Case 1:17-cv-00770-JDW Document 224-18 Filed 10/05/23 Page 1 of 8 PageID #: 19024
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`Exhibit 48
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`Case 1:17-cv-00770-JDW Document 224-18 Filed 10/05/23 Page 2 of 8 PageID #: 19025
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`CONTAINS CONFIDENTIAL BUSINESS INFORMATION
`SUBJECT TO THE PROTECTIVE ORDER
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`UNITED STATES INTERNATIONAL TRADE COMMISSION
`WASHINGTON, D.C.
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`Before the Honorable David P. Shaw
`Administrative Law Judge
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`
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`In the Matter of
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`CERTAIN ROAD MILLING MACHINES
`AND COMPONENTS THEREOF
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`Investigation No. 337-TA-1067
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`DIRECT WITNESS STATEMENT OF MR. ERIC ENGELMANN
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`RX-0987C.0001
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`RX-0987C
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`Case 1:17-cv-00770-JDW Document 224-18 Filed 10/05/23 Page 3 of 8 PageID #: 19026
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`CONTAINS CONFIDENTIAL BUSINESS INFORMATION
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`and pavers. Another category is forestry products, including skidders, forwarders, feller
`bunchers, and harvesters. Another category is large mining equipment, both underground
`and above ground. And another category is building construction products such as skid
`steer and backhoe loaders. Caterpillar also makes a variety of different sized engines,
`including some engines that are purchased by Wirtgen for its products.
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`Q18. How many employees does Caterpillar have in the United States?
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`A:
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`Caterpillar has a workforce of approximately 48,500 in the United States.
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`III.
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`PRIOR ART CATERPILLAR MACHINES
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`A.
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`PM-565
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`Q19. Mr. Engelmann, are you familiar with the Caterpillar PM-565 Cold Planer?
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`A:
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`Yes, I am. One of my first NPI projects at Caterpillar was the PM-201 cold planer, which
`was the next generation product update of the PM-565B. In my work on this project, I
`became very familiar with the design and functionality of the PM-565 and PM-565B.
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`Q20. During that time did you have an opportunity to physically inspect a PM-565 cold
`planer?
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`A:
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`During that time, I worked with the PM-565B cold planer, which was in current
`production. When I first started at Caterpillar, I helped assemble PM-565B machines,
`which had all the same basic functions as the PM-565, with a different engine. Through
`this work, I had a chance to see these machines extensively.
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`Q21. Was that PM-565 the same model machine that was sold by Caterpillar prior to
`2000?
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`A:
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`Yes, it was the same model that was sold in the 1990s.
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`Q22. I’m handing you RX-0001. Do you recognize this document?
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`A:
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`Yes. This is a copy of the PM-565 Operation & Maintenance Manual from January 1995.
`I might call this document “PM-565 OMM.”
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`Q23. I’m handing you RX-0002. Do you recognize this document?
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`A:
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`Yes. This is the PM-565 Parts Manual from November 1999. I might call this document
`“PM-565 Parts.”
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`Q24. I’m handing you RX-0003. Do you recognize this document?
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`A:
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`Yes. This is the PM-565 Technical Presentation, Service Training Meeting Guide from
`August 1993. I may refer to this document as “PM-565 STMG.”
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`3
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`RX-0987C.0004
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`Case 1:17-cv-00770-JDW Document 224-18 Filed 10/05/23 Page 4 of 8 PageID #: 19027
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`CONTAINS CONFIDENTIAL BUSINESS INFORMATION
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`Q48. Did you see the legs move on this PM-565 during operation?
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`A:
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`Yes. The legs functioned in the same manner as I described earlier, which was the same
`for all the PM-565 machines during the 1990s.
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`Q49. Mr. Engelmann, based on your personal knowledge that you just described, did the
`PM-565 with Serial Number 3TK00092 in Washington operate in the same manner
`as the PM-565 machine described in RX-0001, RX-0002, and RX-0003?
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`A:
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`Yes, based on my knowledge of the PM-565 machine and manuals, the 3TK00092 PM-
`565 machine in Seattle operated as described in RX-0001, RX-0002, and RX-0003. The
`PM-565 machine I observed in Seattle was typical of the PM-565 machines that were
`sold in the 1990s.
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`Q50. How do you know that the specific features described in the manuals RX-0001, RX-
`0002, and RX-0003 were present in the PM-565 machine during the 1990s?
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`A:
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`I have knowledge that the rear door design, the rotor turning device design, and the
`kickback ski functionality remained the same throughout the production of the PM-565,
`PM-565B, and PM-201. In addition, each of the manuals described the features of
`particular machines with the applicable Serial Number range listed in the manual. By
`looking at the cover pages, you can see that PM-565 OMM applied to machines with
`serial numbers 3TK1 and up, PM-565 Parts applied to machines with Serial Numbers
`3TK1-112, and PM-565 STMG applied to machines with Serial Numbers 3TK00040 and
`up. You can also see from RPX-0003C that the machine that was inspected with serial
`number 3TK00092 fell within this range of the manuals and was sold in the 1990s.
`Therefore, based on my understanding of the functionality of the PM-565, as well as my
`review of these manuals and my inspection of the machine, I can confirm that the features
`described in the manuals were present in PM-565 machines sold during this time.
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`Q51. Do you know whether these manuals were publicly available?
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`A:
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`Yes. All Caterpillar machines that are sold are sent to the dealer and customer with a
`copy of the OMM and Parts Manuals. In addition to being shipped to customers who
`purchased a PM-565, each of these manuals could also be purchased by any individuals
`from Caterpillar dealers. Technical presentations like the STMG are also given to
`customers, students, dealers, and training staff at informational training sessions.
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`B.
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`PM-465
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`Q52. Mr. Engelmann, are you familiar with the Caterpillar PM-465 Cold Planer?
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`A:
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`Yes, I am. When I began working at Caterpillar, I worked on documenting hydraulic hose
`routings for the PM-465, and also performed some maintenance on the machine during
`my time in the current products engineering group. In my work on these projects, I
`became familiar with the design and functionality of the PM-465.
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`Q53. I’m handing you RX-0027. Do you recognize this document?
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`8
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`RX-0987C.0009
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`CONTAINS CONFIDENTIAL BUSINESS INFORMATION
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`A:
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`Yes. This is a copy of the PM-465 Operation and Maintenance Manual from June 2003. I
`might refer to RX-0027 as “PM-465 OMM.”
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`Q54. I’m handing you RX-0028. Do you recognize this document?
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`A:
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`Yes. This is a copy of the PM-465 Technical Presentation, Service Training Meeting
`Guide from December 1998. I might refer to RX-0028 as “PM-465 STMG.”
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`Q55. What is your understanding of the general function of the PM-465 machine?
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`A:
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`Generally, the PM-465 has the same functionality as the PM-565, as they are both
`similarly sized cold planers.
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`Q56. Did the PM-465 also have a kickback ski?
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`A:
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`Yes, it did.
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`Q57. Can you describe the design of the kickback ski on the PM-465?
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`A:
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`The kickback ski on the PM-465 had essentially the same functionality as the ski on the
`PM-565. The difference is the location of the ski. On the PM-465, the kickback ski was
`mounted on the rear door of the machine, rather than on the conveyor. Otherwise, the
`kickback ski worked the same way.
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`Q58. Do you know whether the PM-465 had any software relating to the kickback
`functionality?
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`A:
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`Yes, it did.
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`Q59. Are you familiar with that software?
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`A:
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`At a high level, yes, I know how it functioned.
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`Q60. Can you describe how it functioned?
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`A:
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`The PM-465 software was similar to the PM-565 source code, and also corresponded to
`my understanding of the kickback functionality. The code contained a number of routines
`that use signals from the ski to detect kickback events. Like in the PM-565, if a kickback
`event occurred, the code would cause the machine to stop propel, disengage the clutch,
`and apply the rotor brakes. The code also had failsafe routines.
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`Q61. Do you know generally when the PM-465 was sold United States?
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`A:
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`Yes, I know it was on sale in the late 1990s and early 2000s.
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`Q62. How do you know that the features described in the manuals RX-0027 and RX-0028
`were present in the PM-465 machines sold during the 1990s?
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`9
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`RX-0987C.0010
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`A:
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`First, I know that the kickback ski on the PM-465 remained the same from its release
`through the end of its production. I can also tell that the manuals accurately described the
`features because of the serial number ranges, like we discussed with the PM-565. The
`PM-465 OMM applied to machines with Serial Numbers 5ZS1 and up. Similarly, PM-
`465 STMG describes the reverse travel feature of PM-465 in detail, and I can confirm
`that this description is accurate based on my understanding of the machine’s
`functionality.
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`Q63. Do you know whether the PM-465 manuals were publicly available?
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`A:
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`Yes, they were. As I said earlier, all Caterpillar machines that are sold are sent to the
`dealer and customer with a copy of the OMM, so anyone who purchased a PM-465
`received the OMM. And also, like with the PM-565, the manuals could be purchased by
`any individuals from Caterpillar dealers or from the Caterpillar website. Finally, PM-465
`STMG was also given to customers, students, dealers, and training staff at informational
`training sessions.
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`IV.
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`Low Cost Producer (LCP) Process
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`Q64. Are you familiar with the Low Cost Producer process at Caterpillar?
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`A:
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`Yes.
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`Q65. What is it?
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`A:
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`At a high level, the Low Cost Producer process or “LCP” is a process to evaluate the
`product you’re going to develop. This involves competitive analysis, understanding the
`market, and developing a product that is low cost.
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`Q66. What is Caterpillar’s competitive analysis process?
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`A: We have a large customer base, and many of our customers are familiar with different
`products in the marketplace. Customers will operate both competitive equipment and
`Caterpillar equipment. Caterpillar teams that interact with customers like marketing and
`sales will get feedback about things that customers like or don’t like on machines. All of
`this information goes into what we call the Voice of Customer, which is used as an input
`into new development programs. Using these inputs, we come up with design
`requirements to meet customer demand. All of this information is taken into account
`when designing a new machine that is best for the customer.
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`Q67. Are you familiar with the term “teardown” as that term is used at Caterpillar?
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`A:
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`Yes, there are teardowns of competitive product, as well as of our own products as part of
`the Low Cost Producer process. On some occasions, we will do more thorough
`competitive analysis, looking specifically at competitive machines and doing an
`evaluation. This type of evaluation allows us to understand the features we already have
`that are effective, as well as features we are missing that would allow for improvement.
`Part of that process is finding features that competition has that we don’t, and figuring out
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`10
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`RX-0987C.0011
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`if that’s something that we value and want to find a solution for. Sometimes we will ask
`marketing regions if particular features offered by competitive machines are necessary to
`compete in that marketplace. If we get feedback that says we need that feature to
`compete, we will evaluate way to design an effective machine. In the process, we go
`through normal design steps, which include looking at the IP landscape and making sure
`we do our diligence to produce designs that are clear of existing IP. In essence, we often
`look at what our competition is doing, determine whether there are any features that are
`necessary for our customers to be successful, then create designs to meet those
`requirements.
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`Q68. Do you know whether Caterpillar analyzed any Wirtgen cold planer machines as
`part of this process?
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`A:
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`Yes, Caterpillar analyzed two Wirtgen machines as part of its Low Cost Producer process
`in conjunction with the Caterpillar PM102 and PM200 machines. However, Caterpillar
`has also done significant competitive analysis on other types of products too, using A2-
`MAC-1, an automotive benchmarking service provider. This company is used by many
`other competitors in the industry as well. Caterpillar has used this process many times for
`competitive analysis on other machines, including John Deere, Komatsu, Volvo, and
`Dynapac. In the case of cold planers, Wirtgen is one of the largest competitors, so it made
`sense to analyze their machines, but this is not the case in all of Caterpillar’s products.
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`Q69. To the best of your knowledge, did Caterpillar copy any features of Wirtgen’s
`machines?
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`A:
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`No. When Caterpillar looks at a feature, it doesn’t mean we copy it. As I described
`earlier, we look at competitive machines to understand important features, then we
`develop our own competitive features to compete.
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`Q70. Can you provide an example of a competitive feature that Caterpillar developed
`after looking at Wirtgen’s products?
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`A:
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`Yes, there are numerous examples. For one, Caterpillar investigated Wirtgen’s parallel to
`surface system on its cold planers. We then developed our own grade and slope system
`using a completely different sensor design. Specifically, Caterpillar utilized a GS420 dual
`axis slope sensor. Historically, machines used single axis sensors that only measured
`cross slope. In the new design, we incorporated a dual axis slope sensor to achieve a
`similar capability in a much different way. While still using the cross slope for normal
`grade control, the sensor’s second axis is used to control the pitch of the machine fore
`and aft. In the Caterpillar design, this is the sensor we use for entering the cut to keep the
`machine attitude the way we want it. This sensor is also used for the jump feature, when
`we raise the machine up and keep the chassis at a particular pitch by adjusting the rear
`legs.
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`11
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`RX-0987C.0012
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`Case 1:17-cv-00770-JDW Document 224-18 Filed 10/05/23 Page 8 of 8 PageID #: 19031
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`V.
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`Conclusion
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`Q71. Please look at the documents that have been marked as indicated below. Do these
`exhibits correspond to the documents you referenced in your answers?
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`RX-0001; RX-0002; RX-0003; RX-0027; RX-0028; RPX-0003C
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`A:
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`Yes, they do.
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`Q72. Does this statement contain your own answers to the questions from counsel?
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`A:
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`Yes, it does.
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`Q73. Are your answers to the questions from counsel true and correct to the best of your
`knowledge and belief?
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`A:
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`Yes, they are.
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`Date: March 13, 2018
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`Eric S. Engelmann
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`12
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`RX-0987C.0013
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