`CENTRAL DISTRICT OF CALIFORNIA
`SOUTHERN DIVISION - SANTA ANA
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`1
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`PINN, INC.,
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`APPLE INC., GOOGLE LLC,
`et al.,
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`Plaintiff,
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`v.
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`Defendants.
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`Case No. SACV 19-1805-DOC (JDEx)
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`Santa Ana, California
`Thursday, June 11, 2020
`10:02 A.M. to 11:54 A.M.
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`TRANSCRIPT OF PROCEEDINGS
`BEFORE THE HONORABLE JOHN D. EARLY,
`UNITED STATES MAGISTRATE JUDGE.
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`See Page 2
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`Maria Barr
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`Recorded; CourtSmart
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`JAMS Certified Transcription
`16000 Ventura Boulevard #1010
`Encino, California 91436
`(661) 609-4528
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`Appearances:
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`Deputy Clerk:
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`Court Reporter:
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`Transcription Service:
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`Proceedings recorded by electronic sound recording;
`transcript produced by transcription service.
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`PINN-2004
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`Law Office of Ryan E. Hatch, P.C.
`By: RYAN E. HATCH
`13323 Washington Boulevard, Suite 100
`Los Angeles, California 90066
`(310) 279-5076
`ryan@ryanehatch.com
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`Connor Kudlac Lee PLLC
`By: CABRACH J. CONNOR
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`JENNIFER A. TATUM LEE
`609 Castle Ridge Road, Suite 450
`Austin, Texas 78746
`(512) 777-1254
`cab@connorkudlaclee.com
`jennifer@connorkudlaclee.com
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`Whitaker, Chalk, Swindle & Schwartz
`By: DAVID A. SKEELS
`301 Commerce Street, Suite 3500
`Fort Worth, TX 76102
`(817) 878-0500
`dskeels@whitakerchalk.com
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`Fish & Richardson PC
`By: SETH M. SPROUL
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`TUCKER NEPHI TERHUFEN
`12390 El Camino Real
`San Diego, California 92130
`(858) 678-5070
`sproul@fr.com
`terhufen@fr.com
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`Barnes & Thornburg LLP
`By: JEFFREY M. BARRON
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`TODD G. VARE
`11 South Meridian Street
`Indianapolis, Indiana 46204-3535
`(317) 231-7751
`jeff.barron@btlaw.com
`todd.vare@btlaw.com
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`Barnes & Thornburg LLP
`By: ROYA RAHMANPOUR
`2029 Century Park East, Suite 300
`Los Angeles, California 90067-2904
`(310) 284-3880
`roya.rahmanpour@btlaw.com
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`APPEARANCES:
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`For the Plaintiff:
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`For the Defendants:
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`SANTA ANA, CALIFORNIA, THURSDAY, JUNE 11, 2020, 10:02 A.M.
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`(Call to Order of the Court.)
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`THE COURT: -- going to see if I can expedite
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`things -- Maria, do you have the list? -- based on the
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`appearances that have been made. It takes too long to try to
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`go through a role over the phone.
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`Here's what I have as far as people on the call:
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`On behalf of plaintiff, I have Ryan Hatch,
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`Cabrach Connor, David Skeels, and Jennifer Tatum.
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`Let me direct this to Mr. Hatch: On behalf of
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`plaintiff, is that the extent of the folks present on this
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`call this morning?
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`RICHARD E. HATCH: Yes, I believe so. And it was
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`-- Mrs. Tatum -- it's actually Mrs. Tatum-Lee, I believe.
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`THE COURT: Okay. And who's going to be speaking
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`on behalf of plaintiffs? Designate one person so that we --
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`so that I know and so that the record is clear since we don't
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`have a court reporter that can identify people.
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`MR. HATCH: Sure. If I can defer that question to
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`Cabrach Connor, and he can identify that person.
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`DAVID E. SKEELS: Thank you. Your Honor, this is
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`David Skeels on behalf of Pinn. I'll be handling a number of
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`issues. We had -- depending on what the questions are, the
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`issues that come up, Jennifer Lee or Cabrach Connor may
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`address the question, if that's okay, but if you need one
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`lead designated attorney, that would be me, David Skeels.
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`THE COURT: You're going to be the lead attorney.
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`If you want to defer to someone, you have to state that
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`person's name so that we have a record of who's speaking.
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`MR. SKEELS: Absolutely. Thank you. Thank you,
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`Your Honor.
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`THE COURT: All right. Turning to Apple, I have
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`present Mr. Seth Sproul, Tucker Nephi Terhufen, and also
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`Joy B. Kete, who -- Kete -- who has a pro hac vice motion
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`pending apparently, and then Mr. James Wiley on behalf of
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`Apple.
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`I'll take -- before I ask if that's all, Ms. Kete,
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`I can't rule on your pro hac vice motion. I'm a discovery
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`referral judge here. So you're certainly welcome on the
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`call, but you won't be able to make any appearances and if --
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`Mr. Wiley is also welcome but as -- if he hasn't made an
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`appearance in the case, he won't be able to argue.
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`So let me ask Mr. Sproul: Who on behalf of Apple
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`is going to be designated as counsel in charge of argument
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`this morning?
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`SETH M. SPROUL: Good morning, Your Honor.
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`Seth Sproul. I will be handling the argument. I had
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`intended to allow Ms. Kete to argue as well and was going to
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`ask if there was some special dispensation that we could --
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`or some agreement we could reach whereby you could allow her
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`because we don't believe those will be produced within ten
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`days, and we don't think that we will have the ability to
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`fully review them within ten days to meet the supplementation
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`deadline that Your Honor has ordered. Specifically --
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`THE COURT: All right. Can you remind me -- or
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`verify something for me. The request for productions were
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`served late January; is that right?
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`MR. SPROUL: Well, Pinn has asserted that, but in
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`fact, discovery didn't open, and so they weren't deemed
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`served until late February when we completed the 26(f)
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`conference.
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`THE COURT: Well, I'm not sure I agree with that.
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`MR. SPROUL: And so --
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`THE COURT: I'm not sure agree with your
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`interpretation. 26 -- Rule 26 and Rule 34 allow document
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`requests to be served before the parties' conference, and it
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`doesn't say "completed." It says when they "first start."
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`That's when the date runs from.
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`MR. SPROUL: Your Honor, my understanding is that
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`-- and I don't have the rule in front of me -- is that the
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`RFPs may be served earlier, but they aren't deemed served
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`until that 26(f) conference and the date --
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`THE COURT: Until the Rule 26 conference first
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`starts. So, if it goes over multiple days, it's the date the
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`first -- it first starts.
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`MR. SPROUL: We -- our position was at the time --
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`and we notified Pinn of this, and they never responded in
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`email to it or otherwise --
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`THE COURT: I'm just going to read -- I'm going to
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`read to you Rule 26(d)(2). Okay? So Rule 26(d) is timing
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`and sequence of discovery, and the general rule is (1), which
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`is there's no discovery from any source until the parties
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`have conferred as required by Rule 26(f), and then it exempts
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`the early Rule 34 requests -- and this is Rule 34(d)(2)(A) --
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`I'm sorry -- (d)(2)(B) -- that early Rule 34 requests are
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`considered served, quote, "at the first Rule 26(f)
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`conference, period," closed quote.
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`When was your first Rule 26(f) conference?
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`MR. SPROUL: We have this in our documentation. I
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`believe it was February 10th, Your Honor, and that --
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`THE COURT: Well, I thought it was January 22nd,
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`but maybe I'm wrong.
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`MR. SPROUL: I -- there was a dispute about whether
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`that constituted, even, the start of the 26(f) conference.
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`We had joined a call that wasn't originally scheduled to
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`include us, and they'd invited us to join, and we had said,
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`"We don't consider this our 26(f). We are participating, but
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`we're not prepared," and so forth.
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`I guess, rather than dispute that issue, because I
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`don't think it actually impacts the issues here, because with
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`respect to the Rule 34 requests and the requests for
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`production, again, we've gone and affirmatively collected and
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`produced hundreds of thousands of pages of documents
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`responsive to the RFPs. The ESI production is a separate
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`beast under the ESI order entered in this case, and I don't
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`think there's any dispute about the timing of documents
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`produced as part of the ESI process, which is a little more
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`involved, involves targeting individuals, and it involves a
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`cloning process --
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`THE COURT: Listen. I understand all that, but we
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`have a discovery cutoff of August 4th, I want to keep this
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`ball moving, and I'm going to read now from Docket 51 --
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`that's the parties' joint Rule 26(f) statement -- the very
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`first line -- I'm sorry -- the very first line of the second
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`paragraph. (Reading) Counsel for the parties met and
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`conferred telephonically on January 22, 2020, and they
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`conferred at various times thereafter telephonically, in
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`person -- and lists other times.
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`So that's a joint report that indicates that the
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`Rule 26(f) conference first started on January 22nd, and
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`we're now mid-June with an August 4th discovery cutoff. I
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`don't want this hanging out there. So give me a date certain
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`when, with your new search terms, your ESI documents from
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`your custodians will be produced.
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`MR. SPROUL: I'd -- if you could give me a little
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`bit of time to consult with my team offline, and I can do
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`that shortly. It's difficult to do right now because the
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`process involves quite a bit of work on the back end. We
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`will work very hard to get it out, especially if it's within
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`the 20,000-ish-page -- excuse me -- the 20,000-document level
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`that we anticipate. If Your Honor would allow me a few
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`minutes --
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`THE COURT: Well, what's the -- the problem here is
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`if they get a bunch of documents that they've never seen
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`before on July 6th and they now have no timely ability to do
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`any follow-up discovery and have it responded to by the
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`discovery cutoff.
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`MR. SPROUL: I understand, Your Honor, and we will
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`work very hard to get that out in a very timely manner, and I
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`will get you a date certain here shortly.
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`I will note that Pinn has also not made its ESI
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`production, that the parties are sort of working in parallel
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`there, and they haven't raised a dispute about it, and,
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`again, we've been transparent about what we're doing. The
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`problem is we just have hundreds of thousands of documents
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`that hit on search terms that might otherwise identify
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`relevant documents, and that's not a feasible way to proceed,
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`and we are actively working to narrow that and produce it to
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`Pinn and will do so. Again, they haven't raised an issue
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`with it and I --
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`THE COURT: Well, here's the thing: How they're
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`doing, that's going to be their problem, but what I have in
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`front of me is a motion by them to compel production. It
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`doesn't break it down by ESI versus non-ESI. It's just
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`"responsive documents," which by definition includes ESI.
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`So you don't think you can get the ESI within ten
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`days. I picked ten days precisely so that it falls at a time
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`that maximizes their ability to conduct follow-up discovery
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`that will be completed by August 4th, which if memory serves
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`-- my -- somebody stole my calendar in the courtroom, but if
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`memory serves, I think it's a Monday or a Tuesday, but that
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`-- I do want a date certain, and if you don't get me one, I'm
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`going to give you one because it can't just be lingering out
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`there and having things rolling in without --
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`MR. SPROUL: Understood, Your Honor. And given the
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`August 4th deadline and the -- sort of the -- our
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`understanding of the back-end process here, once we are able
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`to run those search terms -- would July 9th be amenable to a
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`date certain?
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`THE COURT: No. That's too late.
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`MR. SPROUL: (Indecipherable.)
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`THE COURT: That doesn't give them 30 days before
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`August 4th to be able to file -- or to be able to serve
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`follow-up discovery, and the problem is it's not like it's an
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`instantaneous thing. If you're talking about 10- or 20,000
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`pages of electronic discovery, you can't, then, have exactly
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`30 days. So I want give them 35 days from August 4th. If we
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`roll that back -- I should probably just -- not to give Apple
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`a free testimonial, but I should probably get out my phone
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`and look at my phone calendar. If we roll back five weeks
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`from August 4th, we are at -- one, two, three, four --
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`June 30th. Okay? That would be my -- that would be my
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`suggestion of the ESI cutoff with the regular cutoff being --
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`it's actually going to be the 22nd when you factor in a
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`Sunday. So the regular documents will be due in ten days
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`from today, which will be June 22nd, and the ESI by
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`June 30th. That's my thought in light of your concerns.
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`MR. SPROUL: Your Honor, we will do that. Let me
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`ask for -- let me offer one clarification. Again, the only
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`outstanding documents are the ESI documents, and we don't
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`intend to go collect and produce other documents. We believe
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`we've substantially completed that. So we will abide by
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`June 30th. We ask that Pinn also meet that deadline for its
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`ESI production.
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`THE COURT: Well, let me ask Pinn. Do you
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`voluntarily agree to produce all ESI documentation and data
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`by June 30th? Yes or no?
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`MR. SKEELS: Yes.
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`THE COURT: Okay.
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`In terms of -- Mr. Sproul, you're a great lawyer.
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`You threw in that word "substantially" complied. That leaves
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`open the contrary that -- it leaves open some wiggle room
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`there that there may still be other documents. So I'm going
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`to leave June 20- -- ten days from today for all non-ESA
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`[sic] documents -- you've got to be done, and then ESA
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`information has to be produced by June 30th. All right?
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`MR. SPROUL: Understood. Thank you, Your Honor.
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`THE COURT: Okay. What's your next issue?
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`MR. SPROUL: I'd like to address the verifications
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`as well. We have served a verification of our second set of
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`-- our supplemental response to the first set of
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`interrogatories, which were in dispute here. I think that
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`resolves the issue. We will in a timely manner supplement --
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`or, excuse me -- we will serve verifications for rogs going
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`forward.
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`THE COURT: I'm sorry, gentlemen. Could you hold
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`one moment.
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`MR. SPROUL: Yes.
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`(Pause.)
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`THE COURT: Thank you. We have subleased a marine
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`recruiting station, and I think they're doing weightlifting
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`about our courtroom right now. So I have sent my courtroom
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`deputy to order the marines to stop. We'll see what happens
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`in a battle of branches of government.
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`All right. I'm sorry, Mr. Sproul. Please
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`continue.
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`MR. SPROUL: I wanted to provide an update on the
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`verification. We have --
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`THE COURT: Understood. You've verified all the
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`amended or supplemental responses. Is that what you're
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`saying?
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`MR. SPROUL: The ones that were in dispute. We
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`have subsequently served an additional supplementation that
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`we will verify. We are set to serve another response to the
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`second set of interrogatories this Friday, and we will serve
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`a verification within ten days after that. So what we would
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`ask is that we be given a little lag time from the time we
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`finalize and serve our interrogatories to let that percolate
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`through the witnesses who need to, then, verify because they
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`have to look at a lot of documentation, and there's just a
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`little bit of time that's involved with everybody being
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`dispersed and so forth. So, if we could have that ten-day
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`window after service of our interrogatories, then we will
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`commit to verifying as we go, and we have already verified,
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`again, the rogs in dispute here.
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`THE COURT: Well, I'm -- I got to be honest with
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`you. It concerns me that there's responses going out on
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`behalf of Apple that are getting verified later. The rules
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`don't permit that, and it makes me wonder where the
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`information is coming from in these response if it's taking
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`weeks, and in some cases months, to have somebody review the
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`information to verify it. So right now it's not before me.
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`The order speaks to the prior verifications, you've said
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`you've already given them, but I'm going to leave the order
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`just in case there's something that's still outstanding.
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`In terms of responses going forward, the rules are
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`the rules. If you're asking for leave for basically -- it's
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`-- essentially what you're asking for is an extension of time
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`to respond to the interrogatories. You know, why don't you
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`talk to Pinn and see what they view about that, but I don't
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`know that this changes anything that's in my order on what's
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`before me. Am I missing something?
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`MR. SPROUL: No, Your Honor, other than -- in
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`general, I guess, our practice has been -- you know, and it
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`depends, obviously, on the plaintiff -- is people aren't as
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`concerned about this because the verification doesn't -- in
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`my experience, hasn't come into play where it's precluded
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`reliance on an interrogatory. We've not ever said we're not
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`going to verify. What -- we've just said it takes a little
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`bit of time. We gather --
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`THE COURT: Well, I'm going to --
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`MR. SPROUL: -- a lot of information from a lot of
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`different people --
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`THE COURT: I'm going to interrupt you because it
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`-- it's just -- not just a matter of -- it goes to -- I don't
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`know if you're doing 30(b)(6) depositions lined up, I don’t
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`know if you have individual officers who are going to be
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`deposed, but to the extent someone signs discovery responses,
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`I would imagine that that person is a likely -- or signs
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`verifications, I'd imagine that person is a likely candidate
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`either as a 30(b)(6) or as a regular discovery target for a
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`deposition, and the longer that you make Pinn wait for that
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`information, at least as to who it is, the slower things get.
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`You know, the other aspect of it is we've got a
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`discovery cutoff. You know, it's -- it happened. So that
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`should have been taken into account, as you're putting
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`together the responses, and build in a week's lead time so
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`that the lawyers can draft their responses with enough lead
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`time for the client to really look at it closely and verify
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`it and then have everything together in one packet as it goes
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`out. In a normal case, where you didn't have an August 4th
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`discovery cutoff on -- I'm not going to characterize it as
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`"complex" or not, but there's certainly a lot of issues in
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`the case.
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`We got to get moving. I don't want to keep having
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`wiggle room. So you talk to Pinn about it. If they're
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`willing to agree to an extra seven days for verifications,
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`that's fine with me, you don't me to do anything, but what
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`I'm telling you is keep the ball moving. There was
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`definitely some things in the joint stipulation from Apple's
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`standpoint that caused me concern that perhaps Apple wasn't
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`acting with the requisite amount of diligence to get these
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`things done. There's a flipside to it. There were certainly
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`things in the joint stipulation that had me concerned about
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`how Pinn was litigating this case, and that's reflected, to
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`some extent, in the tentative ruling.
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`But from Apple's standpoint, let's get going.
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`Let's get this stuff done. All right?
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`MR. SPROUL: Yes, Your Honor. and if I could offer
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`one clarification there, too. We've been very upfront with
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`the witnesses that will be relevant to this case, who will be
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`designated as 30(b)(6), and so we're not, with these
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`verifications, dropping new names on them. So we are trying
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`to alleviate any issue there by being upfront with our ESI
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`custodians and the relevant folks who --
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`THE COURT: Okay. And part of this is -- I'll tell
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`you a little bit about myself, and we're on the record. I
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`have done many -- as a litigator, as a trial lawyer done many
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`trials with Judge Carter. I really like Judge Carter. Okay?
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`But when he tells you, "These are the dates, and we're
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`sticking with them," he means it. Okay? You have a
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`discovery cutoff of August 4th. That needs to be complied
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`with.
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`Even if both sides come in and say, "Judge," you
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`know, we've got this COVID situation, we've got other
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`situations that" -- "making this very difficult for us to get
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`depositions completed, to complete what we need to do,"
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`Judge Carter's been in the building every day for the last
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`two months, and as you probably see, if you're from
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`Los Angeles, he's also out walking Skid Row and the streets
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`of Downtown Los Angeles working to try to resolve the
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`county's -- the city and the county's homeless situation.
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`He's not going to react kindly to a late request to
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`continue dates, and so this is me taking off my judge hat and
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`putting on my lawyer hat and tell you you guys got to get
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`this done, and when you have witnesses saying, "Well, we got
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`a pandemic. I don't want to have a deposition taken," or "We
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`can't" -- and I'm glad you took care of the source code issue
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`because that was going to be something that was going to have
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`to be taken care of. You folks -- you got the July 4th
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`holiday in here, you've got who knows what other disruptions
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`maybe taking place over the next six to eight weeks. You got
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`to get this stuff done.
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`So I'm urging you to act with all deliberate speed
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`to get everything done that needs to be done. I'm glad that
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`Mr. Wiley's on the call, he can hear this and relay this.
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`One thing I know is both sides feel very strongly about the
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`merits of their case. It would be a shame if, for some
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`reason, due to a failure to a comply with discovery or some
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`other court-imposed deadline that someone's -- that the
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`sanctions wind up being someone loses an ability to rely on a
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`defense or a claim gets dismissed for failure to comply with
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`court rules. So you're both in this together. Let's move
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`these things along.
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`All right. What's up next, Mr. Sproul, of things
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`you want to talk about in the tentative?
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`MR. SPROUL: So I'd like to address the royalty
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`info and the licenses, and, again, this is a clarification of
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`the history. What Apple said to Pinn was "We've identified
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`relevant licenses that we will produce." We have to provide
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`notice. We were not seeking consent. All we had to do was
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`let the notice period run. We told them, "It's going to run
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`on May 25th, and we will produce the documents to you on
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`May 25th." They moved anyways. We produced the documents to
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`them on May 25th, exactly as they said they -- as we said
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`they -- that we would, and it wasn't reflected in
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`Your Honor's order that -- that specific order of events.
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`You -- it seemed that Your Honor understood that we were
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`saying we weren't going to produce things or that we had to
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`rely on some third-party consent before we --
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`THE COURT: Here's my question -- here's my
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`question: Have you advised -- is there something in the
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`record where you have stated that all responsive documents --
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`all nonprivileged responsive documents responsive to the --
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`I'm just to call them the "royalty" RFPs and interrogatories
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`-- that all responsive documents and information have been
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`produced?
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`MR. SPROUL: I don't know whether we've stated that
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`in those terms only because it wasn't quite phrased like that
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`to us during the dispute --
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`THE COURT: Well, I'm phrasing it to you now.
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`First of all, has that been said anywhere that I can see? If
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`not, are you saying it now as an officer of the court?
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`MR. SPROUL: What I'm saying, Your Honor, is that
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`we have produced responsive licenses that we believe were
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`responsive --
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`THE COURT: I'm not asking if you've produced some.
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`I'm asking if you've produced all.
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`MR. SPROUL: The only problem I have with "all,"
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`Your Honor, is Apple has literally thousands, if not tens of
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`thousands, of licenses, and we've done --
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`THE COURT: Okay. So I'm going to -- I'm just
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`going to -- I'm going to short-circuit it. Then my order is
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`going to stand. That's what the order is going to say is --
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`if you had told me, "I can say as an honor" -- "as an officer
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`of the court that we've produced everything," then I would
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`turn to Pinn and say, "It sounds like there's nothing for me
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`to do," but you can't say that. I understand why, but it
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`means that the order is going to stand.
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`MR. SPROUL: Maybe I should clarify --
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`THE COURT: If you're concerned about the
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`background and how I characterized it in the tentative, I can
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`go revisit that and see whether it warrants revamping, but in
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`terms of the substance of the order, it's going to stand.
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`MR. SPROUL: Maybe I should clarify, then,
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`Your Honor. Under what we -- what we understand our
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`obligations to be, which is a reasonable, diligent search,
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`we've done that. We've produced everything that we've found
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`that we believe to be relevant, and so I will say that.
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`We've produced all documents we believe to be relevant
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`subject to the reasonable-search requirements and our
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`inability to, obviously, look at every document at Apple. We
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`don't intend to drop other documents on Pinn at this time.
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`THE COURT: All right. Well, that's -- then that
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`makes my order easy for you to comply with, but I'm going to
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`leave the order as it is, and it's partly because of the
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`history of what I saw in the meet-and-confer process and in
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`the other process that that was not made clear that
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`everything was produced by the time of the joint stipulation
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`being circulated.
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`So what's next, Mr. Sproul?
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`MR. SPROUL: I would like to add one more point on
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`the license issue, which is Pinn identified a litigation to
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`Apple that it wanted to see the license from. We are going
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`to produce that. We have a notice requirement there that
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`we're complying with, but we're not withholding that
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`document, but that was something that we didn't believe to be
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`relevant so we weren't going to produce it. They asked for
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`it. We said, "Yes, we'll give it to you." So we are going
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`to produce a license document related to the Fundamental
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`Innovation Systems litigation --
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`THE COURT: Well, hold -- I don't want you to get
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`into anything that one party thought was deserving of being
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`sealed. Does any portion of the transcript now need to be
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`sealed?
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`MR. SPROUL: No. It's public record. That's a
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`public litigation between Fundamental Innovation Systems and
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`Apple.
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`THE COURT: Well, I thought the existence of a
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`license or royalty agreement involving that entity was
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`something that Apple considered to be confidential? No?
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`MR. SPROUL: The -- I will let Mr. Wiley jump in
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`here if he wants to seal that. I don't believe the mere
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`existence --
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`THE COURT: Well, unfortunately, he can't jump in.
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`He's not admitted in this case. So I'm going to assume that
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`the answer is no, that we don't need to seal anything based
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`on the statements made by counsel.
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`MR. SPROUL: That's correct, Your Honor.
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`So I think that completes the issues
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`privilege log. All right?
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`MR. SPROUL: Thank you, Your Honor.
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`THE COURT: All right. So hearing no further
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`requests? Anybody, here's your time to chime if there's
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`something else. Going once. Going twice. All right.
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`Thank you very much for your time. I do think we
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`accomplished a lot, and I'll look forward to the supplemental
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`memoranda and potentially a joint report regarding the
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`working through of search-term issues for ESI on the Google
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`side of things. All right?
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`Thank you very much, everyone.
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`MULITPLE SPEAKERS: Thank you, Your Honor.
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`(Proceedings adjourned at 11:54 a.m.)
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`///
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`///
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`CERTIFICATE
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`I certify that the foregoing is a correct
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`transcript from the electronic sound recording of the
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`proceedings in the above-entitled matter.
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`
`
`
`/s/ Julie Messa
`Julie Messa, CET**D-403
`Transcriber
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`
`
`
`June 14, 2020
`Date
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