Case 1:17-cv-00770-JDW Document 250-18 Filed 10/25/23 Page 1 of 9 PageID #: 25713
`Case 1:17-cv-00770-JDW Document 250-18 Filed 10/25/23 Page 1 of 9 PagelD #: 25713
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`EXHIBIT 18
`EXHIBIT 18
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`

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`Case 1:17-cv-00770-JDW Document 250-18 Filed 10/25/23 Page 2 of 9 PageID #: 25714
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`HIGHLY CONFIDENTIAL—SUBJECT TO PROTECTIVE ORDER
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`IN THE UNITED STATES DISTRICT COURT
`
`BEFORE THE
`
`THE DISTRICT OF DELAWARE
`
`WIRTGEN AMERICA, INC.
`
`Plaintiff
`
`v.
`
`CATERPILLAR, INC.
`
`Defendant
`
`C.A. No. 17-770-JDW
`
`
`
`
`
`EXPERT REPOR T OF
`
`DR. PALLAVI SETH
`
`ON BEHALF OF
`
`WIRTGEN AMERICA, INC.
`
`
`
`
`
`M AY 1 9, 20 23
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`
`
`

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`Case 1:17-cv-00770-JDW Document 250-18 Filed 10/25/23 Page 3 of 9 PageID #: 25715
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`HIGHLY CONFIDENTIAL—SUBJECT TO PROTECTIVE ORDER
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`the sale of Accused Products, Wirtgen is entitled to a reasonable royalty rate of at least 31.6
`
`percent, and potentially up to 40.7 percent, of revenues from the sale of Accused Products.361
`
`This rate considers, among other things, both Wirtgen’s loss of market profits and the portion of
`
`the value created by Caterpillar’s products that can be attributed to the Asserted Patents.
`
`Respectfully Submitted,
`
`Pallavi Seth, Ph.D.
`
`
`
`
`
`
`
`
`361 See, Table 9, row [14].
`
`Expert Report of Pallavi Seth, Ph.D.
`C.A. No. 17-770-JDW
`
`| Page 91 of 128
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`Case 1:17-cv-00770-JDW Document 250-18 Filed 10/25/23 Page 4 of 9 PageID #: 25716
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`HIGHLY CONFIDENTIAL—SUBJECT TO PROTECTIVE ORDER
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`: Royalty Bases
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`D.1 Four-Way Full Floating (the ’309 Patent)
`
`300. I understand that Wirtgen accuses the PM600 and PM800 series machines with the ride control
`
`feature, which I understand to be the feature that infringes Wirtgen’s four-way full floating
`patent.394 I further understand all PM600 and PM800 series machines with build modifier 01A
`have the ride control feature.395 I also understand some of the PM600 and PM800 series
`machines with build modifier 02A have the ride control feature.396 Thus, I include the machines
`with the below listed serial numbers in my royalty base.397
`
`301. I understand that Wirtgen requested that Caterpillar identify whether it disagreed that any of the
`
`below listed machines incorporate the accused feature, but that Caterpillar to date has not
`
`responded to Wirtgen’s request. I also understand that Caterpillar has not produced complete
`
`sales and financial information to date. I reserve the right to update my royalty base and analysis
`
`if and when Caterpillar produces additional information.
`
`D.1.a Serial Numbers
`
`302. 62600100; 3C600101; 3C600102; 3C600103; 3C600104; 3C600105; EE200100; EE200101;
`
`EE200102; EE200103; EE200104; EE200106; EE200107; EE200108; ESE00100; ESE00102;
`
`ESE00105; ESE00106; ESE00107; ESE00108; ESE00110; ESE00111; ESE00112; JB900102;
`
`JB900103; JB900104; JB900105; JB900107; JB900108; JB900109; JB900112; JB900115;
`
`JB900120; JB900121; JB900122; JB900126; JB900127; JB900128; JB900132; JB900133;
`
`JB900134; JB900135; JB900136; JB900137; JB900139; JB900140; JB900145; JB900146;
`
`JB900147; JB900151; JB900154; JB900155; JB900156; JB900162; JB900163; JB900165;
`
`JB900166; JB900171; JB900172; JB900173; JB900175; JB900179; JB900190; JB900199;
`
`
`394 See, Table 3.
`395 See, e.g., Engelmann Deposition 2023, 25:19-26:1 (“Q. Sure. Yeah. The term ‘ride control’ is a name
`Caterpillar gave to a feature that was present on the 01A build for the PM600? A. For the PM600, yes.”).
`396 See, “Caterpillar Machines and Build Modifiers,” CAT_00061555. See also, Engelmann Deposition 2023, 31:5-
`12.
`397 See, “Caterpillar Machines and Build Modifiers,” CAT_00061555; “Caterpillar Sales Data,” CAT-770_063219;
`and “Caterpillar Sales Information,” CAT-770_039450.
`
`Expert Report of Pallavi Seth, Ph.D.
`C.A. No. 17-770-JDW
`
`| Page 119 of 128
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`

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`Case 1:17-cv-00770-JDW Document 250-18 Filed 10/25/23 Page 5 of 9 PageID #: 25717
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`HIGHLY CONFIDENTIAL—SUBJECT TO PROTECTIVE ORDER
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`JB900203; JCF00103; JCF00104; JCF00105; JCF00106; JCF00109; JFC00101; JFC00102;
`
`JFC00103; JFC00104; JFC00105; JFC00106; JFC00107; JFC00108; JFC00109; JFC00110;
`
`JFC00111; JFC00112; JFC00113; JFC00114; JFC00115; JFC00116; JFC00118; JFC00119;
`
`JFC00120; JFC00121; JFC00122; JFC00123; JFC00124; JFC00125; JFC00126; JFC00127;
`
`JFC00128; JFC00129; JFC00130; JFC00132; JFC00133; JFC00134; JFC00135; JFC00136;
`
`JFC00138; JFC00139; JFC00142; JFC00143; JFC00144; JFC00145; JFC00146; JFC00147;
`
`JFC00148; JFC00149; JFC00150; JFC00151; JFC00152; JFC00153; JFC00154; JFC00155;
`
`JFC00156; JFC00157; JFC00158; JFC00159; JFC00160; JFC00161; JFC00162; JFC00163;
`
`JFC00164; JFC00165; JFC00167; JFC00168; JFC00169; JFC00170; JFC00171; JFC00172;
`
`JFC00173; JFC00174; JFC00175; JFC00176; JFC00177; JFC00178; JFC00180; JFC00181;
`
`JFC00182; JFC00183; JFC00184; JFC00185; JFC00186; JFC00187; JFC00188; JFC00189;
`
`JFC00190; JFC00191; JFC00192; JFC00193; JFC00194; JFC00195; JFC00197; JFC00198;
`
`JFC00199; JFC00200; JFC00201; JFC00202; JFC00204; JFC00205; JFC00206; JFC00207;
`
`JFC00208; JFC00209; JFC00210; JFC00212; LB800101; LB800102; LB800103; LB800104;
`
`LB800105; LB800106; SL800105; SL800106; SL800107; SL800108; SL800109; SL800110;
`
`SL800111; SL800112; SL800113; SL800114; SL800115; SL800116; SL800117; SL800118;
`
`SL800119; SL800122; SL800125; SL800126; SL800127; SL800128; SL800129; SL800130;
`
`SL800132; SL800133; SL800134; SL800135; SL800137; SL800138; SL800140; SL800142;
`
`SL800144; TLZ00104; TPH00101; TPH00102; TPH00103; TPH00104; TPH00105; TPH00106;
`
`TPH00107; TPH00108; TPH00109; TPH00110; TPH00111.
`
`D.2 Driving Backwards (the ’641 Patent)
`
`303. I understand that Wirtgen accuses all PM300, PM600, and PM800 series machines with the
`
`original driving backwards design.398 I further understand that on July 13, 2021, Caterpillar
`
`issued a service letter indicating that it was changing the design of the driving backwards
`
`feature.399 Therefore, I included in my royalty base all machines with a “build date” or “sales
`
`
`398 See, Table 3.
`399 See, “Caterpillar Service Letter,” July 13, 2021, Updated on January 30, 2022, CAT-770_073649.
`
`Expert Report of Pallavi Seth, Ph.D.
`C.A. No. 17-770-JDW
`
`| Page 120 of 128
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`Case 1:17-cv-00770-JDW Document 250-18 Filed 10/25/23 Page 6 of 9 PageID #: 25718
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`HIGHLY CONFIDENTIAL—SUBJECT TO PROTECTIVE ORDER
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`entry date” before the July 13, 2021 service letter400 or a “reporting period” before the July 13,
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`2021 service letter.401 Machines with a reporting period before July 13, 2021 but a sales entry
`
`date after July 13, 2021 are excluded as a conservatism. However, any machine that was
`
`identified in the July 13, 2021 service letter as having received the modified driving backwards
`
`design via software flash was included in the royalty base because, if it received the software
`
`flash, then it must have been manufactured with the original driving backwards design. The
`
`serial numbers of the machines included in my royalty base are listed below.
`
`304. I understand that Wirtgen requested that Caterpillar identify whether it disagreed that any of the
`
`below listed machines have the accused feature, but that Caterpillar to date has not responded to
`
`Wirtgen’s request. I also understand that Caterpillar has not produced complete sales and
`
`financial information to date. I reserve the right to update my royalty base and analysis if and
`
`when Caterpillar produces additional information.
`
`D.2.a Serial Numbers
`
`305. 62600100; 3C600101; 3C600102; 3C600103; 3C600104; 3C600105; 3C600300; 3C600301;
`
`3C600303; 3C600304; AN800300; EE200100; EE200101; EE200102; EE200103; EE200104;
`
`EE200106; EE200107; EE200108; EE200300; EE200301; EE200304; EE200306; EE200307;
`
`EE200308; EE200309; EE200310; EE200311; EE200312; EE200313; ESE00100; ESE00102;
`
`ESE00105; ESE00106; ESE00107; ESE00108; ESE00110; ESE00111; ESE00112; JB900102;
`
`JB900103; JB900104; JB900105; JB900107; JB900108; JB900109; JB900112; JB900115;
`
`JB900120; JB900121; JB900122; JB900126; JB900127; JB900128; JB900132; JB900133;
`
`JB900134; JB900135; JB900136; JB900137; JB900139; JB900140; JB900145; JB900146;
`
`JB900147; JB900151; JB900154; JB900155; JB900156; JB900162; JB900163; JB900165;
`
`JB900166; JB900171; JB900172; JB900173; JB900175; JB900179; JB900190; JB900199;
`
`JB900203; JCF00103; JCF00104; JCF00105; JCF00106; JCF00109; JFC00101; JFC00102;
`
`JFC00103; JFC00104; JFC00105; JFC00106; JFC00107; JFC00108; JFC00109; JFC00110;
`
`JFC00111; JFC00112; JFC00113; JFC00114; JFC00115; JFC00116; JFC00118; JFC00119;
`
`JFC00120; JFC00121; JFC00122; JFC00123; JFC00124; JFC00125; JFC00126; JFC00127;
`
`
`400 As indicated on “Caterpillar Sales Data,” CAT-770_063219.
`401 As indicated on “Caterpillar Sales Information,” CAT-770_039450.
`
`Expert Report of Pallavi Seth, Ph.D.
`C.A. No. 17-770-JDW
`
`| Page 121 of 128
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`Case 1:17-cv-00770-JDW Document 250-18 Filed 10/25/23 Page 7 of 9 PageID #: 25719
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`HIGHLY CONFIDENTIAL—SUBJECT TO PROTECTIVE ORDER
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`JFC00128; JFC00129; JFC00130; JFC00132; JFC00133; JFC00134; JFC00135; JFC00136;
`
`JFC00138; JFC00139; JFC00142; JFC00143; JFC00144; JFC00145; JFC00146; JFC00147;
`
`JFC00148; JFC00149; JFC00150; JFC00151; JFC00152; JFC00153; JFC00154; JFC00155;
`
`JFC00156; JFC00157; JFC00158; JFC00159; JFC00160; JFC00161; JFC00162; JFC00163;
`
`JFC00164; JFC00165; JFC00167; JFC00168; JFC00169; JFC00170; JFC00171; JFC00172;
`
`JFC00173; JFC00174; JFC00175; JFC00176; JFC00177; JFC00178; JFC00180; JFC00181;
`
`JFC00182; JFC00183; JFC00184; JFC00185; JFC00186; JFC00187; JFC00188; JFC00189;
`
`JFC00190; JFC00191; JFC00192; JFC00193; JFC00194; JFC00195; JFC00197; JFC00198;
`
`JFC00199; JFC00200; JFC00201; JFC00202; JFC00204; JFC00205; JFC00206; JFC00207;
`
`JFC00208; JFC00209; JFC00210; JFC00212; JH900101; JH900102; JH900103; JH900104;
`
`JH900105; JH900107; JH900109; JH900111; JH900112; JH900114; JH900115; JH900116;
`
`JH900117; JH900118; JH900119; JHZ00100; JHZ00103; JHZ00104; JHZ00107; JHZ00110;
`
`JHZ00209; JHZ00212; JHZ00213; JHZ00214; JHZ00217; JHZ00218; LB800101; LB800102;
`
`LB800103; LB800104; LB800105; LB800106; NJ900103; NJ900104; NJ900105; NJ900106;
`
`NJ900107; NJ900108; NJ900109; NJ900110; NJ900111; NJ900112; NJ900113; NJ900114;
`
`NJ900115; NJ900116; NJ900118; NJ900119; NJ900120; NJ900121; NJ900122; NJ900123;
`
`NJ900124; NJ900125; NJ900126; NJ900127; NJ900128; NJ900129; NJ900130; NJ900131;
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`NJ900132; NJ900133; NJ900134; NJ900135; NJ900136; NJ900137; NJ900138; NJ900139;
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`NJ900141; NJ900142; NJ900144; NJ900145; NJ900146; NJX00100; NJX00101; NJX00102;
`
`NJX00103; NJX00104; NJX00105; NJX00106; NJX00107; NJX00108; NJX00109; NJX00110;
`
`NJX00111; NJX00113; NJX00114; NJX00115; NJX00116; NJX00117; NJX00118; NJX00119;
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`NJX00120; NJX00121; NJX00122; NJX00123; NJX00124; NJX00125; NJX00126; NJX00127;
`
`NJX00128; NJX00129; NJX00200; NJX00201; NJX00202; NJX00203; NJX00204; NJX00205;
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`NJX00207; NJX00208; NJX00209; NJX00211; NJX00213; NJX00214; NJX00215; NJX00217;
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`NJX00218; NJX00219; NJX00220; NJX00221; NJX00222; NJX00223; NJX00224; NJX00225;
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`NJX00228; NJX00229; NJX00230; NJX00231; NJX00232; NM900202; NM900206;
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`NMA00111; NMA00113; NMA00115; SL800105; SL800106; SL800107; SL800108;
`
`SL800109; SL800110; SL800111; SL800112; SL800113; SL800114; SL800115; SL800116;
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`SL800117; SL800118; SL800119; SL800122; SL800125; SL800126; SL800127; SL800128;
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`SL800129; SL800130; SL800132; SL800133; SL800134; SL800135; SL800137; SL800138;
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`SL800140; SL800142; SL800144; TLZ00104; TPH00101; TPH00102; TPH00103; TPH00104;
`
`Expert Report of Pallavi Seth, Ph.D.
`C.A. No. 17-770-JDW
`
`| Page 122 of 128
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`Case 1:17-cv-00770-JDW Document 250-18 Filed 10/25/23 Page 8 of 9 PageID #: 25720
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`HIGHLY CONFIDENTIAL—SUBJECT TO PROTECTIVE ORDER
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`TPH00105; TPH00106; TPH00107; TPH00108; TPH00109; TPH00110; TPH00111;
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`TPH00112; TPH00113; TPH00114; TPH00301; TPH00302; TPH00303; TPH00304;
`
`TPH00305; TPH00306; TPH00307; TPH00308; TPH00309; TPH00310; TPH00311;
`
`TPH00312; TPH00313.
`
`D.3 Path Measurement (the ’530 Patent)
`
`306. I understand Wirtgen accuses all PM600 and PM800 machines with position-sensing leg
`
`cylinders and all RM600 and RM800 rotary mixers of infringement.402 I further understand all
`
`PM600 and PM800 series machines with the 01A and 02A build modifiers have the accused
`
`position-sensing leg cylinders.403 Additionally, I understand the damages period associated with
`
`the ’530 patent begins on the issue date of the ’530 patent: May 23, 2017. Thus, I included in my
`
`royalty base any PM600 and PM800 machines with the 01A and 02A build modifiers with build
`
`dates after May 23, 2017 (according to CAT-770_0632119). If build date is unavailable, I rely on
`
`sales entry dates. The serial numbers of the machines included in my royalty base are listed
`
`below.404
`
`307. I understand that Wirtgen requested that Caterpillar identify whether it disagreed that any of the
`
`below listed machines have the accused feature but that Caterpillar to date has not responded to
`
`Wirtgen’s request. I also understand that Caterpillar has not produced complete sales and
`
`financial information to date. I reserve the right to update my royalty base and analysis if and
`
`when Caterpillar produces additional information.
`
`
`402 See, Table 3.
`403 See, e.g., Engelmann Deposition 2023, 27:20-28:7 (acknowledging the PM600 01A machines had position-
`sensing leg cylinders), 33:1-9 (acknowledging the PM600 02A machines had position-sensing leg cylinders),
`and 297:12-18 (“Q. And the 02B build was the first build that removed the position-sensing hydraulic cylinders
`from the lifting columns; correct? . . . A. The leg position-sensing cylinders were eliminated at the launch of the
`02B production.”).
`404 See, e.g., “Caterpillar Sales Information,” CAT-770_039450 (providing build modifiers). See also, “Caterpillar
`Machines and Build Modifiers,” CAT_00061555.
`
`Expert Report of Pallavi Seth, Ph.D.
`C.A. No. 17-770-JDW
`
`| Page 123 of 128
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`

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`Case 1:17-cv-00770-JDW Document 250-18 Filed 10/25/23 Page 9 of 9 PageID #: 25721
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`HIGHLY CONFIDENTIAL—SUBJECT TO PROTECTIVE ORDER
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`D.3.a Serial Numbers
`
`308. 62600100; 3C600101; 3C600102; 3C600103; 3C600104; 3C600105; 3C600300; 3C600301;
`
`3C600302; 3C600303; 3C600304; EE200100; EE200101; EE200102; EE200103; EE200104;
`
`EE200106; EE200107; EE200108; ESE00102; ESE00105; ESE00106; ESE00107; ESE00108;
`
`ESE00110; ESE00111; ESE00112; JB900132; JB900162; JB900163; JB900165; JB900166;
`
`JB900171; JB900172; JB900173; JB900175; JB900179; JB900190; JB900199; JB900203;
`
`JCF00103; JCF00104; JCF00105; JCF00106; JCF00109; JFC00142; JFC00143; JFC00144;
`
`JFC00145; JFC00146; JFC00147; JFC00148; JFC00149; JFC00150; JFC00151; JFC00152;
`
`JFC00153; JFC00154; JFC00155; JFC00156; JFC00157; JFC00158; JFC00159; JFC00160;
`
`JFC00161; JFC00162; JFC00163; JFC00164; JFC00165; JFC00167; JFC00168; JFC00169;
`
`JFC00170; JFC00171; JFC00172; JFC00173; JFC00174; JFC00175; JFC00176; JFC00177;
`
`JFC00178; JFC00180; JFC00181; JFC00182; JFC00183; JFC00184; JFC00185; JFC00186;
`
`JFC00187; JFC00188; JFC00189; JFC00190; JFC00191; JFC00192; JFC00193; JFC00194;
`
`JFC00195; JFC00197; JFC00198; JFC00199; JFC00200; JFC00201; JFC00202; JFC00204;
`
`JFC00205; JFC00206; JFC00207; JFC00208; JFC00209; JFC00210; JFC00212; LB800101;
`
`LB800102; LB800103; LB800104; LB800105; LB800106; SL800105; SL800106; SL800107;
`
`SL800108; SL800109; SL800110; SL800111; SL800112; SL800113; SL800114; SL800115;
`
`SL800116; SL800117; SL800118; SL800119; SL800122; SL800125; SL800126; SL800127;
`
`SL800128; SL800129; SL800130; SL800132; SL800133; SL800134; SL800135; SL800137;
`
`SL800138; SL800140; SL800142; SL800144; TLZ00104; TPH00101; TPH00102; TPH00103;
`
`TPH00104; TPH00105; TPH00106; TPH00107; TPH00108; TPH00109; TPH00110;
`
`TPH00111; TPH00112; TPH00113; TPH00114.
`
`D.4 Sensor Switching (the ’788 and ’474 Patents)
`
`309. I understand that Wirtgen accuses all PM600, PM800, and PM300 machines of infringement.405
`
`The serial numbers of the machines included in my royalty base are listed below.406
`
`
`405 See, Table 3.
`406 See, “Caterpillar Sales Data,” CAT-770_063219; and “Caterpillar Sales Information,” CAT-770_039450.
`
`Expert Report of Pallavi Seth, Ph.D.
`C.A. No. 17-770-JDW
`
`| Page 124 of 128
`
`