·1· ·UNITED STATES PATENT AND TRADEMARK OFFICE
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`·2· · · · · · ______________________
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`·3· · BEFORE THE PATENT TRIAL AND APPEAL BOARD
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`·4· · · · · · ______________________
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`· · · · · · · ·Under Armour, Inc.,
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`· · · · · · · · · ·Petitioner
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`· · · · · · · · · · · ·v.
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`· · · · · · · · · ·Adidas AG,
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`· · · · · · · · · Patent Owner
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`· · · · · · · ______________________
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`· · · · · · · Case No. IPR2015-00698
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`· · · · · · · ·Patent No. 8,092,345
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`14· · · · · · · · · · - - -
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`16· ·DEPOSITION OF WILLIAM R. MICHALSON, Ph.D.
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`17· · · · · · · · FEBRUARY 5, 2016
`· · · · · · · · · · ·9:45 A.M.
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`· · · · KILPATRICK TOWNSEND & STOCKTON LLP
`20· · · · · · 1100 PEACHTREE STREET, N.E.
`· · · · · · · · · · SUITE 2800
`21· · · · · · · ·ATLANTA, GEORGIA
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`· · · · · · · ·SUZANNE BEASLEY, RPR
`25· · · · · · · · · CCR-B-1184
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`UA-1012.001
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`·1· · · · · · · · · INDEX TO EXAMINATION
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`Page 2
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`·3· ·Examination· · · · · · · · · · · · · · · · Page No.
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`·5· · · · By Mr. Ansley ......................... 4
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`11· · · · · · · · · ·INDEX TO EXHIBITS
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`13· ·Exhibit No.· · · · · · · · · · · · · · · · Page No.
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`· · ·Exhibit 2002 ............................... 4
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`15· · · · Declaration of William R.
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`· · · · · Michalson, Ph.D.
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`·1· ·APPEARANCES OF COUNSEL:
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`·2· · · · On behalf of the Petitioner:
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`·3· · · · · · · · · W. SUTTON ANSLEY, Esq.
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`·4· · · · · · · · · Weil, Gotshal & Manges LLP
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`·5· · · · · · · · · 1300 Eye Street, N.W.
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`·6· · · · · · · · · Suite 900
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`·7· · · · · · · · · Washington, D.C.· 20005-3314
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`·8· · · · · · · · · (202) 682-7018
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`·9· · · · · · · · · sutton.ansley@weil.com
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`11· · · · On behalf of the Patent Owner and the Witness:
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`12· · · · · · · · · JONATHAN D. OLINGER, Esq.
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`13· · · · · · · · · Kilpatrick Townsend & Stockton LLP
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`14· · · · · · · · · 1100 Peachtree Street, N.E.
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`15· · · · · · · · · Suite 2800
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`16· · · · · · · · · Atlanta, Georgia· 30309
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`17· · · · · · · · · (404) 815-6500
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`18· · · · · · · · · jolinger@kilpatricktownsend.com
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`20· · · · · · · · · · · · · - - -
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`·1· · · · · · · (The signature of the witness to the
`·2· ·deposition was reserved.)
`·3· · · · · · · · WILLIAM R. MICHALSON, Ph.D.,
`·4· ·having been duly sworn, was examined and testified
`·5· ·as follows:
`·6· · · · · · · · · · · EXAMINATION
`·7· ·BY MR. ANSLEY:
`·8· · · · Q.· · Hello again, Dr. Michalson.
`·9· · · · A.· · Hello.
`10· · · · Q.· · We just concluded the deposition for IPR
`11· ·proceeding that ends in 697.· Now we're moving on to
`12· ·the IPR proceeding that ends in 698 for U.S. Patent
`13· ·No. 8,092,345.
`14· · · · · · · Again, same rules as last time.· You
`15· ·understand?
`16· · · · A.· · Yes.
`17· · · · · · · (Exhibit 2002 was marked for
`18· · · · identification.)
`19· ·BY MR. ANSLEY:
`20· · · · Q.· · So I've already handed you Exhibit 2002.
`21· ·Are you familiar with this document?
`22· · · · A.· · Yes.
`23· · · · Q.· · Let's turn to page 35.· And in Section B
`24· ·you provide analysis of secondary considerations; is
`25· ·that correct?
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`·1· · · · A.· · That's correct.
`·2· · · · Q.· · And let's turn to paragraph 74.· And in 74
`·3· ·you mention the MapMyFitness mobile applications and
`·4· ·state, "It is my conclusion that the commercial
`·5· ·success of these mobile applications supports a
`·6· ·finding that the instituted claims are not obvious."
`·7· ·Do you see that?
`·8· · · · A.· · Yes.
`·9· · · · Q.· · And in particular if you go to
`10· ·paragraph 75, you state that MapMyFitness is evidence
`11· ·of commercial success; is that correct?
`12· · · · A.· · I don't see the particular turn of phrase
`13· ·you used.
`14· · · · Q.· · Sorry.· I was just asking you to confirm
`15· ·that you lay out your evidence for what -- for your
`16· ·opinion that the MapMyFitness mobile applications are
`17· ·evidence of commercial success.· Is that correct?
`18· · · · A.· · On paragraph 75 I elaborate on that
`19· ·opinion, yes.
`20· · · · Q.· · Okay.· And then in paragraph 77 you state
`21· ·that -- sorry, I've got the wrong paragraph here.
`22· ·Give me one second.
`23· · · · · · · All right, 76.· You state in your opinion,
`24· ·the commercial success of the MapMyFitness suite of
`25· ·products is plainly demonstrated by the number of
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`·1· ·MapMyFitness users and Under Armour's purchase of
`·2· ·MapMyFitness.· Do you see that?
`·3· · · · A.· · I do.
`·4· · · · Q.· · So hypothetically would the profitability
`·5· ·of MapMyFitness as a company be a relevant factor in
`·6· ·your opinion to determining whether its products were
`·7· ·commercially successful or not?
`·8· · · · · · · MR. OLINGER:· Objection.· Form.
`·9· · · · Outside the scope.
`10· · · · · · · THE WITNESS:· Can you state that
`11· · · · question again?
`12· ·BY MR. ANSLEY:
`13· · · · Q.· · Sure.· So you mention two factors here.
`14· ·In paragraph 76 you state that commercial success is
`15· ·demonstrated, A, by the number of MMF users, and, B,
`16· ·Under Armour's purchase of MapMyFitness.
`17· · · · · · · And my question is hypothetically would
`18· ·the profitability of MapMyFitness as a company be a
`19· ·relevant factor in your opinion to determining
`20· ·whether its products were a commercial success?
`21· · · · · · · MR. OLINGER:· Objection.· Form.
`22· · · · Outside the scope.
`23· · · · · · · THE WITNESS:· In paragraph 76 I'm not
`24· · · · referring to the profitability of
`25· · · · MapMyFitness.· I'm referring to the number
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`·1· · · · of users they accumulated and the fact that
`·2· · · · Under Armour purchased the company.
`·3· ·BY MR. ANSLEY:
`·4· · · · Q.· · I understand that, but I'm asking a
`·5· ·hypothetical.· Would the profitability of
`·6· ·MapMyFitness be a relevant factor in your
`·7· ·consideration if you have that information available
`·8· ·to you?
`·9· · · · · · · MR. OLINGER:· Objection.· Form.
`10· · · · Outside the scope.
`11· · · · · · · THE WITNESS:· Well, hypothetically if
`12· · · · I had the information available to me, I
`13· · · · would review that information and determine
`14· · · · if it appeared as if it made -- if it was
`15· · · · also an indicator of commercial success.
`16· · · · Without that information I can't really do
`17· · · · that analysis.· I would have to do that
`18· · · · analysis.
`19· ·BY MR. ANSLEY:
`20· · · · Q.· · So without that information, you can't say
`21· ·one way or another whether or not the company's
`22· ·profitability would be a relevant factor?
`23· · · · · · · MR. OLINGER:· Objection.· Form.
`24· · · · Outside the scope.
`25· · · · · · · THE WITNESS:· Again speaking
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`·1· · · · hypothetically, the profitability of a
`·2· · · · company may be due to a number of factors.
`·3· · · · I would have to analyze what that -- I
`·4· · · · would have to look and see what that
`·5· · · · profitability was due to.· That's not what
`·6· · · · I'm talking about here in paragraph 76.
`·7· ·BY MR. ANSLEY:
`·8· · · · Q.· · I understand you're not talking about that
`·9· ·here.· Well, so you mentioned two things.· Again,
`10· ·it's the number of MMF users and Under Armour's
`11· ·purchase of MMF would be the two factors that you
`12· ·considered.
`13· · · · · · · Would there be any other factors that you
`14· ·would want information -- I'm sorry.
`15· · · · · · · Would there be any other information that
`16· ·you would want to see to assess whether or not the
`17· ·MapMyFitness suite of products are commercially
`18· ·successful?
`19· · · · · · · MR. OLINGER:· Objection.· Form.
`20· · · · Outside the scope.
`21· · · · · · · THE WITNESS:· I wasn't asked to
`22· · · · consider any other factors and I didn't
`23· · · · consider any other factors.· You know, if
`24· · · · there were more factors that were brought
`25· · · · to my attention or that I obtained, I would
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`·1· · · · consider them, but I did not do that
`·2· · · · analysis.
`·3· ·BY MR. ANSLEY:
`·4· · · · Q.· · Do you consider yourself an expert in
`·5· ·evaluating whether a product is a commercial success?
`·6· · · · · · · MR. OLINGER:· Objection.· Form.
`·7· · · · · · · THE WITNESS:· I have in the past been
`·8· · · · asked to provide opinions about technology
`·9· · · · and likelihood of success of technologies
`10· · · · offered by different companies, both, you
`11· · · · know, by entrepreneurial groups and also in
`12· · · · some of my own endeavors trying to do
`13· · · · technical evaluations of companies and my
`14· · · · assessment of likelihood of their
`15· · · · longevity.· So I certainly have some
`16· · · · experience in that area.
`17· ·BY MR. ANSLEY:
`18· · · · Q.· · Well, I didn't ask you if you had
`19· ·experience in the area.· I asked you if you consider
`20· ·yourself an expert in evaluating whether a product is
`21· ·a commercial success or not.
`22· · · · · · · MR. OLINGER:· Objection.· Form.
`23· · · · · · · THE WITNESS:· I think that I have
`24· · · · enough knowledge about the field to be able
`25· · · · to look at some of the typical indicators
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`·1· · · · of success and determine if that, you know,
`·2· · · · at least represents to me something that is
`·3· · · · commercially successful.
`·4· ·BY MR. ANSLEY:
`·5· · · · Q.· · So you said you think given enough
`·6· ·knowledge about the field.· Is it your testimony then
`·7· ·under oath that you think you're an expert in
`·8· ·evaluating whether a product is a commercial success?
`·9· · · · · · · MR. OLINGER:· Objection.
`10· · · · · · · THE WITNESS:· I stand by what I say
`11· · · · in paragraph 76.· I'm offering an opinion
`12· · · · that based on the number of MMF users and
`13· · · · the purchase of MMF, that it appears that
`14· · · · those products were at least successful
`15· · · · enough to get bought up.· And presumably
`16· · · · Under Armour would not have purchased MMF
`17· · · · if they didn't think they were going to
`18· · · · make money with that suite of products.
`19· ·BY MR. ANSLEY:
`20· · · · Q.· · I want to get to that in a second, that
`21· ·last thing you said, but so you're not saying one way
`22· ·or the other whether you're an expert or not in
`23· ·evaluating the commercial success of products?
`24· · · · · · · MR. OLINGER:· Objection.· Form.
`25· · · · · · · THE WITNESS:· I'm not evaluating the
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`·1· · · · · · · MR. OLINGER:· Objection.· Form.
`·2· · · · Outside the scope.
`·3· · · · · · · THE WITNESS:· I don't recall if I've
`·4· · · · looked at those details or not.
`·5· ·BY MR. ANSLEY:
`·6· · · · Q.· · So if there's any confidential information
`·7· ·you don't want to disclose, just let me know, but if
`·8· ·you are aware of confidential information I'd ask you
`·9· ·not to disclose that here.
`10· · · · · · · But your testimony is you don't recall
`11· ·whether you've seen how Under Armour came to the
`12· ·conclusion that MapMyFitness was worth $150 million?
`13· · · · · · · You can answer.
`14· · · · · · · MR. OLINGER:· I'm trying to hear the
`15· · · · question so I can decide whether or not to
`16· · · · make an objection.· I'm not preventing him
`17· · · · answering.
`18· · · · · · · Objection.· Form.
`19· · · · · · · THE WITNESS:· Can you ask the
`20· · · · question again, please?
`21· ·BY MR. ANSLEY:
`22· · · · Q.· · Sure.· So you testified that you do not
`23· ·recall if you looked at the details of how
`24· ·Under Armour calculated the $150 million for the
`25· ·purchase price of MapMyFitness; is that correct?
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`·1· · · · commercial success in the same sense that
`·2· · · · somebody who's in the business of
`·3· · · · evaluating the business aspects of
`·4· · · · companies would evaluate those companies.
`·5· · · · I'm looking at, you know, the number of
`·6· · · · users.· I'm looking at, you know, the
`·7· · · · purchase, the feedback that I've cited in
`·8· · · · this report.· And in my opinion, those
`·9· · · · things are indicators of commercial
`10· · · · success.
`11· ·BY MR. ANSLEY:
`12· · · · Q.· · So let's talk about the purchase of
`13· ·MapMyFitness by Under Armour.· In the end of
`14· ·paragraph 75 you state, "In December 2013
`15· ·Under Armour acquired MapMyFitness for $150 million."
`16· ·Do you see that?
`17· · · · A.· · Yes.
`18· · · · Q.· · And so this is one of the bases, one of
`19· ·the two bases for your opinion that the MapMyFitness
`20· ·suite of products has been a commercial success?
`21· · · · A.· · Correct.
`22· · · · Q.· · Do you know how MapMyFitness, the
`23· ·valuation for -- strike that.
`24· · · · · · · Do you know how the $150 million valuation
`25· ·was calculated?
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`·1· · · · A.· · That's correct.
`·2· · · · Q.· · So you don't know here, sitting here,
`·3· ·whether they paid $149 million for capital
`·4· ·investments, employees, know-how, things like that,
`·5· ·and $1 million for the product itself, the underlying
`·6· ·technology of the product itself?
`·7· · · · · · · MR. OLINGER:· Objection.· Form.
`·8· · · · · · · THE WITNESS:· Offhand I don't recall
`·9· · · · that breakdown.
`10· ·BY MR. ANSLEY:
`11· · · · Q.· · But you don't know one way or the other
`12· ·how this $150 million was calculated?
`13· · · · · · · MR. OLINGER:· Objection to form.
`14· · · · · · · THE WITNESS:· As I said, I don't
`15· · · · recall if I've seen that breakdown or not,
`16· · · · but sitting here today, I don't recall how
`17· · · · that was calculated.
`18· ·BY MR. ANSLEY:
`19· · · · Q.· · And you don't cite any evidence in your
`20· ·declaration about how that evidence was calculated,
`21· ·do you?
`22· · · · · · · MR. OLINGER:· Objection.· Form.
`23· · · · · · · THE WITNESS:· I don't believe so.
`24· ·BY MR. ANSLEY:
`25· · · · Q.· · Do you have any expertise in evaluating
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`·1· ·whether a product -- sorry.
`·2· · · · · · · Do you have any expertise in valuing
`·3· ·companies?
`·4· · · · · · · MR. OLINGER:· Objection.· Form.
`·5· · · · · · · THE WITNESS:· Companies, no.
`·6· ·BY MR. ANSLEY:
`·7· · · · Q.· · And have you ever evaluated a
`·8· ·company -- I'm assuming then you've never evaluated a
`·9· ·company based on the commercial success of its
`10· ·products; is that correct?
`11· · · · · · · MR. OLINGER:· Objection.· Form.
`12· · · · · · · THE WITNESS:· I don't think that's
`13· · · · entirely correct, but I want to be careful.
`14· ·BY MR. ANSLEY:
`15· · · · Q.· · Well, you said you've never had any
`16· ·experience evaluating companies, so I mean logically
`17· ·it must follow that you've never had any experience
`18· ·valuating companies based on the commercial success
`19· ·of the products; isn't that right?
`20· · · · · · · MR. OLINGER:· Objection.· Form.
`21· · · · · · · THE WITNESS:· Let me be careful and
`22· · · · clarify what I'm thinking about here.· The
`23· · · · phrase "evaluating companies" --
`24· ·BY MR. ANSLEY:
`25· · · · Q.· · Valuating.
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`·1· · · · A.· · Valuating companies has, you know, the
`·2· ·connotation of determining what the company is worth,
`·3· ·you know, in the market, if you will.· I have
`·4· ·certainly evaluated companies based on their products
`·5· ·and success of their products in determining whether
`·6· ·new product offerings stand a chance of surviving in
`·7· ·the marketplace.· That piece I have done.
`·8· · · · Q.· · When you say "evaluating," do you mean
`·9· ·assigning a number to that product?
`10· · · · · · · MR. OLINGER:· Objection.· Vague.
`11· · · · Objection.· Form.
`12· ·BY MR. ANSLEY:
`13· · · · Q.· · And by number, I mean a dollar amount.
`14· · · · · · · MR. OLINGER:· Objection.· Form.
`15· · · · · · · THE WITNESS:· Most of my experience
`16· · · · in that area has been on the purchase of
`17· · · · technology from a company, so determining
`18· · · · what the dollar value of a product is now,
`19· · · · what its likely trajectory and cost would
`20· · · · be, what its likelihood of success would
`21· · · · be, is something that I've certainly dealt
`22· · · · with.· And sometimes that involves seeing
`23· · · · how the company has worked with other
`24· · · · products.
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`·1· ·BY MR. ANSLEY:
`·2· · · · Q.· · I'm confused on what you said.· You said,
`·3· ·"Most of my experience in that area has been on the
`·4· ·purchase of technology from a company."· Do you mean
`·5· ·that you've actually purchased technology from a
`·6· ·company?· In what sense do you mean?
`·7· · · · A.· · I've been in --
`·8· · · · · · · MR. OLINGER:· Objection to form.
`·9· · · · · · · THE WITNESS:· I've been involved with
`10· · · · startups that may need to acquire
`11· · · · technology and try to get -- to try to hit
`12· · · · certain cross-targets.· Sometimes that's
`13· · · · relatively new technology and there may be
`14· · · · multiple competitors in that technology
`15· · · · niche, so I've certainly reviewed competing
`16· · · · technologies, reviewed the companies that
`17· · · · are offering competing technologies, and
`18· · · · tried to provide advice based on those
`19· · · · evaluations that I've made.
`20· ·BY MR. ANSLEY:
`21· · · · Q.· · So how many startups have you been
`22· ·involved with in this role?
`23· · · · · · · MR. OLINGER:· Objection.· Form.
`24· · · · · · · THE WITNESS:· Startups of my own,
`25· · · · two.· I have also been contacted two or
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`·1· · · · three times by others to, you know,
`·2· · · · evaluate a technology.
`·3· ·BY MR. ANSLEY:
`·4· · · · Q.· · All right.· So you have been involved in
`·5· ·two of your own startups and you've been contacted
`·6· ·two or three times about evaluating technologies; is
`·7· ·that correct?
`·8· · · · A.· · Correct.
`·9· · · · Q.· · Okay.· Let's talk about two of those
`10· ·startups.· Did you ever assign a dollar amount to
`11· ·your company on any of those two startups?
`12· · · · · · · MR. OLINGER:· Objection.· Form.
`13· · · · Outside the scope.
`14· · · · · · · THE WITNESS:· On the first of those
`15· · · · startups, we did develop a business plan.
`16· · · · I participated in the development of that
`17· · · · business plan, and part of that involved
`18· · · · determining what we thought the value of
`19· · · · the company would be at start when we were
`20· · · · trying to pursue venture funding.
`21· ·BY MR. ANSLEY:
`22· · · · Q.· · So you say you participated in the
`23· ·business plan.· Did you actually -- did you actually
`24· ·develop, work on developing what the value of the
`25· ·company should be?
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`·1· · · · · · · MR. OLINGER:· Objection.· Form.
`·2· · · · Outside the scope.
`·3· · · · · · · THE WITNESS:· Not solely, but I was
`·4· · · · involved in that process.
`·5· ·BY MR. ANSLEY:
`·6· · · · Q.· · How were you involved?
`·7· · · · A.· · We're rolling back the clock quite a ways
`·8· ·here.· Myself and another of the principals of that
`·9· ·company had several meetings with -- there was a
`10· ·small business development council in Worcester,
`11· ·Massachusetts that we also worked with, and we would
`12· ·accumulate information about the market.· We would
`13· ·accumulate information about what we thought our
`14· ·costs were going to be, what we thought our sales
`15· ·numbers were going to be, and, you know, we worked
`16· ·with that small business advisor, you know, to
`17· ·develop a marketing plan and a, you know, basically a
`18· ·business development plan that would allow us to go
`19· ·out and seek funding, and that included coming up
`20· ·with an idea of the value of our company in the
`21· ·marketplace.
`22· · · · · · · I don't recall all the specific details of
`23· ·what we did.· I'd have to go back through my notes
`24· ·and look at that business plan again, but I know that
`25· ·myself and one other person wrote the majority of
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`·1· ·that plan.
`·2· · · · Q.· · Why did you use a small business advisor?
`·3· · · · · · · MR. OLINGER:· Objection.· Form.
`·4· · · · · · · THE WITNESS:· Because it was a new
`·5· · · · group that had formed at Clark University.
`·6· · · · They were a free service.· They were
`·7· · · · another set of eyes to look at what we were
`·8· · · · thinking.· They were able to identify
`·9· · · · certain things that we missed.
`10· · · · · · · They also had an army of graduate
`11· · · · students that were able to assist us in
`12· · · · doing some of our research as we were
`13· · · · putting together that plan.· So it was a
`14· · · · helpful resource and it was locally
`15· · · · available and it was low cost.· And I
`16· · · · forget who referred us to them, but it was
`17· · · · basically on a reference.
`18· ·BY MR. ANSLEY:
`19· · · · Q.· · So I understand that you were
`20· ·involved -- you say that you've been involved in
`21· ·valuing your own company, your own two startups, and
`22· ·you've been contacted two or three times about
`23· ·startups?
`24· · · · A.· · Well, I had a colleague who was --
`25· · · · Q.· · Yes, just keep it short.· That's fine.
`
`Page 20
`·1· · · · A.· · Can you ask the question again, please.
`·2· · · · Q.· · Sure.· I just want to summarize.· You said
`·3· ·that you had two startups of your own and that you've
`·4· ·been contacted two or three times by -- was it by
`·5· ·startups?
`·6· · · · A.· · It was by somebody that was involved with
`·7· ·venture capital that was evaluating proposals that
`·8· ·were in front of them.
`·9· · · · Q.· · Okay.· Simple question.· Did you ever run
`10· ·the calculations -- I understand you said you were
`11· ·involved.· Did you ever actually run the calculations
`12· ·of what the value of any of these companies are?
`13· · · · · · · MR. OLINGER:· Objection.· Form.
`14· ·BY MR. ANSLEY:
`15· · · · Q.· · It's a simple yes or no.
`16· · · · A.· · It's a simple yes or no for you, but I'm
`17· ·rolling back 20 years and thinking about the one that
`18· ·I was most closely involved with calculations there.
`19· · · · · · · I'm sure that I worked with those
`20· ·spreadsheets and adjusted numbers in those
`21· ·spreadsheets, which would result in different
`22· ·valuations for the company, so when you say did I
`23· ·actually run those numbers, I think the answer
`24· ·probably is yes, but I'd have to go back, and we're
`25· ·talking 20 years ago.
`
`Page 21
`·1· · · · Q.· · Sure.· But you're talking about editing
`·2· ·certain fields on a spreadsheet; is that right?
`·3· · · · A.· · But also understanding how those fields
`·4· ·impacted other fields and --
`·5· · · · Q.· · I understood that.
`·6· · · · A.· · -- seeing what those calculations were and
`·7· ·developing some understanding of what that process
`·8· ·was.
`·9· · · · · · · So if the question is have I ever run
`10· ·those calculations, I think the answer is probably
`11· ·yes.
`12· · · · Q.· · Okay.· Of the $150 million that
`13· ·Under Armour paid for MapMyFitness, how much do you
`14· ·think of that $150 million was attributable to the
`15· ·MapMyFitness products?
`16· · · · · · · MR. OLINGER:· Objection.· Form.
`17· · · · · · · THE WITNESS:· Sitting here today, I
`18· · · · don't know.
`19· ·BY MR. ANSLEY:
`20· · · · Q.· · Let's assume hypothetically that
`21· ·MapMyFitness exceeded Under Armour's expectation in
`22· ·terms of performance since the acquisition, okay?
`23· ·It's just a hypothetical.· Would that be a relevant
`24· ·consideration for you in judging whether the
`25· ·MapMyFitness application is and has been a commercial
`
`UA-1012.006
`
`

`
`Page 22
`
`·1· ·success if it outperformed its expectations?
`·2· · · · · · · MR. OLINGER:· Objection.· Form.
`·3· · · · Outside the scope.
`·4· · · · · · · THE WITNESS:· Well, hypothetically it
`·5· · · · may be a consideration, but I'd have to
`·6· · · · study that to determine how much it
`·7· · · · mattered, if it mattered.
`·8· ·BY MR. ANSLEY:
`·9· · · · Q.· · And then the opposite, is it your opinion
`10· ·that if MapMyFitness was underperforming, it might be
`11· ·a consideration, but you'd have to again study that
`12· ·data?
`13· · · · · · · MR. OLINGER:· Objection.· Form.
`14· · · · Outside the scope.
`15· · · · · · · THE WITNESS:· Well, again,
`16· · · · hypothetically there are a lot of factors
`17· · · · that may be involved, so you'd have to
`18· · · · study the situation.· I've not been asked
`19· · · · to do that analysis so I haven't done that
`20· · · · analysis.
`21· ·BY MR. ANSLEY:
`22· · · · Q.· · So you were just asked to look at the
`23· ·$150 million purchase price and the number of users,
`24· ·and based on those two data points, you concluded
`25· ·that the MapMyFitness suite of products is a
`
`Page 23
`
`·1· ·commercial success; is that right?
`·2· · · · · · · MR. OLINGER:· Objection.· Form.
`·3· · · · · · · THE WITNESS:· That's one of the
`·4· · · · things that I did when we're talking about
`·5· · · · paragraphs 75 and 76 right now.· I mean,
`·6· · · · there's other material in my report.
`·7· ·BY MR. ANSLEY:
`·8· · · · Q.· · But you didn't ask to see any other data
`·9· ·in evaluating whether MapMyFitness is a commercial
`10· ·success?
`11· · · · · · · MR. OLINGER:· Objection.· Form.
`12· · · · Outside the scope.
`13· · · · · · · THE WITNESS:· Relative to those
`14· · · · paragraphs that we're discussing, no.
`15· · · · · · · MR. ANSLEY:· No more questions.
`16· · · · · · · MR. OLINGER:· Let's take a brief
`17· · · · five-minute break, please.
`18· · · · · · · (A recess was taken.)
`19· · · · · · · MR. OLINGER:· No questions for this
`20· · · · witness.· We consider the deposition
`21· · · · closed.
`22· · · · · · · · (Deposition concluded at 10:25 a.m.)
`23
`24
`25
`
`Page 24
`
`·1· · · · · · · · · ·E R R A T A· S H E E T
`·2· · · ·Pursuant to Rule 30(e) of the Federal Rules of
`· · ·Civil Procedure and/or the Official Code of Georgia
`·3· ·Annotated 9-11-30(e) any changes in form or substance
`· · ·which you desire to make to your deposition testimony
`·4· ·shall be entered upon the deposition with a statement
`· · ·of the reasons given for making them.
`·5
`· · · · ·To assist you in making any such corrections,
`·6· ·please use the form below. If supplemental or
`· · ·additional pages are necessary, please furnish same
`·7· ·and attach them to this errata sheet.
`·8· · · · · · · · · · · · - - -
`·9· · · ·I, the undersigned, WILLIAM R. MICHALSON, Ph.D.,
`· · ·do hereby certify that I have read the foregoing
`10· ·deposition and that to the best of my knowledge said
`· · ·deposition is true and accurate (with the exception
`11· ·of the following corrections listed below).
`12
`13· ·Page_____ Line______should read:_________________
`14· ·Reason for change:_______________________________
`15
`16· ·Page_____ Line______should read:__________________
`17· ·Reason for change:_______________________________
`18
`19· ·Page_____ Line______should read:__________________
`20· ·Reason for change:_______________________________
`21
`22· ·Page_____ Line______should read:__________________
`23· ·Reason for change:________________________________
`24
`25
`
`Page 25
`·1· ·Page_____ Line______should read:__________________
`·2· ·Reason for change:________________________________
`·3
`·4· ·Page_____ Line______should read:__________________
`·5· ·Reason for change:________________________________
`·6
`·7· ·Page_____ Line______should read:__________________
`·8· ·Reason for change:________________________________
`·9
`10· ·Page_____ Line_____should read:___________________
`11· ·Reason for change:________________________________
`12
`13· ·Page_____ Line_____should read:___________________
`14· ·Reason for change:________________________________
`15
`16· ·Page_____ Line_____should read:___________________
`17· ·Reason for change:________________________________
`18· · · · · · · · · · · · · · · _______________________
`· · ·Signature
`19
`· · ·Sworn to and Subscribed before me
`20
`· · ·_____________________, Notary Public.
`21· ·This________day of _______________, ____.
`· · ·My Commission Expires:
`22
`23
`24
`25
`
`UA-1012.007
`
`

`
`·1· · · · · · · · · C E R T I F I C A T E
`
`Page 26
`
`·2
`
`·3· ·G E O R G I A:
`
`·4· ·FULTON COUNTY:
`
`·5
`
`·6· · · · · · · · · I hereby certify that the
`
`·7· · · · foregoing deposition was reported, as
`
`·8· · · · stated in the caption, and the questions
`
`·9· · · · and answers thereto were reduced to the
`
`10· · · · written page under my direction; that the
`
`11· · · · foregoing pages 1 through 23 represent a
`
`12· · · · true and correct transcript of the evidence
`
`13· · · · given.· I further certify that I am not in
`
`14· · · · any way financially interested in the
`
`15· · · · result of said case.
`
`16· · · · · · · · · Pursuant to Rules and Regulations
`
`17· · · · of the Board of Court Reporting of the
`
`18· · · · Judicial Council of Georgia, I make the
`
`19· · · · following disclosure:
`
`20· · · · · · · · · I am a Georgia Certified Court
`
`21· · · · Reporter.· I am here as an independent
`
`22· · · · contractor for Huseby, Inc.
`
`23
`
`24
`
`25
`
`Page 27
`
`·1· · · · · · ·I was contacted by the offices
`
`·2· ·of Huseby, Inc. to provide court reporting
`
`·3· ·services for this deposition.· I will not
`
`·4· ·be taking this deposition under any
`
`·5· ·contract that is prohibited by O.C.G.A.
`
`·6· ·15-14-37 (a) or (b).
`
`·7· · · · · · ·I have no written contract to
`
`·8· ·provide reporting services with any party
`
`·9· ·to the case, any counsel in the case, or
`
`10· ·any reporter or reporting agency from whom
`
`11· ·a referral might have been made to cover
`
`12· ·this deposition.· I will charge my usual
`
`13· ·and customary rates to all parties in the
`
`14· ·case.
`
`15· · · · · · ·This, the 10th day of February, 2016.
`
`16
`
`17
`
`18· · · · · · · · · ·______________________________
`
`· · · · · · · · · · ·SUZANNE BEASLEY, B-1184
`
`19· · · · · · · · · ·My commission expires on the
`
`· · · · · · · · · · ·24th day of August, 2018.
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`UA-1012.008
`
`

`
`UNDER ARMOUR, INC. vs. ADIDAS AG
`William R. 1VIichalson, Ph.D. on 02/05/2016
`
`-Index:$1"based
`
`76 5:23
`
`22:19,20
`
`11:13,15
`
`12:11,24
`
`21:13
`
`Armour's
`
`6:1,16
`
`8:10 21:21
`
`army
`
`19:10
`
`aspects
`
`11:3
`
`assess
`
`8:16
`
`assessment
`
`9:14
`
`assign
`
`17:10
`
`assigning
`
`15:9
`
`assist
`
`19:11
`
`$
`
`$1
`
`13:5
`
`$149
`
`13:3
`
`$150
`
`11:15,
`
`24 12:12,
`
`24 13:12
`
`6:14,23
`
`8:6 10:11
`
`23:5
`
`77
`
`5:20
`
`8
`
`21:12,14
`
`8,092,345
`
`22:23
`
`4:13
`
`1
`
`A
`
`10:25
`
`23:22
`
`a.m.
`
`23:22
`
`accumulate
`
`analyze
`
`8:3
`
`ANSLEY 4:7,
`
`19 6:12
`
`7:3,19 8:7
`
`9:3,17
`
`10:4,19
`
`11:11
`
`12:5,21
`
`13:10,18,
`
`24 14:6,
`
`14,24
`
`15:12
`
`16:1,20
`
`17:3,21
`
`2
`
`18:12,13
`
`18:5 19:18
`
`2o
`
`20 17,25
`
`accumulated
`
`7:1
`
`20:14
`
`21:19
`
`2002 4:17,
`
`20
`
`2013
`
`11:14
`
`3
`
`35
`
`4:23
`
`acquire
`
`16:10
`
`acquired
`
`11:15
`
`acquisition
`
`21:22
`
`6
`
`adjusted
`
`20:20
`
`22:8,21
`
`23:7,15
`
`answering
`
`12:17
`
`appeared
`
`7:14
`
`appears
`
`10:13
`
`asmmm
`
`21:20
`
`assuming
`
`14:8
`
`attention
`
`8:25
`
`attributable
`
`21:14
`
`aware
`
`12:8
`
`697
`
`4:11
`
`advice
`
`16:18
`
`application
`
`21:25
`
`B
`
`698
`
`4:12
`
`advisor
`
`7
`
`74
`
`5:2
`
`75 5:10,18
`
`11 14 23:5
`
`18:16 19:2
`
`amount
`
`15:13
`
`17:10
`
`applications
`
`back 18:7,
`
`5:3,5,16
`
`23 20:17,
`
`area 9:16,
`
`24
`
`19 15:16
`
`based 10:12
`
`analysis
`
`16:3
`
`4:24 7:17,
`
`18 9:2
`
`Armour
`
`7:2
`
`10:16
`
`14:9,18
`
`15:4 16:18
`
`22:24
`
`www.huseby.com
`Huseby, Inc.- Regional Centers
`Charlotte ~ Atlanta ~ Washington, DC ~ New York ~ Houston ~ San Francisco
`
`800-333-2082
`
`UA-1012.009
`
`UA-1012.009
`
`

`
`UNDER ARMOUR, INC. vs. ADIDAS AG
`William R. 1VIichalson, Ph.D. on 02/05/2016
`
`-Index: bases..determine
`
`bases 11:18,
`
`claims
`
`5:6
`
`17:11,19,
`
`5:1,11,17
`
`19
`
`basically
`
`18:17
`
`19:17
`
`bought
`
`10:15
`
`break 23:17
`
`breakdown
`
`13:9,15
`
`brought
`
`8:24
`
`business
`
`11:2,3
`
`17:15,17,
`
`23 18:10,
`
`16,18,24
`
`19:2
`
`clarify
`
`14:22
`
`Clark
`
`19:5
`
`clock
`
`18:7
`
`closed 23:21
`
`closely
`
`20:18
`
`colleague
`
`19:24
`
`25 18:9,20
`
`11:21
`
`19:21
`
`20:22
`
`company's
`
`7:21
`
`competing
`
`16:15,17
`
`competitors
`
`16:14
`
`concluded
`
`12:25 13:1
`
`14:10,13
`
`17:7,8
`
`cost
`
`15:19
`
`19:15
`
`costs
`
`18:14
`
`council
`
`18:10
`
`cross-targets
`
`commercial
`
`4:10 22:24
`
`16:12
`
`5:4,11,17,
`
`23:22
`
`24 6:14,20
`
`conclusion
`
`7:15 9:5,
`
`21 10:8,23
`
`11:1,9,20
`
`14:9,18
`
`5:4 12:12
`
`confidential
`
`12:6,8
`
`1,11,:,11,_
`
`data 22:12,
`
`24 23:8
`
`C
`
`calculated
`
`11:25
`
`12:24
`
`13:12,17,
`
`20
`
`21:25
`
`23:1,9
`
`commercially
`
`6:7 8:17
`
`10:3
`
`confirm 5:14
`
`confused
`
`16:2
`
`connotation
`
`15:2
`
`companies
`
`consideration
`
`calculations
`
`9:10,13
`
`20:10,11,
`
`18 21:6,10
`
`11:4 14:3,
`
`5,16,18,23
`
`7:7 21:24
`
`22:5,11
`
`13:3
`
`capital
`20:7
`
`careful
`
`14:13,21
`
`chance
`
`15:6
`
`15:1,4
`
`16:16
`
`20:12
`
`company 6:5,
`18 7:2 8:2
`
`4:24
`
`considered
`
`8:12
`
`contacted
`
`14:8,9
`
`16:25 17:5
`
`considerations
`
`deposition
`
`dealt
`
`15:21
`
`December
`
`11:14
`
`decide
`
`12:15
`
`declaration
`
`13:20
`
`demonstrated
`
`5:25 6:15
`
`4:2,10
`
`23:20,22
`
`details
`
`12:4,23
`
`18:22
`
`determine
`
`7:13 10:1
`
`cite
`
`13:19
`
`15:2,17,23
`
`19:22 20:4
`
`cited 11:7
`
`16:4,6
`
`correct
`
`4:25
`
`22:6
`
`www.huseby.com
`Huseby, Inc.- Regional Centers
`Charlotte ~ Atlanta ~ Washington, DC ~ New York ~ Houston ~ San Francisco
`
`800-333-2082
`
`UA-1012.010
`
`UA-1012.010
`
`

`
`UNDER ARMOUR, INC. vs. ADIDAS AG
`William R. 1VIichalson, Ph.D. on 02/05/2016-Index: determining..helpful
`
`determining
`
`9:12
`
`experience
`
`form 6:8,21
`
`11:4 17:2
`
`expertise
`
`6:6,19
`
`15:2,5,17
`
`17:18
`
`develop
`
`17:15,24
`
`18:17
`
`developing
`
`17:24 21:7
`
`development
`
`17:16
`
`18:10,18
`
`disclose
`
`12:7,9
`
`discussing
`
`23:14
`
`document
`
`ends 4:11,
`
`12
`
`entrepreneuria
`1
`9:11
`
`evaluate
`
`evaluated
`
`14:7,8
`
`15:4
`
`evaluating
`
`9:5,2O
`
`10:8,23,25
`
`11:3 13:25
`
`14:16,23
`
`9:16,19
`
`7:9,23
`
`14:16,17
`
`8:19 9:6,
`
`15:15 16:3
`
`22 10:24
`
`expert 9:4,
`
`20 10:7,22
`
`13:25 14:2
`
`e