), aff'd and remanded sub nom. In re BRCA1- & BRCA2-Based Hereditary Cancer Test
17 Patent Litig., 774 F.3d 755 (Fed. Cir. 2014) (“Simply put, in a BRCA testing market where
18 Myriad had been the lone seller, the introduction of new competitors offering alternative testing
19 will force Myriad to choose between lowering its price or losing customers.”); New York ex rel.
20 Schneiderman v. Actavis PLC, 787 F.3d 638, 651 (2d Cir. 2015) (“The district court did not abuse
21 its discretion in granting a prealiminary injunction because New York has demonstrated a
22 substantial likelihood of success on the merits of its monopolization and attempted
23 monopolization claims under § 2 of the Sherman Act, see Beal, 184 F.3d at 123, and has made a
24 strong showing that Defendants' conduct would cause irreparable harm to competition in the
25 memantine-drug market and to consumers, Doe, 666 F.2d at 773.”). That analysis applies here in
26 evaluating harm to consumers, where Intel is effectively the only competitor in the U.S. premium
27 LTE baseband chipset market.
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1 III. The Court Has Jurisdiction Under The All Writs Act To Grant Relief
2 The Court has the ability to exercise its jurisdiction under the All Writs Act in this case
3 because the entry of an exclusion order in the ITC proceeding would directly impact Plaintiffs’
4 Sherman Act claims, over which this Court retains exclusive jurisdiction. Counsel for Qualcomm
5 agreed in the ITC proceeding that the matter did not involve adjudication of antitrust issues. See,
6 e.g., Srinivasan Decl., Ex. 11, Tr. at 81:10-12 (“We're not asking your Honor to adjudicate the
7 antitrust issues. We agree with you, that's for someone else to adjudicate.”).
8 The cases cited by Qualcomm in its Opposition are inapposite because they deal with
9 factually distinguishable circumstances where a district court has overlapping jurisdiction with
10 the ITC. There is simply no case that Plaintiffs are aware of in which a monopolist, such as
11 Qualcomm, attempted to circumvent an ongoing antitrust litigation by seeking an injunction in
12 the ITC of the only products of its only emerging competitor in a market with massive barriers to
13 entry.
14 For example, in Ashlow, the court analyzed whether it should order the ITC to withdraw
15 its order requiring a bond before entry of allegedly infringing goods where the district court had
16 determined the patent to be invalid. Ashlow Ltd. v. Morgan Const. Co., 672 F.2d 371 (4th Cir.
17 1982). The validity of the patent in question was an issue in both cases. Id. The Fourth Circuit’s
18 reasoning focused on the conflicting jurisdiction of the district court and the ITC. Id. at 374.3
19 Here, by contrast, the Court has exclusive jurisdiction over Plaintiffs’ Sherman Act
20 claims. Other courts have recognized the propriety of invoking the All Writs Act to preserve the
21 court’s jurisdiction in such circumstances. See, e.g., In re Uranium Antitrust Litig., 617 F.2d
22 1248, 1259 (7th Cir. 1980) (“The Act has been relied on for the entry of injunctive relief when
23 necessary to preserve the jurisdiction of the district court over a Sherman Act claim.”)4; United
24
3
In re Convertible Rowing Exerciser Patent Litig. 616 F. Supp. 1134, 1137 (D. Del. 1985) and
25
Kaisha v. Bombardier, Inc., 2001 WL 1388911, at *2 (C.D. Cal. Mar. 9, 2001) similarly involved
26 parallel patent proceedings and so provide little guidance for the Court.
4
Qualcomm’s effort to distinguish Uranium is unavailing. While Qualcomm claims the Court
27 “expressly” noted that the All Writs Act has no role to play absent “a final decree of the Court,”
the cited passage was distinguishing De Beers Mines Ltd. v. United States, 325 U.S. 212, 65 S.Ct.
28
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1 States v. Western Pa. Sand and Gravel Association, 114 F.Supp. 158 (W.D. Pa. 1953) (holding
2 that All Writs Act authorized the entry of a preliminary injunction to preserve the Court’s
3 jurisdiction over Sherman Act claims). Similarly, other courts have enjoined conduct potentially
4 harmful to consumers based on the authority conferred by the All Writs Act. See, e.g., In re
5 Volkswagen "Clean Diesel" Mktg., Sales Practices, & Prod. Liab. Litig., No. MDL 2672 CRB
6 (JSC), 2017 WL 2212783, at *27 (N.D. Cal. May 17, 2017) (enjoining Class Members who had
7 not opted out from participating in any state court litigation relating to the Released Claims). And
8 other courts have relied on the All Writs Act when granting injunctive relief to prevent
9 anticompetitive conduct because of the irreparable harm that would otherwise result. See, e.g.,
10 BNS, 848 F.2d at 947 (“We conclude that the district court had authority to issue a preliminary
11 injunction to preserve its APPA jurisdiction under the All Writs Act, 28 U.S.C. § 1651 (1982).
12 Control by BNS of Koppers’ aggregate operation and related facilities in Irwindale during the
13 pendency of the court’s proceedings could conceivably result in irreparable anticompetitive
14 harm.”).5
15 Qualcomm fails to appreciate the significance of the Court’s exclusive jurisdiction over
16 Plaintiffs’ antitrust claims. Here, there is no concern of duplicative proceedings, with courts
17 reaching different conclusions as to validity or infringement. Rather, the concern is the potential
18 for an ITC exclusion order to limit this Court’s flexibility in effectuating relief. If Qualcomm’s
19 monopoly is further entrenched before this action is resolved on the merits, certain forms of relief
20 Plaintiffs are seeking, i.e., enjoining Qualcomm’s exclusivity agreements, will be less effective in
21 mitigating the harmful effects of Qualcomm’s monopoly power. For that reason, unlike the
22
23
(… cont’d)
24 1130, 89 L.Ed. 1566 (1945) from Uranium on the grounds that the Supreme Court suggested an
injunction would have been proper in De Beers if the court had entered judgment against the
25
defendants. Here, like in Uranium, an injunction is appropriate to protect the Court’s jurisdiction.
5
26 Bennett v. Medtronic, Inc., 285 F.3d 801, 805 (9th Cir. 2002) is inapposite because Plaintiffs are
not asking the Court to enjoin the ITC proceeding. Plaintiffs’ requested relief is narrow and
27 would only involve enjoining enforcement of an exclusion order – should one issue – until this
case is adjudicated on the merits.
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1 patent cases cited by Qualcomm, this is precisely the type of case for which the All Writs Act is
2 an appropriate vehicle to protect the Court’s jurisdiction.
3 Qualcomm’s analysis of Realtek Semiconductor Corp. v. LSI Corp., 946 F. Supp. 2d 998
4 (N.D. Cal. 2013) similarly misses the mark. Qualcomm attempts to draw a distinction between a
5 case involving standard essential patents and one involving non-standard essential patents. But
6 whether the ITC proceeding involves standard essential patents or non-standard essential patents,
7 Qualcomm’s intent is anticompetitive. Indeed, injunctive relief is even more appropriate in this
8 case than in Realtek because Qualcomm is not merely trying to impose supra-FRAND royalties.
9 In addition to forcing competitors to pay supra-FRAND royalties, Qualcomm is seeking an
10 anticompetitive ban on Intel chipsets, with the goal of furthering Qualcomm’s monopoly power
11 as the only viable premium LTE baseband processor chip supplier in the U.S. market. The
12 significant harm that such an exclusion order would have on the baseband processor market
13 justifies injunctive relief in this case. See also, Microsoft Corp. v. Motorola, Inc., 871 F. Supp.
14 2d 1089, 1100-1101, 1104 (W.D. Wash. 2012), aff’d, 696 F.3d 872 (9th Cir. 2012) (barring
15 Motorola from “enforcing any injunctive relief it may receive in [a foreign] Action” until it could
16 “determine whether injunctive relief is an appropriate remedy . . . .”); Huawei Tech., Co. Ltd. v.
17 Samsung Elec. Co., Ltd., Case No. 3:16-cv-02787-WHO, Dkt. 280 (N.D. Cal. Apr. 13, 2018)
18 (following Microsoft and enjoining Huawei from enforcing injunction orders issued by the
19 Shenzhen Court).
20 IV. Plaintiffs Need Not Satisfy The Requirements Of Rule 65
21 Qualcomm’s citation to an FLSA case, In re Jimmy Johns Overtime Litigation, for the
22 proposition that Plaintiffs must satisfy the requirements of Rule 65 in order to obtain injunctive
23 relief is incorrect.6 Plaintiffs urge the Court to invoke the All Writs Act to protect its jurisdiction,
24
25 6
In Jimmy Johns, a franchisor sought to enjoin opt-in plaintiffs from pursuing their lawsuits
against franchisee employers until their claims against a franchisor were resolved. 877 F.3d 756
26 (7th Cir. 2017). The district court failed to identify the All Writs Act as the basis for its authority,
and the Seventh Circuit detailed how an injunction would not be proper under the All Writs Act
27 because the opt-in plaintiffs lawsuits’ would not impact the court’s ability to reach and resolve the
merits of the franchisor lawsuit.
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1 including the ability to adequately and effectively restore competition in the market. E.I. du Pont,
2 366 U.S. at 326.
3 Importantly, courts have noted a key distinction between injunctions under Rule 65 and
4 injunctions issued under the All Writs Act:
5 While the issuance of the injunction here did not comply with the requirements
that Fed. R. Civ. P. 65 prescribes for the issuance of preliminary injunctions, this
6 is not a fatal defect. Injunctions issued under the authority of the All-Writs Act
stem from very different concerns than those motivating preliminary injunctions
7 governed by Fed. R. Civ. P. 65. Preliminary injunctions under Rule 65 are
designed to preserve the status quo between the parties before the court pending
8 a decision on the merits of the case at hand. In contrast, injunctions such as that
issued here are needed to prevent third parties from thwarting the court’s ability
9 to reach and resolve the merits of the federal suit before it.
10 In re Baldwin-United Corp. (Single Premium Deferred Annuities Ins. Litig.), 770 F.2d 328, 338-
11 39 (2d Cir. 1985) (enjoining states from bringing actions that would impact rights of class
12 members in securities class action); Federated Conservationists of Westchester Cty., Inc. v. City
13 of Yonkers, 117 F. Supp. 2d 371, 384 (S.D.N.Y. 2000), aff'd, 26 F. App'x 84 (2d Cir. 2002)
14 (“Injunctions made pursuant to the All Writs Act do not have to satisfy the traditional
15 requirements of Fed.R.Civ.P. 65(d). . . Instead, all that is necessary is that the injunction be
16 ‘necessary or appropriate’ to prevent the frustration of a court’s previous remedial order.”).
17 Thus, there is no need to address the preliminary injunction factors set forth in Winter v. Nat. Res.
18 Def. Council, Inc., 555 U.S. 7, 20 (2008).
19 Like Jimmy Johns, Schiavo ex rel. Schindler v. Schiavo, 403 F.3d 1223, 1229 (11th Cir.
20 2005) and Balsley v. San Jose Dev. Corp., 1995 WL 108207, at *3 (N.D. Cal. Mar. 3, 1995) are
21 similarly distinguishable. In Schiavo, the court merely stated that it was improper to rely on the
22 All Writs Act where other remedies at law were available. And in Balsley, while the court
23 analyzed the Rule 65 factors, it did not hold that a litigant was required to satisfy the Rule 65
24 factors when seeking relief under the All Writs Act. In any event, as detailed in Section II, above,
25 Plaintiffs have demonstrated how failure to enjoin Qualcomm’s enforcement of an exclusion
26 order would lead to irreparable harm.
27 V. Qualcomm’s Effort to Exclude Only Intel-Based Chipsets Is Anticompetitive
28
5921789v1/015494 11 Case No. 5:17-md-02773-LHK
PLAINTIFFS’ REPLY TO DEFENDANT QUALCOMM’S OPPOSITION TO
MOTION FOR PRELIMINARY INJUNCTION
Case 5:17-md-02773-LHK Document 620 Filed 07/19/18 Page 16 of 19
1 Qualcomm claims that seeking to block the sale of only Intel-based chipsets is not
2 anticompetitive. But consumers will suffer. Intel is the only real competitor for Qualcomm in the
3 U.S. Qualcomm’s experts acknowledged that the Intel-based iPhone “is the only top-tier phone
4 that currently uses a competing company’s chip.” Srinivasan Decl., Ex. 8, Chuck Stanley, “Apple
5 Pushes Monopoly Concerns in ITC Fight,” Law 360, June 19, 2018, available at:
6 https://www.law360.com/articles/1055440/apple-pushes-monopoly-concerns-in-qualcomm-itc-
7 fight; see also Srinivasan Decl., Ex. 4, Tr. [Thompson] at 1550:17-19 (agreeing that the “two
8 premium chipset providers based right here in the U.S. are Qualcomm and Intel.”.).
9 Qualcomm conflates Plaintiffs’ market power allegations, which relate to the worldwide
10 premium LTE market, with Qualcomm’s competitors in the U.S. By cutting Intel out of the
11 market, Qualcomm would be the only remaining third-party chipset supplier. Qualcomm’s
12 Opposition identifies Plaintiffs’ reference to Samsung’s Exynos chips in their interrogatory
13 responses, but Samsung’s self-supply primarily impacts international products and has a limited
14 impact on the U.S. market.7 Qualcomm’s own experts acknowledge that “every top-echelon
15 smartphone that could potentially serve as a consumer substitute for iPhones blocked from the
16 U.S. uses Qualcomm’s modem chip, with the exception of some Samsung phones that use chips
17 built in-house.” Id. In fact, when limiting Qualcomm’s analysis to competitive alternatives in
18 the U.S. market, Qualcomm’s expert acknowledged that there were only two baseband suppliers,
19 Qualcomm and Intel. See Srinivasan Decl., Ex. 5, Tr. [Sidak] at 515:22-516:5 (“Q. So with
20 respect to the set of accused products and the competitive alternatives identified by Qualcomm,
21 there’s two baseband suppliers; right? A. Yes. A. Intel only supplies to the accused products;
22 correct? A. Correct. Q. Qualcomm supplies to all the rest; right? A. Yes.”).
23
24
25 7
The Samsung exception is particularly narrow in the U.S. For example, only the AT&T
Samsung Galaxy S6 devices contain an Exynos System-on-a-Chip. The Verizon and Sprint
26 Samsung devices contain Qualcomm chips. Mike Freedman, “Samsung Ditching Qualcomm
Modem in Galaxy S6?” Srinivasan Decl., Ex. 9, SAN DIEGO UNION TRIBUNE, available at:
27 http://www.sandiegouniontribune.com/business/technology/sdut-Samsung-Qualcomm-Galaxy-
smartphone-Intel-2015apr06-story.html (April 6, 2015).
28
5921789v1/015494 12 Case No. 5:17-md-02773-LHK
PLAINTIFFS’ REPLY TO DEFENDANT QUALCOMM’S OPPOSITION TO
MOTION FOR PRELIMINARY INJUNCTION
Case 5:17-md-02773-LHK Document 620 Filed 07/19/18 Page 17 of 19
1 interference. Cal. Motor Transp. Co. v. Trucking Unlimited, 404 U.S. 508, 510 (1972) stands for
2 the unremarkable proposition that the right to petition extends to “all departments of the
3 government” but neither discusses ITC proceedings nor the All Writs Act. Finally, Cheminor
4 Drugs, Ltd. v. Ethyl Corp., 168 F.3d 119, 127 (3d Cir. 1999) held that litigants were protected
5 from antitrust liability based on their petitioning the government for redress. While the Noerr-
6 Pennington doctrine preserves Qualcomm’s right to petition, it does not impact the right to secure
7 relief. Plaintiffs are not questioning whether Qualcomm has First Amendment rights to bring a
8 proceeding before the ITC. The issue is whether the relief requested by Qualcomm will interfere
9 with this Court’s flexibility to fashion an appropriate remedy for the anticompetitive harm
10 suffered by consumers.
11 VII. Conclusion
12 For the foregoing reasons, Plaintiffs respectfully request the Court to issue an injunction
13 to prevent Qualcomm from seeking to enforce any ITC exclusion order until this action is
14 resolved.
15 July 19, 2018 By: /s/ Kalpana Srinivasan
Kalpana Srinivasan
16 Marc M. Seltzer
Steven G. Sklaver
17 Amanda K. Bonn
Oleg Elkhunovich
18 Krysta Kauble Pachman
SUSMAN GODFREY L.L.P.
19 1900 Avenue of the Stars, Suite 1400
Los Angeles, CA 90067
20 Telephone: (310) 789-3100
Facsimile: (310) 789-3150
21 Email: ksrinivasan@susmangodfrey.com
Email: mseltzer@susmangodfrey.com
22 Email: ssklaver@susmangodfrey.com
Email: abonn@susmangodfrey.com
23 Email: oelkhunovich@susmangodfrey.com
Email: kpachman@susmangodfrey.com
24
Joseph Grinstein
25 SUSMAN GODFREY L.L.P.
1000 Louisiana Street, Suite 5100
26 Houston, TX 77002
Telephone: (713) 651-9366
27 Facsimile: (713) 654-6666
Email: jgrinstein@susmangodfrey.com
28
5921789v1/015494 14 Case No. 5:17-md-02773-LHK
PLAINTIFFS’ REPLY TO DEFENDANT QUALCOMM’S OPPOSITION TO
MOTION FOR PRELIMINARY INJUNCTION
Case 5:17-md-02773-LHK Document 620 Filed 07/19/18 Page 19 of 19
1
By: /s/ Joseph W. Cotchett
2 Joseph W. Cotchett
Adam J. Zapala
3 Brian Danitz
Mark F. Ram
4 Michael A. Montaño
COTCHETT, PITRE & MCCARTHY
5 840 Malcolm Road, Suite 200
Burlingame, CA 94010
6 Telephone: (650) 697-6000
Facsimile: (650) 697-0577
7 Email: jcotchett@cpmlegal.com
Email: azapala@cpmlegal.com
8 Email: bdanitz@cpmlegal.com
Email: mram@cpmlegal.com
9 Email: mmontano@cpmlegal.com
10 Plaintiffs’ Co-Lead Counsel
11 By: /s/ Steve W. Berman
HAGENS BERMAN SOBOL SHAPIRO LLP
12 1918 Eighth Avenue, Suite 3300
Seattle, WA 98101
13 Telephone: (206)268-9320
Facsimile: (206)623-0594
14 Email: steve@hbsslaw.com
15 Jeffrey D. Friedman
Rio S. Pierce
16 HAGENS BERMAN SOBOL SHAPIRO LLP
715 Heart Avenue, Suite 202
17 Oakland, CA 94618-1245
Telephone: (510)725-3000
18 Facsimile: (510)725-3001
Email: jeff@hbsslaw.com
19 Email: riop@@hbsslaw.com
20 Plaintiffs’ Steering Committee
21
22
23
24
25
26
27
28
5921789v1/015494 15 Case No. 5:17-md-02773-LHK
PLAINTIFFS’ REPLY TO DEFENDANT QUALCOMM’S OPPOSITION TO
MOTION FOR PRELIMINARY INJUNCTION
Case 5:17-md-02773-LHK Document 620-1 Filed 07/19/18 Page 1 of 3
14
17
KALPANA SRINIVASAN’S
18 DECLARATION IN SUPPORT OF
PLAINTIFFS’ REPLY TO DEFENDANT
19 QUALCOMM’S OPPOSITION TO
MOTION FOR PRELIMINARY
20 INJUNCTION
21
CLASS ACTION
22
Date: Thursday, August 30, 2018
23 Time: 1:30 p.m.
Place: Courtroom 8
24
First Amended Consolidated
25 Class Action Complaint filed June 13, 2018
26
27
28
1 Mobile Electronic Devices and Radio Frequency And Processing Components Thereof, Inv. No.
2 337-TA-1065, dated June 25, 2018.
3 9. Attached as Ex. 7 is a true and correct copy of the excerpts from the Deposition of
4 Kevin Constantine, Volume I, dated February 15, 2018. This document was designated as
5 containing Intel Confidential Business Information Subject to the Protective Order, Inv. No. 337-
6 TA-1065.
7 10. Attached as Ex. 8 is a true and correct copy of an article by Chuck Stanley titled
8 “Apple Pushes Monopoly Concerns In Qualcomm ITC Fight,” from Law 360, dated June 19,
9 2018.
10 11. Attached as Ex. 9 is a true and correct copy of an article by Mike Freeman titled
11 “Samsung ditching Qualcomm modem in Galaxy S6?” from The San Diego Tribune, dated April
12 6, 2015.
13 12. Attached as Ex. 10 is a true and correct copy of a transcript from the open session
14 of the Hearing before the United States International Trade Commission In the Matter of: Certain
15 Mobile Electronic Devices and Radio Frequency And Processing Components Thereof, Inv. No.
16 337-TA-1065, dated June 22, 2018.
17 13. Attached as Ex. 11 is a true and correct copy of a transcript from the open session
18 of the Hearing before the United States International Trade Commission In the Matter of: Certain
19 Mobile Electronic Devices and Radio Frequency And Processing Components Thereof, Inv. No.
20 337-TA-1065, dated June 15, 2018.
21 I declare under penalty of perjury under the laws of the United States of America that the
22 foregoing is true and correct.
23 Executed this 19th day of July, 2018, in Los Angeles, California.
24 /s/ Kalpana Srinivasan_________________
Kalpana Srinivasan
25
26
27
28
Exhibit 1
Apple Pushes Monopoly Concerns In Qualcomm ITC Fight - Law360 https://www.law360.com/articles/1055440/print?section=competition
Case 5:17-md-02773-LHK Document 620-2 Filed 07/19/18 Page 2 of 3
Portfolio Media. Inc. | 111 West 19th Street, 5th floor | New York, NY 10011 | www.law360.com
Phone: +1 646 783 7100 | Fax: +1 646 783 7161 | customerservice@law360.com
By Chuck Stanley
Law360 (June 19, 2018, 9:31 PM EDT) -- Apple attorneys questioned an expert witness for
Qualcomm on the potential competition effects of the chipmaker’s bid to ban Intel-equipped
iPhones from the U.S. during a hearing Tuesday at the International Trade Commission, pressing
a claim that a ban on imports of the phone could hand Qualcomm monopoly power and push Intel
out of 5G development.
Apple Inc., in an effort to fight off patent infringement claims related to Intel Corp.-made chips
used in some iPhones, has argued that banning phones with the Intel chips would leave
Qualcomm Inc. with an effective monopoly on the market for modem chips used in premium
smartphones.
Apple has further suggested Intel would likely drop its efforts to develop next-generation wireless
technology known as 5G if its chips were effectively locked out of the U.S. market, diminishing the
influence of U.S. companies on standards for the new technology, an issue that has been flagged
by U.S. policymakers as a national security concern.
The expert witness, Gregory Sidak of consulting firm Criterion Economics, said he thought it was
unlikely Intel would abandon the entire 5G space over a setback to its business making chips for
handsets.
“I don’t think it’s credible,” said Sidak, Criterion's founding chairman. “[Intel] would be passing up
too great an opportunity aside from the smartphone business.”
Apple has said that a decision pushing Intel out of the 5G development game would undercut U.S.
investment in the emerging technology and cede leadership in the vital space to China.
Sidak also hit back at Apple’s claim that a ban on imports of Intel’s chips would allow Qualcomm
to raise prices for the chips and the costs would be passed on to consumers.
Sidak said Apple’s buying power would offset any putative monopoly power handed to Qualcomm,
and that a jump in prices for the chips would drive the tech giant to seek other sources for
advanced chips, incentivize makers of lower-performance chips to develop top-tier modem chips
and increase consumer demand for phones that use less-expensive modem chip designs.
According to an economic analysis Sidak performed for Qualcomm, every top-echelon smartphone
that could potentially serve as a consumer substitute for iPhones blocked from the U.S. uses
Qualcomm's modem chip, with the exception of some Samsung phones that use chips built in-
house.
The Intel-equipped iPhone, Sidak said, is the only top-tier phone that currently uses a competing
company's chip.
Sidak, in response to questioning from Apple attorneys, conceded that it is “generally true” that
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Case 5:17-md-02773-LHK Document 620-2 Filed 07/19/18 Page 3 of 3
competition between two companies is better than a monopoly for consumer pricing, quality and,
in this case, national security issues.
However, he said that respect for Qualcomm’s intellectual property rights in the instant case
weighs against the general preference for competition.
“You’re trading the competitive benefits on one hand, and the protection of the company holding
the infringed patent on the other,” he said.
The ITC can issue a decision effectively banning the import of goods that violate U.S. patents, but
it has to find that such a decision is in the public interest.
The case is part of a larger dispute between the two companies over roughly 70 patents, playing
out in multiple jurisdictions around the world, including two patent infringement suits in
California federal court.
The instant case, which turns on three patents that cover chip design features that improve
energy efficiency, is the first to get a hearing at the ITC. An ITC administrative law judge is
scheduled to hear another case on a second group of patents in September.
Qualcomm launched the suit after Apple stopped reimbursing contracting manufacturers of
iPhones for royalty payments made by the individual companies to Qualcomm under individual
licensing agreements that allow them to produce the chips.
At Apple’s direction, Qualcomm claims, the contracting manufacturers stopped making the royalty
payments for iPhones, stripping Qualcomm of a major revenue source, even as they continued to
make the payments for phones they made for other device makers using the same Qualcomm
technology.
Apple’s vice president of procurement, Tony Blevins, said at the hearing that Qualcomm’s request
for a licensing agreement with Apple was one reason the company went with another chipmaker
when it produced the first version of the iPhone.
Blevins disputed Qualcomm’s claim that Apple directed manufacturers to withhold royalty
payments.
Rather, he said, Apple made “three very specific statements” to the contracting manufacturers.
Apple, according to Blevins, told the manufacturers it would only reimburse them for tech
royalties they were “required” to pay; that the contracting manufacturers were not required to
pay any royalties to Qualcomm for the modem chips; and that the contracting manufacturers
should do “whatever they want” with regard to the royalty payments.
Arguments in the case are expected to go through June 26, with an initial ruling expected in
September and a final determination in early 2019.
The case is In the Matter of Certain Mobile Electronic Devices and Radio Frequency and Processing
Components Thereof, case number 337-TA-1065, in the U.S. International Trade Commission.
2 of 2 7/19/2018, 8:18 AM
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Exhibit
Apple, Qualcomm Hearing Hinges on 5G and National Security - Bloomberg https://www.bloomberg.com/news/articles/2018-06-15/apple-qualcomm-...
Case 5:17-md-02773-LHK Document 620-3 Filed 07/19/18 Page 2 of 6
1 of 5 7/19/2018, 8:19 AM
Apple, Qualcomm Hearing Hinges on 5G and National Security - Bloomberg https://www.bloomberg.com/news/articles/2018-06-15/apple-qualcomm-...
Case 5:17-md-02773-LHK Document 620-3 Filed 07/19/18 Page 3 of 6
2 of 5 7/19/2018, 8:19 AM
Apple, Qualcomm Hearing Hinges on 5G and National Security - Bloomberg https://www.bloomberg.com/news/articles/2018-06-15/apple-qualcomm-...
Case 5:17-md-02773-LHK Document 620-3 Filed 07/19/18 Page 4 of 6
3 of 5 7/19/2018, 8:19 AM
Apple, Qualcomm Hearing Hinges on 5G and National Security - Bloomberg https://www.bloomberg.com/news/articles/2018-06-15/apple-qualcomm-...
Case 5:17-md-02773-LHK Document 620-3 Filed 07/19/18 Page 5 of 6
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Case 5:17-md-02773-LHK Document 620-4 Filed 07/19/18 Page 1 of 10
Exhibit
Case 5:17-md-02773-LHK Document 620-4 Filed 07/19/18 Page 2 of 10
When the parties can’t agree on a price or if disputes arise as to whether there is
infringement, the issue can be settled in court. However, parties generally think of court as a
1
Daniel O’Connor, “One in Six Active Patents Pertain to Smartphone,” Project Disco, October 17, 2012 at
http://www.project-disco.org/intellectual-property/one-in-six-active-u-s-patents-pertain-to-the-
smartphone/#.VmWjjzZdE2w.
Case 5:17-md-02773-LHK Document 620-4 Filed 07/19/18 Page 3 of 10
2
last resort for resolving a patent dispute, because litigation is both an expensive and inefficient
means of determining prices.
Sometimes, a party can file a complaint for patent infringement with the International
Trade Commission (ITC). The ITC is the same federal commission that investigates foreign
companies for dumping subsidized products in the U.S. Parties resort to the ITC far less
frequently than to district courts because it offers only a single remedy: it can only exclude
foreign goods from entering the United States or being sold in the United States. Even more
significant is that this is a “one size fits all” remedy: no matter how valuable or trivial a patent is
to a product, the ITC will bar the entire product from the U.S. market, if it finds infringement.
Qualcomm’s decision to seek relief before the ITC is particularly unusual here for two
reasons. First, it has selectively asserted patents that are not central to the iPhone’s innovation
or demand, yet it seeks to exclude them entirely from the U.S. market based on these patents.
Second, Qualcomm has only targeted certain Apple iPhones – those that contain Intel (rather
than Qualcomm) Chipsets, despite the fact that Qualcomm’s infringement assertions appear to
apply equally to iPhones that contain Qualcomm chipsets. 2 Therefore, if the ITC finds a patent
violation, it could impose an exclusion order that would effectively block the importation of a
significant number of Apple iPhones, unless the ITC finds that such an exclusion order is not in
the public interest. 3
Qualcomm’s choice to file this dispute in the ITC provides no leeway between two polar
outcomes. On the one hand, if the ITC finds that Apple has not infringed on any Qualcomm
patent, it would dismiss the complaint. Alternatively, if the ITC finds an infringement, it could
immediately block the offending devices from importation. The latter option would lead to
adverse consequences that would affect the immediate availability of smartphones, as well as
what consumers pay for them, and have a dramatic impact on consumer welfare.
2
Ted Greenwald and Tripp Mickle, “Qualcomm Steps Up Fight Against Apple,” Wall Street Journal, July 6, 2017.
3
Under Section 337 of the Tariff Act of 1930, as stated at http://usitc.gov/intellectual_property.htm.
Case 5:17-md-02773-LHK Document 620-4 Filed 07/19/18 Page 4 of 10
3
The challenges against Qualcomm are numerous. Early this year, the U.S. Federal Trade
Commission filed a complaint with the U.S. District Court in the Northern District of California,
citing, among other issues, Qualcomm’s refusal to license its competitors (“no license – no
chips”), excessive royalties demands, and exclusivity deals that give rebates to manufacturers
who refuse to buy chipsets from competitors.4 Late last year, Korean’s antitrust regulator, the
South Korean Fair Trade Commission (KFTC), fined Qualcomm $865 million for licensing
abuses.5 Before this, the Chinese antitrust regulator fined Qualcomm $975 million and
required them to lower their royalty fees. 6 Just last month, the Taiwan Fair Trade Commission
levied a $774 million fine on Qualcomm for antitrust violations. 7 In addition, competition
authorities in Japan and Europe also appear to be taking a closer look at Qualcomm’s business
practices. 8
4
Steven Titch, “FTC vs. Qualcomm: No License, No Chips,” Computerworld, June 12, 2017; and Aaron Tilly,
“Qualcomm Strong-Armed Apple into Buying Its Chips, US Gov Says,” Forbes, January 17, 2017.
5
Corinne Reichert, “Qualcomm fined $865m by South Korean Antitrust Regulator, ZDNet, December 28, 2016.
6
Don Clark, “Qualcomm to Pay $975 Million Antitrust Fine to China,” Wall Street Journal, February 10, 2015.
7
“Taiwan Fines Qualcomm $774 for Antitrust Violations,” Reuters, October 11, 2017, at
https://www.reuters.com/article/us-qualcomm-taiwan-fine/taiwan-fines-qualcomm-774-million-for-antitrust-
violations-idUSKBN1CG1RF.
8
Mike Freeman, “Qualcomm Asks Judge to Toss FTC’s Antitrust Lawsuit,” San Diego Union Tribune, April 4, 2017;
“Qualcomm Faces Investigation by Taiwan’s Fair Trade Commission,” Reuters, December 8, 2015; and Tom Fairless
and Don Clark, “EU Launches Antitrust Investigations into Qualcomm, Wall Street Journal, July 16, 2015.
Case 5:17-md-02773-LHK Document 620-4 Filed 07/19/18 Page 5 of 10
4
9
For various public interest statements, see: “In the Matter of Certain Mobile Electronic Devices and Radio
Frequency and Processing Components Thereof,” Intel, Docket No. 3235, filed with the United States International
Trade Commission, July 20, 2017; “In the Matter of Certain Mobile Electronic Devices and Radio Frequency and
Processing Components Thereof,” Computer & Communications Industry Association, Docket No. 3235, filed with
the United States International Trade Commission, July 12, 2017; and “In the Matter of Certain Mobile Electronic
Devices and Radio Frequency and Processing Components Thereof,” App Association, Docket No. 3235, filed with
the United States International Trade Commission, July 20, 2017.
10
“Apple Says Qualcomm Overcharged For Chips and It’s Suing for $1 Billion,” Reuters, January 22, 2017.
11
For example, market analysts estimate that Apple is likely to shift over 70% of its baseband chip orders to other
suppliers by 2018. See Mitchel Broussard, “Intel Gaining Larger Foothold in iPhone LTE Chip Supply Chain as Apple
Distances Itself from Qualcomm,” MacRumors, June 1, 2017.
Case 5:17-md-02773-LHK Document 620-4 Filed 07/19/18 Page 6 of 10
5
One criteria the ITC regulators will consider in determining whether to block Apple
products from the U.S. market is whether such an action would have adverse effects on
consumers. In its complaint, Qualcomm claims that blocking Apple devices would have no
consumer impact. However, any time supply is reduced, prices go up. Even if substitutes
eventually come onboard, these devices will have Qualcomm chips. In this way, the ban would
preserve Qualcomm’s monopoly and raise consumer prices. In addition, blocking smartphones
products would reduce consumer choice.
12
See Philip Elmer-DeWitt, “About Apple’s 40% Share of the U.S. Smartphone Market, Fortune, February 11, 2016
at http://fortune.com/2016/02/11/apple-iphone-ios-share/.
13
Apple’s U.S. revenue was 42% of its worldwide revenue from the 4th quarter of 2016 to the 3rd quarter of 2017.
During the same period, it sold 215.6 million smartphones worldwide or, by extrapolation, approximately 93.7
million in the U.S. See Apple Inc., various quarterly financial reports at https://www.apple.com/newsroom/. Based
on this quantity and the 40% share, the total number of units sold in the U.S. can be estimated.
14
This represents a rough sales estimate of new models, based on iPhone 7 and iPhone 7 Plus sale during the
three-month period ending July 1st. See, Don Reisinger, “Apple’s iPhone 7 is Way More Popular than Older
Models,” Fortune, July 25, 2017.
15
“In the Matter of Certain Mobile Electronic Devices and Radio Frequency and Processing Components Thereof,”
Computer & Communications Industry Association, Statement of Third Party, July 12, 2017, citing Mitchel
Broussard, “Intel Gaining Larger Foothold in iPhone LTE Chip Supply Chain as Apple Distances Itself from
Qualcomm, July 1, 2017, at https://www.macrumors.com/2017/06/01/intel-iphone-lte-apple-qualcomm/.
Case 5:17-md-02773-LHK Document 620-4 Filed 07/19/18 Page 7 of 10
6
containing Intel chips from the market. Therefore, an importation ban of Apple products would
create a sizable shortage in the market. Considering the long lead times necessary to design,
produce and ship smartphone to the market, it will likely take six months or longer for
manufacturers to utilize what excess capacity may be available in sufficient scale to makeup the
shortage. Concurring, CCIA predicts:
A secondary but perhaps even more significant and longer-term effect of a selective
exclusion order is the elimination of Qualcomm’s only competitor in the premium LTE baseband
market. If Apple can no longer purchase premium LTE baseband processors from Intel, that
would almost certainly cause Intel leave the market altogether. 17
16
CCIA Public Interest Statement, p. 3, at http://www.ccianet.org/wp-content/uploads/2017/07/2017-07-20-
Public-Interest-Comments-of-CCIA-in-Qualcomm-v.-Apple-ITC.pdf.
17
Intel’s public interest statement, p. 4.
18
CCIA’s public interest statement notes that all other competitors were forced out of the market by Qualcomm, p.
4.
Case 5:17-md-02773-LHK Document 620-4 Filed 07/19/18 Page 8 of 10
7
signals to all smartphone manufacturers to avoid market disruption or else face the
consequences.
Viewed together, a potential ITC exclusion order pushing Intel out of the premium LTE
market and the resulting shortage of smartphones would affect the price of Apple devices and
all other competitive devices. This means that consumers would pay more for scarcer Apple
products or pay more for substitutes, some with less features, or not buy smartphones at all.
The consumer welfare change resulting from the importation ban is depicted below in
Figure 1. As noted earlier, the decrease from the initial quantity (Q1 to Q2) will result in 29.3
million fewer Apple smartphones. With the initial price (P1) of $405, the shortage will result in
a $47 average price increase per unit sold. As a result of lower quantities and higher prices,
total consumer welfare would decrease by approximately $9.9 billion, or an area equal to the
trapezoid BCED (labeled consumer surplus decrease). While this assumes a shortage lasting one
year, the sheer size of the welfare losses demonstrates that even a shortage lasting just a few
19
Ying Fan and Chenyu Yang, “Competition, Product Proliferation and Welfare: A Study of the U.S. Smartphone
Market,” May 27, 2017, abstract available at https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2506423.
20
This estimate comes from Thomas W. Hazlett and Roberto E. Munoz, “A Welfare Analysis of Spectrum Allocation
Policies,” The Rand Journal of Economics, Vol. 40:1, Autumn 2009, pp. 424-454.
21
Apple devices average $691, while Android devices, such as Samsung and Pixel, average $215. Given Apple’s
share of 40%, and the weighted average of a device is $405. See Philip Elmer-DeWitt, “The Apple iOS and Android
Price Gap Just Gets Wider,” Fortune, February 15, 2016, http://fortune.com/2016/02/15/apple-android-asps/.
Case 5:17-md-02773-LHK Document 620-4 Filed 07/19/18 Page 9 of 10
8
months would produce significant harm to consumers. Moreover, while this figure depicts
losses from disruption in the smartphone market, the ramifications of an exclusion order will
produce additional losses not estimated here, because of indirect and induced benefits enabled
by smartphones by way of various online and video services, applications, software and public
safety.
A Consumer Surplus
Price
Decrease
B C (shaded Area)
P2
P1 E
D
Demand
Q2 Q1
Quantity
Conclusion
The ITC’s remedies differ dramatically from a federal district court. While other courts
can potentially tailor any remedy to fit the violation, the ITC cannot. If the ITC finds Apple has
infringed on any of Qualcomm’s patents, no matter how negligible, it has only one choice to
make – block the importation into the U.S. of Apple smartphones with Intel chips. Such an
action will indisputably create a significant and adverse impact on consumer welfare by
strengthening Qualcomm’s monopoly as the exclusive supplier of premium chipsets, which is
contrary to the public interest.
Based on this analysis, an ITC exclusion order blocking the importation of certain Apple
iPhones would translate into fewer choices and higher prices for consumers. Anyone
concerned with consumer welfare should hope such an outcome is avoided.
Case 5:17-md-02773-LHK Document 620-4 Filed 07/19/18 Page 10 of 10
9
Case 5:17-md-02773-LHK Document 620-5 Filed 07/19/18 Page 1 of 119
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Case 5:17-md-02773-LHK Document 620-5 Filed 07/19/18 Page 3 of 119
1509
2 BEFORE THE
5 - - - - - - - - - - - - - - - - - X
9 COMPONENTS THEREOF :
10 - - - - - - - - - - - - - - - - - X
11
12 HEARING
13
15 Courtroom B
17 Commission
18 500 E Street, SW
19 Washington, DC
20
21
202-347-3700
Case 5:17-md-02773-LHK Document 620-5 Filed 07/19/18 Page 4 of 119
1510
1 APPEARANCES:
8 312.705.7400
10
15 415.875.6600
17
23 212.849.7000
25 - continued -
202-347-3700
Case 5:17-md-02773-LHK Document 620-5 Filed 07/19/18 Page 5 of 119
1511
1 APPEARANCES (CONTINUED):
7 213.443.3000
13 Washington, DC 20005
14 202.538-8000
16
21 713.221.7000
23
24
25 - continued -
202-347-3700
Case 5:17-md-02773-LHK Document 620-5 Filed 07/19/18 Page 6 of 119
1512
1 APPEARANCES (CONTINUED):
7 917.626.1356
15 212.474.1430
17
22 Washington, DC 20036
23 202.467.6300
25 - continued -
202-347-3700
Case 5:17-md-02773-LHK Document 620-5 Filed 07/19/18 Page 7 of 119
1513
1 APPEARANCES (CONTINUED):
8 60 State Street
10 617.526.6556
12
16 Washington, DC 20006
17 202.663.6365
19
24 213.443.5309
202-347-3700
Case 5:17-md-02773-LHK Document 620-5 Filed 07/19/18 Page 8 of 119
1514
1 APPEARANCES (CONTINUED):
6 Washington, DC 20024
7 202.783.5070
15 500 E Street, SW
16 Washington, DC 20436
17 202.205.2158
19
20
21
22
23
24
25
202-347-3700
Case 5:17-md-02773-LHK Document 620-5 Filed 07/19/18 Page 9 of 119
1515
1 P R O C E E D I N G S
5 pages for the first brief, 75 pages for the next brief and
16 where you don't need to spend text. You know what the
17 evidence is.
19 the hearing, I'll approve it. And that is if you guys want
23 for heaven's sakes. Facts that both of you know that are
24 true that are beyond the cavil of worth arguing about, like
202-347-3700
Case 5:17-md-02773-LHK Document 620-5 Filed 07/19/18 Page 10 of 119
1516
5 a thought, and you guys may have better ideas than me, just
10 infringement later.
13 them, you know. But keep them to the same guidelines. I'm
14 not going to tell you what to do. You know what to do. As
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Case 5:17-md-02773-LHK Document 620-5 Filed 07/19/18 Page 11 of 119
1517
15 the elevator where the injury occurred was blue, you know.
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Case 5:17-md-02773-LHK Document 620-5 Filed 07/19/18 Page 12 of 119
1518
4 may be. But I want -- it strikes me, and I've heard some
7 the average.
13 writing for the Supreme Court, you know that you can't say
14 extra words and you have those little tiny pages that you
18 Douglas; correct?
202-347-3700
Case 5:17-md-02773-LHK Document 620-5 Filed 07/19/18 Page 13 of 119
1519
3 afraid to say that. And use logic to explain why you think
10 it. I don't see its efficacy. I think the switch here has
12 so much is at stake.
202-347-3700
Case 5:17-md-02773-LHK Document 620-5 Filed 07/19/18 Page 14 of 119
1520
1 that's true or not. But they say trial lawyers, which all
22 who like the old witch test, they sink, you know?
23 (Laughter.)
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Case 5:17-md-02773-LHK Document 620-5 Filed 07/19/18 Page 15 of 119
1521
3 over the years and the thought of there but by the grace of
7 and has its own reward, because you don't lose the message
11 bother to brief it, you know, then don't, you know. Make
25 right. I'm confident that the briefs this time are going
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Case 5:17-md-02773-LHK Document 620-5 Filed 07/19/18 Page 16 of 119
1522
10 Mr. Aberle?
25 what we decided.
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Case 5:17-md-02773-LHK Document 620-5 Filed 07/19/18 Page 17 of 119
1523
7 a break.
9 than not that Intel will exit the premium baseband chip
13 fact by me. But does that mean -- if that fact were true,
15 an exclusionary order?
17 You can argue first of all the facts or the impact of the
18 facts, and the next thing is okay, even if those facts are
20 a patent?
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Case 5:17-md-02773-LHK Document 620-5 Filed 07/19/18 Page 18 of 119
1524
3 for instance.
11 Mr. Nelson, you nailed it, you know. I don't know how --
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Case 5:17-md-02773-LHK Document 620-5 Filed 07/19/18 Page 19 of 119
1525
2 my opinion.
10 competitive conditions.
12 have one without the other. I think you need to plead it,
17 Mr. Nelson.
202-347-3700
Case 5:17-md-02773-LHK Document 620-5 Filed 07/19/18 Page 20 of 119
1526
4 all.
6 all.
17 you can inform your clients that the boat is sinking, you
19 anything else.
21 Mr. Marriott.
202-347-3700
Case 5:17-md-02773-LHK Document 620-5 Filed 07/19/18 Page 21 of 119
1527
4 Whereupon,
5 JAMES THOMPSON
11 DIRECT EXAMINATION
12 BY MR. MARRIOTT:
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Case 5:17-md-02773-LHK Document 620-5 Filed 07/19/18 Page 22 of 119
1528
15 from there.
24 Carmen.
25 He's soft-spoken.
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Case 5:17-md-02773-LHK Document 620-5 Filed 07/19/18 Page 23 of 119
1529
3 Sorry, yes?
4 BY MR. MARRIOTT:
7 Qualcomm?
12 group.
16 semiconductor.
202-347-3700
Case 5:17-md-02773-LHK Document 620-5 Filed 07/19/18 Page 24 of 119
1530
2 processing.
202-347-3700
Case 5:17-md-02773-LHK Document 620-5 Filed 07/19/18 Page 25 of 119
1531
12 not just making the quality better and the capacity much
16 the time.
24 officer?
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Case 5:17-md-02773-LHK Document 620-5 Filed 07/19/18 Page 26 of 119
1532
8 project.
10 And then when that project ended -- and actually, there was
12 the company left the chip division, which was very small at
15 around 2001.
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Case 5:17-md-02773-LHK Document 620-5 Filed 07/19/18 Page 27 of 119
1533
3 chipset development?
5 main focus.
14 foundries.
22 complex.
24 for Apple?
202-347-3700
Case 5:17-md-02773-LHK Document 620-5 Filed 07/19/18 Page 28 of 119
1534
2 of my -- what I oversee.
5 A Yes.
8 first tab.
12 A Yes.
15 A Yes.
18 A Yes.
21 A Yes.
24 evidence.
202-347-3700
Case 5:17-md-02773-LHK Document 620-5 Filed 07/19/18 Page 29 of 119
1535
8 received.)
16 why --
24 done.
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Case 5:17-md-02773-LHK Document 620-5 Filed 07/19/18 Page 30 of 119
1536
8 technical decisions?
14 something is in trouble.
18 them.
20 trade-offs.
202-347-3700
Case 5:17-md-02773-LHK Document 620-5 Filed 07/19/18 Page 31 of 119
1537
13 networks.
24 CROSS-EXAMINATION
25 BY MR. MUELLER:
202-347-3700
Case 5:17-md-02773-LHK Document 620-5 Filed 07/19/18 Page 32 of 119
1538
3 A Sure.
6 chipsets; right?
9 Samsung.
18 A Yes.
21 A Yes.
24 baseband chipsets.
202-347-3700
Case 5:17-md-02773-LHK Document 620-5 Filed 07/19/18 Page 33 of 119
1539
5 audio.
16 baseband chipset?
17 A Correct.
21 A Yes.
24 A Yes.
202-347-3700
Case 5:17-md-02773-LHK Document 620-5 Filed 07/19/18 Page 34 of 119
1540
2 A Yes, correct.
13 baseband chipset?
20 A Yes.
202-347-3700
Case 5:17-md-02773-LHK Document 620-5 Filed 07/19/18 Page 35 of 119
1541
1 next year.
6 Honor?
14 this case.
16 A Yes.
19 A Yes.
22 correct?
23 A Yes.
202-347-3700
Case 5:17-md-02773-LHK Document 620-5 Filed 07/19/18 Page 36 of 119
1542
2 A That's correct.
4 A Yes.
6 in the U.S., the two open market suppliers are Qualcomm and
7 Intel; correct?
13 right?
22 us for all those sockets as well. And then also with the
202-347-3700
Case 5:17-md-02773-LHK Document 620-5 Filed 07/19/18 Page 37 of 119
1543
9 confidential.
12
13
14
15
16
17
18
19
20
21
22
23
24
25
202-347-3700
Case 5:17-md-02773-LHK Document 620-5 Filed 07/19/18 Page 38 of 119
1549
2 BY MR. MUELLER:
5 5G; correct?
6 A Yes.
16 correct?
17 A Yes.
20 important, yes.
22 A Yes.
24 finish my question.
25 A I'm sorry.
202-347-3700
Case 5:17-md-02773-LHK Document 620-5 Filed 07/19/18 Page 39 of 119
1550
6 yeah.
9 A Yes.
11 A Yes.
13 correct?
14 A That's right.
16 A Correct.
19 A That's correct.
21 better chipsets than Intel, and I'm not going to debate you
25 Q I'm sorry?
202-347-3700
Case 5:17-md-02773-LHK Document 620-5 Filed 07/19/18 Page 40 of 119
1551
3 contributor.
6 A Yeah, of course.
8 A Sure, yes.
16 A Right.
19 A Yes.
21 correct?
24 make it clear.
202-347-3700
Case 5:17-md-02773-LHK Document 620-5 Filed 07/19/18 Page 41 of 119
1552
3 A Yes.
12 on, yeah.
202-347-3700
Case 5:17-md-02773-LHK Document 620-5 Filed 07/19/18 Page 42 of 119
1553
1 chipsets; correct?
2 A Yes, yes.
19 chipsets; correct?
20 A Yes.
202-347-3700
Case 5:17-md-02773-LHK Document 620-5 Filed 07/19/18 Page 43 of 119
1554
2 A Okay.
5 correct?
10 A Yes.
13 true, is it?
19 A Sure.
202-347-3700
Case 5:17-md-02773-LHK Document 620-5 Filed 07/19/18 Page 44 of 119
1555
1 that right?
5 A Right.
12 this case.
18 including Intel?
24 question.
202-347-3700
Case 5:17-md-02773-LHK Document 620-5 Filed 07/19/18 Page 45 of 119
1556
1 BY MR. MUELLER:
6 pay anything.
8 Intel; correct?
14 A Yes.
16 correct?
17 A Yes.
19 A That's right.
21 one; correct?
22 A Yes.
25 A Yes.
202-347-3700
Case 5:17-md-02773-LHK Document 620-5 Filed 07/19/18 Page 46 of 119
1557
2 sir.
4 CROSS-EXAMINATION
5 BY MS. COMFORT:
7 A Good morning.
9 Import Investigations.
13 United States?
14 A Yes.
17 devices?
22 compete there.
202-347-3700
Case 5:17-md-02773-LHK Document 620-5 Filed 07/19/18 Page 47 of 119
1558
10 devices?
22 phone devices?
202-347-3700
Case 5:17-md-02773-LHK Document 620-5 Filed 07/19/18 Page 48 of 119
1559
6 globally?
15 A Yes, sorry.
23 markets?
202-347-3700
Case 5:17-md-02773-LHK Document 620-5 Filed 07/19/18 Page 49 of 119
1560
5 A Yes.
13 and Huawei.
22 is not?
202-347-3700
Case 5:17-md-02773-LHK Document 620-5 Filed 07/19/18 Page 50 of 119
1561
2 advanced chipsets."
3 A Yes.
13 features.
14 A Yes.
19 main feature --
22 confidential record.
25
202-347-3700
Case 5:17-md-02773-LHK Document 620-5 Filed 07/19/18 Page 51 of 119
1599
5 RECROSS-EXAMINATION
6 BY MR. MUELLER:
9 A Yes.
11 competition; right?
19 correct?
20 A Yes.
202-347-3700
Case 5:17-md-02773-LHK Document 620-5 Filed 07/19/18 Page 52 of 119
1600
6 A Yes.
9 A Yes.
12 correct?
16 correct?
19 know, yeah.
202-347-3700
Case 5:17-md-02773-LHK Document 620-5 Filed 07/19/18 Page 53 of 119
1601
3 don't know.
5 began filing patent cases against Apple all over the world;
6 right?
14 But Mr. Marriott just asked you if you could choose between
15 the rest of the world and the U.S., which would you choose.
23 correct?
202-347-3700
Case 5:17-md-02773-LHK Document 620-5 Filed 07/19/18 Page 54 of 119
1602
1 where -- sorry.
3 A Yes.
25 Q Ms. Comfort --
202-347-3700
Case 5:17-md-02773-LHK Document 620-5 Filed 07/19/18 Page 55 of 119
1603
3 A Yes. Yep.
7 chipsets.
9 A Yes.
13 A That's right.
15 correct?
16 A Yes.
19 A That's correct.
24 A Yes.
202-347-3700
Case 5:17-md-02773-LHK Document 620-5 Filed 07/19/18 Page 56 of 119
1604
2 A That's right.
6 way or the other. And if there had been some smoke there,
9 on then.
11 BY MR. MUELLER:
14 good; right?
15 A Yes.
17 Qualcomm's; correct?
18 A Yes.
20 A Yes.
25 A No.
202-347-3700
Case 5:17-md-02773-LHK Document 620-5 Filed 07/19/18 Page 57 of 119
1605
3 A I do agree.
8 good; correct?
9 A Yes.
11 A Yes.
13 A Yes.
15 A Yes.
19 yeah.
21 right?
24 A Yes.
202-347-3700
Case 5:17-md-02773-LHK Document 620-5 Filed 07/19/18 Page 58 of 119
1606
1 A I agree.
3 A I agree.
5 RECROSS-EXAMINATION
6 BY MS. COMFORT:
16 A Yes.
18
19
20
21
22
23
24
25
202-347-3700
Case 5:17-md-02773-LHK Document 620-5 Filed 07/19/18 Page 59 of 119
1623
1 C O N T E N T S
2 VOIR
4 JAMES THOMPSON
10
12 1607-1622
13
14
15
16 E X H I B I T S
18 CX-4767C 1535
19 CX-7C 1618
20
21
22 Exhibit No.
23 CX-1440C
24 CX-2341C
25 CX-2459
202-347-3700
Case 5:17-md-02773-LHK Document 620-5 Filed 07/19/18 Page 60 of 119
1624
1 CX-2462C
2 CX-2463C
3 CX-2464C
4 CX-2468C
5 CX-2469C
6 CX-2470C
7 CX-2471C
8 CX-2473C
9 CX-2475C
10 CX-2479C
11 CX-2480C
12 CX-2481C
13 CX-2482C
14 CX-2483C
15 CX-2484C
16 CX-2485C
17 CX-2486C
18 CX-2489C
19 CX-248C
20 CX-2490C
21 CX-2491C
22 CX-2492C
23 CX-2493C
24 CX-2494C
25 CX-2495C
202-347-3700
Case 5:17-md-02773-LHK Document 620-5 Filed 07/19/18 Page 61 of 119
1625
1 CX-2496C
2 CX-2497C
3 CX-2499C
4 CX-2501C
5 CX-2502C
6 CX-2503C
7 CX-2504
8 CX-2505C
9 CX-2534C
10 CX-2535C
11 CX-2665C
12 CX-2702C
13 CX-272C
14 CX-3139C
15 CX-3141C
16 CX-3217
17 CX-3220
18 CX-3224
19 CX-323C
20 CX-3254C
21 CX-3257C
22 CX-3261C
23 CX-330C
24 CX-3874C
25 CX-3883C
202-347-3700
Case 5:17-md-02773-LHK Document 620-5 Filed 07/19/18 Page 62 of 119
1626
1 CX-3884C
2 CX-3885C
3 CX-3886C
4 CX-3887C
5 CX-3888C
6 CX-3890C
7 CX-3891C
8 CX-3892C
9 CX-3893C
10 CX-3989-01C
11 CX-3989-02C
12 CX-3989-03C
13 CX-3989-04C
14 CX-3990-10C
15 CX-3990-11C
16 CX-3990-13C
17 CX-3990-14C
18 CX-3990-15C
19 CX-3990-16C
20 CX-3990-17C
21 CX-3990-18C
22 CX-3990-1C
23 CX-3990-28C
24 CX-3990-2C
25 CX-3990-3C
202-347-3700
Case 5:17-md-02773-LHK Document 620-5 Filed 07/19/18 Page 63 of 119
1627
1 CX-3990-4C
2 CX-3990-5C
3 CX-3990-6C
4 CX-3990-7C
5 CX-3990-8C
6 CX-3990-9C
7 CX-4552C
8 CX-4552C
9 CX-4553C
10 CX-4554
11 CX-4568C
12 CX-4601C
13 CX-4602C
14 CX-4603C
15 CX-4739C
16 CX-4740C
17 CX-4745C
18 CX-4746C
19 CX-4747C
20 CX-505C
21 CX-549C
22 CX-620C
23 CX-632C
24 CX-633C
25 CX-634C
202-347-3700
Case 5:17-md-02773-LHK Document 620-5 Filed 07/19/18 Page 64 of 119
1628
1 CX-635C
2 CX-636C
3 CX-637C
4 CX-638C
5 CX-639C
6 CX-640C
7 CX-642C
8 CX-643C
9 CX-644C
10 CX-645C
11 CX-646C
12 CX-647C
13 CX-648C
14 CX-649C
15 CX-650C
16 CX-654C
17 CX-655C
18 CX-656C
19 CX-657C
20 CX-658C
21 CX-659C
22 CX-660C
23 CX-661C
24 CX-662C
25 CX-663C
202-347-3700
Case 5:17-md-02773-LHK Document 620-5 Filed 07/19/18 Page 65 of 119
1629
1 CX-664C
2 CX-665C
3 CX-666C
4 CX-667C
5 CX-668C
6 CX-670C
7 CX-671C
8 CX-672C
9 CX-673C
10 CX-674C
11 CX-675C
12 CX-676C
13 CX-677C
14 CX-678C
15 CX-687C
16 CX-688C
17 CX-692C
18 CX-694C
19 CX-695
20 CX-696
21 CX-697
22 CX-700C
23 CX-701C
24 CX-702C
25 CX-703C
202-347-3700
Case 5:17-md-02773-LHK Document 620-5 Filed 07/19/18 Page 66 of 119
1630
1 CX-704C
2 CX-705C
3 CX-706C
4 CX-707C
5 CX-708C
6 CX-709C
7 CX-710C
8 CX-711C
9 CX-712C
10 CX-713C
11 CX-714C
12 CX-715C
13 CX-716C
14 CX-717C
15 CX-718C
16 CX-719C
17 CX-720C
18 CX-721C
19 CX-722C
20 CX-889C
21 CX-902
22 CX-905C
23 CX-906C
24 CX-911C
25 CX-912C
202-347-3700
Case 5:17-md-02773-LHK Document 620-5 Filed 07/19/18 Page 67 of 119
1631
1 JX-1
2 JX-10
3 JX-5
4 RX-1660C
5 RX-461C
6 RX-604
7 RX-448C
8 RX-450C
9 RX-454C
10 RX-455C
11 RX-456C
12 RX-464C
13 RX-465C
14 CX-1040C
15 CX-4921C
16 CX-4922C
17 CX-2654C
18 CX-2678C
19 CX-4640C
20 CX-4641C
21 CX-4642C
22 CX-4643C
23 CX-4644C
24 CX-4645C
25 CX-0273C
202-347-3700
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1632
1 CX-4647C
2 CX-4648C
3 CX-4649C
4 CX-4650C
5 CX-4651C
6 CX-4652C
7 CX-4653C
8 CX-1112C
9 CX-4655C
10 CX-4656C
11 CX-1081C
12 CX-1080C
13 CX-2664C
14 CX-2659C
15 CX-2660C
16 CX-2683C
17 CX-2684C
18 CX-2663C
19 CX-2658C
20 CX-2682C
21 CX-2679C
22 CX-1412
23 CX-2547C
24 CX-2548C
25 CX-2652C
202-347-3700
Case 5:17-md-02773-LHK Document 620-5 Filed 07/19/18 Page 69 of 119
1633
1 CX-2653C
2 CX-2655C
3 CX-2656C
4 CX-2657C
5 CX-2680C
6 CX-2681C
7 CX-2981C
8 CX-3226C
9 CX-4736
10 CX-4744C
11 CX-1407C
12 CX-1411C
13 CX-1451C
14 CX-1604
15 CX-1916
16 CX-1917
17 CX-1919
18 CX-1920
19 CX-1942C
20 CX-2115C
21 CX-2344C
22 CX-2371C
23 CX-2404C
24 CX-2406C
25 CX-2411C
202-347-3700
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1634
1 CX-2412C
2 CX-2449C
3 CX-2751C
4 CX-3532
5 CX-3546
6 CX-3614
7 CX-3658
8 CX-3707C
9 CX-3761C
10 CX-3995
11 CX-3999
12 CX-4000
13 CX-4001
14 CX-4027
15 CX-4029
16 CX-4050
17 CX-4057
18 CX-4058
19 CX-4059
20 CX-4060
21 CX-4077
22 CX-4101
23 CX-4102
24 CX-4120
25 CX-4138
202-347-3700
Case 5:17-md-02773-LHK Document 620-5 Filed 07/19/18 Page 71 of 119
1635
1 CX-4143
2 CX-4146
3 CX-4147
4 CX-4148
5 CX-4149
6 CX-4150
7 CX-4151
8 CX-4152
9 CX-4153
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11 CX-4169
12 CX-4171
13 CX-4172
14 CX-4173
15 CX-4178
16 CX-4184
17 CX-4197
18 CX-4198
19 CX-4200
20 CX-4201
21 CX-4335
22 CX-4338
23 CX-4344
24 CX-4437
25 CX-4541
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1 CX-4624C
2 CX-4673
3 CX-4674
4 CX-4678
5 CX-4737C
6 CX-4743
7 RX-0044C
8 RX-0045C
9 RX-0934C
10 RX-0937C
11 RX-0939C
12 RX-0940C
13 RX-0942C
14 RX-0946C
15 RX-0951C
16 RX-1041C
17 RX-1048C
18 RX-1054C
19 CX-1067C
20 CX-1068C
21 CX-1069C
22 CX-1070C
23 CX-1083C
24 CX-2366C
25 CX-1082C
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1 CX-1125C
2 CX-1124C
3 CX-1134C
4 CX-1103C
5 CX-1115C
6 CX-1154C
7 CX-1155C
8 CX-1153C
9 CX-1060C
10 RX-1279C
11 RX-1280C
12 RX-1284
13 RX-1285
14 RX-1287C
15 RX-1289C
16 RX-1615C
17 CX-931C
18 CX-952C
19 CX-954C
20 CX-1006C
21 CX-1007C
22 CX-1071C
23 CX-1072C
24 CX-1075C
25 CX-1076C
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1 CX-1077C
2 CX-1094C
3 CX-1100C
4 CX-1104C
5 CX-1105C
6 CX-1107C
7 CX-1113C
8 CX-1114C
9 CX-1116C
10 CX-1117C
11 CX-1118C
12 CX-1119C
13 CX-1120C
14 CX-1121C
15 CX-1122C
16 CX-1123C
17 CX-1126C
18 CX-1128C
19 CX-1161
20 CX-1163
21 CX-1179
22 CX-1186C
23 CX-1189C
24 CX-1240
25 CX-2363C
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1 CX-2364C
2 CX-2369C
3 CX-3133C
4 CX-3190C
5 CX-3194C
6 CX-3197C
7 CX-3481C
8 CX-3836C
9 CX-3838C
10 CX-3839C
11 CX-3841C
12 CX-3848C
13 CX-3990C
14 CX-3990-19C
15 CX-3990-20C
16 CX-3990-21C
17 CX-3990-22C
18 CX-3990-23C
19 CX-3990-24C
20 CX-3990-25C
21 CX-3990-26C
22 CX-3990-27C
23 CX-3990-30C
24 CX-4741C
25 CX-4742C
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1 RX-0448C
2 CX-0905C
3 CX-2498C
4 CX-2504C
5 CX-2473
6 CX-2469
7 CX-2501
8 JX-0001
9 RX-0155
10 RX-0262
11 RX-0267
12 RX-0577
13 RX-0587
14 RX-0588
15 RX-0589
16 RX-0593
17 RX-0604
18 RX-1444C
19 RX-1602C
20 CX-0902
21 CX-4636C
22 RX-0258
23 RX-0450C
24 RX-0454C
25 RX-0455C
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1 RX-0459C
2 RX-0461C
3 RX-0464C
4 RX-0465C
5 RX-0469C
6 RX-0499C
7 RX-0606C
8 RX-0608C
9 RX-1488C
10 RX-0610C
11 RX-407C
12 RX-408C
13 RX-409C
14 RX-410C
15 RX-411C
16 RX-412C
17 RX-413C
18 RX-417C
19 RX-419C
20 RX-420C
21 RX-421C
22 RX-423C
23 RX-424C
24 RX-425C
25 RX-426
202-347-3700
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1 RX-427
2 RX-428
3 RX-429C
4 RX-430C
5 RX-431
6 RX-432
7 RX-433
8 RX-435
9 RX-445
10 RX-446
11 RX-447
12 RX-467
13 RX-511C
14 RX-512
15 RX-513C
16 RX-514C
17 RX-515C
18 RX-516
19 RX-517C
20 RX-519C
21 RX-520C
22 RX-521
23 RX-522
24 RX-524C
25 RX-525
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1 RX-526C
2 RX-527C
3 RX-528C
4 RX-530C
5 RX-531C
6 RX-533C
7 RX-534C
8 RX-535C
9 RX-536C
10 RX-537C
11 RX-539
12 RX-540C
13 RX-637
14 RX-638C
15 RX-642C
16 RX-645C
17 RX-649C
18 RX-656C
19 RX-657C
20 RX-660C
21 RX-666C
22 RX-669
23 RX-670
24 RX-671C
25 RX-725
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1 RX-765
2 RX-767
3 RX-768
4 RX-770
5 RX-771
6 RX-776
7 RX-778
8 RX-779
9 RX-783
10 RX-789
11 RX-794
12 RX-796
13 RX-800
14 RX-803
15 RX-804
16 RX-807
17 RX-808
18 RX-832
19 RX-833
20 RX-836
21 RX-839C
22 RX-858
23 RX-859
24 RX-862
25 RX-907
202-347-3700
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1645
1 RX-908
2 RX-909
3 RX-910
4 CX-702C
5 CX-704C
6 CX-705C
7 CX-706C
8 CX-707C
9 CX-708C
10 CX-709C
11 CX-710C
12 CX-711C
13 CX-712C
14 CX-715C
15 RX-108
16 RX-414C
17 RX-415C
18 RX-416C
19 RX-418C
20 RX-422C
21 RX-434C
22 RX-436
23 RX-437
24 RX-438
25 RX-439
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1646
1 RX-440
2 RX-441
3 RX-442
4 RX-443
5 RX-444
6 RX-518C
7 RX-529C
8 RX-532C
9 RX-538C
10 RX-631
11 RX-640C
12 RX-641C
13 RX-643C
14 RX-644C
15 RX-646C
16 RX-647C
17 RX-648C
18 RX-650C
19 RX-652C
20 RX-653C
21 RX-654C
22 RX-655C
23 RX-658C
24 RX-659C
25 RX-661C
202-347-3700
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1647
1 RX-663C
2 RX-665C
3 RX-667C
4 RX-668
5 RX-672
6 RX-673C
7 RX-674C
8 RX-675C
9 RX-676C
10 RX-677C
11 RX-678C
12 RX-679C
13 RX-680C
14 RX-681C
15 RX-682C
16 RX-683C
17 RX-684C
18 RX-685C
19 RX-686C
20 RX-687C
21 RX-688C
22 RX-689C
23 RX-690C
24 RX-691C
25 RX-692C
202-347-3700
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1 RX-693C
2 RX-694C
3 RX-695C
4 RX-696C
5 RX-697C
6 RX-698C
7 RX-699C
8 RX-700C
9 RX-701C
10 RX-702C
11 RX-703C
12 RX-704C
13 RX-705C
14 RX-706C
15 RX-707C
16 RX-708C
17 RX-709C
18 RX-710C
19 RX-711C
20 RX-712C
21 RX-713C
22 RX-714C
23 RX-715C
24 RX-716C
25 RX-717C
202-347-3700
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1 RX-718C
2 RX-719C
3 RX-720C
4 RX-721C
5 RX-722C
6 RX-723C
7 RX-724C
8 RX-726C
9 RX-743C
10 RX-744
11 RX-773
12 RX-775
13 RX-784
14 RX-786
15 RX-787
16 RX-791
17 RX-792
18 RX-799
19 RX-806
20 RX-809
21 RX-810
22 RX-811
23 RX-812
24 RX-813
25 RX-814
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1 RX-815
2 RX-816
3 RX-817
4 RX-818
5 RX-819
6 RX-820
7 RX-821
8 RX-822
9 RX-824
10 RX-825
11 RX-826
12 RX-827
13 RX-828
14 RX-829
15 RX-830
16 RX-831
17 RX-834
18 RX-835
19 RX-837
20 RX-838
21 RX-851
22 RX-870
23 RX-913
24 RX-915C
25 RX-917C
202-347-3700
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1651
1 RX-918C
2 RX-1465C
3 RX-1480C
4 RX-1482C
5 RX-1485C
6 RX-1491C
7 RX-988C
8 RX-0108
9 RX-0404C
10 RX-0405C
11 RX-0419C
12 RX-1632C
13 RX-1633C
14 RX-1634C
15 RX-1635C
16 RX-1636C
17 RX-1637C
18 RX-1638C
19 RX-1639C
20 RX-1640C
21 RX-1641C
22 RX-1642C
23 RX-1643C
24 RX-1646C
25 RX-1653C
202-347-3700
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1652
1 RX-1654C
2 RX-1658
3 RX-1659C
4 RX-1662C
5 CX-671C
6 CX-695C
7 CX-696C
8 CX-3987C
9 CX-7C
10 CX-13C
11 RX-0254C
12 RX-0256C
13 RX-1117
14 RX-1122
15 RX-1130
16 RX-1441C
17 RX-1471C
18 RX-1472C
19 RX-1487C
20 RX-1495C
21 RX-1509C
22 RX-1673C
23 RX-0630
24 RX-0128
25 RX-1065C
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1 RPX-4
2 RX-0949C
3 RX-0952C
4 RX-0954C
5 RX-0955C
6 RX-0958C
7 RX-0960C
8 RX-0970C
9 RX-0976C
10 RX-0977C
11 RX-0979C
12 RX-0981C
13 RX-0982C
14 RX-0983C
15 RX-0984C
16 RX-0985C
17 RX-0990
18 RX-0991
19 RX-0992
20 RX-0993
21 RX-0994
22 RX-1036
23 RX-1066
24 RX-0968C
25 RX-1112C
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1654
1 CDX-25
2 SDX-1
3 RDX-30
4 CDX-27.1
5 CDX-27.61
6 CDX-28.30
7 CDX-29.3
8 CDX-31.36
9 CDX-31.46
10 CDX-31.47
11 CDX-31.48
12 CDX-31.59
13 CDX-31.63
14 CDX-31.64
15 CDX-31.61
16 CDX-31.75
17 CDX-31.66
18 CDX-31.67
19 CDX-31.105
20 CDX-31.104
21 CDX-31.120
22 CDX-31.115
23 CDX-33.1
24 CDX-33.2
25 CDX-34.8
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1 RDX-25C
2 RDX-27C
3 RDX-24C
4 RDX-4C
5 RDX-15C
6 RDX-6C
7 RDX-17C
8 RDX-16C
9 RDX-10C
10 RDX-21C
11 CDX-001C
12 CDX-002C
13 CDX-003C
14 CDX-004C
15 CDX-006C
16 CDX-007C
17 CDX-014
18 CDX-015
19 CDX-018
20
21 Exhibit No.
22 JX-006
23 JX-008
24 JX-011
25 JX-012
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1 JX-013C
2 JX-014
3 JX-015
4 JX-016
5 JX-017
6 JX-018
7 JDX-001
8 RX-1292C
9 RX-1293C
10 RX-1294C
11 RX-1295C
12 RX-1296C
13 RX-1297C
14 RX-1298C
15 RX-1299C
16 RX-1300C
17 RX-1301C
18 RX-1302C
19 RX-1314C
20 RX-1315C
21 RX-1316C
22 RX-1317C
23 RX-1318C
24 RX-1319C
25 RX-1320C
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1 RX-1321C
2 RX-1322C
3 RX-1323C
4 RX-1324C
5 RX-1325C
6 RX-1326C
7 RX-1327C
8 RX-1328C
9 RX-1329C
10 RX-1330C
11 RX-1331C
12 RX-1332C
13 RX-1333C
14 RX-1334C
15 RX-1335C
16 RX-1336C
17 RX-1337C
18 RX-1338
19 CX-4593C
20 CX-2696
21 CX-1246
22 CX-2701C
23 CX-2703C
24 CX-2704
25 CX-2705C
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1 CX-1037C
2 CX-4594C
3 CX-3107C
4 CX-3118C
5 CX-3122C
6 CX-3123C
7 CX-3124C
8 CX-3125C
9 CX-3127C
10 CX-3108C
11 CX-3109C
12 CX-3110C
13 CX-3111C
14 CX-3112C
15 CX-3115C
16 CX-3116C
17 CX-3117C
18 CX-3119C
19 CX-3121C
20 CX-4595C
21 CX-2322C
22 CX-2323C
23 CX-2324C
24 CX-2325C
25 CX-2326C
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1 CX-2327C
2 CX-2328C
3 CX-2329C
4 CX-2318C
5 CX-2319C
6 CX-2320C
7 CX-2321C
8 CX-4596C
9 CX-2345C
10 CX-2353C
11 CX-2354C
12 CX-2355C
13 CX-2356C
14 CX-2357C
15 CX-4597C
16 CX-4599C
17 CX-3826
18 CX-3805C
19 CX-3806C
20 CX-3138C
21 CX-2340C
22 CX-483C
23 CX-2330
24 CX-2338C
25 CX-505
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1 CX-2342C
2 CX-504C
3 CX-552C
4 CX-2332C
5 CX-2333C
6 CX-2334C
7 CX-4604C
8 CX-3671C
9 CX-3129C
10 CX-3672C
11 CX-3674C
12 CX-3675C
13 CX-2365C
14 CX-3666C
15 CX-3667C
16 CX-3668C
17 CX-3669C
18 CX-4605C
19 CX-2367C
20 CX-0950C
21 CX-4607C
22 CX-4608C
23 CX-4609C
24 CX-457C
25 CX-463C
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1 CX-464C
2 CX-466C
3 CX-458C
4 CX-459C
5 CX-4612C
6 CX-3130C
7 CX-3131C
8 CX-3132C
9 CX-1386C
10 CX-3135C
11 CX-4613C
12 CX-4614C
13 CX-3162C
14 CX-3680C
15 CX-4615C
16 CX-4849C
17 CX-4850C
18 CX-4851C
19 CX-4852C
20 CX-4853C
21 CX-4854C
22 CX-4855C
23 CX-4860C
24 CX-4861C
25 CX-4862C
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1 CX-4863C
2 CX-4864C
3 CX-4865C
4 CX-4866C
5 CX-4616C
6 CX-3694C
7 CX-3695C
8 CX-3696C
9 CX-3697C
10 CX-4617C
11 CX-4618C
12 CX-1401
13 CX-1405
14 CX-1408C
15 CX-1409C
16 CX-1402
17 CX-1403
18 CX-4619C
19 CX-2395C
20 CX-2407C
21 CX-2382C
22 CX-2413C
23 CX-2414C
24 CX-2385C
25 CX-2386C
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1 CX-2387C
2 CX-851C
3 CX-2390C
4 CX-2391C
5 CX-2392C
6 CX-2393C
7 CX-2394C
8 CX-2396C
9 CX-2397C
10 CX-2398C
11 CX-2399C
12 CX-2400C
13 CX-2401C
14 CX-2402C
15 CX-2403C
16 CX-2405C
17 CX-2408C
18 CX-2409C
19 CX-4620C
20 CX-4621C
21 CX-4867C
22 CX-4868C
23 CX-4870C
24 CX-4871C
25 CX-4872C
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1 CX-4873C
2 CX-4874C
3 CX-4875C
4 CX-4876C
5 CX-4877C
6 CX-4878C
7 CX-4879C
8 CX-4880C
9 CX-4881C
10 CX-4882C
11 CX-4883C
12 CX-4819C
13 CX-4820C
14 CX-4821C
15 CX-4822C
16 CX-4823C
17 CX-4824C
18 CX-4825C
19 CX-4826C
20 CX-4827C
21 CX-4828C
22 CX-4829C
23 CX-4830C
24 CX-4831C
25 CX-4832C
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1 CX-4833C
2 CX-4835C
3 CX-4839C
4 CX-4842C
5 CX-4843C
6 CX-4844C
7 CX-3822C
8 CX-4627C
9 CX-3900
10 CX-3902
11 CX-3903
12 CX-3899
13 CX-3898C
14 CX-3897C
15 CX-3896C
16 CX-3895C
17 CX-3901
18 CX-4628C
19 CX-3854C
20 CX-3856C
21 CX-3857C
22 CX-3860C
23 CX-3861C
24 CX-3855C
25 CX-4629C
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1 CX-3792
2 CX-3793
3 CX-3794
4 CX-3799C
5 CX-3798C
6 CX-3800C
7 CX-3784C
8 CX-3796C
9 CX-3785C
10 CX-3786C
11 CX-4630C
12 CX-3791C
13 CX-3795C
14 CX-3790C
15 CX-3797C
16 CX-3788C
17 CX-3789C
18 CX-4631C
19 CX-2428
20 CX-2439C
21 CX-2448C
22 CX-2450C
23 CX-2451C
24 CX-2434C
25 CX-2453C
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1 CX-2454C
2 CX-2429C
3 CX-2430C
4 CX-2431C
5 CX-2432C
6 CX-2433C
7 CX-2435C
8 CX-2436C
9 CX-2437C
10 CX-2438C
11 CX-2440C
12 CX-2441C
13 CX-2442
14 CX-2443
15 CX-2444C
16 CX-2445C
17 CX-2446C
18 CX-2447C
19 CX-4920C
20 CX-3987C
21 RX-407C
22 RX-408C
23 RX-409C
24 RX-410C
25 RX-411C
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1 RX-412C
2 RX-413C
3 RX-415C
4 RX-416C
5 RX-417C
6 RX-418C
7 RX-419C
8 RX-420C
9 RX-421C
10 RX-422C
11 RX-423C
12 RX-424C
13 RX-839C
14 RX-1468C
15 RX-1469C
16 RX-1470C
17 RX-164C
18 RX-165C
19 RX-425C
20 RX-426
21 RX-427
22 RX-428
23 RX-429C
24 RX-430C
25 RX-431
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1 RX-432
2 RX-433
3 RX-434C
4 RX-435
5 RX-436
6 RX-437
7 RX-438
8 RX-439
9 RX-440
10 RX-441
11 RX-442
12 RX-443
13 RX-444
14 RX-445
15 RX-446
16 RX-447
17 RX-467
18 RX-511C
19 RX-512
20 RX-513C
21 RX-514C
22 RX-515C
23 RPX-0002
24 RX-0516
25 RX-517C
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1 RX-518C
2 RX-519C
3 RX-520C
4 RX-521
5 RX-522
6 RX-524C
7 RPX-0001
8 RX-525
9 RX-526C
10 RX-527C
11 RX-528C
12 RX-529C
13 RX-530C
14 RX-531C
15 RX-532C
16 RX-533C
17 RX-534C
18 RX-917C
19 RX-918C
20 RX-535C
21 RX-536C
22 RX-537C
23 RX-538C
24 RX-539
25 RX-540C
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1 RX-1488C
2 RX-260
3 RX-261
4 RX-1502C
5 RX-1513C
6 RX-160C
7 RX-1500C
8 RX-1486C
9 RX-247C
10 RX-1489C
11 RX-989C
12 RX-548
13 RX-541C
14 RX-553C
15 RX-551C
16 RX-1490
17 RX-560C
18 RX-561C
19 RX-562C
20 RX-563C
21 RX-564C
22 RX-565C
23 RX-1461C
24 RX-57C
25 RX-56C
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1672
1 RX-58C
2 RX-59C
3 RX-62C
4 RX-1462C
5 RX-1463C
6 RX-90C
7 RX-91C
8 RX-84C
9 RX-88C
10 RX-101C
11 RX-102C
12 RX-1467C
13 RX-1479C
14 RX-1466C
15 RX-248C
16 RX-253C
17 RX-250C
18 RX-251C
19 RX-252C
20 RX-254C
21 RX-255C
22 RX-256C
23 RX-1506C
24 RX-0401
25 RX-1663C
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1673
1 RX-1632C
2 RX-1633C
3 RX-1634C
4 RX-1635C
5 RX-1636C
6 RX-1637C
7 RX-1638C
8 RX-1639C
9 RX-1640C
10 RX-1641C
11 RX-1642C
12 RX-1643C
13 RX-1644C
14 RX-0404C
15 RX-1631
16 RX-1510C
17 RX-1629C
18 RX-1630C
19 RX-0405C
20 RX-1511C
21 RX-1662C
22 RX-1492C
23 RX-1493C
24 RX-1494C
25 RX-1476C
202-347-3700
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1674
1 RX-208
2 RX-167C
3 RX-210C
4 RX
5 172
6 RX-1477C
7 RX-1478C
8 RX-193C
9 RX-206C
10 RX-187C
11 RX-176C
12 RX-1508C
13 RX-403C
14 RX-1507C
15 RX-1496C
16 RX-1497C
17 RX-1498C
18 RX-1499C
19 RX-1484C
20 RX-236C
21 RX-237C
22 RX-239C
23 RX-240C
24 RX-241C
25 RX-242C
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1675
1 RX-243C
2 RX-1483C
3 CX-0905C
4 CX-2498C
5 CX-2499C
6 CX-2501C
7 CX-2503C
8 CX-2505C
9 RX-0155
10 RX-0262
11 RX-0267
12 RX-0587
13 RX-0588
14 RX-0589
15 RX-0593
16 RX-0604
17 RX-770
18 CX-757
19 CX-735
20 RX-442C
21 RX-1465C
22 RX-419
23 RX-638
24 RX-862
25 RX-765
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1676
1 CX-759C
2 RX-778
3 RX-820
4 RX-796
5 CX-696
6 CX-695
7 CX-1239
8 CX-4606C
9 RX-104C
10 RX-105C
11 RX-106
12 RX-1135
13 RX-1142
14 RX-1144
15 RX-1145
16 RX-1146
17 RX-1275
18 RX-1277C
19 RX-1285
20 RX-1339C
21 CX-1428
22 CX-1460
23 CX-1461
24 CX-1462
25 CX-1463
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1677
1 CX-1486
2 CX-1490
3 CX-1571
4 CX-1572
5 CX-1575
6 CX-1579
7 CX-1595
8 CX-1597
9 CX-1605
10 CX-1620
11 CX-1635
12 CX-1673
13 CX-1678
14 CX-1714
15 CX-1715
16 CX-1717
17 CX-1718
18 CX-1723
19 CX-1726
20 CX-1742
21 CX-1753
22 CX-1792
23 CX-1794
24 CX-1797
25 CX-1892
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1678
1 CX-1900
2 CX-1929
3 CX-2344C
4 CX-2389C
5 CX-2751C
6 CX-2787C
7 CX-2984C
8 CX-2987C
9 CX-2988C
10 CX-3591
11 CX-3723C
12 CX-3761C
13 CX-3988C
14 CX-3999
15 CX-4168
16 CX-4677
17 CX-4691C
18 CX-4736
19 CX-4738
20 CX-0794
21 CX-0818
22 CX-0865
23 CX-0878C
24 CX-1038
25 CX-1642
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1679
1 CX-1643
2 CX-1912C
3 CX-2083
4 CX-2084
5 CX-2125
6 CX-2143
7 RX-0055C
8 RX-0171C
9 RX-0172
10 RX-0178C
11 RX-0368C
12 RX-0934C
13 RX-0937C
14 RX-0939C
15 RX-0942C
16 RX-0961C
17 RX-0974C
18 RX-1035
19 RX-1042C
20 RX-1048C
21 RX-1053C
22 RX-1058C
23 RX-1062C
24 RX-1063C
25 RX-1064C
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1680
1 RX-1065C
2 RX-1074C
3 RX-1078C
4 RX-1079C
5 RX-1083C
6 RX-1087C
7 RX-1088C
8 RX-1094C
9 RX-1095C
10 RX-1096C
11 RX-1115
12 RX-1116
13 RX-0967C
14 RX-0968C
15 JX-0003
16 RX-0105C
17 RX-0106
18 RX-1134
19 RX-1162
20 RX-1260
21 RX-1262
22 RX-1264C
23 RX-1268
24 RX-1271
25 RX-1338C
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1681
1 RX-1512C
2 CX-1128C
3 CX-2366C
4 CX-3133C
5 JX-0008
6 RX-0234C
7 RX-0242C
8 RX-1013C
9 RX-1014C
10 RX-1249
11 RX-1251C
12 RX-1256C
13 RX-1257C
14 RX-1258C
15 RX-1259C
16 RX-1278C
17 RX-1279C
18 RX-1280C
19 RX-1281C
20 RX-1284
21 RX-1287C
22 RX-1289C
23 CX-2652C
24 CX-2680C
25 CX-2657C
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1682
1 CX-2981C
2 CX-2655C
3 CX-2653C
4 CX-2681C
5 CX-2656C
6 CDX-005
7 CDX-019
8 CDX-020
9 CDX-021
10 CDX-022
11 RDX-29.1C
12 RDX-29.2C
13 RDX-29.3C
14 RDX-29.4C
15 RDX-11C
16 RDX-7C
17 RDX-18C
18 RDX-31.1
19 RDX-31.2
20 RDX-31.5
21 RDX-31.10
22 RDX-31.11
23 RDX-31.23
24 RDX-31.28
25 CX-2115C
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Case 5:17-md-02773-LHK Document 620-5 Filed 07/19/18 Page 119 of 119
1683
CERTIFICATE OF REPORTER
TITLE: In The Matter Of: Certain Mobile Electronic Devices
and Radio Frequency and Processing
Components Thereof
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Case 5:17-md-02773-LHK Document 620-6 Filed 07/19/18 Page 3 of 153
286
2 BEFORE THE
5 - - - - - - - - - - - - - - - - - X
9 COMPONENTS THEREOF :
10 - - - - - - - - - - - - - - - - - X
11
12 HEARING
13
15 Courtroom B
17 Commission
18 500 E Street, SW
19 Washington, DC
20
21
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287
1 APPEARANCES:
8 312.705.7400
10
15 415.875.6600
17
23 212.849.7000
25 - continued -
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288
1 APPEARANCES (CONTINUED):
7 213.443.3000
13 Washington, DC 20005
14 202.538-8000
16
21 713.221.7000
23
24
25 - continued -
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289
1 APPEARANCES (CONTINUED):
7 917.626.1356
15 212.474.1430
17
22 Washington, DC 20036
23 202.467.6300
25 - continued -
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290
1 APPEARANCES (CONTINUED):
7 60 State Street
9 617.526.6556
11
15 Washington, DC 20006
16 202.663.6365
18
23 213.443.5309
25 - continued -
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291
1 APPEARANCES (CONTINUED):
6 Washington, DC 20024
7 202.783.5070
15 500 E Street, SW
16 Washington, DC 20436
17 202.205.2158
19
20
21
22
23
24
25
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1 P R O C E E D I N G S
3 still under oath, sir. And you have not talked with
7 Mr. Massa?
13
14
15
16
17
18
19
20
21
22
23
24
25
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2 BY MS. MURRAY:
5 correct?
6 A That's correct.
9 A No.
14 instruction?
15 A Yes, ma'am.
23 graphics data?
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323
9 BY MS. MURRAY:
14 correct.
25 time; correct?
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8 A That's correct.
14 different compilers?
21 machines?
22 A No, ma'am.
24 decade apart?
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4 A That is correct.
12 to find infringement?
14 ways.
17 A That's correct.
21 A Yes.
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1 nothing about whether the code being tested was used in the
3 A It does not.
11 contexts.
17 everybody's time.
23 No further questions.
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327
2 REDIRECT EXAMINATION
3 BY MR. HAMSTRA:
5 A Good morning.
12
13
14
15
16
17
18
19
20
21
22
23
24
25
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17 exhibits.
19 other, CX-9C?
22 CX-8C?
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4 believe those were taken off the list because of this very
5 reason.
7 name, please.
11 Honor.
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3 record.
12 us.
14 Whereupon,
15 RANDY SAROFF
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3 DIRECT EXAMINATION
4 BY MR. WATKINS:
6 title at Qualcomm?
9 A Approximately 10 years.
13 A Yes.
16 A Yes.
18 your knowledge?
19 A Yes.
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5 Honor.
9 cross-examination.
14 Honor's guidance and over the break have been placed out
16 and Mr. Saroff and the Staff and private parties should as
17 well.
20 CROSS-EXAMINATION
21 BY MR. DOWD:
23 A Good morning.
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3 A Yes.
5 A Correct.
8 A Correct.
10 A Correct.
12 selected; right?
13 A Correct.
21
22
23
24
25
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385
2 Whereupon,
3 WILLIAM KERR
11 DIRECT EXAMINATION
12 BY MR. LASHER:
14 A Good morning.
22 experience as well.
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8 The work that I was doing lent itself to the questions that
10 cases.
21 in economic analysis.
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7 of domestic industry.
11 BY MR. LASHER:
18 correct?
19 A I did.
22 A Yes, I did.
24 witness statement?
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7 A Yes, it is.
15 statement?
18 A Yes, it is.
20 investigation?
21 A Yes.
24 A Yes.
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10 witness.
13 presume?
18 the numbers.
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2 Mr. Cordell.
4 CROSS-EXAMINATION
5 BY MR. CORDELL:
7 A Good morning.
10 A Yes.
14 correctly?
15 A Yes, I did.
17 Long Island?
18 A Yes, yes.
22 A I did.
24 A No.
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4 A Yes, sure.
6 A I'm not.
9 A That's right.
12 correct?
13 A I don't know.
24 A That's right.
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1 right?
2 A I did, yes.
10 correct?
11 A That's right.
13 A That's right.
15 A That's right.
23 correct?
24 A That's right.
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4 correct?
5 A Yes.
16 Q B, bravo.
19 page 18.
25 A Yes.
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1 BY MR. CORDELL:
13 Circuit.
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4 the moment.
6 paranoia about source code and stuff like that. I've lived
7 with it for seven years now and I've gotten used to it.
17 Because man, I'm sure all of you have read about what the
23 BY MR. CORDELL:
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1 A Yes, it is.
8 proper form.
10 because Mr. Lasher just asked you whether this set forth
21 right?
23 yesterday.
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3 binder. But the way you say it just struck me as odd. "I
6 patents."
11 A Right.
13 right?
14 A Yes.
22 issue, and I read their report and saw that they were.
24 have said, you know, the expert reports of, address these
25 features; correct?
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5 statement?
6 Q Yes.
7 A Yes.
15 Now, you did not attempt to determine whether there was any
18 A That's right.
25 A No.
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12 is?
16 A Oh, sure.
20 patents; right?
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3 patented technology.
5 Fusion 4.5?
10 list.
14 asking about?
25 critical question.
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3 BY MR. CORDELL:
10 Nothing further.
12 CROSS-EXAMINATION
13 BY MS. MURRAY:
17 A Yes.
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403
4 A No.
10 A Yes.
22 subprong B.
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1 equipment.
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
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2 REDIRECT EXAMINATION
3 BY MR. LASHER:
6 lawyer?
7 A Sure, no.
9 that correct?
10 A That's right.
13 A That's right.
20 BY MR. LASHER:
23 A That's right.
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2 particular?
6 industry.
15 technology.
18 A Yes.
21 subprongs A and B?
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16 with each of the patents and figure out the total amount of
18 materials.
21 of Qualcomm's investments?
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6 had labor and we had plant and equipment that was related
7 to ERD.
10 States, and these are the ones we counted, the ones who are
23 economic analysis?
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7 individual products.
10 course of business?
17 I had to, for example, make sure that I was not including
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3 looking at the data that we did have and show that the 70
7 A Yes.
11 performed?
12 A Oh, absolutely.
15 A Yes.
18 A Yes.
23 technology.
25 correct?
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1 A No.
4 correct?
7 A Yes.
9 A Yes.
12 A No.
15 B?
24 now.
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3 on this.
5 and B anyway?
12 well because of the current who knows how some things are
17 appreciate it.
21 Mr. Massa?
24 RECROSS-EXAMINATION
25 BY MR. CORDELL:
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3 right?
4 A Yes.
19 numbers; right?
20 A Yes.
23 A Yes.
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7 C; correct?
12 Snapdragon; right?
15 A I'm sorry?
18 specifically.
21 of them in particular.
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2 A To making toast?
9 A No, no.
12 category; right?
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2 different.
4 BY MR. CORDELL:
7 the tire is covered by the patent, then you would say I'm
9 right?
12 DI product.
23 that.
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7 Honor.
15
16
17
18
19
20
21
22
23
24
25
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12 know --
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1 with the Staff and Apple. I'm not going to cross those, so
14 that conversation.
20 is going wrong.
24 Honor.
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2 but I've been very pleased with the way things have been
13 waiting to come?
15 afternoon.
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1 your Honor.
4 don't even need trees. I was out over the weekend and
6 my cornfield.
10 (Laughter.)
13 Whereupon,
14 J. GREGORY SIDAK
21 old Mr.
24 loud.
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6 people, things.
12 DIRECT EXAMINATION
13 BY MR. MARRIOTT:
18 Washington, DC.
20 about Criterion.
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1 device industry?
2 A Yes, I have.
5 A I have, yes.
22 here at the ITC between Ericsson and Samsung, 862 and 866.
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6 (Laughter.)
8 feel for what the witness knows and doesn't and everything.
16 the right.
17 BY MR. MARRIOTT:
20 A Yes.
22 you, and there I think you'll find CX-16C in the first tab
24 please.
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2 this investigation.
4 A I'm there.
6 A Yes, it is.
9 A Yes, it does.
12 A Yes, I do.
15 evidence.
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1 cross-examination.
9 okay?
13 CROSS-EXAMINATION
14 BY MR. MUELLER:
17 could.
18 A Good afternoon.
21 correct?
22 A That's correct.
25 A Yes.
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3 A That's correct.
10 stand, okay?
11 A Thank you.
14 A That's correct.
16 A That's correct.
19 A Yes.
22 A That's correct.
24 A Yes.
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5 right, as shorthand?
6 A That's correct.
10 A Yes.
13 A Yes.
21 A Yes, I do.
24 A Yes.
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5 no.
13 A Page 191?
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13 Go ahead now.
14 BY MR. MUELLER:
17 A That's correct.
20 A Yes, I did.
23 A Correct.
25 A Is that a question?
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441
1 Q It is; right?
2 A Yes, it is.
4 standard; correct?
5 A Correct.
8 A Yes.
16 correct?
17 A That's correct.
24 Honor?
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2 I don't mind.
3 BY MR. MUELLER:
9 correct?
10 A Yes.
13 A Yes.
17 A Yes.
21 A Yes.
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443
3 A Correct.
5 A Yes.
7 A Yes.
9 A Yes.
10 Q Maps?
11 A Yes.
13 A Yes.
16 A That's right.
18 A Correct.
21 A Yes.
24 A Yes, it does.
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1 A Is that a question?
2 Q It is.
3 A Yes.
5 A Yes.
8 example?
9 A Yes.
10 Q Smart watches?
11 A Yes.
13 calls, as an example?
14 A Yes.
16 A Yes.
17 Q Video chatting?
18 A Yes.
22 standard itself?
24 foundation; right?
25 A Yes.
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3 A Yes.
6 A Yes.
9 A Yes.
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446
5 BY MR. MUELLER:
8 A Yes.
10 A That's correct.
13 A Yes.
15 agencies?
17 Q Electrical grids?
18 A Yes.
19 Q Self-driving cars?
20 A Yes, definitely.
21 Q Drones?
22 A Yes.
23 Q First responders?
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1 Q Health applications?
2 A Yes.
5 A Yes.
10 innovation; correct?
13 clarify.
16 correct?
24 A Right.
25 Q Correct?
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1 A Yes.
5 LG; right?
12 A That's right.
23 phones; correct?
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4 from, I'm nervous about this, you know. I don't know how
6 you know?
10 BY MR. MUELLER:
14 A Yes.
18 A Yes.
20 correct?
21 A Yes.
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4 right?
8 If you could let me know when you're at page 22. Line 22.
12 smartphone?
13 "Answer: Yes.
19 premium smartphone?
20 "Answer: Yes.
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451
8 A Yes.
11 A That's correct.
14 A Yes.
16 right?
18 referencing here.
21 A Yes.
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2 A Yes.
6 A Yes, I do.
10 this case.
12 A Yes, I do.
20 A I am.
25 A I do.
202-347-3700
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453
4 identified.
6 and they are shown here in the second chart; correct, sir?
7 A Yes.
14 smartphone; correct?
18 correct?
19 A Yes, he did.
202-347-3700
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454
3 BY MR. MUELLER:
7 A Yes.
12 A Yes.
22 A Yes.
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455
4 A Yes, I do.
7 premium smartphones?"
13 A I do see that.
19 A Yes.
24 to that.
202-347-3700
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456
3 row, we have Google and the listed products are Pixel and
5 "Answer: Yes.
8 "Answer: Yes.
12 A I see that.
25 you stand up and object for the same reason I just pointed
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457
3 you.
4 BY MR. MUELLER:
8 chips, is it true --
14 smartphones; correct?
21 behalf of Qualcomm.
202-347-3700
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458
4 designee.
8 impeachment.
16 accused products.
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459
6 Qualcomm's share.
8 exclude the Apple iPhones with the Intel chips, the U.S.
12 chips.
16 complete monopoly.
21 to do it that way.
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460
202-347-3700
Case 5:17-md-02773-LHK Document 620-6 Filed 07/19/18 Page 89 of 153
461
1 question.
3 it?
6 credibility?
9 going.
16 BY MR. MUELLER:
23 A I do.
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462
2 phones, sir?
3 A Yes.
8 case; right?
9 A Yes.
19 economics.
24 monopoly?
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463
2 production expansion.
5 Counsel only.
7 your Honor?
12
13
14
15
16
17
18
19
20
21
22
23
24
25
202-347-3700
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466
9 me.
17 Thank you.
21 BY MR. MUELLER:
202-347-3700
Case 5:17-md-02773-LHK Document 620-6 Filed 07/19/18 Page 93 of 153
467
1 A That's right.
3 being sought in this case, and I'm going to ask you if you
13 iPhone?
14 A Yes.
17 A I do.
21 business; right?
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11 to page 30, line 10. And let me know when you're there,
12 please.
21 Q Line 10.
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6 those answers?
7 A Yes, I did.
10 A Yes.
14 Q Over a decade?
15 A Yes.
19 A Yes.
21 A That's right.
25 yes.
202-347-3700
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470
4 A Yes.
7 A That's correct.
12 million dollars?
14 BY MR. MUELLER:
17 correct?
18 A Yes.
21 mind?
22 A I do.
24 A That's right.
202-347-3700
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7 A That's correct.
18
19
20
21
22
23
24
25
202-347-3700
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484
2 BY MS. MURRAY:
7 A Yes.
22 issued.
25 third-party alternative?
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485
1 A Not in my opinion.
10 consumers switching.
18 identify what the most popular apps are. And those are
21 device.
23 A Yes.
202-347-3700
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486
10 providers; correct?
14 A Yes.
23 A Yes.
202-347-3700
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1 healthcare purposes?
4 purposes.
8 second?
21 consumers.
23 BY MS. MURRAY:
202-347-3700
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488
1 A Not to my knowledge.
13 decisions of Qualcomm.
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489
8 same.
11 report, so I will wait and ask that question when you come
12 back on rebuttal.
14 been an allegation made that Intel may exit the market for
16 exclusion order.
18 A Yes.
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490
5 sense that the phones that use the chips themselves have to
14 chips?
18 chip configurations.
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Case 5:17-md-02773-LHK Document 620-6 Filed 07/19/18 Page 105 of 153
491
1 Q In China?
2 A Yes.
3 Q I see.
9 well; correct?
16 correct?
21 correct?
202-347-3700
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17 there?
21 correct?
202-347-3700
Case 5:17-md-02773-LHK Document 620-6 Filed 07/19/18 Page 107 of 153
493
9 that way.
11 Morton?
12 A Yes, I have.
16 Qualcomm-inspired solutions."
18 A No, I don't.
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494
202-347-3700
Case 5:17-md-02773-LHK Document 620-6 Filed 07/19/18 Page 109 of 153
495
4 BY MS. MURRAY:
22 you said?
23 A That's correct.
202-347-3700
Case 5:17-md-02773-LHK Document 620-6 Filed 07/19/18 Page 110 of 153
496
13 pursue.
17 and beyond.
19 A I do.
21 statement?
202-347-3700
Case 5:17-md-02773-LHK Document 620-6 Filed 07/19/18 Page 111 of 153
497
3 2040.
14 A Okay.
18 correct?
19 A Yes, it could.
21 modems?
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Case 5:17-md-02773-LHK Document 620-6 Filed 07/19/18 Page 112 of 153
498
2 adjacent markets?
12 markets?
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Case 5:17-md-02773-LHK Document 620-6 Filed 07/19/18 Page 113 of 153
499
17 Chinese companies.
19 sentence, no.
202-347-3700
Case 5:17-md-02773-LHK Document 620-6 Filed 07/19/18 Page 114 of 153
500
4 wouldn't there?
15 investment overseas.
16 Q Overseas.
202-347-3700
Case 5:17-md-02773-LHK Document 620-6 Filed 07/19/18 Page 115 of 153
501
16 R&D.
17 BY MS. MURRAY:
22 another company?
23 A Yes.
202-347-3700
Case 5:17-md-02773-LHK Document 620-6 Filed 07/19/18 Page 116 of 153
502
1 (Recess.)
5 REDIRECT EXAMINATION
6 BY MR. MARRIOTT:
10 A Yes.
15 A Worldwide.
22 Qualcomm a monopoly?
202-347-3700
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503
18 Mr. Marriott?
21 not --
202-347-3700
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504
1 States.
6 happens --
15 BY MR. MARRIOTT:
20 effect.
22 opinion, sir?
202-347-3700
Case 5:17-md-02773-LHK Document 620-6 Filed 07/19/18 Page 119 of 153
505
1 by Intel.
6 an exclusion order?
10 OEMs have thin modems that they have designed for products
13 contexts.
16 BY MR. MARRIOTT:
20 besides Qualcomm?
202-347-3700
Case 5:17-md-02773-LHK Document 620-6 Filed 07/19/18 Page 120 of 153
506
1 put up.
19 A Yes.
23 Premium --
202-347-3700
Case 5:17-md-02773-LHK Document 620-6 Filed 07/19/18 Page 121 of 153
507
5 A Yes.
10 of an exclusion order?
13 smartphone business.
17 exclusion order?
23 to sell to now.
25 Mr. Sidak?
202-347-3700
Case 5:17-md-02773-LHK Document 620-6 Filed 07/19/18 Page 122 of 153
508
5 A No.
9 interest?
16 now.
20 RECROSS-EXAMINATION
21 BY MR. MUELLER:
202-347-3700
Case 5:17-md-02773-LHK Document 620-6 Filed 07/19/18 Page 123 of 153
509
4 A That's my understanding.
12 patents; correct?
16 correct?
22 A Correct.
25 A Yes.
202-347-3700
Case 5:17-md-02773-LHK Document 620-6 Filed 07/19/18 Page 124 of 153
510
4 A Yes.
7 titled "2017Q1" --
9 confidential information.
17
18
19
20
21
22
23
24
25
202-347-3700
Case 5:17-md-02773-LHK Document 620-6 Filed 07/19/18 Page 125 of 153
514
3 placard?
4 BY MR. MUELLER:
9 products?
11 A Yes.
14 A Yes.
17 A That's right.
19 smartphone; correct?
202-347-3700
Case 5:17-md-02773-LHK Document 620-6 Filed 07/19/18 Page 126 of 153
515
5 correct?
8 I approach?
13 A Yes.
20 correct?
21 A Yes.
25 A Yes.
202-347-3700
Case 5:17-md-02773-LHK Document 620-6 Filed 07/19/18 Page 127 of 153
516
2 correct?
3 A Correct.
5 A Yes.
9 U.S.; correct?
12 analysis purposes.
22 A Probably, yes.
25 by 5G; correct?
202-347-3700
Case 5:17-md-02773-LHK Document 620-6 Filed 07/19/18 Page 128 of 153
517
1 A Yes.
6 infringed and has brought the 337 case in the first place.
16 interest; correct?
202-347-3700
Case 5:17-md-02773-LHK Document 620-6 Filed 07/19/18 Page 129 of 153
518
1 Are we done?
3 your Honor.
5 may.
9 BY MR. MARRIOTT:
12 Qualcomm; correct?
15 deposition, yes.
19 iPhone?
25 A No.
202-347-3700
Case 5:17-md-02773-LHK Document 620-6 Filed 07/19/18 Page 130 of 153
519
4 leading.
8 but --
12 BY MR. MARRIOTT:
15 A No.
20 BY MR. MARRIOTT:
202-347-3700
Case 5:17-md-02773-LHK Document 620-6 Filed 07/19/18 Page 131 of 153
520
1 this witness?
8 will do it.
13 to hand the --
19 Thank you.
23 (Witness excused.)
202-347-3700
Case 5:17-md-02773-LHK Document 620-6 Filed 07/19/18 Page 132 of 153
521
9 RDX-28.4?
17 about, okay?
24 Whereupon,
25 TONY J. BLEVINS
202-347-3700
Case 5:17-md-02773-LHK Document 620-6 Filed 07/19/18 Page 133 of 153
522
6 DIRECT EXAMINATION
7 BY MR. LEE:
11 Q I think so.
14 Cupertino, California.
20 consumer electronics.
202-347-3700
Case 5:17-md-02773-LHK Document 620-6 Filed 07/19/18 Page 134 of 153
523
2 consumers.
4 president of procurement?
6 years.
10 of watch engineering.
14 organization.
21 so interactions?
202-347-3700
Case 5:17-md-02773-LHK Document 620-6 Filed 07/19/18 Page 135 of 153
524
1 A Yes, I have.
6 this case?
10 A Yes.
13 A Yes.
15 before you?
16 A Yes, I do.
202-347-3700
Case 5:17-md-02773-LHK Document 620-6 Filed 07/19/18 Page 136 of 153
525
1 record as evidence.
5 witness.
11 CROSS-EXAMINATION
12 BY MR. MARRIOTT:
16 represent Qualcomm.
202-347-3700
Case 5:17-md-02773-LHK Document 620-6 Filed 07/19/18 Page 137 of 153
526
2 correct?
17 A Yes.
202-347-3700
Case 5:17-md-02773-LHK Document 620-6 Filed 07/19/18 Page 138 of 153
527
6 A Yes.
9 correct?
10 A Yes.
15 agree.
23 manufacturer; correct?
202-347-3700
Case 5:17-md-02773-LHK Document 620-6 Filed 07/19/18 Page 139 of 153
528
4 of smartphones; correct?
6 other.
18 suppliers?
20 that.
202-347-3700
Case 5:17-md-02773-LHK Document 620-6 Filed 07/19/18 Page 140 of 153
529
12 A Yes.
18 them whatever they were required to pay, but you told them
20 A Yes.
202-347-3700
Case 5:17-md-02773-LHK Document 620-6 Filed 07/19/18 Page 141 of 153
530
2 Qualcomm has told me. But I've never seen the agreements.
3 I believe it to be true.
10 A Yes.
16 2016; correct?
20 iPhone; correct?
202-347-3700
Case 5:17-md-02773-LHK Document 620-6 Filed 07/19/18 Page 142 of 153
531
17
18
19
20
21
22
23
24
25
202-347-3700
Case 5:17-md-02773-LHK Document 620-6 Filed 07/19/18 Page 143 of 153
534
3 BY MR. MARRIOTT:
14 iPhone?
19 recollection.
23 that point.
25 A That is correct.
202-347-3700
Case 5:17-md-02773-LHK Document 620-6 Filed 07/19/18 Page 144 of 153
535
7 that's correct.
202-347-3700
Case 5:17-md-02773-LHK Document 620-6 Filed 07/19/18 Page 145 of 153
536
6 that stage.
16 only one.
20 as a single source.
24 2018.
202-347-3700
Case 5:17-md-02773-LHK Document 620-6 Filed 07/19/18 Page 146 of 153
537
3 correct?
4 A Yes.
9 A Yes.
11 correct?
12 A Yes.
19
20
21
22
23
24
25
202-347-3700
Case 5:17-md-02773-LHK Document 620-6 Filed 07/19/18 Page 147 of 153
545
2 BY MR. MARRIOTT:
4 that Qualcomm paid Apple what you call rebates, which you
6 A Yes.
12 A Technically, no.
202-347-3700
Case 5:17-md-02773-LHK Document 620-6 Filed 07/19/18 Page 148 of 153
546
4 A That's my understanding.
10 correct?
24 Honor.
25 BY MR. MARRIOTT:
202-347-3700
Case 5:17-md-02773-LHK Document 620-6 Filed 07/19/18 Page 149 of 153
547
14 correct?
202-347-3700
Case 5:17-md-02773-LHK Document 620-6 Filed 07/19/18 Page 150 of 153
548
4 that sound?
11 20, 2018.)
12
13
14
15
16
17
18
19
20
21
22
23
24
25
202-347-3700
Case 5:17-md-02773-LHK Document 620-6 Filed 07/19/18 Page 151 of 153
549
1 C O N T E N T S
2 VOIR
4 MURALI ANNAVARAM
8 RANDY SAROFF
12 WILLIAM KERR
16 J. GREGORY SIDAK
19 TONY J. BLEVINS
22
23
24
25 -- continued --
202-347-3700
Case 5:17-md-02773-LHK Document 620-6 Filed 07/19/18 Page 152 of 153
550
1 C O N T E N T S (Continued)
9 E X H I B I T S
11 CX-628C 316
12 CX-630 333
13 CX-631 333
14 CX-4923C 334
15 CX-6C 356
16 CX-9C 356
17 CX-8C 358
18 CX-14C 389
19 CX-16C 435
20 RDX-28.3 472
21 RDX-28.4 472
22 RDX-28.3 521
23 RDX-28.4 521
24 RX-1C 525
25
202-347-3700
Case 5:17-md-02773-LHK Document 620-6 Filed 07/19/18 Page 153 of 153
551
CERTIFICATE OF REPORTER
TITLE: In The Matter Of: Certain Mobile Electronic Devices
and Radio Frequency and Processing
Components Thereof
202-347-3700
Case 5:17-md-02773-LHK Document 620-7 Filed 07/19/18 Page 1 of 141
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Case 5:17-md-02773-LHK Document 620-7 Filed 07/19/18 Page 3 of 141
1254
2 BEFORE THE
5 - - - - - - - - - - - - - - - - - X
9 COMPONENTS THEREOF :
10 - - - - - - - - - - - - - - - - - X
11
12 HEARING
13
15 Courtroom B
17 Commission
18 500 E Street, SW
19 Washington, DC
20
21
202-347-3700
Case 5:17-md-02773-LHK Document 620-7 Filed 07/19/18 Page 4 of 141
1255
1 APPEARANCES:
8 312.705.7400
10
15 415.875.6600
17
23 212.849.7000
25 - continued -
202-347-3700
Case 5:17-md-02773-LHK Document 620-7 Filed 07/19/18 Page 5 of 141
1256
1 APPEARANCES (CONTINUED):
7 213.443.3000
13 Washington, DC 20005
14 202.538-8000
16
21 713.221.7000
23
24
25 - continued -
202-347-3700
Case 5:17-md-02773-LHK Document 620-7 Filed 07/19/18 Page 6 of 141
1257
1 APPEARANCES (CONTINUED):
7 917.626.1356
15 212.474.1430
17
22 Washington, DC 20036
23 202.467.6300
25 - continued -
202-347-3700
Case 5:17-md-02773-LHK Document 620-7 Filed 07/19/18 Page 7 of 141
1258
1 APPEARANCES (CONTINUED):
8 60 State Street
10 617.526.6556
12
16 Washington, DC 20006
17 202.663.6365
19
24 213.443.5309
202-347-3700
Case 5:17-md-02773-LHK Document 620-7 Filed 07/19/18 Page 8 of 141
1259
1 APPEARANCES (CONTINUED):
6 Washington, DC 20024
7 202.783.5070
15 500 E Street, SW
16 Washington, DC 20436
17 202.205.2158
19
20
21
22
23
24
25
202-347-3700
Case 5:17-md-02773-LHK Document 620-7 Filed 07/19/18 Page 9 of 141
1260
1 P R O C E E D I N G S
14 confidential record?
23
24
25
202-347-3700
Case 5:17-md-02773-LHK Document 620-7 Filed 07/19/18 Page 10 of 141
1274
2 BY MR. MUELLER:
19 joining Yale?
23 School of Business.
25 government?
202-347-3700
Case 5:17-md-02773-LHK Document 620-7 Filed 07/19/18 Page 11 of 141
1275
1 A I have.
7 A That's correct.
18 economist?
23 company.
25 research?
202-347-3700
Case 5:17-md-02773-LHK Document 620-7 Filed 07/19/18 Page 12 of 141
1276
7 A Absolutely.
9 articles?
10 A Yes, I have.
12 your work?
23 BY MR. MUELLER:
202-347-3700
Case 5:17-md-02773-LHK Document 620-7 Filed 07/19/18 Page 13 of 141
1277
1 RX-11C.
2 A I see that.
7 A Yes, it does.
10 A Yes.
13 A Yes, I do.
15 31?
16 A I did.
202-347-3700
Case 5:17-md-02773-LHK Document 620-7 Filed 07/19/18 Page 14 of 141
1278
4 received.)
5 BY MR. MUELLER:
8 to Exhibit RX-1611C.
9 A I'm there.
11 A I do.
12 Q What is it?
16 A Yes, it does.
18 A Yes, it is.
20 investigation?
21 A Yes, I do.
23 A I have.
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1279
1 evidence.
9 court reporter.
11 received.)
16 CROSS-EXAMINATION
17 BY MR. MARRIOTT:
19 A Good morning.
21 cross-examination binder.
23 A Yes.
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1280
1 A That's correct.
13 BY MR. MARRIOTT:
16 correct?
17 A I have.
20 that right?
21 A That's right.
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1281
2 A That's correct.
5 A I have.
9 that's right.
17 patents.
23 fair?
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1282
2 upfront.
10 A Yes.
13 that right?
17 2017 products and the expected 2018 products? Did you hear
18 that testimony?
19 A Yes, I did.
24 has in mind.
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1283
3 BY MR. MARRIOTT:
6 A That's correct.
9 correct?
10 A That's correct.
14 safety; correct?
15 A That's correct.
21 A I agree.
24 correct?
25 A I do.
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1284
3 A Yes, I would.
6 A Yes, I would.
8 participants; correct?
9 A Yes.
13 A Yes, I would.
20 order; correct?
21 A They could.
25 2018 iPhone?
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1285
1 A That's my understanding.
5 A Yes, it is.
8 A They do.
12 A That's right.
24 A I don't know.
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1286
3 A That's right.
7 A That's right.
12 small.
21 consumers?
25 A That's correct.
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1287
3 A That's correct.
6 A That's right.
10 A Yes, it is.
21 that fair?
22 A Yes, it is.
25 A That's right.
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1288
3 technical matter?
10 correct?
12 premium, correct.
15 correct?
17 could do that.
20 A Yes, it does.
22 correct?
23 A That's right.
25 A That's correct.
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1289
6 A Yes.
14 A That's correct.
19 competitive.
21 time; correct?
22 A That's correct.
25 A That's correct.
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1290
3 A Yes.
10 A Yes, I agree.
13 A Yes.
16 suppliers; correct?
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1291
8 that we have so --
12 Honor.
13 BY MR. MARRIOTT:
16 A I do.
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1292
2 A Yes, it does.
9 A No, I don't.
12 A Yes, it is.
15 are violated?
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Case 5:17-md-02773-LHK Document 620-7 Filed 07/19/18 Page 29 of 141
1293
8 need to go --
10 okay?
23 Mr. Mueller.
25
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1305
7 you just think for a moment, the 1002 case just made it
11 pled.
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1306
1 BY MR. MARRIOTT:
4 right?
5 A That's right.
8 A Yes, I do.
12 A Yes, I am.
15 correct?
16 A That's right.
20 policy?
21 A That's right.
24 A Yes.
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1307
2 A That's right.
5 A Yes.
8 A Correct.
11 A Correct.
13 correct?
14 A That's right.
17 A That's right.
19 right?
202-347-3700
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1308
1 correct?
6 A Correct.
11 chipsets; correct?
12 A Correct.
16 A That's correct.
21 A Correct.
24 Qualcomm; correct?
25 A That's correct.
202-347-3700
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1309
3 correct?
4 A That's right.
6 correct?
7 A That's correct.
10 correct?
11 A I did.
15 A That's right.
17 2013; correct?
21 2013; correct?
22 A That's right.
202-347-3700
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1310
2 challenge?
8 industry; correct?
9 A I have.
11 A I have.
25 A Correct.
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1311
3 is that right?
4 A That's right.
7 A That's correct.
11 A That's correct.
202-347-3700
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1312
1 A Yes.
4 A Yes.
9 correct?
15 A I have not.
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1313
1 A I don't know.
4 A That's right.
7 A That's right.
9 effect; correct?
10 A Today?
11 Q Today.
12 A That's my understanding.
14 correct?
24 incentives?
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1314
3 correct?
4 A That's correct.
10 chips; correct?
15 A Yes.
23 A Yes.
202-347-3700
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1315
1 correct?
2 A That's right.
5 A I have.
8 correct?
12 A That's right.
14 questions.
23 could -- the ITC doesn't have the ability to give them that
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1316
1 venue.
18 that's right.
22 to pass out.
25 Thank you.
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1317
3 CROSS-EXAMINATION
4 BY MS. MURRAY:
6 A Good morning.
12 like that?
19 BY MS. MURRAY:
21 your deposition?
22 A I do.
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1318
3 A I see that.
6 A I do.
8 development of 2G?
10 yes.
15 A I do.
19 in 3G, absolutely.
22 4G"?
23 A I do.
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1319
6 A I see that.
11 A Yes, it is.
14 development?
15 A Yes, it is.
21 A I do.
25 A I do.
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1320
4 processor chipsets?
5 A Yes, it is.
7 correct?
8 A That's correct.
10 10. I'd just like to ask you if you agree with the
11 definition of 5G services.
13 with that.
18 connections."
20 the industry?
21 A Yes, it is.
25 then.
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1321
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
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1342
8 exhibits, if I could.
22 deposition --
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Case 5:17-md-02773-LHK Document 620-7 Filed 07/19/18 Page 48 of 141
1343
3 Honor.
9 reporter; correct?
19 in?
21 those in.
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Case 5:17-md-02773-LHK Document 620-7 Filed 07/19/18 Page 49 of 141
1344
7 received.)
10 cross-examination?
19 until I explained that the person was deceased and that was
21 (Laughter.)
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1345
7 but so that Ms. Chow and I have it to look at. And then
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1346
3 Whereupon,
4 ARTHUR KELLEY
8 sir.
11 DIRECT EXAMINATION
12 BY MR. ERWINE:
14 A Thank you.
20 A That's right.
24 A I have.
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1347
3 A This binder?
4 Q Yes.
5 A I see it.
7 statement?
8 A Yes, it is.
10 witness statement?
11 A Okay.
13 A That is my signature.
16 counsel?
17 A It does.
20 A I do.
23 evidence.
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1348
8 received.)
16 confidential record?
20
21
22
23
24
25
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1368
4 Whereupon,
5 MURALI ANNAVARAM
9 DIRECT EXAMINATION
10 BY MR. HAMSTRA:
12 A Thank you.
16 A That's correct.
19 A Yes.
22 A That's correct.
25 A Yes.
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1369
5 counsel?
6 A That's correct.
9 A That's correct.
20 received.)
24 proceed?
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1370
1 CROSS-EXAMINATION
2 BY MR. MASSA:
4 A Good morning.
8 A That is correct.
11 A Yes.
13 nVIDIA; right?
14 A That's correct.
17 A That is correct.
19 BY MR. MASSA:
24 that.
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1371
1 unit; correct?
2 A That's correct.
7 right?
12 A That is my understanding.
15 instruction-based; correct?
16 A That is correct.
19 A No, I do not.
23 correct?
24 A That is correct.
202-347-3700
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1372
1 construction; correct?
2 A That is correct.
4 with me?
5 A Yes.
8 A That is correct.
13 A I do.
19 correct.
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1373
2 A That is correct.
6 A Yes.
9 phrase; right?
10 A Yes, of course.
12 second; right?
14 -- per second.
20 A That is correct.
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1374
1 A That is correct.
9 pipelines.
11 A Yes, I do.
13 discussed at the top, the third line down, you will see it
16 A I do.
18 A That is my understanding.
20 right?
22 you.
24 Review"; correct?
25 A That is correct.
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1375
2 A That's correct.
6 A That's correct.
17 GeForce FX 5900.
19 A Yes.
23 yes.
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1376
1 A That's correct.
4 A Correct.
9 A That's correct.
12 A That's correct.
14 the next page of the document, you will see that the
18 A That is correct.
22 A That is correct.
24 CROSS-EXAMINATION
25 BY MS. MURRAY:
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1377
2 A Good morning.
19 computations.
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1378
11 A Sure.
13 set must be of the same type does not mean that all units
14 of the same type must fall within the same set? Do you
16 A Yes, please.
18 (Laughter.)
25 BY MS. MURRAY:
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1379
3 question is, true or false, the fact that all units within
4 a set must be of the same type does not mean that all units
12 redirect here.
14 REDIRECT EXAMINATION
15 BY MR. HAMSTRA:
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1380
2 perspective.
4 come from?
13 A Yes, I do.
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1381
2 multiple data streams. It's not like you have one extreme
12 Dr. Annavaram?
13 A Yes.
16 clock?
17 A That is correct.
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1382
4 A That's correct.
10 testimony.
12 (Witness excused.)
22 Whereupon,
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1383
8 DIRECT EXAMINATION
9 BY MR. PAK:
11 A Thank you.
16 A Yes.
20 '490 patent?
21 A Yes.
24 A Yes.
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1384
5 investigation?
6 A Yes.
15 the reporter.
19 cross-examination.
22 CROSS-EXAMINATION
23 BY MS. TALLON:
25 A Good morning.
202-347-3700
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1385
4 9,329,671.
6 A Yes.
9 A Yes.
20 A Yes.
23 A Yes.
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1386
1 A Yes.
4 A Yes.
8 Heinrich.
12 A Yes.
15 processor; correct?
16 A Yes.
19 A Yes.
22 processors; correct?
25 both directions.
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1387
6 that the only time data is held and it's not real-time
12 directions.
16 A Yes.
18 timer; correct?
19 A Yes.
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1388
2 data, yes.
19 Balasubramanian; correct?
20 A Yes.
23 31; correct?
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1389
3 A Yes.
7 equipment; correct?
8 A Yes.
11 transmission; correct?
12 A Yes.
24 medium.
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1390
1 an awake state, the network interface 112 can send its held
9 A Yes.
23 flow diagram?
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1391
1 A Yes.
9 shared medium.
11 A Yes.
16 A Yes.
19 correct?
23 pull; right?
24 A No.
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1392
11 is occurring on.
16 showed you this, Dr. Baker. And the question was a read
22 that helps.
23 BY MS. TALLON:
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1393
15 A Yes.
19 A Yes.
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1394
10 A Yes.
12 communications; correct?
13 A Yes.
16 A Yes.
19 A Yes.
23 about Wi-Fi.
25 A Yes.
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1395
7 medium, yes.
10 correct?
14 correct?
15 A Yes.
19 correct?
25 various points.
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1396
3 connection; right?
5 mentions is Ethernet.
9 A Yes.
12 platform; correct?
16 voice-over IP. But yes, there are some comments like that.
24 equipment.
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1397
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
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1398
2 Whereupon,
8 things are.
20 further.
22 again.
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1399
3 CROSS-EXAMINATION
4 BY MS. COMFORT:
6 A Good afternoon.
8 controller?
9 A No.
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1400
2 to reduce, and that the power associated with the IPC bus
3 is of little concern.
22 only thing that's held on one side. And that's only done
23 with the other processor is off and thus not holding data.
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1401
8 A Okay.
13 lower layers"?
14 A May we go to figure 1?
15 Q Sure, of course.
19 here.
24 part, it calls it. And then the apps, if this was a phone,
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1402
5 perhaps 102 would be shut off, but then the user equipment
19 looking at it.
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1403
6 network interface.
8 No further questions.
11 REDIRECT EXAMINATION
12 BY MR. PAK:
14 A Good afternoon.
18 utilized there?
22 power.
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1404
6 bus in Heinrich?
10 processor and the modem processor are on, the data goes
16 29 of column 3.
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1405
13 and know its state and see what the status of things are.
25 so --
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Case 5:17-md-02773-LHK Document 620-7 Filed 07/19/18 Page 92 of 141
1406
5 BY MR. PAK:
13 A Yes.
17 Heinrich.
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1407
4 system?
5 A Yes.
10 Q 600 milliseconds?
13 there?
16 go to sleep.
18 second; correct?
19 A Yes.
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1408
3 A Yes.
7 A Yes.
12 A No.
16 MTBF?
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1409
1 BY MR. PAK:
5 right?
6 A Yes.
23 air for the example, it's not possible to shut off power to
25 it off.
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1410
10 patent?
17 followed.
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Case 5:17-md-02773-LHK Document 620-7 Filed 07/19/18 Page 97 of 141
1411
5 Balasubramanian.
18 A No.
21 data?
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Case 5:17-md-02773-LHK Document 620-7 Filed 07/19/18 Page 98 of 141
1412
5 testimony?
6 A Yes.
14 even possible.
19 Would one skilled in the art at the time of the '490 patent
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1413
3 witness.
5 one?
7 allow.
8 RECROSS-EXAMINATION
9 BY MS. TALLON:
11 A Good afternoon.
21 on that.
25 yes.
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1414
3 that's possible.
12 correct, sir?
13 A Yes.
15 deposition; correct?
23 correct?
24 A Yes.
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1415
1 A Yes.
7 Ms. Tallon.
25 that over like it would voice information over the IPC bus.
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1416
15 that.
17 BY MS. TALLON:
25 transmitted, yes.
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1417
3 processor; correct?
5 both processors are on, the data just flies across, there's
9 A Yes.
14 your Honor.
22 (Witness excused.)
25 time.
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1418
8 Whereupon,
9 CARLA S. MULHERN
13 for the record. And make sure the microphone is on. And
16 Mulhern.
19 DIRECT EXAMINATION
20 BY MR. LASHER:
23 current employer?
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1419
2 D.C., office.
8 A Okay.
11 litigation?
19 educational background.
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1420
4 current employer.
10 association?
14 speeches?
24 any litigations?
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Case 5:17-md-02773-LHK Document 620-7 Filed 07/19/18 Page 107 of 141
1421
3 times.
6 hearing testimony?
9 so.
11 hearing testimony?
13 quite.
18 investigations.
22 industry.
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1422
10 chips?
24 applied microeconomics.
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1423
6 BY MR. LASHER:
13 marked as CX-15C?
14 A I see that.
16 A Yes, I do.
19 A Yes, it is.
22 questions?
23 A It does.
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1424
1 exhibits.
8 court reporter.
11 received.)
12 BY MR. LASHER:
16 A Yes, it is.
19 A Yes, I am.
21 A It is.
24 A Yes, it does.
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1425
12 witness.
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1426
1 applied microeconomics?
4 question --
13 them.
22 question?
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1427
8 company.
19 opinion.
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Case 5:17-md-02773-LHK Document 620-7 Filed 07/19/18 Page 114 of 141
1428
7 I've been a bit reticent about this so far. But I'm very,
11 okay.
15 CROSS-EXAMINATION
16 BY MR. CORDELL:
18 A Good afternoon.
21 A I do.
25 specifics.
202-347-3700
Case 5:17-md-02773-LHK Document 620-7 Filed 07/19/18 Page 115 of 141
1429
4 fair?
12 A That's right.
19 A That's fair.
20 Q So one of the --
202-347-3700
Case 5:17-md-02773-LHK Document 620-7 Filed 07/19/18 Page 116 of 141
1430
2 (Laughter.)
6 BY MR. CORDELL:
10 market, fair?
17 industry; correct?
18 A That's right.
21 A That's right.
202-347-3700
Case 5:17-md-02773-LHK Document 620-7 Filed 07/19/18 Page 117 of 141
1431
5 correct?
15 A That's right.
17 A That's correct.
21 A That's right.
22 Q Okay. --
202-347-3700
Case 5:17-md-02773-LHK Document 620-7 Filed 07/19/18 Page 118 of 141
1432
1 able to be here.
3 right.
13 Samsung; correct?
17 BY MR. CORDELL:
20 A That's right.
23 A That's right.
202-347-3700
Case 5:17-md-02773-LHK Document 620-7 Filed 07/19/18 Page 119 of 141
1433
1 A That's right.
10 exact numbers.
15 half of the U.S. market, the CDMA market, you had no choice
18 that's right.
202-347-3700
Case 5:17-md-02773-LHK Document 620-7 Filed 07/19/18 Page 120 of 141
1434
2 have one skew at that time, which was the Qualcomm chip.
5 processors; right?
6 A That's right.
11 testimony?
12 A I have.
14 your Honor.
15 BY MR. CORDELL:
18 processors; correct?
19 A That's right.
22 A Yes.
202-347-3700
Case 5:17-md-02773-LHK Document 620-7 Filed 07/19/18 Page 121 of 141
1435
2 semiconductor firm?
3 A I am aware of that.
6 A That's right.
9 A That's right.
12 A That's right.
16 A That's right.
18 right?
19 A That's right.
22 A That's right.
24 well; correct?
25 A That's right.
202-347-3700
Case 5:17-md-02773-LHK Document 620-7 Filed 07/19/18 Page 122 of 141
1436
4 A Yes, I am.
9 at this point.
16 market; right?
202-347-3700
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1437
1 know anything?
8 Mr. Cordell?
13 record.
15
16
17
18
19
20
21
22
23
24
25
202-347-3700
Case 5:17-md-02773-LHK Document 620-7 Filed 07/19/18 Page 124 of 141
1454
2 BY MR. CORDELL:
7 A That's right.
11 A That's fair.
14 correct?
20 case; right?
21 A That's my understanding.
202-347-3700
Case 5:17-md-02773-LHK Document 620-7 Filed 07/19/18 Page 125 of 141
1455
6 question.
12 market; correct?
14 generally, yes.
17 substitutes; right?
18 A That's right.
21 A That's right.
24 right?
202-347-3700
Case 5:17-md-02773-LHK Document 620-7 Filed 07/19/18 Page 126 of 141
1456
3 right?
4 A That's right.
11 so I don't know.
16 accused phones.
24 BY MR. CORDELL:
202-347-3700
Case 5:17-md-02773-LHK Document 620-7 Filed 07/19/18 Page 127 of 141
1457
2 behind you?
3 A I do.
6 here.
10 BY MR. CORDELL:
15 the left?
18 basically; right?
19 A That's right.
202-347-3700
Case 5:17-md-02773-LHK Document 620-7 Filed 07/19/18 Page 128 of 141
1458
2 A That's right.
13 correct.
16 A That's right.
22 correct?
23 A That's right.
202-347-3700
Case 5:17-md-02773-LHK Document 620-7 Filed 07/19/18 Page 129 of 141
1459
8 A Yes.
11 A That's right.
13 hurdle; right?
14 A That's right.
17 product; right?
22 A I did.
24 statement; correct?
25 A Yes.
202-347-3700
Case 5:17-md-02773-LHK Document 620-7 Filed 07/19/18 Page 130 of 141
1460
10 country; right?
11 A That's right.
15 A That's right.
18 products cases?
19 A I do.
22 A That's right.
202-347-3700
Case 5:17-md-02773-LHK Document 620-7 Filed 07/19/18 Page 131 of 141
1461
3 processor; correct?
13 A Just broadly.
22 expertise.
25 that Qualcomm says only stop the Intel parts at the border;
202-347-3700
Case 5:17-md-02773-LHK Document 620-7 Filed 07/19/18 Page 132 of 141
1462
1 right?
5 few days about why doesn't Intel just take a license from
10 right?
19 A No.
202-347-3700
Case 5:17-md-02773-LHK Document 620-7 Filed 07/19/18 Page 133 of 141
1463
2 over at Cravath?
3 A I see that.
5 firm.
8 BY MR. CORDELL:
12 A No, I wasn't.
14 and the judge, Judge Curiel out in San Diego, very bright
17 A No.
202-347-3700
Case 5:17-md-02773-LHK Document 620-7 Filed 07/19/18 Page 134 of 141
1464
6 Qualcomm?
8 chip manufacturer."
14 BY MR. CORDELL:
17 chip manufacturers?
19 chips policies.
202-347-3700
Case 5:17-md-02773-LHK Document 620-7 Filed 07/19/18 Page 135 of 141
1465
3 know --
11 BY MR. CORDELL:
14 licensed; correct?
15 A That's right.
18 A That's right.
22 A That's right.
25 correct?
202-347-3700
Case 5:17-md-02773-LHK Document 620-7 Filed 07/19/18 Page 136 of 141
1466
7 A Yes, I am.
9 makers did not have a license, but Apple did not have a
12 contract manufacturers.
14 correct?
15 A Not to my knowledge.
18 A That's my understanding.
23 confidential record.
25 confidential.
202-347-3700
Case 5:17-md-02773-LHK Document 620-7 Filed 07/19/18 Page 137 of 141
1467
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
202-347-3700
Case 5:17-md-02773-LHK Document 620-7 Filed 07/19/18 Page 138 of 141
1505
1 C O N T E N T S
2 VOIR
4 JERRY EISENACH
11 ARTHUR KELLY
15 MURALI ANNAVARAM
23
24
25 -- continued --
202-347-3700
Case 5:17-md-02773-LHK Document 620-7 Filed 07/19/18 Page 139 of 141
1506
1 C O N T E N T S (Continued)
2 VOIR
4 CARLA S. MULHERN
10
12 1322-1341, 1349-1367,
13 1438-1453, 1468-1504
14
15
16
17 E X H I B I T S
19 RX-11C 1278
20 RX-1611C 1279
21 SX-11 1322
22 SX-14 1322
23 SX-16 1322
24 SX-18 1322
25 -- continued --
202-347-3700
Case 5:17-md-02773-LHK Document 620-7 Filed 07/19/18 Page 140 of 141
1507
1 E X H I B I T S (Continued)
3 RDX-32C 1341
4 RX-7C 1343
5 RX-1607C 1344
6 CX-20C 1348
7 CX-18C 1369
8 CX-19C 1384
9 CX-15C 1424
10 CX-21 1425
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
202-347-3700
Case 5:17-md-02773-LHK Document 620-7 Filed 07/19/18 Page 141 of 141
1508
CERTIFICATE OF REPORTER
TITLE: In The Matter Of: Certain Mobile Electronic Devices
and Radio Frequency and Processing
Components Thereof
202-347-3700
Case 5:17-md-02773-LHK Document 620-8 Filed 07/19/18 Page 1 of 1
Exhibit
5('$&7('9(56,212)'2&80(176
628*+772%(6($/('
Case 5:17-md-02773-LHK Document 620-9 Filed 07/19/18 Page 1 of 3
Exhibit
Apple Pushes Monopoly Concerns In Qualcomm ITC Fight - Law360 https://www.law360.com/articles/1055440/print?section=competition
Case 5:17-md-02773-LHK Document 620-9 Filed 07/19/18 Page 2 of 3
Portfolio Media. Inc. | 111 West 19th Street, 5th floor | New York, NY 10011 | www.law360.com
Phone: +1 646 783 7100 | Fax: +1 646 783 7161 | customerservice@law360.com
By Chuck Stanley
Law360 (June 19, 2018, 9:31 PM EDT) -- Apple attorneys questioned an expert witness for
Qualcomm on the potential competition effects of the chipmaker’s bid to ban Intel-equipped
iPhones from the U.S. during a hearing Tuesday at the International Trade Commission, pressing
a claim that a ban on imports of the phone could hand Qualcomm monopoly power and push Intel
out of 5G development.
Apple Inc., in an effort to fight off patent infringement claims related to Intel Corp.-made chips
used in some iPhones, has argued that banning phones with the Intel chips would leave
Qualcomm Inc. with an effective monopoly on the market for modem chips used in premium
smartphones.
Apple has further suggested Intel would likely drop its efforts to develop next-generation wireless
technology known as 5G if its chips were effectively locked out of the U.S. market, diminishing the
influence of U.S. companies on standards for the new technology, an issue that has been flagged
by U.S. policymakers as a national security concern.
The expert witness, Gregory Sidak of consulting firm Criterion Economics, said he thought it was
unlikely Intel would abandon the entire 5G space over a setback to its business making chips for
handsets.
“I don’t think it’s credible,” said Sidak, Criterion's founding chairman. “[Intel] would be passing up
too great an opportunity aside from the smartphone business.”
Apple has said that a decision pushing Intel out of the 5G development game would undercut U.S.
investment in the emerging technology and cede leadership in the vital space to China.
Sidak also hit back at Apple’s claim that a ban on imports of Intel’s chips would allow Qualcomm
to raise prices for the chips and the costs would be passed on to consumers.
Sidak said Apple’s buying power would offset any putative monopoly power handed to Qualcomm,
and that a jump in prices for the chips would drive the tech giant to seek other sources for
advanced chips, incentivize makers of lower-performance chips to develop top-tier modem chips
and increase consumer demand for phones that use less-expensive modem chip designs.
According to an economic analysis Sidak performed for Qualcomm, every top-echelon smartphone
that could potentially serve as a consumer substitute for iPhones blocked from the U.S. uses
Qualcomm's modem chip, with the exception of some Samsung phones that use chips built in-
house.
The Intel-equipped iPhone, Sidak said, is the only top-tier phone that currently uses a competing
company's chip.
Sidak, in response to questioning from Apple attorneys, conceded that it is “generally true” that
1 of 2 7/19/2018, 8:35 AM
Apple Pushes Monopoly Concerns In Qualcomm ITC Fight - Law360 https://www.law360.com/articles/1055440/print?section=competition
Case 5:17-md-02773-LHK Document 620-9 Filed 07/19/18 Page 3 of 3
competition between two companies is better than a monopoly for consumer pricing, quality and,
in this case, national security issues.
However, he said that respect for Qualcomm’s intellectual property rights in the instant case
weighs against the general preference for competition.
“You’re trading the competitive benefits on one hand, and the protection of the company holding
the infringed patent on the other,” he said.
The ITC can issue a decision effectively banning the import of goods that violate U.S. patents, but
it has to find that such a decision is in the public interest.
The case is part of a larger dispute between the two companies over roughly 70 patents, playing
out in multiple jurisdictions around the world, including two patent infringement suits in
California federal court.
The instant case, which turns on three patents that cover chip design features that improve
energy efficiency, is the first to get a hearing at the ITC. An ITC administrative law judge is
scheduled to hear another case on a second group of patents in September.
Qualcomm launched the suit after Apple stopped reimbursing contracting manufacturers of
iPhones for royalty payments made by the individual companies to Qualcomm under individual
licensing agreements that allow them to produce the chips.
At Apple’s direction, Qualcomm claims, the contracting manufacturers stopped making the royalty
payments for iPhones, stripping Qualcomm of a major revenue source, even as they continued to
make the payments for phones they made for other device makers using the same Qualcomm
technology.
Apple’s vice president of procurement, Tony Blevins, said at the hearing that Qualcomm’s request
for a licensing agreement with Apple was one reason the company went with another chipmaker
when it produced the first version of the iPhone.
Blevins disputed Qualcomm’s claim that Apple directed manufacturers to withhold royalty
payments.
Rather, he said, Apple made “three very specific statements” to the contracting manufacturers.
Apple, according to Blevins, told the manufacturers it would only reimburse them for tech
royalties they were “required” to pay; that the contracting manufacturers were not required to
pay any royalties to Qualcomm for the modem chips; and that the contracting manufacturers
should do “whatever they want” with regard to the royalty payments.
Arguments in the case are expected to go through June 26, with an initial ruling expected in
September and a final determination in early 2019.
The case is In the Matter of Certain Mobile Electronic Devices and Radio Frequency and Processing
Components Thereof, case number 337-TA-1065, in the U.S. International Trade Commission.
2 of 2 7/19/2018, 8:35 AM
Case 5:17-md-02773-LHK Document 620-10 Filed 07/19/18 Page 1 of 4
Exhibit
Samsung pushes out Qualcomm for Galaxy S6 on AT&T's network - The... http://www.sandiegouniontribune.com/business/technology/sdut-Samsu...
Case 5:17-md-02773-LHK Document 620-10 Filed 07/19/18 Page 2 of 4
Qualcomm is the market leader in 4G LTE modems that link mobile phones to cellular networks. (/ U-T File Photo)
By Mike Freeman
arlier this year, Samsung dropped Qualcomm’s application processor from its new flagship Galaxy S6
smartphone in favor of its own silicon, which stung the San Diego wireless technology firm.
Now Samsung appears to be using its own cellular radio chips in at least some versions of the Galaxy S6 as
well.
Cellular radios – also known as modems or basebands – are Qualcomm’s strength. Its leadership in 4G LTE
technology has given the company dominant modem market share for the past couple of years.
1 of 3 7/19/2018, 8:54 AM
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Case 5:17-md-02773-LHK Document 620-10 Filed 07/19/18 Page 3 of 4
But AT&T said on its website recently that Galaxy S6 smartphones sold on its network will have Samsung’s
Exynos apps processor and a Samsung Shannon 333 cellular modem.
Previous Galaxy S5 and Note 4 models on AT&T’s network were powered by Qualcomm’s Snapdragon
platform – which includes an integrated apps processor and cellular modem.
Christopher Rolland, an analyst with FBR Capital Markets, cut his rating on Qualcomm’s stock to “market
perform” from “buy” on Monday because of the AT&T move, calling it a “big blow” to Qualcomm.
“While we still expect the Verizon and Sprint Galaxy S6 versions to sport Qualcomm modems – both build on
legacy CDMA networks – we believe this change signals Samsung’s clear intent to utilize propriety baseband
whenever and wherever possible,” said Rolland in a research note.
Last week, Chipworks, an industry research firm, took apart a version of Samsung Galaxy S6 and found that
it also used a Samsung’s own cellular modem. The discovery surprised some analysts, who had expected
Qualcomm to retain the bulk of Samsung’s baseband business because of its 4G LTE leadership.
Rolland believes the model analyzed by Chipworks likely was earmarked for sale in India, Australia,
Singapore or Latin America. He said Intel supplied modems for previous Samsung Galaxy phones sold in
these regions, not Qualcomm.
Qualcomm declined to comment. In January, the company lowered its revenue outlook and earnings forecast
for its full fiscal year because of a large unnamed customer dropped Qualcomm’s most-advanced apps
processor from an upcoming flagship phone.
Qualcomm is still expected to supply cellular modems to a meaningful number of Galaxy S6 smartphones
worldwide, according to industry sources, but perhaps to fewer versions than analysts expected.
Samsung struggled last year in its smartphone business – hurt by competition from Apple and low-cost
Android phone makers in China.
By using its own chips, Samsung can improve its profit margins, said Jim McGregor, principal analyst with
Tirias Research.
“Samsung has been under a lot of pressure the past couple of quarters,” he said. “There has been a huge push
at Samsung to use their own silicon to improve their margins. So I think it’s more of a strategic decision. “
Qualcomm’s shares ended Monday down 21 cents at $67.76. Its stock price has slipped about 8 percent so far
this calendar year.
2 of 3 7/19/2018, 8:54 AM
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Case 5:17-md-02773-LHK Document 620-10 Filed 07/19/18 Page 4 of 4
3 of 3 7/19/2018, 8:54 AM
Case 5:17-md-02773-LHK Document 620-11 Filed 07/19/18 Page 1 of 86
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Case 5:17-md-02773-LHK Document 620-11 Filed 07/19/18 Page 3 of 86
1097
2 BEFORE THE
5 - - - - - - - - - - - - - - - - - X
9 COMPONENTS THEREOF :
10 - - - - - - - - - - - - - - - - - X
11
12 HEARING
13
15 Courtroom B
17 Commission
18 500 E Street, SW
19 Washington, DC
20
21
202-347-3700
Case 5:17-md-02773-LHK Document 620-11 Filed 07/19/18 Page 4 of 86
1098
1 APPEARANCES:
8 312.705.7400
10
15 415.875.6600
17
23 212.849.7000
25 - continued -
202-347-3700
Case 5:17-md-02773-LHK Document 620-11 Filed 07/19/18 Page 5 of 86
1099
1 APPEARANCES (CONTINUED):
7 213.443.3000
13 Washington, DC 20005
14 202.538-8000
16
21 713.221.7000
23
24
25 - continued -
202-347-3700
Case 5:17-md-02773-LHK Document 620-11 Filed 07/19/18 Page 6 of 86
1100
1 APPEARANCES (CONTINUED):
7 917.626.1356
15 212.474.1430
17
22 Washington, DC 20036
23 202.467.6300
25 - continued -
202-347-3700
Case 5:17-md-02773-LHK Document 620-11 Filed 07/19/18 Page 7 of 86
1101
1 APPEARANCES (CONTINUED):
8 60 State Street
10 617.526.6556
12
16 Washington, DC 20006
17 202.663.6365
19
24 213.443.5309
202-347-3700
Case 5:17-md-02773-LHK Document 620-11 Filed 07/19/18 Page 8 of 86
1102
1 APPEARANCES (CONTINUED):
6 Washington, DC 20024
7 202.783.5070
15 500 E Street, SW
16 Washington, DC 20436
17 202.205.2158
19
20
21
22
23
24
25
202-347-3700
Case 5:17-md-02773-LHK Document 620-11 Filed 07/19/18 Page 9 of 86
1103
1 P R O C E E D I N G S
6 Whereupon,
7 AICHA EVANS
10 REDIRECT EXAMINATION
11 BY MR. MUELLER:
13 A Good morning.
15 questions --
18 nonconfidential.
22 (Laughter.)
25 BY MR. MUELLER:
202-347-3700
Case 5:17-md-02773-LHK Document 620-11 Filed 07/19/18 Page 10 of 86
1104
5 A Yes, I do.
8 A Yes, we do.
9 Q Why?
17 A Yes, I do.
20 A Yes, sir.
23 A Yes, I do.
25 placard?
202-347-3700
Case 5:17-md-02773-LHK Document 620-11 Filed 07/19/18 Page 11 of 86
1105
2 BY MR. MUELLER:
5 5G.
7 A Yes, I do.
11 power.
16 evolve.
19 A That is correct.
22 A No.
23 Q Why not?
202-347-3700
Case 5:17-md-02773-LHK Document 620-11 Filed 07/19/18 Page 12 of 86
1106
6 at N.
9 A I do.
12 A I do.
20 space, the phone has been the base innovation engine for
22 a while.
202-347-3700
Case 5:17-md-02773-LHK Document 620-11 Filed 07/19/18 Page 13 of 86
1107
1 little bit, the way, like in a simple way, the way things
4 There is bits and information that are flying over the air.
17 A Yes.
19 A Yes.
21 exit the market for phones and still make premium baseband
22 chipsets?
23 A No.
24 Q Why not?
202-347-3700
Case 5:17-md-02773-LHK Document 620-11 Filed 07/19/18 Page 14 of 86
1108
1 We would have stuff that works in the lab, but that you
7 A I do.
13 A I do.
18
19
20
21
22
23
24
25
202-347-3700
Case 5:17-md-02773-LHK Document 620-11 Filed 07/19/18 Page 15 of 86
1137
5 Honor.
6 Whereupon,
7 STEVEN BOWERS
11 sir.
12 DIRECT EXAMINATION
13 BY MR. CORDELL:
15 A Good morning.
202-347-3700
Case 5:17-md-02773-LHK Document 620-11 Filed 07/19/18 Page 16 of 86
1138
3 that right?
7 different capacity?
8 A That's correct.
22 unavailable.
23 BY MR. CORDELL:
202-347-3700
Case 5:17-md-02773-LHK Document 620-11 Filed 07/19/18 Page 17 of 86
1139
4 mechanical engineering.
9 aeronautics.
17 here in Virginia.
24 application.
25 (Laughter.)
202-347-3700
Case 5:17-md-02773-LHK Document 620-11 Filed 07/19/18 Page 18 of 86
1140
16 Atomic Energy.
202-347-3700
Case 5:17-md-02773-LHK Document 620-11 Filed 07/19/18 Page 19 of 86
1141
2 supporting the U.S. Army Third Infantry out there and their
8 recognition?
13 devices group.
19 recognition award.
21 award?
202-347-3700
Case 5:17-md-02773-LHK Document 620-11 Filed 07/19/18 Page 20 of 86
1142
5 A Yes, it is.
7 answers thereto?
8 A Yes, it does.
11 A Yes, it is.
13 this case?
14 A Yes, it does.
24 reporter.
202-347-3700
Case 5:17-md-02773-LHK Document 620-11 Filed 07/19/18 Page 21 of 86
1143
11 BY MR. CORDELL:
202-347-3700
Case 5:17-md-02773-LHK Document 620-11 Filed 07/19/18 Page 22 of 86
1144
5 is.
8 the two.
20 A Correct.
202-347-3700
Case 5:17-md-02773-LHK Document 620-11 Filed 07/19/18 Page 23 of 86
1145
2 chipset design.
4 and display this MTP, not this particular one, but an MTP
14 capabilities.
22 in.
24 A Friendly, friendly.
25 Q Friendly, okay.
202-347-3700
Case 5:17-md-02773-LHK Document 620-11 Filed 07/19/18 Page 24 of 86
1146
12 CROSS-EXAMINATION
13 BY MR. MARRIOTT:
17 A Good morning.
19 before; correct?
23 A Correct.
202-347-3700
Case 5:17-md-02773-LHK Document 620-11 Filed 07/19/18 Page 25 of 86
1147
2 A Yes.
5 products; correct?
7 claim.
10 iPhone; correct?
16 technical challenges.
202-347-3700
Case 5:17-md-02773-LHK Document 620-11 Filed 07/19/18 Page 26 of 86
1148
12 A That is correct.
15 correct?
16 A Yes.
20 CROSS-EXAMINATION
21 BY MS. COMFORT:
23 A Good morning.
25 A That is correct.
202-347-3700
Case 5:17-md-02773-LHK Document 620-11 Filed 07/19/18 Page 27 of 86
1149
4 Corporation?
8 Corporation.
12 Intel Corporation?
202-347-3700
Case 5:17-md-02773-LHK Document 620-11 Filed 07/19/18 Page 28 of 86
1150
2 A Yes.
4 been PC computers?
8 wireless space.
13 applications?
22 Q That's okay.
202-347-3700
Case 5:17-md-02773-LHK Document 620-11 Filed 07/19/18 Page 29 of 86
1151
2 paradigm.
202-347-3700
Case 5:17-md-02773-LHK Document 620-11 Filed 07/19/18 Page 30 of 86
1152
10 millimeter wave.
17 enable the magic of 5G, and it will unlock use cases that
25 impacted by 5G?
202-347-3700
Case 5:17-md-02773-LHK Document 620-11 Filed 07/19/18 Page 31 of 86
1153
1 A Profoundly so.
3 technology; right?
7 chipset provider.
10 5G?
19 they didn't simply close the book and high five each other
202-347-3700
Case 5:17-md-02773-LHK Document 620-11 Filed 07/19/18 Page 32 of 86
1154
6 the case.
11 sales.
202-347-3700
Case 5:17-md-02773-LHK Document 620-11 Filed 07/19/18 Page 33 of 86
1155
10 premium LTE chipset. You take that LTE chipset off the
12 with Intel simply goes away. They simply will not -- they
21 consistently.
202-347-3700
Case 5:17-md-02773-LHK Document 620-11 Filed 07/19/18 Page 34 of 86
1156
5 chipsets.
19 Intel component.
202-347-3700
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6 A Absolutely.
10 other, in my view.
14 A Yes.
18 product?
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1158
8 board.
14 least two, possibly three years. And even once those are
21 experience.
23
24
25
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1172
6 Whereupon,
7 JEFFREY EISENACH
15 DIRECT EXAMINATION
16 BY MR. CORDELL:
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1173
6 industries.
15 an economist?
17 and that means that I focus on the way that markets work in
18 general.
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1174
1 get in trouble.
3 telecommunications industry?
14 United States.
17 public interest?
25 national interest?
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1175
19 and cybersecurity.
25 of cases.
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1176
3 telecommunications.
17 BY MR. CORDELL:
23 statement.
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1177
1 A Yes, it is.
4 A Yes, it does.
7 A Yes, it is.
10 case?
11 A Yes, it does.
13 A That is my signature.
24 received.)
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1178
1 BY MR. CORDELL:
7 A Yes, it is.
9 counsel?
10 A It does.
13 A Yes, it is.
15 this case?
16 A Yes, sir.
18 A That is my signature.
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1179
5 received.)
8 that, I apologize.
10 for him?
19 for cross. And if I may take that down so we can see the
24 CROSS-EXAMINATION
25 BY MR. MARRIOTT:
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1180
7 expert witness?
11 A That's true.
15 correct?
16 A That's correct.
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1181
2 this proceeding?
3 A That's correct.
9 proceeding?
10 A Yes.
13 A That's correct.
16 correct?
17 A That's correct.
21 A That's correct.
25 A I do.
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1182
9 correct?
10 A Yes.
13 would agree, would you not, that the mobile device industry
16 A Yes.
20 A Yes.
24 A Yes.
202-347-3700
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1183
6 correct?
10 A Generally, yes.
13 industries; true?
18 chips?
19 A Yes.
202-347-3700
Case 5:17-md-02773-LHK Document 620-11 Filed 07/19/18 Page 49 of 86
1184
2 A I do.
9 A That's fine.
18 A That's correct.
20 iPhones; correct?
21 A That's correct.
25 A Yes.
202-347-3700
Case 5:17-md-02773-LHK Document 620-11 Filed 07/19/18 Page 50 of 86
1185
5 correct?
8 prior statement.
18 investigation?
19 A Yes, sir.
202-347-3700
Case 5:17-md-02773-LHK Document 620-11 Filed 07/19/18 Page 51 of 86
1186
1 Dr. Eisenach?
7 iPhones?
8 "Answer: Yes."
10 A Yes, sir.
22 device. There's" --
24 sustained.
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Case 5:17-md-02773-LHK Document 620-11 Filed 07/19/18 Page 52 of 86
1187
9 this.
11 BY MR. MARRIOTT:
15 consumer who has not in any way been locked in to the Apple
23 consumers can't get the most recent iPhone, then they are
24 harmed?
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1188
5 A Yes, I do.
12 consumers are willing to pay $150 more for the first phone
202-347-3700
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1189
7 A That's correct.
13 A Yes.
20 A That's correct.
23 correct?
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1190
3 A I did not.
6 A That's correct.
12 A Yes.
15 correct?
21 A That's correct.
24 A That's correct.
202-347-3700
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1191
2 A That's correct.
10 great question.
24 A That's correct.
202-347-3700
Case 5:17-md-02773-LHK Document 620-11 Filed 07/19/18 Page 57 of 86
1192
3 A That's correct.
7 A Yes.
22 A Yes.
24 A Yes.
202-347-3700
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1193
1 A Yes.
4 A Yes.
10 chipsets, yes.
13 A Yes.
16 A Yes.
19 A Yes.
22 A Of course, yes.
25 information.
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1194
2 confidential record.
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
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Case 5:17-md-02773-LHK Document 620-11 Filed 07/19/18 Page 60 of 86
1216
3 BY MR. MARRIOTT:
13 things; correct?
20 A That's correct.
202-347-3700
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1217
1 Mr. Marriott.
3 BY MR. MARRIOTT:
10 correct?
11 A That is correct.
14 phones; correct?
15 A That's true.
18 phones; correct?
19 A That's correct.
202-347-3700
Case 5:17-md-02773-LHK Document 620-11 Filed 07/19/18 Page 62 of 86
1218
4 products; correct?
5 A That's true.
9 A That's correct.
12 A Correct.
14 Verizon; right?
18 A That's correct.
20 A That's correct.
24 industry; correct?
25 A That's correct.
202-347-3700
Case 5:17-md-02773-LHK Document 620-11 Filed 07/19/18 Page 63 of 86
1219
8 A Yes.
11 correct?
12 A That's correct.
22 Europe?
23 A That's correct.
25 subsidiaries; correct?
202-347-3700
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1220
1 A That's correct.
7 correct.
19 correct?
20 A That's correct.
202-347-3700
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1221
2 correct?
3 A That's correct.
9 sentence.
19 That's part 1?
20 Q Correct.
202-347-3700
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1222
19 confidential record.
21
22
23
24
25
202-347-3700
Case 5:17-md-02773-LHK Document 620-11 Filed 07/19/18 Page 67 of 86
1225
2 BY MR. MARRIOTT:
5 business; correct?
17 correct?
18 A Same answer.
23 development; right?
202-347-3700
Case 5:17-md-02773-LHK Document 620-11 Filed 07/19/18 Page 68 of 86
1226
2 A Yes.
11 A Yes.
14 A Yes.
17 involvement?
18 A Yes.
22 A Yes.
202-347-3700
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1227
1 perspective?
10 contributing; correct?
13 don't mind.
17 correct?
23 exercise is not unique, then you would also agree that the
202-347-3700
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1228
11 of 2017?
15 A Yes.
22 correct?
23 A Yes.
202-347-3700
Case 5:17-md-02773-LHK Document 620-11 Filed 07/19/18 Page 71 of 86
1229
1 of those but --
4 correct?
5 A Yes.
7 companies; correct?
11 A Yes.
14 A That's correct.
18 correct?
19 A That's correct.
21 A That's correct.
24 A That's correct.
202-347-3700
Case 5:17-md-02773-LHK Document 620-11 Filed 07/19/18 Page 72 of 86
1230
1 A Yes.
4 right?
5 A That's correct.
12 you spoke with Ms. Evans, Mr. Constantine and Mr. Bowers
14 A Yes.
19 A Lots of pages.
23 A That is correct.
202-347-3700
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1231
7 order; correct?
8 A That's correct.
14 A Yes.
17 correct?
18 A That's correct.
202-347-3700
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1232
4 correct?
5 A Yes.
13 point.
16 to; correct?
25 service; correct?
202-347-3700
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1233
6 A Yes.
10 Intel chips.
12 A I do.
16 correct?
202-347-3700
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1234
7 A Yes, I do.
11 right?
12 A That's correct.
19 of that here.
23 competition; correct?
202-347-3700
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1235
8 A That's correct.
13 A Yes.
16 correct?
17 A That's correct.
22 Q I'm sorry?
25 A Yes.
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1236
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
202-347-3700
Case 5:17-md-02773-LHK Document 620-11 Filed 07/19/18 Page 79 of 86
1240
2 BY MR. MARRIOTT:
6 A Yes.
9 right?
11 I believe.
14 States; correct?
15 A That's my understanding.
19 correct?
23 A That's correct.
202-347-3700
Case 5:17-md-02773-LHK Document 620-11 Filed 07/19/18 Page 80 of 86
1241
8 Ms. Comfort?
12 you don't --
14 with --
19 could start and see where we get or would you rather wrap
23 CROSS-EXAMINATION
24 BY MS. COMFORT:
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Case 5:17-md-02773-LHK Document 620-11 Filed 07/19/18 Page 81 of 86
1242
2 A Yes.
5 things differently?
11 markets.
18 they're all the same in the next period as they are in this
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Case 5:17-md-02773-LHK Document 620-11 Filed 07/19/18 Page 82 of 86
1243
2 going?
5 there.
10 BY MS. COMFORT:
13 right?
14 A That's correct.
16 A Correct.
19 A That's correct.
23 of a good?
24 A Correct.
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Case 5:17-md-02773-LHK Document 620-11 Filed 07/19/18 Page 83 of 86
1244
8 A Correct.
21 don't think I'm making a fine point. I'm not really sure
202-347-3700
Case 5:17-md-02773-LHK Document 620-11 Filed 07/19/18 Page 84 of 86
1245
5 on that front.
11 differently; right?
14 record.
16 confidential record.
18
19
20
21
22
23
24
25
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Case 5:17-md-02773-LHK Document 620-11 Filed 07/19/18 Page 85 of 86
1252
1 C O N T E N T S
2 VOIR
4 AICHA EVANS
8 STEVEN BOWERS
12 JERRY EISENACH
16
18 1195-1215, 1223-1224,
19 1237-1239, 1246-1251
20
21 E X H I B I T S
23 RX-9C 1142
24 RX-10C 1177
25 RX-1612C 1179
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Case 5:17-md-02773-LHK Document 620-11 Filed 07/19/18 Page 86 of 86
1253
CERTIFICATE OF REPORTER
TITLE: In The Matter Of: Certain Mobile Electronic Devices
and Radio Frequency and Processing
Components Thereof
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1
2 BEFORE THE
5 - - - - - - - - - - - - - - - - - X
9 COMPONENTS THEREOF :
10 - - - - - - - - - - - - - - - - - X
11
12 PREHEARING
13
15 Courtroom B
17 Commission
18 500 E Street, SW
19 Washington, DC
20
21
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Case 5:17-md-02773-LHK Document 620-12 Filed 07/19/18 Page 4 of 116
2
1 APPEARANCES:
7 312.705.7400
14 415.875.6600
16
19 Worldwide Plaza
22 212.474.1430
24
25 - continued -
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Case 5:17-md-02773-LHK Document 620-12 Filed 07/19/18 Page 5 of 116
3
1 APPEARANCES (CONTINUED):
7 Washington, DC 20036
8 202.467.6300
10
14 60 State Street
16 617.526.6556
18
22 Washington, DC 20006
23 202.663.6365
25 - continued -
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Case 5:17-md-02773-LHK Document 620-12 Filed 07/19/18 Page 6 of 116
4
1 APPEARANCES (CONTINUED):
7 213.443.5309
13 Washington, DC 20024
14 202.783.5070
16
22 500 E Street, SW
23 Washington, DC 20436
24 202.205.2158
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Case 5:17-md-02773-LHK Document 620-12 Filed 07/19/18 Page 7 of 116
5
1 P R O C E E D I N G S
12 evidentiary testimony.
22 whatever.
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6
3 as it doesn't spill.
12 is. She was Judge Luckern's assistant for all these years
14 all week working to get all this stuff set up, so if you
21 careful anyway.
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7
2 Apple about that. And I still have my iMac, and Costco put
7 terrific device.
22 did, of course.
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8
11 sure.
19 it.
22 you will see them as they come up. But thank you very
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9
4 come up to do examinations.
8 Krall and Ryan Moran, and with us from Intel are Ben
12 the other counsel there, and I know Ms. Tallon has been
15 paper has been decent. I'll let you know after I hear the
17 match your aspirations. But facts are what the facts are.
22 Jeffrey Hsu.
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Case 5:17-md-02773-LHK Document 620-12 Filed 07/19/18 Page 12 of 116
10
9 if necessary.
11 use equal time over the course of the hearing, but I'm not
13 should keep track of their own time. I'm sure you have
14 somebody who does that, like the person who manages the
15 screen.
22 investigation.
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11
10 there; right?
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12
7 after I've heard the opening statements. I'll let you guys
8 get a full head of steam at that point. But what I did was
11 thankfully shorter than the other two, and it was the only
14 screen and then the other brief open on the other. And I
18 looking, not all the time, I just didn't have the time to
22 And I'm not going to telegraph them until I've heard the
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13
10 about that.
25 You don't need to tell us who you guys are, you know. How
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14
1 many hearings have I had with Apple and Qualcomm? You guys
3 tracks. This is the first time I believe I've ever had you
12 hearing, and we've done that. You know, we've taken the
13 input of the Staff, we've taken the input from your Honor
18 and we have the '936 patent. And let me take those -- I'm
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Case 5:17-md-02773-LHK Document 620-12 Filed 07/19/18 Page 17 of 116
15
3 standpoint as well.
9 were like before the '490 patent and what they were dealing
20 receiving the information over the what I'll call the radio
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16
2 quickly.
5 that can move a lot of data back and forth, a wide highway,
14 as you can. You obviously can't eliminate it, but you can
19 the data that's coming from the base station down to the
23 the network.
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17
2 data and uplink data, even though they are both using this
14 doing any work during that, until it gets all the way
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18
7 one direction at any given time. And that's just what the
11 that time.
14 patent are this USB 3.0 and the PCIe bus, PCI express bus
18 And it's also full duplex, meaning I can send data in both
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19
2 mentioned.
11 say "held," I mean it's on that side of the bus. It's not
13 processor.
16 down, but I'm not transferring over the bus. So that bus
18 situation.
24 of that data.
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20
6 Honor, you're going to have more data coming down from the
8 more data than they send up. That's the idea. So there
12 that timer expires, the modem processor takes the data it's
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21
2 transmissions.
24 context.
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22
1 is you have to send all of the downlink data from the modem
2 processor before you pull any data up, right, the uplink
11 the claims, which is what this issue really is, your Honor,
17 that talk about this that would also be excluded from that,
19 as we all know.
25 processor is.
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23
3 die, that holds the processing logic and not the associated
6 not sending uplink data over the bus until it's pulled from
17 the Apple phones, what they stamp as being A10 and A11,
20 that die, you know, the processing logic die that I talked
22 stamped with the A10. That's what Apple itself calls the
23 processor here.
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24
2 Flutie pass.
7 in order to do it.
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25
6 else.
8 and move now to the '558 patent, your Honor. Unless there
20 necessarily.
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26
3 your Honor is familiar with Wi-Fi and how that works, with
7 device senses the carrier, says oh, the medium is free, I'm
11 some other device did that same thing at the same time,
20 and I heard about backup timers and all the rest of that
21 stuff.
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27
3 about it is this is Intel prior art, and you will see. And
11 it.
23 definitively shown me X.
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28
8 you need to brief that with real care and -- but for the
15 Absolutely.
18 with this one. When I first read your brief I thought, oh,
19 not bad. And then I read what the Staff had to say. And
23 here.
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29
21 for years and years and years, that's the technology they
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30
12 things going way, way back to Mr. Marconi and such, right.
18 patent.
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31
5 experience with audio in the past. And so, you know, this
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32
12 peaks and valleys, right. And those peaks, let's just say,
13 you know, some of them are 3 volts and the valleys may be a
20 technology works.
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33
1 then, for what people want to use the phone for, make it so
14 efficient, and also you only need -- see, the whole idea of
22 something that's very, very different you will see from the
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34
16 going to be improved.
25 make that more than it otherwise would be. And we'll see
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35
5 you see.
17 record.
19
20
21
22
23
24
25
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50
14 instant.
19 plan for your house, you know, the framing for your house,
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51
7 you can see that last step on the right would be that
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52
7 your Honor.
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
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66
3 and mindful of what the Court just said, let me, if I may,
5 and just say briefly this, your Honor. There are, in our
7 interest issues.
13 ago, and we concur with that when the Staff has to say with
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67
1 but that in any event, the evidence will support the entry
18 regard.
22 analysis here.
24 of the statutory factors that I'm aware of. And the whole
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68
9 don't see a role for the FTC here. But that's me, okay.
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69
3 Thank you.
5 thank you.
11 Honor.
18 hear what our position is, so as the evidence comes in, you
20 we do.
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70
1 public record?
9 have them, Qualcomm will have them, but we will blank the
10 screen.
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3 how much you read your brief. You are leading this band
18 will notice that the claim wasn't put up on the screen, and
21 with your Honor now, but the words in the claim, such as
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7 are some claims that have been dropped that actually make
12 because --
21 that are typical, we agree with the Staff that for the
25 on those claims are the same, and they have concluded what
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13 not only agree upon what the facts are but what the legal
18 of technical prong. You see, Mr. Lee, you are the pro's
23 you don't got the technical prong, that's -- that's the big
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2 important point.
5 of the '490 patent, but our position for each of the three
21 basis for just the remaining patents that your Honor has
22 before you, are not things that are being used, not by us,
23 not by them.
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6 that from the Staff and then I read it in yours. Now, that
12 robustness.
23 they use to distinguish that prior art and the meaning they
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1 out that, with all due respect to Mr. Nelson, it's Qualcomm
5 specification says and you credit what the claims say, the
8 Honor, what I would like to do, given what your Honor has
24 Pratt & Whitney and General Electric, who made the fighter
25 engines for the F16s and the F15s. And before Pratt &
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2 engines.
5 engines.
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7 that point.
10 think it's also clear that when you have two competitors,
20 immediately.
25 And this, your Honor, is where, you know, I hope we'll put
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15 a real chance they will exit. They will exit that market.
20 they have to stop accepting supply for the U.S. market from
22 even globally.
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5 the antitrust issues and the patent issues was one that
7 different.
10 Judge Koh, we now know that the reason Intel couldn't get
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6 that we say exists, that Intel says exists, that has been
9 conduct.
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10 your question of why are these things related, why are they
11 here.
22 And the timing works, your Honor, so that the target date
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6 Intel were excluded from the market before Judge Koh had a
9 important.
12 Honor's concern.
24 go on.
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4 proceed.
7 the brief.
15 by another party.
25 you that the idea that you would have an exclusion order
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6 that's unprecedented.
10 that?
15 excluded.
20 what the Staff says on that, I'm not going to say it's
23 it should be. And Ms. Murray will say whether I'm getting
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1 the Staff has said the question of whether Intel will exit
9 Staff elicits.
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9 that power.
13 that remedy, can that remedy, when you consider the public
22 you that when Intel came into the market, what happened?
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2 4G and 5G.
22 '490 patent.
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12 issues on the '558 and the '936. And I'll just say this as
13 I start.
17 skepticism, and I'm sure you know that given the way the
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7 agree. So, your Honor, let me take you through some of the
13 it.
24 can transfer data back and forth between each other. All
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10 processor.
14 bus is powered on, data can flow across the bus. That's
18 And for that reason, modern buses usually have one or more
20 powered down. That saves power and the data cannot flow
23 processor has data intended for the other processor but the
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2 consume power.
7 bus is in a low power state and then send all the stored
9 data and waiting for the higher power state, you can save
10 power.
19 to the '490 patent and talk about what's new and what's
20 old.
24 pull.
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13 data is sent and then the bus goes back into the low power
14 state.
17 state. All the held uplink data, and I'm -- these are not
20 power state.
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2 case?
8 state.
12 art. And what your Honor will see is, again, these are
19 that's left in the case for the '490 patent. And the
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3 shown on figure 5.
5 think they could. But I think what I can show you is two
6 things.
16 pen, so the words that they put into the claim, right, are
22 through.
24 what the plain meaning of the word "after" is. It's very
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13 prior art.
18 processor data.
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1 different consequence.
5 which is the uplink and downlink data going back and forth,
6 one followed by the other. And then you have a claim that
14 Claim 31 cannot.
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1 doesn't infringe.
11 made about the location isn't made just once. It's made
19 arguments.
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2 to modem data until the modem processor pulls data from the
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7 Now, your Honor may ask, you know, why are these
12 Technology has moved on. The chips are more robust. The
15 other.
17 specific.
19 you're saying the science has moved on, you have to say,
22 that's what you say is true, then a priori, that's the best
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24 confidential.
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4 product does.
9 You know why? Mr. Lee, you are a pro. What's wrong with
12 The ones that are highlighted, your Honor, I'm not sure.
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7 of art.
10 points on the '558 and '936 and then come back and address
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15 from those.
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13 (Laughter.)
15 the contrary?
18 is zero.
23 as your Honor says, if you read the press, the press has
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6 Intel says so, the Staff agreed, and your Honor, if I take
24 more important.
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4 information you have, but when Intel finally broke in, when
19 the day is one claim which we disagree with the Staff on,
22 bus, what goes first, what goes second. That's it. That's
23 it.
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3 interest.
15 FTC filed its complaint. But we got in. And Intel got in
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6 there's nothing.
12 been around for a long time. And he says -- around the ITC
25 brief by the Staff. More than that, I was happy with the
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14 clear?
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1 It's there.
10 technical prong.
13 I'll make a joke out of it. I got to put dicamba down and
15 for it, but is to give a chance for you guys, after you've
23 F-22, the Air Force only goes with one engine. That's
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1 and Pratt & Whitney, they only use Pratt & Whitney.
4 most of you all are too smart to do that. And you can
5 avoid that.
7 the Staff, and Mr. Lee, I appreciate more than I can say
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2 it out.
7 three patents, the '558, the '490 and the '936. There are
10 31 of the '490.
16 me?
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21 do that.
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21 particular problem.
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2 because you have too low of battery voltage. And then the
18 indicates that when you get to the claims and they claim a
22 transistor.
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10 claim was not based on prior art. And the claims were
18 of equivalents?
24 true?
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1 the word cascode on the public record, that that was out
10 And it's also a strong case that it's not literally met
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7 products.
15 was '490.
17 envelope trackers?
23 lower than they used to, but -- and it happens that there
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11 embodiment.
13 well as if you combine Chu with Choi, that you would have
20 questions.
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2 iPhone.
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13 life.
19 Markman.
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10 pulls embodiment.
14 after transmission.
24 out from the device and that says that the data is encoded
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17 itself.
21 idea was obvious and that, you know, someone else came up
22 with it earlier.
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3 Ms. Comfort, or at least you know that I've said it, that
13 out there in the art, and it's easy to point to them. But
22 record.
24 necessary to do it?
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11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
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9 this investigation.
20 smartphones.
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2 themselves.
11 different answers.
19 harmed.
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9 processor market, its ups and downs and how much it's
10 invested. The Staff on that point would just say that any
18 its sales for overseas markets and that therefore the harm
20 as Intel predicts.
24 Apple witnesses.
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4 industry.
16 find out.
21 witnesses.
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5 this investigation.
11 included.
24 those issues?
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4 cases and stuff like that. And that would include direct
12 obvious to anyone.
21 with this litigation here and taking the risk of what could
22 happen is bad for both of you, bad for Intel, it's bad for
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7 can't predict.
15 know? This room has the best -- some of the best, arguably
17 the United States in this room. And Mr. Nelson, you are
19 correct?
21 many.
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20
21
22
23
24
25
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1 C O N T E N T S
3 VOIR
5 (NONE)
10
11
12 E X H I B I T S
14 (NONE)
15
16
17
18
19
20
21
22
23
24
25
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CERTIFICATE OF REPORTER
TITLE: In The Matter Of: Certain Mobile Electronic Devices
and Radio Frequency and Processing
Components Thereof
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