1 1 UNITED STATES DISTRICT COURT 2 SOUTHERN DISTRICT OF NEW YORK 3 - - - - - - - - - - - - - - - - - - x UNIVERSAL CITY STUDIOS, INC.; : 4 PARAMOUNT PICTURES CORPORATION; : METRO-GOLDWYN-MAYER STUDIOS, INC.; : 5 TRISTAR PICTURES, INC.; COLUMBIA : PICTURES INDUSTRIES, INC.; TIME : 6 WARNER ENTERTAINMENT CO., L.P.; : DISNEY ENTERPRISES, INC.; AND : 7 TWENTIETH CENTURY FOX FILM : CORPORATION, : 8 : Plaintiffs, : 9 : vs. : 00 Civ. 0277 10 : ERIC CORLEY A/K/A, : (LAK)(RLE) 11 "EMMANUEL GOLDSTEIN," : AND 2600 ENTERPRISES, INC., : 12 : Defendants. : 13 - - - - - - - - - - - - - - - - - - x 14 Washington, D.C. 15 Wednesday, June 7, 2000 16 Deposition of FRITZ E. ATTAWAY, a witness 17 herein, at the offices of Proskauer Rose LLP, 1233 18 20th Street, Northwest, Washington, D.C., commencing 19 at 10:51 a.m., and the proceedings being taken down 20 by Stenotype and transcribed by KAREN YOUNG. 21 22 INTERIM COURT REPORTING 23 545 FIFTH AVENUE, SUITE 900 NEW YORK, NEW YORK 10017 24 (212) 490-3430 25 2 1 A P P E A R A N C E S O F C O U N S E L 2 On behalf of the Plaintiffs: 3 PROSKAUER ROSE LLP 4 BY: LEON GOLD, ESQ. 5 1585 Broadway 6 New York, NY 10036-8299 7 (212) 969-3480 8 9 (Present only after 3:03 p.m.) 10 MOTION PICTURE ASSOCIATION 11 BY: MARK D. LITVACK, ESQ. 12 15503 Ventura Boulevard 13 Encino, CA 91436 14 (818) 995-6600 15 16 On behalf of the Defendants: 17 FRANKFURT, GARBUS, KLEIN & SELZ, P.C. 18 BY: EDWARD HERNSTADT, ESQ. 19 488 Madison Avenue 20 New York, New York 10022 21 (212) 980-0120 22 23 24 25 3 1 C O N T E N T S 2 WITNESS: FRITZ E. ATTAWAY 3 EXAMINATION BY: PAGE 4 By Mr. Hernstadt ........................... 5 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 4 1 DEPOSITION EXHIBITS 2 FRITZ E. ATTAWAY 3 NUMBER DESCRIPTION IDENTIFIED 4 34 MPAA 1998 business plan .................... 40 5 35 MPAA 1999 business plan .................... 44 6 36 MPAA 2000 business plan .................... 93 7 37 Attaway letter to Kasunic, 4/14/00 ......... 89 8 38 Letter to David Carson, 3/31/00 ............ 95 9 39 Attaway letter to Perlmutter, 12/7/98 ..... 102 10 40 Attaway letter to Felts, 2/19/99 .......... 108 11 41 Attaway letter to Carson, 2/16/00 ......... 120 12 42 Attaway letter to Carson, 3/31/00 ......... 124 13 43 Testimony of Mr. Attaway, 6/24/99 ......... 132 14 44 Reply comments, 3/31/00 ................... 135 15 16 17 (EXHIBITS RETAINED BY COUNSEL) 18 19 - - - 20 21 22 23 24 25 5 FRITZ E. ATTAWAY 1 - - - 2 MR. HERNSTADT: As an initial matter, I'd 3 like to apologize for the glitches this morning in 4 terms of getting the reporter here and getting going 5 on time. 6 MR. GOLD: Thank you. No problem. 7 MR. HERNSTADT: And I appreciate your 8 courtesy and patience. 9 MR. GOLD: No problem at all. 10 - - - 11 Whereupon, 12 FRITZ E. ATTAWAY, 13 having been called as a witness by Counsel for 14 Defendants and having been duly sworn by the notary 15 public, was examined and testified as follows: 16 - - - 17 EXAMINATION BY COUNSEL FOR THE DEFENDANTS 18 BY MR. HERNSTADT: 19 Q. Mr. Attaway, I'm Edward Hernstadt from 20 Frankfurt, Garbus, Klein & Selz. We represent the 21 defendants Eric Corley a/k/a Emmanuel Goldstein and 22 2600 Enterprises, Inc. in the Universal et al. 23 against them litigation. Thank you for being here. 24 Have you ever been deposed before? 25 A. Yes. 6 FRITZ E. ATTAWAY 1 Q. How many times? 2 A. Maybe two or three. Certainly no more 3 than three. 4 Q. When was the last time you were deposed? 5 A. At least six years ago. It could be more. 6 Q. Well, I'll very briefly then refresh your 7 recollection that this is sworn testimony. You 8 should answer the questions. If you don't 9 understand a question, ask me. I'll restate it or 10 explain it to you or say it in a way that you can 11 understand. Are you on any kind of medication or 12 anything that would prevent you from answering 13 questions I put to you fully and coherently? 14 A. No. Only coffee. 15 Q. Excellent. Mr. Attaway, could you tell 16 me, how long have you been employed by the MPAA? 17 A. I have been employed by MPAA for 24 years. 18 Twenty-four and a half years now I believe. 19 Q. Are you an attorney? 20 A. Yes, I am. 21 Q. Have you practiced as an attorney? 22 A. Yes. Before MPAA, I was an attorney for 23 the Federal Communications Commission, and I've 24 practiced as an attorney for MPAA for 24 and a half 25 years. 7 FRITZ E. ATTAWAY 1 Q. Could you tell me what your educational 2 background is? 3 A. I have a B.A. degree from the College of 4 Idaho and a J.D. degree from the University of 5 Chicago. 6 Q. And what is your present position with the 7 MPAA? 8 A. I'm senior vice president for government 9 relations and Washington general counsel. 10 Q. And can you give me a run-through from 24 11 years ago to the best of your recollection of the 12 different positions you've held with the MPAA? 13 A. I believe my first title was assistant to 14 the president. Then I became a vice president. I'm 15 not sure what it was for, but I've been in 16 government relations the entire time, and then 17 senior vice president and then senior vice president 18 and general counsel, in that succession. 19 Q. SVP and then general counsel? 20 A. Right. 21 Q. Did you get any additional duties when you 22 became general counsel? 23 A. No, not really. 24 Q. Was there a general counsel prior to you? 25 A. In Washington, no. 8 FRITZ E. ATTAWAY 1 Q. I'm sorry? 2 A. No, not in Washington. There was and 3 still is a general counsel in Los Angeles. 4 Q. Okay. Would it be fair to say that the 5 granting to you the title general counsel was a 6 recognition of what you'd already been doing, as 7 opposed to changing your job? 8 A. I think that's fair to say, yes. 9 Q. And you say that you've been -- your 10 responsibilities have included government relations 11 essentially the entire time you were there. 12 A. Yes. 13 Q. Could you explain what you do? What is 14 government relations? 15 A. I represent the Motion Picture Association 16 and the motion picture industry in all matters 17 relating to the federal government, and that ranges 18 from legislative issues to regulatory issues to 19 international treaty issues. Anything that involves 20 the federal government. 21 Q. And when you say motion picture industry, 22 are you talking about the plaintiffs in this case? 23 A. Yes, the seven studios that belong to 24 MPAA. 25 Q. Okay. Does the MPAA consider that its 9 FRITZ E. ATTAWAY 1 work would benefit other studios who are not members 2 as well? 3 A. I think we consider ourselves in most 4 instances, not all, but in most instances as 5 representing the industry. 6 Q. Okay. Whether or not they're members? 7 A. Correct. 8 Q. Okay. What are your job functions with 9 respect to legislation? 10 A. I represent the association's views and 11 positions to members of Congress and staff. 12 Q. And how do you do that? 13 A. In various ways, including exchanges of 14 information in private meetings, testifying before 15 Congressional committees, supplying written 16 documents both in formal hearings and on an informal 17 basis. 18 Q. Do you have anything to do with the MPAA's 19 anti-piracy efforts? 20 A. No. 21 Q. Are you familiar with the MPAA's 22 anti-piracy efforts? 23 A. Somewhat. 24 MR. HERNSTADT: Can we go off the record 25 for a second? 10 FRITZ E. ATTAWAY 1 - - - 2 (Discussion off the record) 3 - - - 4 BY MR. HERNSTADT: 5 Q. What is the nature of your familiarity? 6 MR. GOLD: This is an area that we're 7 going to designate as confidential. 8 MR. HERNSTADT: Fine. 9 MR. GOLD: You may answer. 10 MR. HERNSTADT: Just to be clear, my 11 understanding is that we're operating under what the 12 judge said yesterday, that everything is 13 confidential for the first ten days and during that 14 time, you can designate -- you have those ten days 15 of confidentiality, blanket confidentiality within 16 which to make smaller designations. To the extent 17 that you want to designate within the -- during the 18 deposition, feel free to, but you have no obligation 19 to. 20 MR. GOLD: That's what I was doing, but I 21 obviously retain -- reserve my right to make further 22 -- 23 MR. HERNSTADT: Of course. 24 MR. GOLD: But I thought it might be 25 helpful for everybody if I just did it when it came 11 FRITZ E. ATTAWAY 1 up. I won't catch every one. 2 MR. HERNSTADT: That's fine. 3 MR. GOLD: But you've been very generous, 4 by the way, because the judge said, and I'm forced 5 to disclose the truth, with Mr. Attaway, three days. 6 MR. HERNSTADT: That's right, and I would 7 have remembered that. 8 MR. GOLD: Eventually you would have. 9 MR. HERNSTADT: Hopefully before Monday. 10 BY MR. HERNSTADT: 11 Q. Okay. Do you want to hear the question 12 again? 13 A. Yes, please. 14 - - - 15 THE REPORTER: "Question: What is the 16 nature of your familiarity?" 17 - - - 18 BY MR. HERNSTADT: 19 Q. The familiarity with the anti-piracy 20 efforts. 21 A. In the course of my representation of the 22 industry, particularly before the U.S. trade 23 representative, I've become familiar with our 24 anti-piracy activities because it directly relates 25 to the level of intellectual property protection 12 FRITZ E. ATTAWAY 1 provided by foreign countries to our works, which is 2 a trade issue I guess I should add to that. In 3 addition, certainly the existence of adequate and 4 effective copyright protection under U.S. law is an 5 issue that we are very interested in and in that 6 context I've become somewhat familiar with anti- 7 piracy activities domestically. 8 Q. Does the MPAA create documents that set 9 forth the estimated losses as a result of piracy? 10 A. Yes. 11 Q. And do you get -- are you provided with 12 copies of these documents? 13 A. Yes. 14 Q. Okay. 15 A. We -- my office generates that information 16 that is supplied on an annual basis to the U.S. 17 trade representative. 18 Q. Okay. And what do you use to create those 19 documents? 20 A. We typically ask our regional offices to 21 provide on a country-by-country basis estimated 22 losses due to piracy. 23 Q. And the regional offices being Los 24 Angeles, Hong Kong? 25 A. Brussels, Rio. 13 FRITZ E. ATTAWAY 1 Q. And do they produce -- strike that. Do 2 they give you an annual estimate? 3 A. They provide information to people in our 4 Los Angeles office, who in turn provide it to my 5 office, specifically to Bonnie Richardson, who is in 6 charge of our trade issues. 7 Q. Okay. And is this all in reports or 8 documents or memos or something to that? 9 A. They're in various documents that are put 10 together in an annual report that we and other 11 copyright industries file with the U.S. trade 12 representative. 13 Q. Do you get quarterly reports? 14 A. No. 15 Q. Internal quarterly reports? 16 A. I don't get them, no. 17 MR. HERNSTADT: To the extent that we 18 haven't asked for these documents in the deposition 19 of Mr. Jacobson, we request production of the annual 20 reports dating back to '97 I guess. 21 BY MR. HERNSTADT: 22 Q. Would the '97 report set forth the losses 23 for '96? 24 A. Typically, yes. 25 MR. HERNSTADT: So '97 to the future and 14 FRITZ E. ATTAWAY 1 then the supporting documents that were used to 2 create these reports. 3 BY MR. HERNSTADT: 4 Q. Do you review these reports before they go 5 out? 6 A. No. I may review bits and pieces of them, 7 Confidential 8 and I generally defer to her judgment in terms of a 9 final review. 10 Q. Do the reports break down the losses to 11 losses per hard -- go off the record for a second. 12 - - - 13 (Discussion off the record) 14 - - - 15 BY MR. HERNSTADT: 16 Q. Hard goods. 17 A. No. 18 Q. It's -- 19 A. It's just one number. 20 Q. It's a global figure for total losses? 21 A. Correct. 22 Q. Does the MPAA develop internal records 23 that break down the total number into subsets of 24 losses attributable to different types of hard 25 goods? 15 FRITZ E. ATTAWAY 1 A. In calculating the estimates, someone at 2 some point would have to consider the various media, 3 theatrical, television, home video, et cetera. By 4 the time they get to me though, it's just one 5 number. 6 Q. So I take it that Mr. Jacobson and before 7 Confidential 8 knowledgeable about those numbers? 9 A. And people who work for them. 10 Q. Do you interact with the MPAA members? 11 A. Yes. 12 Q. On a regular basis? 13 A. Yes. 14 Q. Could you tell me how you do that? What's 15 the nature of the interaction? 16 MR. GOLD: You mean by telephone or mail 17 or -- 18 BY MR. HERNSTADT: 19 Q. By telephone -- well, no. What I mean is 20 what is the nature of the contact? Why do you 21 contact them, why do they contact you? 22 MR. GOLD: Well, to the extent these 23 contacts relate to your giving legal advice to the 24 members, I would direct you not to answer. 25 MR. HERNSTADT: I wouldn't want to know 16 FRITZ E. ATTAWAY 1 the substance of that, but if they contact him for 2 legal advice, I think I'm entitled to know that. 3 MR. GOLD: Yes or no? Okay. 4 MR. HERNSTADT: Yes, yes or no. 5 MR. GOLD: Okay. Do the members contact 6 you for legal advice? 7 THE WITNESS: From time to time, yes. 8 BY MR. HERNSTADT: 9 Q. And what else do they contact you for, 10 setting aside legal advice? 11 A. Information. I disseminate information 12 about legislative and regulatory events and 13 activities. 14 Q. Do the members, the M -- were you done? 15 I'm sorry. 16 A. Yes. 17 Q. Do the MPAA members have their own 18 representatives in Washington? 19 A. All but one, yes. 20 Q. And what's the difference between what the 21 member -- and by member, I'm also talking about 22 plaintiffs, just so you know, all the way through. 23 What's the difference between what the member 24 representatives do, if you know, and what you do? 25 A. What they actually -- what they actually 17 FRITZ E. ATTAWAY 1 do, there is no difference; however, obviously they 2 represent their own individual company and I 3 represent the seven MPAA members, and sometimes that 4 involves different activities. 5 Q. With respect to the Digital Millennium 6 Copyright Act and with respect to digital copying, 7 digital access, you know, that sort of general area, 8 do the members' representatives do anything 9 different than what you do? 10 A. No, not in terms of what they actually do. 11 Q. Okay. So that is an area where 12 everybody's interests are uniform? 13 A. I wouldn't say uniform, no. In fact, not 14 always the -- the member companies don't always take 15 the same position on certain issues, but -- 16 Q. I'm really talking specifically about sort 17 of digital -- copyrighted materials. Member 18 companies in digital form. 19 A. I think in general, yes, they're all close 20 to the same. 21 Q. Do you know if the members do any 22 independent anti-piracy efforts? 23 A. I don't know. 24 Q. Do you know if the MPAA undertakes 25 anti-piracy efforts on behalf of the members? 18 FRITZ E. ATTAWAY 1 A. Yes, we do. 2 Q. During the legislative process that led up 3 to the passage of the DMCA, Digital Millennium 4 Copyright Act, for the benefit of the reporter, were 5 member representatives active in lobbying Congress 6 and in testifying for Congress? We can take that 7 first lobbying, then testifying. 8 A. Lobbying, yes. Testifying, no. 9 Q. Did the MPAA through various individuals 10 testify before Congress? 11 A. Yes. 12 Q. And who did the testimony? 13 A. Typically it would have been Mr. Valenti. 14 In most cases when he was not available, it would 15 have been myself. 16 Q. On how many occasions did either you or 17 Mr. Valenti testify before Congress on the Digital 18 Millennium Copyright Act? 19 A. I certainly don't know the exact number, 20 but my estimate would be maybe half a dozen times 21 throughout the process, and that process began long 22 before the term Digital Millennium Copyright Act was 23 coined. 24 Q. When did the process begin? 25 A. It really began -- I'm not good at 19 FRITZ E. ATTAWAY 1 chronologies, but with the formation or the 2 initiation of the National Information 3 Infrastructure Advisory Council, which would have 4 been in the early '90s, maybe '94, '95, that time 5 period. 6 MR. HERNSTADT: Off the record. 7 - - - 8 (Discussion off the record) 9 - - - 10 BY MR. HERNSTADT: 11 Q. During the course of testifying -- well, 12 strike that. Are you familiar with the testimony 13 that Mr. Valenti made before -- 14 A. Yes. 15 Q. -- the Congress? 16 A. Yes. 17 Q. During the course of the testimony of 18 either Mr. Valenti or yourself, did the MPAA take 19 positions with respect to the impact on fair use of 20 the DMCA? 21 A. I can't recall specific statements, but in 22 general I would say yes. 23 Q. And would the same be the case for the 24 impact on reverse engineering of the DMCA? 25 MR. GOLD: Did the MPAA take positions -- 20 FRITZ E. ATTAWAY 1 BY MR. HERNSTADT: 2 Q. Did the MPAA take positions before 3 Congress? 4 A. I don't think we ever addressed that in 5 formal testimony. It very likely came up in the 6 course of our lobbying activities when the DMCA was 7 being debated. 8 Q. So it would have -- in letters to 9 Congresspersons or the like? 10 A. Perhaps, yes. 11 Q. And did the MPAA take positions during the 12 course of testifying or lobbying Congress on the 13 DMCA on the impact -- excuse me. Strike that -- on 14 whether the DMCA permitted circumvention of 15 encryption or similar systems? Do you understand 16 that? 17 A. No, I don't because -- 18 MR. GOLD: If you don't understand it -- 19 THE WITNESS: The DMCA did not exist at 20 the time, so -- 21 BY MR. HERNSTADT: 22 Q. Okay. I'm talking about the impact of the 23 proposed legislation, what that would mean in 24 terms -- 25 MR. GOLD: Could we get a question? I 21 FRITZ E. ATTAWAY 1 just want you to -- 2 MR. HERNSTADT: Yeah, I'll give a new 3 question. 4 MR. GOLD: Thank you. 5 MR. HERNSTADT: That will make things a 6 little easier. 7 MR. GOLD: Thanks. 8 BY MR. HERNSTADT: 9 Q. During the course of the MPAA's testifying 10 before Congress or lobbying Congress with respect to 11 the proposed legislation that was eventually passed 12 as the DMCA, did the MPAA take positions on whether 13 circumvention of access control technologies would 14 be permissible under the proposed legislation? 15 A. I'm sure that we made statements relating 16 to that question, and our position was that -- and 17 that the anti-circumvention provisions did not 18 affect fair use one way or the other. Fair use was 19 not relevant. 20 Q. Why is that? 21 MR. GOLD: You're saying -- 22 MR. HERNSTADT: First I guess my question 23 is why is fair use not relevant? I'm asking for the 24 second of the -- 25 MR. GOLD: I understand. You asked him 22 FRITZ E. ATTAWAY 1 what position was taken before Congress. 2 MR. HERNSTADT: Uh-huh. 3 MR. GOLD: And to that we have no 4 attorney-client privilege. That's why I didn't 5 interrupt. 6 MR. HERNSTADT: Okay. 7 MR. GOLD: Now you're asking him why did 8 they take that position, and I think it flows out of 9 his participation and discussions where he was 10 giving legal advice regarding that matter and other 11 matters, therefore, I think I have to state that 12 it's privileged. 13 MR. HERNSTADT: Okay. I don't want you to 14 get into privileged areas, but I believe your 15 testimony was that the position of the MPAA was and 16 still is, so that there's nothing different, and in 17 that case -- there's no change in the position that 18 it was and still is, that anti-circumvention 19 provisions do not impact fair use and fair use is 20 irrelevant, and if that's the case, I don't see how 21 privilege would apply. I don't see how a privilege 22 would apply. 23 MR. GOLD: To that answer? 24 MR. HERNSTADT: Yes. 25 MR. GOLD: No. 23 FRITZ E. ATTAWAY 1 MR. HERNSTADT: And also to an explanation 2 for that answer. 3 MR. GOLD: Well, when you ask for an 4 explanation of that answer, you're going to get into 5 conversations he had within the MPAA. In the first 6 question you got into conversations he had with 7 Congress or committees of Congress. There's no 8 privilege with respect to those conversations. When 9 you get into a question that would call for his 10 telling you what was developed, he's a general 11 counsel to this organization. 12 MR. HERNSTADT: I understand. Then let me 13 be very specific. I would like you to explain to me 14 why the anti-circumvention provisions do not affect 15 fair use and why fair use is irrelevant, but in 16 explaining that, please don't get into conversations 17 that you've had subsequent to I guess 1998 when you 18 testified -- when the MPAA took a position that it 19 publicly made to Congress. I understand that that 20 position hasn't changed, but if you've had 21 conversations subsequent to that, then I would guess 22 that's where you were -- 23 MR. GOLD: Look, I'm being very -- I'm not 24 being complicated. When your questions can be 25 answered without getting into matters he discussed 24 FRITZ E. ATTAWAY 1 within the MPAA in the course of giving legal 2 advice, they're not privileged. When they do get 3 into that area, when that's where the response 4 has -- and that's what -- he's a working lawyer. 5 That's what he does. 6 MR. HERNSTADT: I understand. 7 MR. GOLD: He gives legal advice, and the 8 answer to the question would have to disclose the 9 legal advice he gave because he was giving advice on 10 every one of these issues. 11 BY MR. HERNSTADT: 12 Q. Well, can you answer that question without 13 getting into privileged areas? 14 A. I can't answer that question without 15 giving a legal opinion, which is what I do during 16 the course of my -- in the course of my employment 17 as a lawyer. 18 Q. Okay. Then let me limit the question to 19 why was the MPAA's position at the time you 20 testified or Mr. Valenti testified before Congress 21 that anti-circumvention provisions do not affect 22 fair use and that fair use is irrelevant. 23 MR. GOLD: Well, see, that's where you're 24 getting right into the advice he gave his clients in 25 discussions that were held preceding these 25 FRITZ E. ATTAWAY 1 appearances at Congress, and he operates as a lawyer 2 and he gives legal advice. That's what he does. 3 BY MR. HERNSTADT: 4 Q. Then answer that question only to the 5 extent that that was something you discussed with 6 third parties, and that means either testifying or 7 lobbying or in conversations with Congressional 8 aides or Congresspersons. 9 A. Well, that's very difficult to do, to 10 remember every conversation that I might have had on 11 this subject with an outside party, but in general, 12 I would have expressed the view that the 13 anti-circumvention provisions of the DMCA, which we 14 very much supported, were separate and apart from 15 limitations on the rights of copyright owners as 16 expressed by the first sale doctrine. 17 The 1201(a)(1) prevents unauthorized 18 access, just as the Communications Act has prevented 19 unauthorized access to cable programming and 20 satellite programming for many years. The Fair Use 21 Doctrine was not an issue there and we believe that 22 it's not an issue in the DMCA anti-circumvention 23 provisions. 24 Q. During the lobbying process prior to the 25 passage of the DMCA, did you have conversations with 26 FRITZ E. ATTAWAY 1 anyone, including Congressional aides, Congress- 2 persons, press, other industry people, 3 representatives of organizations that favored 4 access, shall we say, or more broader access to 5 copyrighted materials in which you discussed fair 6 use and the continued vitality of the Fair Use 7 Doctrine? 8 A. I'm sure I did. Again, I can't remember 9 specific conversations, but -- 10 Q. Okay. 11 MR. GOLD: The lobbying processes and 12 techniques of the MPAA and its representatives is in 13 the area that I will designate as confidential. 14 MR. HERNSTADT: The techniques or -- 15 MR. GOLD: The lobbying processes and 16 techniques. To me it's the same as processes, so -- 17 MR. HERNSTADT: Okay. I mean, in terms of 18 like Mr. Attaway's prior statement that as part of 19 his lobbying efforts, he would talk to 20 Congresspeople and Congressional aides? 21 MR. GOLD: Yes. 22 MR. HERNSTADT: Okay. 23 MR. GOLD: That doesn't block you from 24 asking anything. 25 MR. HERNSTADT: I understand. That's 27 FRITZ E. ATTAWAY 1 something we can always address again later if we 2 need to. 3 MR. GOLD: We can always talk later. Call 4 me and we'll have a pleasant discussion about it. 5 I'm serious actually. 6 MR. HERNSTADT: I am too. I am too. Off 7 the record. 8 - - - 9 (Discussion off the record) 10 - - - 11 BY MR. HERNSTADT: 12 Q. Again without intruding on the 13 attorney-client privilege, could you tell me to the 14 best of your recollection the types of conversations 15 you had about why the anti-circumvention provisions 16 did not limit or impact fair use in the traditional 17 sense apart from what you just described? 18 A. Generally the position that we expressed 19 throughout this process with regard to fair use was 20 that copyright owners or property owners in general 21 have never been prevented from locking up their 22 property preventing access, and that the Fair Use 23 Doctrine has never been interpreted to permit 24 someone to throw a brick through a Blockbuster 25 window in order to gain access to a motion picture 28 FRITZ E. ATTAWAY 1 in order to exercise fair use. 2 That concept was applied to electronic 3 encryption in the anti-circumvention provisions of 4 the Communications Act. We were applying the same 5 concept -- we felt we were applying the same concept 6 in the DMCA in a broader scope, but we felt -- we 7 feel that in none of these instances the Fair Use 8 Doctrine is being affected because the issue is 9 access, and the Fair Use Doctrine has never been 10 interpreted to allow unauthorized access. 11 Q. What constitutes authorized access? 12 MR. GOLD: And again, you're asking him 13 this question to find out what positions the MPAA 14 was taking with members of Congress or committees of 15 Congress? 16 MR. HERNSTADT: Right. I think we can 17 assume for the next series of questions that I'm 18 going to ask you that Mr. Gold has directed you not 19 to intrude into the attorney-client privilege and 20 just limit your answers to the conversations you've 21 had with non-parties. Is that a fair statement? 22 MR. GOLD: It is. 23 THE WITNESS: I don't have any particular 24 recollection that this issue ever came up. I think 25 the general understanding of all parties was that 29 FRITZ E. ATTAWAY 1 authorized access meant access with the permission 2 of the owner of the material. Beyond that I don't 3 think it was ever discussed. 4 BY MR. HERNSTADT: 5 Q. Did you ever have a discussion in which 6 you were asked if the fact that someone purchases a 7 DVD makes a difference in terms of authorized 8 access? 9 A. Not that I recall. 10 Q. Earlier you talked about the 11 Communications Act prohibiting unauthorized access 12 to cable boxes, or cable television and satellite 13 television. 14 A. Uh-huh. 15 Q. Is it fair to say that a consumer gets 16 authorized access to cable or satellite programming 17 by purchasing a contract or entering into a contract 18 with the cable provider and satellite program 19 provider? 20 A. Yes, by being a subscriber. 21 Q. Okay. And in the context of DVDs 22 specifically, does the consumer get authorized 23 access to the material on the DVD by purchasing the 24 DVD? 25 A. No. 30 FRITZ E. ATTAWAY 1 Q. Why is that? Could you explain that? 2 A. In order to obtain authorized access to a 3 DVD, the consumer has to in effect make two 4 purchases. He or she has to buy a D -- the 5 software, a DVD disk. 6 Q. The media? 7 A. The media, and also has to purchase a DVD 8 display device, which is specifically authorized to 9 obtain access to the motion picture in an 10 intelligible form under certain terms and 11 conditions. 12 Q. Do you know what the DVD CCA is? 13 A. Yes, generally. 14 Q. What is it? 15 A. It is -- specifically CCA or -- yes, CSS 16 is the content scramble system, which is the system 17 used to restrict access to DVD content. 18 Q. And it is what? The DVD CCA -- what's its 19 relationship to CSS? 20 A. The DVD CCA I guess one would describe as 21 the administrator of the licensing system for CSS. 22 Q. Is that different than being the licensor? 23 MR. GOLD: Than being the licensor, O-R? 24 MR. HERNSTADT: Yes. 25 THE WITNESS: I'm not sure who the 31 FRITZ E. ATTAWAY 1 licensor is. It has evolved. The CSS was developed 2 by Matsushita, which I believe initially was the 3 licensor. 4 BY MR. HERNSTADT: 5 Q. Did the MPAA have anything to do with the 6 formation or creation of the DVD CCS? 7 A. We certainly were a party to discussions 8 over a long period of time, which actually are still 9 in process, concerning a permanent entity to 10 administer the CSS license, licenses. The formation 11 of DVD CCA I believe was at the instructions of 12 Matsushita and Toshiba, and although MPAA knew of 13 its existence, we were not a participant in its 14 creation. 15 Q. Do the MPAA members license CSS from the 16 DVD CCA in order to put it on the DVDs? 17 A. That's my understanding, yes. 18 Q. And then the consumer electronics 19 manufacturers and consumer software programmers who 20 create the DVD players, stand alone, home players or 21 software players, do they also license CSS from the 22 DVD CCA? 23 A. Yes. 24 Q. So is it fair to say, and feel free to 25 disagree with me because I'm going to sort of 32 FRITZ E. ATTAWAY 1 recapitulate what I understand your testimony to be 2 about this system, that in order to gain authorized 3 access to the materials on a CSS encrypted DVD, the 4 consumer must purchase a DVD, a legitimate DVD, 5 we'll call it, and a player that is licensed by the 6 DVD CCA? 7 A. Yes. 8 Q. Who else is party to these discussions 9 regarding the administration of the CSS license? 10 MR. GOLD: You mean the discussions that 11 the witness referred to when he said MPAA 12 participated in some discussions? 13 MR. HERNSTADT: Right. 14 MR. GOLD: Relating -- 15 MR. HERNSTADT: For a long time, and they 16 are ongoing, relating to the administration of the 17 CSS license. 18 THE WITNESS: Companies -- the leading 19 companies in the computer industry and the consumer 20 electronics industry generally. 21 BY MR. HERNSTADT: 22 Q. Are any other organizations, industry 23 organizations like the MPAA participants? 24 A. Yes. Again, the associations that 25 represent those two industries, the computer 33 FRITZ E. ATTAWAY 1 electronics industry, which would be the Computer 2 Electronics Association and the Information 3 Technology Industries Association, ITI. 4 Q. Not ITIA? 5 A. I don't think so. I think the acronym is 6 just ITI. 7 Q. And what individual companies are 8 participants in this? 9 A. It varies because some companies have been 10 participants in one stage and they drop out and 11 others come in, but generally the major companies in 12 these industries, IBM, Intel, Compaq on the computer 13 side, and there are many, many more. The best way 14 to find that out is to look at the attendance list 15 at the Copy Protection Technical Working Group 16 meetings. 17 Q. And that is the -- that's the group -- or 18 that's the name of the group that has the meetings 19 that you've been discussing? 20 A. Yes, the Copy Protection Technical Working 21 Group is an open forum that meets once a month to 22 discuss issues relating to copy protection. The 23 discussions relating to the formation of a permanent 24 licensing entity for CSS generally consisted of a 25 smaller group consisting of representatives from the 34 FRITZ E. ATTAWAY 1 three industries. 2 Q. Okay. Do you have attendance lists for 3 the CPTWG? 4 A. No. Oh, for the CPTWG? 5 Q. Yes? 6 A. I don't, but I believe they exist. 7 Q. Do you know if anybody at the MPAA has 8 such lists? 9 A. I do not know. 10 Q. Are you the person from the MPAA who 11 participates in these -- 12 A. I'm one of them, yes. 13 Q. Who else? 14 A. Brad Hunt, who is -- 15 Q. CTO? 16 A. Pardon me? 17 Q. I'm sorry. Go ahead. 18 A. He is MPAA's -- I think his title is chief 19 technical officer. 20 MR. HERNSTADT: Off the record. 21 - - - 22 (Discussion off the record) 23 - - - 24 BY MR. HERNSTADT: 25 Q. I would request production of the 35 FRITZ E. ATTAWAY 1 attendance records if Mr. Hunt has them or if you 2 find that you have them, Mr. Attaway. 3 A. I'm sure I do not. 4 Q. Okay. Are there attendance records for 5 the smaller subgroup that talks about administrating 6 the CSS license? 7 A. No. 8 Q. And are you the MPAA person who 9 participates in that subcommittee meeting or -- 10 A. Sometimes. Not always. Frequently we're 11 represented by outside counsel. In fact, always by 12 outside counsel. Sometimes I attend as well. 13 Q. And the outside counsel, is that the 14 Proskauer firm? 15 A. Yes. 16 MR. HERNSTADT: If this is convenient, I'd 17 like to take a three-minute break. 18 (Recessed at 11:41 a.m.) 19 (Reconvened at 11:48 a.m.) 20 BY MR. HERNSTADT: 21 Q. How did you first learn -- you, 22 Mr. Attaway, first learn of the existence of DeCSS? 23 A. As I recall, it was the subject of 24 conversation at one of the CPTWG meetings. 25 Q. And do you remember when that was? 36 FRITZ E. ATTAWAY 1 A. As I recall, sometime in the fall of last 2 year. 3 Q. Were you the person from the MPAA that 4 notified the plaintiff members of the existence of 5 DeCSS? 6 A. No. 7 Q. And how were the plaintiffs advised of the 8 existence of DeCSS? 9 A. I couldn't tell you. 10 Q. Have you had any contact with the 11 plaintiffs about DeCSS in a non-privileged context? 12 MR. GOLD: Yes or no for this question. 13 A. In a non-privileged context, I would -- I 14 think no. 15 Q. Did you discuss DeCSS with plaintiffs 16 prior to the filing of the complaint in this action? 17 MR. GOLD: Well -- 18 MR. HERNSTADT: And I guess that's a tough 19 question. 20 MR. GOLD: I don't find the difficulty in 21 that one. It's privileged. I think it's 22 privileged. 23 BY MR. HERNSTADT: 24 Q. I mean, your answer is that you have had 25 no non-privileged conversations with the plaintiffs 37 FRITZ E. ATTAWAY 1 about DeCSS, which could also mean you've had no 2 conversations at all, but you've had no 3 conversations that you can testify about? 4 A. Yes, my answer would be no. Yes, I have 5 not had any non-privileged -- 6 Q. All right, fine. Thank you. 7 MR. HERNSTADT: Off the record. 8 - - - 9 (Discussion off the record) 10 - - - 11 BY MR. HERNSTADT: 12 Q. It's fair to say that when you first 13 learned of DeCSS at the CPTWG meeting, it was your 14 understanding that the plaintiffs had also -- or the 15 plaintiffs already knew about the existence of 16 DeCSS? 17 A. Yes, by that time it was a subject that 18 was being discussed on the web, and people both 19 within MPAA and our member companies who paid 20 attention to discussions on the web about technology 21 issues had seen these reports. I don't know what 22 you'd call them. 23 Q. Postings? 24 A. Postings. Good word. Thank you. 25 Q. Sure. What people? When you say people 38 FRITZ E. ATTAWAY 1 in the company had seen these postings, the 2 technology people, can you identify which people 3 you're talking about? 4 5 Confidential 6 7 8 9 Q. Okay. 10 A. I know I'm leaving somebody out, but I 11 can't think of who it is. 12 Q. You've got Warner's, Disney, Paramount, 13 Universal City? 14 Confidential 15 16 A. I believe so. 17 Q. And MGM? 18 A. MGM does not have a technical person 19 participate on a routine basis. 20 Q. And Tristar Columbia? Sony I guess? 21 A. Again, Sony generally doesn't have a 22 technical person. 23 Q. And Fox? 24 A. At that time I don't know if they had a 25 technical person participating. 39 FRITZ E. ATTAWAY 1 Q. Does Sony have someone participating from 2 the consumer electronics end of their business? 3 A. At the CPTWG meetings? 4 Q. Yes. 5 A. Yes, several typically. 6 Q. I would imagine. And were there any MPAA 7 people, technical people that you spoke to? Not 8 necessarily at these meetings, but that you spoke to 9 at around the time that you learned of the existence 10 of DeCSS, about DeCSS? 11 MR. GOLD: That's a yes or a no answer. 12 A. Yes. 13 Q. And who were they? 14 A. It would have been Brad Hunt. 15 Confidential 16 DeCSS? 17 A. Not to my recollection. 18 Q. Do you know who she was? 19 A. Generally, yes. 20 Q. Other than presenting the annual estimated 21 losses due to piracy to the Commerce Department -- 22 is that what you said? 23 A. U.S. trade representative. 24 Q. U.S. trade representative, thank you. -- 25 do you have anything to do with anti-piracy efforts? 40 FRITZ E. ATTAWAY 1 A. No. 2 Q. Are you familiar with a compression 3 utility called DivX? 4 A. No. 5 Q. Have you ever viewed -- 6 (Interruption) 7 BY MR. HERNSTADT: 8 Q. Have you ever viewed a pirated DVD? 9 A. No. 10 Q. Have you ever viewed any pirated hard 11 good? 12 A. Hard good, I've seen pirated VHS movies, 13 yes. 14 Q. VHS, the video cassettes? 15 A. Right. 16 MR. HERNSTADT: Let's mark a couple of 17 exhibits if we can. 18 - - - 19 (Documents were marked as Deposition 20 Exhibit Numbers 34 through 36.) 21 - - - 22 BY MR. HERNSTADT: 23 Q. Can I ask you to take a look at 24 Defendants' Exhibit 34? 25 A. Okay. 41 FRITZ E. ATTAWAY 1 Q. Can you identify this document? 2 A. This appears to be an excerpt from the 3 MPAA business plan. In fact, it says it was the 4 MPAA business plan for 1998. 5 Q. Do you know when that was -- that plan was 6 completed and distributed? 7 A. Typically they're distributed in the mid 8 to late winter every year. 9 Q. November -- October-November? 10 A. No. I'm sorry. February-March. 11 Q. Of the year for which it is -- in other 12 words, the 1998 business plan would have been 13 distributed typically -- 14 A. February-March 1998. 15 Q. Okay. And who receives copies of the MPAA 16 business plan? 17 A. I don't know the entire list. 18 Q. Who would it have included? 19 A. It includes the member company Washington 20 representatives. I don't know who else it may 21 include. 22 Q. The member companies themselves in 23 addition to their Washington representative? 24 A. I am sure it's distributed in Los Angeles, 25 but I'm not familiar with the distribution list. 42 FRITZ E. ATTAWAY 1 Q. Okay. And do you get it? 2 A. Yes. 3 Q. And do you write part of it? 4 A. Yes. 5 Q. Or do you write the whole thing? 6 A. Oh, no. I write the federal government 7 relations part. 8 Q. Okay. First question is do you know it's 9 redacted? And you'll note there's redactions in all 10 these documents. 11 A. Yes, I see that. 12 Q. Do you know what that stuff is? 13 A. No. 14 MR. HERNSTADT: I'll send you a letter on 15 this as well, but we've noticed there's redactions 16 on lots of documents, and we'd just like to get a 17 log setting forth the basis of the redaction and the 18 nature of the materials that were redacted. 19 BY MR. HERNSTADT: 20 Q. Okay. Turning to page 2 under digital 21 video -- 22 A. Yes. 23 Q. At the end of the first paragraph where it 24 says "Developing a private licensing mechanism," is 25 that the licensing mechanism that we've discussed 43 FRITZ E. ATTAWAY 1 earlier that is performed by the DVD CCA? 2 A. Yes, that's CSS. 3 Q. Okay. But that CSS is the encryption 4 system, correct? 5 A. Yes. 6 Q. And then there's a licensing mechanism of 7 the encryption system. My question is is the 8 licensing mechanism DVD CCA or is it something else? 9 A. DVD CCA is the administrator of the 10 licensing system. 11 Q. Then let me ask this question a different 12 way. What is the private licensing mechanism? I 13 don't understand what a licensing mechanism is. 14 MR. GOLD: I'm sorry. You're asking him 15 what a licensing mechanism is? 16 MR. HERNSTADT: Yes, in the context of 17 this business plan. 18 THE WITNESS: It is the licenses that were 19 initially administered by Matsushita and now may be 20 administered by DVD CCA that permit the 21 manufacturers of DVD playback equipment and the 22 distributors of motion pictures that use the CSS 23 encryption system to use that system, to encrypt and 24 decrypt. 25 BY MR. HERNSTADT: 44 FRITZ E. ATTAWAY 1 Q. Okay. Is it fair to say that the 2 licensing mechanism is this two-part I guess 3 authorization that we discussed before where both 4 the DVD itself and the player must have 5 authorized -- or must be licensed to use CSS? 6 A. Yes. 7 Q. Thank you. Let's turn to the next 8 document, Defendants' Exhibit 35, which is the 1999 9 business plan. And again let's turn to page 3 this 10 time, which is digital video. At the bottom of the 11 second paragraph, I guess the last full sentence, 12 "Where the motion picture industry was engaged in 13 legal and legislative battles in the 1980s over the 14 issue of unauthorized video copying." Now, before I 15 ask you a question about that, did you write this 16 section of the 1999 business plan, the section 17 that's entitled "Federal Government Relations"? 18 A. I believe so. 19 Q. If you need to review more of it, just 20 tell me and you can do that. My question about the 21 phrase that I just read is what were those legal and 22 legislative battles in the '80s? 23 A. The legal battle was of course the Betamax 24 case, and the legislative battles involved our 25 attempt to -- not our attempt. Involved our support 45 FRITZ E. ATTAWAY 1 of legislation that would have provided a royalty 2 levied on the sale of video recording equipment and 3 media that would be paid to copyright owners as 4 compensation for home copying. 5 Q. And what were the two sides in those 6 battles, or if there were more sides, what were the 7 various sides in that? 8 A. There were three sides. Essentially the 9 copyright community, which included MPAA, the 10 consumer electronics industry, which represented the 11 companies selling VCRs, and the video software 12 dealer industry. 13 Q. What's the video software dealer? Is that 14 like Blockbuster and -- 15 A. Right, this was before Blockbuster, but 16 yes. 17 Q. And that's both the blank media and 18 recorded video cassettes? 19 A. Yes. 20 Q. Prerecorded video cassettes. And did the 21 Betamax case resolve those battles? 22 A. No. The Betamax case of course resolved 23 the issue of whether the manufacture and sale of 24 VCRs constituted contributory infringement. The 25 legislative battle went on. It was ultimately not 46 FRITZ E. ATTAWAY 1 successful. 2 Q. In other words -- 3 A. Congress chose not to enact legislation 4 providing for a royalty mechanism. 5 Q. During the course of the DMCA legislation, 6 am I correct in saying that the MPAA, that is, you 7 or Mr. Valenti, testified and otherwise publicly 8 took the position that the DMCA would have no impact 9 on the vitality of the Betamax case? 10 A. That is correct. 11 Q. Did you ever have conversations with third 12 parties about that statement? 13 A. Yes. 14 Q. Okay. And in the course of those 15 conversations, were you asked to explain what you 16 meant, Mr. Valenti meant, the MPAA meant by that 17 statement? 18 A. Yes. 19 Q. Okay. And what did you say to them? 20 A. Our explanation was basically the same as 21 I told you earlier, that with respect to fair use, 22 that the Betamax case involved material, the copying 23 of material that had been lawfully acquired. It did 24 not permit someone to throw a brick through a 25 Blockbuster window or tap into a cable. 47 FRITZ E. ATTAWAY 1 Q. Is there any other format on which 2 copyrighted materials is distributed to the public 3 that were -- where access is controlled? And by 4 that I'm talking about cassettes -- audio cassettes, 5 video cassettes, DVDs, CDs, any other media you can 6 think of or format you can think of that I haven't 7 listed. 8 A. That is distributed in encrypted form? 9 Q. Uh-huh, or with an access control 10 technology. 11 A. Not that I can think of. 12 Q. So is it fair to say that DVDs are 13 different than any other format on which copyrighted 14 materials are distributed? 15 A. I think so. 16 Q. And is that a fair statement historically 17 going back to books, pamphlets, newspapers, anything 18 else? Is this essentially the first time in history 19 that -- or in the history of the United States to 20 your knowledge -- 21 A. To my knowledge, yes. 22 Q. -- where there's an encryption or some 23 kind of an access control technology employed in the 24 distribution of copyrighted materials? 25 A. Yes. 48 FRITZ E. ATTAWAY 1 Q. Going back to the sentence that I was 2 asking you about before, the second paragraph of 3 part 3, digital video, the second half of the 4 sentence says that the MPAA is now working with its 5 former adversaries to develop its legal and 6 technical tools to prohibit copying of highlighted 7 content in the 1990s. What are those tools? 8 9 Confidential 10 11 12 Q. Would the DMCA anti-circumvention 13 provisions -- strike that. Would the DMCA be an 14 example? 15 A. Of technical tools for -- 16 Q. No. Legal and technical tools. 17 MR. GOLD: Would you read that question 18 back? 19 BY MR. HERNSTADT: 20 Q. Would the DMCA be an example of a legal 21 and technical tool? 22 A. It certainly was not -- I can tell you 23 that I wrote this sentence, and that is not what I 24 was contemplating, because when this was written, 25 the DMCA had already been enacted. 49 FRITZ E. ATTAWAY 1 Q. Right. 2 A. So it would not have been something that 3 we were working to develop. I believe that the 4 legal tool referred to here was intended to refer to 5 the licensing system that went along with CSS. 6 7 Confidential 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 50 FRITZ E. ATTAWAY 1 Confidential 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 51 FRITZ E. ATTAWAY 1 Confidential 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 52 FRITZ E. ATTAWAY 1 Confidential 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 53 FRITZ E. ATTAWAY 1 Confidential 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 54 FRITZ E. ATTAWAY 1 Confidential 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 55 FRITZ E. ATTAWAY 1 Confidential 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 56 FRITZ E. ATTAWAY 1 Confidential 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 57 FRITZ E. ATTAWAY 1 Confidential 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 58 FRITZ E. ATTAWAY 1 Confidential 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 59 FRITZ E. ATTAWAY 1 Confidential 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 60 FRITZ E. ATTAWAY 1 Confidential 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 61 FRITZ E. ATTAWAY 1 Confidential 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 62 FRITZ E. ATTAWAY 1 Confidential 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 63 FRITZ E. ATTAWAY 1 Confidential 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 64 FRITZ E. ATTAWAY 1 Confidential 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 65 FRITZ E. ATTAWAY 1 Confidential 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 66 FRITZ E. ATTAWAY 1 Confidential 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 67 FRITZ E. ATTAWAY 1 Confidential 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 68 FRITZ E. ATTAWAY 1 Confidential 2 3 4 5 6 7 8 9 10 11 12 Q. We talked earlier about authorized access 13 and unauthorized access, and you described 14 authorized access as access on a DSS -- access to a 15 DSS equipped or licensed DVD via a CSS licensed DVD 16 player. 17 A. I think so, yes. 18 Q. Okay. If a consumer purchases a DVD and 19 -- purchases a licensed DVD, a legitimate DVD, and 20 purchases a licensed DVD player, then that consumer 21 has authorized access to the materials on the DVD; 22 is that correct? 23 A. That person is authorized to view the 24 material through a device that is licensed, yes. 25 Q. Okay. Does that person who has purchased 69 FRITZ E. ATTAWAY 1 a legitimate DVD and a legitimate DVD player, can 2 that person have access to the copyrighted material 3 on the disk in order to make fair use of that? 4 A. No. 5 Q. In other words, in order to make 6 non-infringing use of that material. 7 A. Yes, the answer is no. 8 Q. Can you explain how that does not 9 constitute an impairment of traditional fair use 10 rights? 11 MR. GOLD: This witness is here as a fact 12 witness. He is not our designated legal expert. He 13 is not -- 14 MR. HERNSTADT: I understand. 15 MR. GOLD: There is no such thing I think, 16 despite all of your affidavits from legal 17 practitioners about their views of the statute, I 18 don't think the judge is going to allow there to be 19 legal experts. 20 MR. HERNSTADT: I understand, and 21 actually, what I want to ask him about is statements 22 that he made. 23 MR. GOLD: I should say I hope that the 24 judge won't. 25 MR. HERNSTADT: Right. I didn't bother to 70 FRITZ E. ATTAWAY 1 correct you, Leon. Leaving that to the judge. 2 MR. GOLD: Well, it needed correction. It 3 was my hope based on some knowledge. 4 MR. HERNSTADT: I understand that. 5 MR. GOLD: But if you're asking if he told 6 others, third parties something or he heard from 7 other third parties something about this, that's 8 okay. 9 MR. HERNSTADT: That's what I'm going to 10 ask him about. 11 MR. GOLD: I know that, and that's okay 12 with me, but hypotheticals and legal opinions seem 13 to be the -- 14 MR. HERNSTADT: I understand, and that's 15 not what I -- that's not what I'm looking for. I'm 16 merely looking for him to explain statements that 17 were made to third parties. 18 MR. GOLD: There we go. 19 MR. HERNSTADT: Yes. Off the record. 20 (Discussion off the record) 21 BY MR. HERNSTADT: 22 Q. I'm going to ask the witness to take a 23 look at Exhibit 24, and I'll give it to the witness 24 so that he and Mr. Gold can look at it. I'll 25 describe it first. It's a letter dated June 30, 71 FRITZ E. ATTAWAY 1 1998 to Ms. Terry Tang from Mr. Attaway. Ms. Tang 2 is the editorial writer of the New York Times. In 3 the letter he states in the first paragraph that 4 Jack Valenti asked me to send you the attached 5 material regarding the implementation of the WIPO. 6 A. W-I-P-O, yes. 7 Q. The WIPO treaty, and attached is a 8 chronology of the WIPO treaty and implementing 9 legislation as well as anti-circumvention and WIPO 10 treaty implementation, what appears to be frequently 11 asked questions. 12 A. Uh-huh. 13 Q. And I'm going to direct the witness -- you 14 can look at as much of this as you feel you need to. 15 I'm going to ask you about number 9 of the anti- 16 circumvention and WIPO treaty presentation, Bates 17 stamp page number M-7213. The question is will 18 enactment of Section 1201 cut back on the Fair Use 19 Doctrine. 20 A. Is there any indication of where this came 21 from? 22 Q. This was a document produced by the MPAA 23 to us, and this is the form it came to us in. 24 A. I'm trying to remember -- 25 MR. GOLD: I thought you didn't get any 72 FRITZ E. ATTAWAY 1 relevance documents? I've just been listening to 2 your statements in court, so where did you find this 3 relevant document? 4 MR. HERNSTADT: You have to listen to 5 Mr. Garbus very carefully. We haven't gotten any 6 documents. 7 MR. GOLD: I'm in full agreement with 8 that. 9 MR. HERNSTADT: -- at all from the 10 plaintiffs, let alone relevant documents. 11 MR. GOLD: So the fact that you got them 12 from the MPAA and they haven't got it reproduced 13 eight times -- 14 MR. HERNSTADT: And of the 7,000 or so 15 pages from the MPAA, there were a couple of relevant 16 documents tucked in there. There was a lot of stuff 17 that was -- 18 MR. GOLD: What are you going to do when 19 you find out we produced everything? 20 MR. HERNSTADT: That wouldn't surprise me. 21 I think that's what we're going to deal with 22 tomorrow in terms of privilege. 23 THE WITNESS: I hope I wrote this. It's 24 very good. 25 MR. GOLD: Let's go take a little look. 73 FRITZ E. ATTAWAY 1 Where's the letter? 2 MR. HERNSTADT: That's the cover letter. 3 MR. GOLD: That's where we sent you the 4 attached material. And then you go on to say 5 something -- You don't remember writing this or you 6 don't remember who wrote it? 7 BY MR. HERNSTADT: 8 Q. I'll tell you what. I'll ask him about 9 that if you want. Mr. Attaway, do you know if that 10 is an MPAA document? 11 A. I do not know if anyone at MPAA authored 12 this document, but it is a document that we would 13 subscribe to in terms of the positions set forth in 14 it. 15 Q. Do you recall sending -- 16 MR. GOLD: Mr. Attaway was referring to 17 the document annexed to his letter. 18 THE WITNESS: Thank you, yes. 19 BY MR. HERNSTADT: 20 Q. Do you recall sending the letter and the 21 attached -- annexed documents to Ms. Tang? 22 A. Yes, I do. 23 Q. Do you have any reason to believe that you 24 did not have these documents on hand and that you 25 attached them to the letter when you sent them? 74 FRITZ E. ATTAWAY 1 A. Oh, I would imagine that was the case. 2 MR. GOLD: Have you had a chance to read 3 number 9? 4 THE WITNESS: I'm just finishing. Okay. 5 BY MR. HERNSTADT: 6 Q. I take it you don't recall whether you or 7 someone at the MPAA wrote that document? 8 A. That's correct. 9 Q. Does that accurately set forth the MPAA's 10 position with respect to fair use? 11 A. Yes. 12 Q. In Section 1201? 13 A. Yes. 14 Q. Turning to section 9 at Bates stamped page 15 7213, you describe the Fair Use Doctrine in the 16 second paragraph as giving researchers, teachers, 17 students, laboratory users and others a limited 18 privileged copy from works and exercise other 19 exclusive rights without permission of the copyright 20 owner. 21 MR. GOLD: I have a problem with the 22 question because you're saying that -- 23 MR. HERNSTADT: I haven't asked a 24 question. 25 MR. GOLD: No, but in your -- was that an 75 FRITZ E. ATTAWAY 1 introduction to a question? 2 MR. HERNSTADT: Yes. 3 MR. GOLD: Okay. I think -- I believe 4 what you said is that he wrote this. 5 MR. HERNSTADT: Okay. I apologize. 6 MR. GOLD: And I don't think that conforms 7 with the testimony. 8 BY MR. HERNSTADT: 9 Q. You're correct. You're correct, Mr. Gold. 10 Section 9 at the second paragraph sets forth what I 11 just read to you. 12 A. That's correct. 13 Q. Okay. And does that accurately describe 14 your understanding and the MPAA's understanding of 15 the Fair Use Doctrine? 16 A. I believe it says the same thing that I 17 told you this morning in answer to another question. 18 Q. I think -- substantially I think you're 19 correct. That's why I thought you wrote this. Is 20 it possible for a consumer to make such fair use 21 from copyrighted materials on a DVD? 22 MR. GOLD: I'm going to -- now, you want 23 his legal opinion as to whether it's possible -- 24 MR. HERNSTADT: Possible -- 25 MR. GOLD: -- to make use? 76 FRITZ E. ATTAWAY 1 MR. HERNSTADT: -- is a factual use. Not 2 whether it's permissible, but whether it's possible. 3 Is it possible is a matter of fact. 4 MR. GOLD: I think it's clearly a legal 5 question that you're asking him, and he's not here 6 as a legal expert. 7 MR. HERNSTADT: I think that asking if it 8 is physically or technologically possible is a fact 9 question. Can it be done? 10 MR. GOLD: Can what be done? 11 MR. HERNSTADT: Can a consumer who has 12 purchased a DVD and plays it on a licensed DVD 13 player make fair use of copyrighted material? 14 MR. GOLD: I'm sorry. I apologize. I 15 didn't mean to interrupt you. Fair use is a legal 16 concept. If you want to know whether something is 17 fair use, you're asking him a legal question, and 18 he's not here as a legal expert. 19 MR. HERNSTADT: I understand it. 20 MR. GOLD: I just don't think it's proper. 21 I really don't. 22 MR. HERNSTADT: He has stated that that 23 second paragraph sets forth the MPAA understanding 24 of the Fair Use Doctrine. That was his testimony 25 two seconds ago -- two minutes ago. 77 FRITZ E. ATTAWAY 1 MR. GOLD: And then he told you for the 2 second or third time yes. 3 MR. HERNSTADT: And my question is -- 4 You're right. And that describes accessing the -- 5 it says that the doctrine gives researchers, 6 teachers, students, laboratory users and others a 7 limited privilege to copy from works. 8 BY MR. HERNSTADT: 9 Q. I'll rephrase my question. Is it 10 technologically possible, technologically or 11 physically possible for a consumer to copy from 12 copyrighted works on a DVD? 13 A. No. 14 MR. GOLD: Can you read that question and 15 answer back? 16 THE REPORTER: "Question: Is it 17 technologically possible, technologically or 18 physically possible for a consumer to copy from a 19 copyrighted works on DVD?" 20 "Answer: No" 21 THE WITNESS: Having heard the question, I 22 should qualify that. Under the terms of the CSS 23 license. I mean, it is technically possible to 24 circumvent CSS, and through that make a copy, but 25 under the terms of the CSS license, it's not 78 FRITZ E. ATTAWAY 1 possible. That's the whole point. 2 BY MR. HERNSTADT: 3 Q. Is the CSS license between consumers and 4 the DVD CCA or whoever it is that grants the 5 license? 6 A. No. 7 Q. Is it your understanding though that 8 consumers are somehow bound by that license? 9 MR. GOLD: Now wait a minute. I think 10 you're at it again. 11 MR. HERNSTADT: You know what? I'm going 12 to strike that. 13 MR. GOLD: Okay, sir. 14 MR. HERNSTADT: That's not an agreement 15 with you, but it's just -- I'll strike it. 16 MR. GOLD: All I said was okay, sir. 17 BY MR. HERNSTADT: 18 Q. Has the MPAA received any requests to 19 circumvent CSS? 20 A. Not that I know of. 21 Q. Is there a process or procedure that has 22 been established to deal with requests to circumvent 23 the CSS? 24 A. Not that I know of. 25 Q. Do you know Greg Goeckner? 79 FRITZ E. ATTAWAY 1 A. Yes. 2 Q. And he's at MPAA? 3 A. Yes. 4 Q. What's his position? 5 A. He's in the office of general counsel in 6 Los Angeles. I don't recall his title, but he's an 7 attorney in the general counsel's office. 8 Q. And is he an officer of the MPAA? 9 A. I believe so, yes. 10 Q. I'll represent to you that he's on the web 11 site as an officer. If Mr. Goeckner told the 12 audience at an internet event conducted at Yale 13 University that in order to use material, 14 copyrighted material on a DVD, a person would have 15 to get a license from the copyright holder, is that 16 a fair statement of the MPAA policy? 17 MR. GOLD: I think that what you mean to 18 ask is does he know whether Mr. Goeckner made such 19 and such a statement. 20 MR. HERNSTADT: Actually, I don't mean to 21 say that because we've sort of gone around that from 22 another witness. We have an affidavit from Robin 23 Gross, who was present there, and we'll have an 24 opportunity to ask Mr. Goeckner if he actually made 25 that statement -- excuse me. Declaration, not 80 FRITZ E. ATTAWAY 1 affidavit. At paragraph 6, it's an exhibit, sets 2 forth what she heard. I'm not asking Mr. Attaway if 3 he -- if he -- 4 MR. GOLD: You're asking him for his legal 5 opinion as to whether, if Goeckner said it, that was 6 right? 7 MR. HERNSTADT: No. I'm asking whether 8 that statement, whether it was said or not, is a 9 fair statement of the MPAA's policy. 10 MR. GOLD: Of the MPAA's public policy? 11 MR. HERNSTADT: Yes. 12 MR. GOLD: Can I hear the question again? 13 MR. HERNSTADT: It's a little convoluted I 14 think. 15 THE REPORTER: "Question: If Mr. Goeckner 16 told the audience at an internet event conducted at 17 Yale University that in order to use material, 18 copyrighted material on a DVD, a person would have 19 to get a license from the copyright holder, is that 20 a fair statement of the MPAA policy?" 21 MR. GOLD: You might be able to make that 22 into a proper question if you try again and perhaps 23 to your knowledge, is it the policy of blah blah 24 blah. You've got to ask. It's the game. You've 25 got to ask. 81 FRITZ E. ATTAWAY 1 BY MR. HERNSTADT: 2 Q. I'll adopt Mr. Gold's phraseology, if you 3 understand the question. 4 MR. GOLD: No, no, no. You've got to -- 5 you don't have to do anything. I mean to suggest to 6 you. 7 BY MR. HERNSTADT: 8 Q. Yeah, I understand. If Mr. Attaway 9 understands the question as asking -- well, strike 10 that. Is it the MPAA's policy that in order to use 11 copyrighted materials on a DVD, an individual 12 seeking to make -- to use those materials must get a 13 license to do so from the copyright holder? 14 A. If your use -- if the term "use" that you 15 use is meant to refer to exercise of any of the 16 exclusive rights of copyright owners, my answer 17 would be yes, that a license is required in order to 18 exercise any of the exclusive rights of the 19 copyright owners with respect to material on a DVD. 20 Q. Okay. Is it the MPAA policy then that an 21 individual can take material from a DVD and make 22 non-infringing use of that material without getting 23 a license from the copyright holder? 24 A. If you're referring to the making of 25 copies -- 82 FRITZ E. ATTAWAY 1 Q. Non-infringing use as you understand that. 2 MR. GOLD: Do you understand the question? 3 Are you clear you understand what he means when he 4 uses -- 5 MR. HERNSTADT: The question is in 6 response to Mr. Attaway's answer in which he very 7 carefully distinguished that it would be a person 8 making -- exercising one of the exclusive rights of 9 the copyright holder. 10 MR. GOLD: Which includes public 11 performance as well as the making of copies. 12 BY MR. HERNSTADT: 13 Q. Right, and my question was designed to 14 inquire about the nonexclusive rights of the 15 copyright holder, which I phrased as non-infringing. 16 If nonexclusive is clearer to you, then take that as 17 the question. 18 A. Well, again, only with respect to making 19 of copies. It would not be possible to make an 20 infringing or non-infringing use by means of copying 21 without circumventing CSS. 22 Q. Does that mean that the MPAA's policy is 23 that you need a license? 24 A. You would need a license to make copies, 25 yes. 83 FRITZ E. ATTAWAY 1 Q. What if you didn't want to make a copy? 2 What if you wanted to use some fraction, some -- 3 let's say 20-second portion of a movie on a DVD? 4 MR. GOLD: What's the question? 5 BY MR. HERNSTADT: 6 Q. Would you need a license to do that? 7 MR. GOLD: Now he's asking you, I gather, 8 whether MPAA has a public policy. 9 MR. HERNSTADT: If there's no policy -- 10 MR. GOLD: If they really haven't 11 announced a public policy in a public place in a 12 public way, then the answer would seem to me to be 13 no. If they have, the answer would be yes. 14 THE WITNESS: We have no policies with 15 respect to this type of situation. 16 MR. GOLD: That seemed to me to be a whole 17 answer to the question. 18 BY MR. HERNSTADT: 19 Q. Me too. Is there a policy of the MPAA or 20 its members -- and by the way, my prior question was 21 also with respect to the MPAA members as far as you 22 know. Is your answer the same? 23 A. Yes. 24 Q. Okay. Is there a policy on the part of 25 the MPAA or its members requiring permission -- 84 FRITZ E. ATTAWAY 1 strike that last word -- requiring that a person 2 seeking access to the materials on a DVD obtain 3 permission to circumvent CSS? 4 MR. GOLD: Now this assumes again that 5 he's -- strike that. He's asking you whether there 6 is a public position -- 7 MR. HERNSTADT: Yes. 8 MR. GOLD: -- the MPAA has taken on this 9 issue, this statement. 10 THE WITNESS: And the answer is no. 11 BY MR. HERNSTADT: 12 Q. Okay. There is no such policy, or there 13 is no policy at all? 14 A. There's no policy at all. 15 Q. The reason I asked that question the way I 16 asked it is this witness was produced, according to 17 your May 10th letter, to answer questions about 18 permission -- requests to circumvent. 19 MR. GOLD: Absolutely, as long as they 20 don't get into conversations he has with his client 21 as part of his job and deal only with statements 22 that are not made in terms of giving advice to his 23 own client. Absolutely. That's why I've allowed 24 him to answer those questions. 25 BY MR. HERNSTADT: 85 FRITZ E. ATTAWAY 1 Q. Okay. Are you the person that a request 2 for permission to circumvent would go to? 3 A. No. There is no person. 4 Q. Okay. If a consumer in Los Angeles wants 5 to -- an individual in Los Angeles wants to get 20 6 seconds of a portion of the material on The Matrix 7 that's not available on VHS that's unique to the DVD 8 and wrote the MPAA asking for permission to 9 circumvent CSS in order to get that 20 seconds of 10 material, would that request go to you? 11 A. No. 12 Q. Who would handle that request? 13 A. I don't know. I don't know that that 14 circumstance has ever arisen. 15 MR. HERNSTADT: Okay. Mr. Gold, I would 16 request, given the fact that this witness was 17 produced as someone with knowledge of requests to 18 circumvent CSS, that you ask the MPAA and your 19 clients if anyone has ever asked -- anyone has ever 20 made such a request, and if so, to whom that request 21 was made. 22 MR. GOLD: In the time honored position -- 23 MR. HERNSTADT: -- are taken under 24 advisement, okay. Then let me ask you to take one 25 other thing under advisement, which is if any one of 86 FRITZ E. ATTAWAY 1 the plaintiffs has a policy in place with respect to 2 requests to circumvent or requests for permission to 3 circumvent the CSS and get at some portion of the 4 material on a DVD. 5 MR. GOLD: Do you know if anyone who deals 6 with the internet has ever made that? 7 MR. HERNSTADT: I don't know. I'm -- 8 MR. GOLD: I thought that might be. 9 MR. HERNSTADT: No, I don't have any 10 knowledge of that. If I did, I would have pulled 11 out a piece of paper and handed it to him, but no. 12 I was basing this on the May 10th letter. 13 MR. GOLD: I was just wondering if you 14 knew of any takers that had the courtesy to ask. 15 MR. HERNSTADT: No, absolutely, and the 16 answer is I don't know. 17 THE WITNESS: Should I know what the May 18 10 letter is? 19 MR. HERNSTADT: That's up to Mr. Gold. 20 MR. GOLD: The May 10 letter. 21 MR. HERNSTADT: That's the letter that you 22 sent saying what Mr. Attaway was being produced -- 23 designated and produced to testify about, or about 24 which. 25 MR. GOLD: I don't know the date of it. I 87 FRITZ E. ATTAWAY 1 know about the designation letter. I have it here. 2 BY MR. HERNSTADT: 3 Q. In the course of your governmental 4 relation activities, have you ever talked to any 5 non-party, any third party, any non-MPAA person or 6 non-plaintiff person about the relationship between 7 1201(a)(1) and 1201(a)(2)? 8 A. Yes. 9 Q. And in the course of those discussions -- 10 strike that. What's been the nature of those 11 discussions? 12 MR. GOLD: What did he say? 13 BY MR. HERNSTADT: 14 Q. What did you say to them, what did they 15 say to you? 16 A. I certainly can't remember word for word 17 conversations. 18 Q. In sum and substance. 19 A. During the course of the debate over the 20 DMCA, there were frequent discussions over the 21 prohibition on -- the prohibition of the act of 22 gaining access and the prohibition on trafficking in 23 devices that circumvent for purposes of gaining 24 access. And the distinction between those two 25 situations is that we were both concerned about 88 FRITZ E. ATTAWAY 1 preventing people from acting to gain unauthorized 2 access and equally concerned if not more concerned 3 with people who trafficked in devices permitting 4 circumvention, because the act of circumvention at 5 least as far as we're concerned -- and this doesn't 6 apply to the same extent to the computer software 7 industry, which is also an ardent supporter of this 8 legislation, but as far as we're concerned, the acts 9 of circumvention that we would contemplate would 10 frequently take place in the home, where detection 11 is not possible. 12 So we were very much focused on preventing 13 the trafficking and circumvention devices that would 14 allow people to go into the privacy of their homes 15 and circumvent. That we felt was the only truly 16 effective way to protect the integrity of 17 technological devices to restrict access. 18 Q. Okay. As of today, it's not illegal for 19 an individual to use DeCSS to circumvent CSS and 20 gain access to the materials on a DVD? 21 MR. GOLD: Why is that not asking him for 22 a legal opinion? I mean, it sounds like you're 23 asking him for a legal opinion, and why is that 24 appropriate? 25 MR. HERNSTADT: If that concerns you, I'll 89 FRITZ E. ATTAWAY 1 strike the question and I'll ask it a different way. 2 MR. GOLD: Okay. 3 BY MR. HERNSTADT: 4 Q. As of today, Section 1201(a)(1), which is 5 the section preventing individuals from 6 circumventing, is not -- has not been enacted into 7 law, or it is enacted, but it is suspended until 8 October of this year; is that correct? 9 A. It goes into effect -- 10 Q. Thank you. 11 A. I believe the date is October 4th, 2000. 12 Q. Okay. So that prohibition has not yet 13 taken effect; is that correct? 14 A. That's correct. 15 Q. And there currently is a rule-making 16 procedure going on with respect to the exemptions 17 and the categories of exempted materials covered by 18 1201(a)(1); is that correct? 19 A. Yes. 20 Q. And you recently -- let me show you 21 something. 22 MR. HERNSTADT: Can we mark that? 23 (A document was marked as Defendants' 24 Exhibit Number 37.) 25 BY MR. HERNSTADT: 90 FRITZ E. ATTAWAY 1 Q. I've handed the witness Defendants' 2 Exhibit 37, which is a letter from Mr. Attaway to 3 Robert Kasunic, the senior attorney to the office of 4 the general counsel of the U.S. Copyright Office. 5 The letter is dated April 14, 2000, and my question 6 is did you -- and this is a letter requesting to 7 testify on behalf of the Motion Picture Association 8 at the May 19th hearings in Palo Alto. What 9 hearings were those? 10 A. Those hearings were conducted by the 11 copyright office in connection with its 12 determination as required by the DMCA as to whether 13 the exercise -- or the implementation of 1201(a)(1) 14 would substantially impair the exercise of fair use. 15 Q. Okay. And did you in fact go -- did you 16 in fact testify? 17 A. I did not. Also let me take this 18 opportunity to correct the record that the effective 19 date of 1201(a)(1) according to my letter here is 20 not October 4th, but October 28. 21 Q. Thank you. I wouldn't have held it 22 against you anyway. Did anyone from the MPAA 23 testify? 24 A. No one from MPAA testified. Dean Marks, 25 who is an attorney for Time Warner, testified on our 91 FRITZ E. ATTAWAY 1 behalf. 2 Q. And did he -- have you reviewed his 3 testimony? 4 A. I have. 5 Q. Is there a transcript of his testimony? 6 A. I saw a transcript of it, yes. 7 Q. Does it contain anything other than or in 8 addition to that which is set forth -- or that which 9 is attached to your letter which is the summary of 10 intended testimony of Fritz Attaway? 11 A. I honestly don't recall. I don't 12 remember. 13 MR. HERNSTADT: I would request the 14 production of the transcript of that testimony. 15 MR. GOLD: It's not public? Is it public? 16 MR. HERNSTADT: I believe so. I think 17 everything about that proceeding is public. The 18 transcript of Mr. Marks, Dean Marks at the Palo Alto 19 hearing -- that was a public hearing. 20 MR. GOLD: I'm just wondering why you 21 can't go and get it. 22 BY MR. HERNSTADT: 23 Q. Do you have it? 24 A. I don't know if I have a copy or not. I 25 may have just read it off the Copyright Office web 92 FRITZ E. ATTAWAY 1 site. 2 MR. GOLD: I don't have a problem with 3 going and fetching this for you, but generally 4 speaking -- 5 MR. HERNSTADT: Okay. 6 MR. GOLD: -- one needs to fetch these 7 available things himself. 8 MR. HERNSTADT: Sure. 9 MR. GOLD: But I'll do this one just as a 10 matter of good will. 11 BY MR. HERNSTADT: 12 Q. I appreciate that, but I'll tell you that 13 if Mr. Attaway doesn't have a copy, then I'll find 14 it myself. If he has a copy, then it hopefully 15 would be very simple just to send that on to us. 16 A. Okay. 17 Q. Thank you. During the course of 18 discussions with third parties as we've used that 19 term before regarding the relationship between 20 1201(a)(1) and 1201(a)(2), did you ever discuss how 21 a person could exercise fair use rights under 22 1201(a)(1) without getting ahold of some kind of 23 device or utility that would allow them to 24 circumvent in the case of DVD CSS without violating 25 1201(a)(2)? 93 FRITZ E. ATTAWAY 1 A. Yes. 2 Q. What was the sum and substance of those 3 discussions? 4 A. That someone could develop some kind of 5 technique or device that is not marketed or 6 trafficked in, but only used by that person to 7 circumvent, and conceivably that could happen. 8 Q. Is it the MPAA's position that there are 9 no exemptions or exceptions to the non-proliferation 10 provisions of 1201(a)(2)? 11 A. Yes. 12 Q. I'd like to show you -- I think I've 13 already given you this. This is what we've marked 14 as Defendants' Exhibit 36. That's the 2000 MPAA 15 business plan. 16 A. Yes, I have it. 17 Q. This is Asia Pacific on page 1, Hong Kong 18 on page 2, Korea on page 3. Is this a portion of 19 the business plan that you had anything to do with 20 it? 21 A. No. 22 Q. Have you reviewed this ever? 23 A. No. 24 Q. It says on each page of this three-page 25 document, or excerpt of the 2000 MPAA business plan, 94 FRITZ E. ATTAWAY 1 it refers to anti-piracy. Is Ken Jacobson the 2 appropriate person to speak to about this? 3 A. He is probably -- if he is not 4 knowledgeable about the material in this part of the 5 business plan, he certainly should know who is. 6 MR. HERNSTADT: Okay. Mr. Gold, I'd note 7 for the record that this was produced to us after we 8 didn't complete, but after the second day of 9 Mr. Jacobson, so we did not have it on hand when 10 we -- when we deposed him. And additionally, I 11 would just mention that we have asked -- during the 12 course of Mr. Jacobson's deposition, we asked for 13 the production of materials, some of which I asked 14 for here as well, regarding anti-piracy efforts and 15 losses and documents like that, which have not been 16 produced, but we also haven't gotten any response to 17 those requests for production. I think that you and 18 I can have a conversation at another time about 19 whether we need Mr. Jacobson again for some period 20 of time or whether we can come up with some other 21 way of doing it, but -- 22 MR. GOLD: You're referring now to the 23 non-redacted portions of this? 24 MR. HERNSTADT: Right. 25 MR. GOLD: Yeah, we should have that 95 FRITZ E. ATTAWAY 1 discussion and see what happens with it, yeah. As a 2 matter of fact, I don't know how fast you need to 3 run out. There might be some discussion about that. 4 MR. HERNSTADT: Do you want to do it on 5 the record? 6 MR. GOLD: No. 7 (Discussion off the record) 8 MR. HERNSTADT: Why don't I mark my 9 remaining documents, which we should get through 10 faster than the prior ones I hope, and there's seven 11 of them. 12 (Documents were marked as Defendants' 13 Exhibits Numbers 38 through 43.) 14 BY MR. HERNSTADT: 15 Q. Before we start looking at Exhibit 38, 16 just for the record, my failure to renew the request 17 on the redactions is simply because I think the one 18 request is sufficient for all the documents that we 19 marked redacted. Do you recognize Defendants' 20 Exhibit 38? 21 A. Yes. 22 MR. GOLD: Which one is that? 23 MR. HERNSTADT: The top one. Leon, do you 24 need a minute to take a look at it? 25 MR. GOLD: No. 96 FRITZ E. ATTAWAY 1 BY MR. HERNSTADT: 2 Q. And can you tell me what that is? 3 A. This is a submission by a number of 4 computer consumer electronics and content groups in 5 the Copyright Office's 1201(a)(1) proceeding. 6 Q. Okay. And did you have anything to do 7 with the preparation of this document? 8 A. I reviewed -- 9 Q. By the way, by this document, I mean the 10 two-page letter that is attached. 11 A. Yes. 12 Q. Thank you. 13 A. I reviewed an initial draft, yes. 14 Q. Did you contribute to it in any way? 15 A. I may have contributed some minor edits, 16 yes. 17 Q. I think Mr. Valenti said yesterday that 18 this is MPAA's position -- well, let me ask you 19 that. Does this reflect the MPAA's position -- 20 A. Yes. 21 Q. -- about the matters to which it refers? 22 Did you talk to John Hoy about -- strike that. Do 23 you know who John Hoy is? 24 A. Yes, I do. 25 Q. And do you speak with Mr. Hoy? 97 FRITZ E. ATTAWAY 1 A. Not frequently. I see him at CPTWG 2 meetings. 3 Q. Is there a web site about the CPTWG? 4 A. Yes. 5 Q. And does the web site have the attendance 6 lists of the people who go to the meetings? 7 A. It may. I don't know, but it may. 8 Q. Do you know the web site address? 9 A. I'm sorry, I don't. 10 Q. I'll try and find it myself. I would 11 request that if it's something that you could find 12 easily, that it be provided to me. I should be able 13 to find it. 14 MR. GOLD: I'm sorry. Did I miss 15 something? 16 MR. HERNSTADT: I made a request. I'm 17 going to try to find it, but if it's something that 18 you guys have on hand -- 19 MR. GOLD: Give us a buzz if you can't. 20 BY MR. HERNSTADT: 21 Q. Okay. Would the MPAA members, to your 22 knowledge, have released movies on DVD without the 23 presence of CSS or some type of encryption scheme to 24 protect the movies on the disk? 25 A. It is my belief that they would not have, 98 FRITZ E. ATTAWAY 1 yes. 2 Q. Did any one of the MPAA members ever tell 3 you that they wouldn't release movies without 4 encryption -- 5 A. No. 6 Q. -- on DVD? 7 A. No. 8 Q. Why is that your belief? 9 A. Because the release of high-valued content 10 as motion pictures in a digital format, which would 11 allow the unlimited duplication both from originals 12 and copies of copies of copies as well as, at least 13 in the future, internet retransmission and 14 distribution, would be unthinkable. 15 Q. Have you ever had a conversation to that 16 effect with any of the members of the MPAA? 17 MR. GOLD: In a non-privileged context, I 18 assume you mean? 19 BY MR. HERNSTADT: 20 Q. I mean in a non-privileged context, yes. 21 A. In a general sense, yes. I have never 22 discussed the particular release decisions with 23 respect to any particular motion picture. 24 Q. Okay. Can you be more specific in terms 25 of in a general sense? What did you say to a 99 FRITZ E. ATTAWAY 1 member -- employee of a member, what did they say to 2 you about this particular topic in a non-privileged 3 context? 4 A. Well, I think that -- I can't remember 5 exact conversations, but I think that the general 6 implicit and explicit understanding of everyone 7 involved in the release of DVD software as well as 8 hardware was that content would not be made 9 available unless it was protected. 10 Q. Okay. Is there any document that sets 11 forth that understanding? I guess if it's implicit, 12 it wouldn't be written down, but to the extent it 13 was explicit. 14 A. I think the letter that we're discussing 15 sets forth that. 16 Q. I mean back in 1996 or '97 when -- you 17 know, when DVDs and CSS were being developed. 18 A. I'm not aware of any particular document, 19 but that basic premise was certainly discussed when 20 we were discussing the possibility of legislation 21 that would address digital copying. That would have 22 been in 1994, 5, 6, that time period. 23 Q. To your knowledge, did any member of the 24 MPAA, any one of the plaintiffs publicly state that 25 they would not release movies on DVDs unless there 100 FRITZ E. ATTAWAY 1 was some type of encryption scheme to protect the 2 movies? 3 A. I'm not aware of such a statement. 4 Q. Do you know if any member of the MPAA made 5 a statement to that effect to the MPAA in a 6 non-privileged context? 7 A. Not that I'm aware of. 8 Q. You said earlier that one of the concerns 9 that is the basis of your belief that MPAA members 10 would not release a movie on a DVD format unless it 11 was protected by CSS or something like that is the 12 danger, and I believe -- I don't want to put words 13 into your mouth, but I believe you said something to 14 the effect of the danger in the future of 15 transmission of the movies on the internet? 16 A. That was a consideration, yes. 17 Q. Can you describe to me what that danger 18 is? 19 A. Well, I think it can be -- it is best 20 illustrated by what is happening to sound recordings 21 on the internet today. Our concern is that the same 22 thing could happen to motion picture