>4 Zencke cross, re-direct, re-cross, re-direct, re-cross, Toben direct, Toben cross 8/20/2009 5:10:00 PM
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`IN THE UNITED STATES DISTRICT COURT
`FOR THE EASTERN DISTRICT OF TEXAS
`MARSHALL DIVISION
`* Civil Docket No.
`VERSATA SOFTWARE, INC.
`* 2:07-CV-153
`* Marshall, Texas
`
`vs.
`
`*
`* August 20, 2009
`SAP AMERICA INC., ET AL
`* 8:00A.M.
`
`TRANSCRIPT OF TRIAL
`BEFORE THE HONORABLE CHAD EVERINGHAM
`UNITED STATES MAGISTRATE JUDGE
`ANDAJURY
`APPEARANCES:
`FOR THE PLAINTIFFS: MR. SAM BAXTER
`McKooi-Smith
`104 East Houston, Suite 300
`Marshall, TX 75670
`
`MR. THEODORE STEVENSON, Ill
`McKooi-Smith
`300 Crescent Court, Suite 1500
`Dallas, TX 75201
`MR. SCOTT COLE
`MR. STEVEN J. POLLINGER
`MS. LAURIE L. GALLUN
`MR. JOSH W. BUDWIN
`MR. KEVIN M. KNEUPPER
`McKooi-Smith
`300 West 6th Street, Suite 1700
`Austin, TX 787011
`
`19
`20 APPEARANCES CONTINUED ON NEXT PAGE:
`21
`
`MS. SUSAN SIMMONS, CSR
`COURT REPORTERS:
`MS. J~DITH WERLINGER, CSR
`Official Court Reporters
`100 East Houston, Suite 125
`Marshall, TX 75670
`903/935-3868
`(Proceedings recorded by mechanical stenography,
`
`22
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`23
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`24
`25
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`VERSATA v. SAP
`
`Unsigned
`A002093
`
`Page 1
`VERSATA EXHIBIT 2034
`SAP v. VERSATA
`CASE CBM2012-00001
`
`
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`IN THE UNITED STATES DISTRICT COURT
`FOR THE EASTERN DISTRICT OF TEXAS
`MARSHALL DIVISION
`* Civil Docket No.
`VERSATA SOFTWARE, INC.
`* 2:07-CV-153
`* Marshall, Texas
`
`vs.
`
`*
`* August 20, 2009
`SAP AMERICA INC., ET AL
`* 8:00A.M.
`
`TRANSCRIPT OF TRIAL
`BEFORE THE HONORABLE CHAD EVERINGHAM
`UNITED STATES MAGISTRATE JUDGE
`ANDAJURY
`APPEARANCES:
`FOR THE PLAINTIFFS: MR. SAM BAXTER
`McKooi-Smith
`104 East Houston, Suite 300
`Marshall, TX 75670
`
`MR. THEODORE STEVENSON, Ill
`McKooi-Smith
`300 Crescent Court, Suite 1500
`Dallas, TX 75201
`MR. SCOTT COLE
`MR. STEVEN J. POLLINGER
`MS. LAURIE L. GALLUN
`MR. JOSH W. BUDWIN
`MR. KEVIN M. KNEUPPER
`McKooi-Smith
`300 West 6th Street, Suite 1700
`Austin, TX 787011
`
`19
`20 APPEARANCES CONTINUED ON NEXT PAGE:
`21
`
`MS. SUSAN SIMMONS, CSR
`COURT REPORTERS:
`MS. J~DITH WERLINGER, CSR
`Official Court Reporters
`100 East Houston, Suite 125
`Marshall, TX 75670
`903/935-3868
`(Proceedings recorded by mechanical stenography,
`
`22
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`23
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`24
`25
`
`VERSATA v. SAP
`
`Unsigned
`A002093
`
`Page 1
`VERSATA EXHIBIT 2034
`SAP v. VERSATA
`CASE CBM2012-00001
`
`
`
`>4 Zencke cross. re-direct. re-cross, re-direct, re-cross, Tpben direct, Toben cross 8/20/2009 5:10:00 PM
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`A.
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`I mean, again, we're talking about an internal
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`discussion. Things like that have to be -- have to go
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`through a very rigid --what is that? Due diligence?
`
`Q. Yes, sir.
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`A. Which then would mean going into their
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`engineering structures and processes internally. We
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`have not made that.
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`MR. BAXTER: Let me look at PX1089, if we
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`could, please, Mr. Diaz.
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`Q.
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`(By Mr. Baxter) Now, this is an internal
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`e-mail, once again, from your subordinate, Mr. -- is it
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`12 Neumann, Neumann (pronouncing)?
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`A. Neumann (pronouncing).
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`Q. Neumann.
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`A. Boyd Neumann -- or no. Bernhard.
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`Q.
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`I'm sorry?
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`A. Bernhard Neumann, yep.
`
`Q. Yes, sir.
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`And this is in 1997.
`
`A. Uh-huh.
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`MR. BAXTER: And if we'll go down,
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`22 Mr. Diaz, down to where it says suggested response,
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`about the third paragraph down.
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`There you go.
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`Q.
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`(By Mr. Baxter) It says, We could enter into
`
`VERSATA v. SAP
`
`Unsigned
`A002163
`
`Page 71
`
`
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`14 Zencke cross, re-direct, re-cross, re-direct, re-cross, Toben direct, Toben cross 8/20/2009 5:10:00 PM
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`negotiations with Trilogy in order to purchase their
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`code for the SC Pricer--
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`A. Uh-huh.
`
`Q . -(Trilogy may continue to use it) and in
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`order to then enhance it where necessary.
`
`Do you see that?
`
`A. Yeah. That's the--
`
`Q. And so--
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`A. Yeah. That is the same idea which we have
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`seen in another mail that I may have got somewhere at
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`night.
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`Q. So, apparently, at least Mr. Neumann --
`
`A. Yes.
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`Q .
`
`-- thought that the code was good enough that
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`y'all just might buy the code and use it for your own;
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`is that right? That was his idea?
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`A. 1-- his idea was the SC Pricer, which, again,
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`is the laptop product, at that time, didn't exist.
`
`Q. Okay.
`
`A. Trilogy had a product--
`
`Q.
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`It doesn't-- excuse me. It doesn't say SD
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`Pricer; it says SC Pricer, which would be everything,
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`23 wouldn't it?
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`A. No. It is restricted to the configuration and
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`pricing engine, but- and this is exactly the thing
`
`VERSATA v. SAP
`
`Unsigned
`A002164
`
`Page 72
`
`
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`)4 Zencke cross, re-direct, re-cross, re-direct, re-cross, Toben direct, Toben cross 8/20/2009 5:10:00 PM
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`1 Mr. Neumann was responsible for.
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`MR. BAXTER: Le~ me go, if I can,
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`3 Mr. Diaz, to PX1142, another Gartner report. And if you
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`would, Mr. Diaz, go to Bates No. 3500 where it says 4.6,
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`the front office.
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`A. Uh-huh.
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`Q.
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`(By Mr. Baxter) And this says-- and this is,
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`once again, from the GartnerGroup in '98. One of the
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`9 more controversial efforts at SAP has undertaken with
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`its functional expansion is into the area of the front
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`office.
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`MR. BAXTER: And then go down where it
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`says at least the current release. You see that,
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`14 Mr. Diaz?
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`Q.
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`(By Mr. Baxter) At least with the current
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`release and for the next few years, we do not believe
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`that SAP will be able to mount a serious challenge to
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`the best-of-breed niche providers--
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`A. Uh-huh.
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`Q. --which is Siebel, Vantave, Clarify, and
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`Trilogy.
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`Do you see that?
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`A.
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`I see that
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`Q. Do you see Gartner called them the best of the
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`breed?
`
`VERSATA v. SAP
`
`Unsigned
`A002165
`
`Page 73
`
`
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`l4 Zencke cross, re-direct, re-cross, re-direct, re-cross. Toben direct, Toben cross 812012009 5:10:00 PM
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`MR. BAXTER: Now let's look at PX150, if
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`we could, Mr. Diaz.
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`Q.
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`(By Mr. Baxter} And this is an e-mail from
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`4 Mr. Neumann in '97.
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`Do you see that?
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`A. Yep.
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`Q. And if you go down, it says, We plan to have
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`an SAP pricing engine. We're using SAP master data,
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`just like Trilogy's SC Pricer, but as an SAP product.
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`Do you see that?
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`A. Yes.
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`Q. And is that true?
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`A.
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`I don't know whether, in 1997, the final
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`decision has been made, but later on, we made that,
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`indeed.
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`Q. Did you make it just like SC Pricer?
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`A. Okay. That's what it says, yes.
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`Q. Okay. And he was-- he was in charge of the
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`group, was he not?
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`A. No. He was in charge of the configuration
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`group, not of the Pricer group.
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`Q. Okay.
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`MR. BAXTER: Now, let me go to PX89.
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`Q.
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`(By Mr. Baxter) At some juncture, Doctor, SAP
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`decided that it really didn't like Trilogy very much and
`
`VERSATAv. SAP
`
`Unsigned
`A002178
`
`Page 86
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