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` UNITED STATES PATENT AND TRADEMARK OFFICE
` ___________________
`
` BEFORE THE PATENT TRIAL AND APPEAL BOARD
` __________________
`
` GOOGLE INC.,
` Petitioner
` V.
` SUMMIT 6 LLC,
` Patent Owner
` __________________
`
`Case IPR2015-00806 Case IPR2015-00807
`Patent No. 7,765,482 Patent No. 8,612,515
`
`********************************************************
` ORAL DEPOSITION OF
` SARAH PATE
` FEBRUARY 18, 2016
`*******************************************************
`
`512-474-4363 WRIGHT WATSON & ASSOCIATES (fax) 512-474-8802
`1250 S. Capital of Texas Highway, Building 3, Suite 400, Austin, Texas 78746
`
`Petitioner - Exhibit 1020
`Page 1 of 169
`
`
`
` UNITED STATES PATENT AND TRADEMARK OFFICE
` ___________________
`
` BEFORE THE PATENT TRIAL AND APPEAL BOARD
` __________________
`
` GOOGLE INC.,
` Petitioner
` V.
` SUMMIT 6 LLC,
` Patent Owner
` __________________
`
`Case IPR2015-00806 Case IPR2015-00807
`Patent No. 7,765,482 Patent No. 8,612,515
`
`********************************************************
` ORAL DEPOSITION OF
` SARAH PATE
` FEBRUARY 18, 2016
`*******************************************************
`
`512-474-4363 WRIGHT WATSON & ASSOCIATES (fax) 512-474-8802
`1250 S. Capital of Texas Highway, Building 3, Suite 400, Austin, Texas 78746
`
`Petitioner - Exhibit 1020
`Page 1 of 169
`
`
`
`Page 2
` ORAL DEPOSITION OF SARAH PATE, produced as a witness
`at the instance of the Petitioner, and duly sworn, was
`taken in the above-styled and numbered cause on the 18th
`day of February, 2016, from 9:07 a.m. to 1:59 p.m.,
`before Becky Landers, CSR in and for the States of Texas
`and California, reported by machine shorthand, at the
`law offices of Lee & Hayes, PLLC, 11501 Alterra Parkway,
`Suite 450, Austin, Texas 78758, pursuant to the Federal
`Rules of Civil Procedure and the provisions stated on
`the record or attached hereto.
`
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`512-474-4363 WRIGHT WATSON & ASSOCIATES (fax) 512-474-8802
`1250 S. Capital of Texas Highway, Building 3, Suite 400, Austin, Texas 78746
`
`Petitioner - Exhibit 1020
`Page 2 of 169
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`Page 3
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` A P P E A R A N C E S
`
`FOR THE PETITIONER, GOOGLE INC.:
` Mr. John C. Alemanni
` Kilpatrick, Townsend & Stockton, LLP
` 1001 West Fourth Street
` Winston-Salem, North Carolina 27101
` (336) 607-7311
` (336) 734-2621 - fax
` Jalemanni@kilpatricktownsend.com
`
`FOR THE PATENT OWNER, SUMMIT 6 LLC:
` Mr. Peter J. Ayers
` Mr. John Shumaker
` Lee & Hayes
` 11501 Alterra Parkway, Suite 450
` Austin, Texas 78758
` (512) 505-8162
` (509) 944-4693 - fax
` peter@leehayes.com
` jshumaker@leehayes.com
`
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`512-474-4363 WRIGHT WATSON & ASSOCIATES (fax) 512-474-8802
`1250 S. Capital of Texas Highway, Building 3, Suite 400, Austin, Texas 78746
`
`Petitioner - Exhibit 1020
`Page 3 of 169
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`Page 4
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` INDEX
` PAGE
`
`Appearances.................................... 3
`Stipulations................................... 2, 6
`Testimony of SARAH PATE
` Examination by Mr. Alemanni............... 6
` Examination by Mr. Ayers.................. 138
` Further Examination by Mr. Alemanni....... 141
`Signature and Changes.......................... 143
`Reporter's Certificate......................... 144
`
` EXHIBITS INTRODUCED (NOT ATTACHED)
`NO. DESCRIPTION PAGE
`2051 Declaration of Sarah Pate 14
`2034 Overview of Enterprise Solutions,
` Executive Summary, Draft 8/18/98 50
`2005 Letter dated September 15, 1998
` from Terrell W. Anderson to Howard
` Latham with attached project
` proposal, Creating a Plot Program
` to Integrate Prepare & Post into
` Moore Data's MLS/Xplorer 54
`2007 Press release re Prepare & Post 61
`2010 Rimfire Functional Specification,
` Version 1.0 Core Feature Set 72
`2006 Letter dated April 26, 1999, from
` Terrell Anderson to Jonathan Graff
` with attached Proposal Overview 77
`2012 pBay Marketing Plan 82
`
`512-474-4363 WRIGHT WATSON & ASSOCIATES (fax) 512-474-8802
`1250 S. Capital of Texas Highway, Building 3, Suite 400, Austin, Texas 78746
`
`Petitioner - Exhibit 1020
`Page 4 of 169
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`Page 5
`
`2011 Press Release re PictureWorks
` Technology's PictureBay Solves
` #1 Frustration of eBay Members,
` Adding Pictures to Auctions 90
`2018 Press Release re iPIX to Acquire
` PictureWorks Technology, Inc.,
` to Form End-to-End Internet
` Imaging Solutions Company 95
`2033 Visual Context Services Agreement
` between iPIX and eBay 98
`2044 eBay Picture Services Stats 105
`2045 Presentation by Jeff Jordan,
` Senior Vice President, eBay U.S. 111
`2014 Whitepaper written re the Rimfire
` platform 112
`2015 Image Servers, Early Adopter Case
` Studies, The Future Image Report,
` Market Research Study 113
`2021 Amendment No. 3 to the Visual
` Content Services Agreement between
` eBay and iPIX, effective as of
` June 27, 2003 121
`2019 Enhancing Classified Advertising
` with Visual Data, Rimfire Overview
` for Classified Ventures, Don
` Strickland, CEO, Sarah Pate, GM,
` Internet Pictures Corp. 126
`2020 Confidential Information Memorandum
` by Swiftsure Capital, LLC, re
` AdMission Corporation 129
`
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`512-474-4363 WRIGHT WATSON & ASSOCIATES (fax) 512-474-8802
`1250 S. Capital of Texas Highway, Building 3, Suite 400, Austin, Texas 78746
`
`Petitioner - Exhibit 1020
`Page 5 of 169
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`Page 6
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` P R O C E E D I N G S
` THE REPORTER: By the Federal Rules?
` MR. AYERS: Yes.
` MR. ALEMANNI: Yes.
` THE REPORTER: And how about signature?
` MR. AYERS: Yes, we would like to read
`and sign.
` SARAH PATE,
`having been first duly sworn, testified as follows:
` EXAMINATION
`BY MR. ALEMANNI:
` Q. Morning.
` A. Good morning.
` Q. And we just met. Again, my name is John
`Alemanni. I'm an attorney with Kilpatrick, Townsend,
`and I'm here on behalf of Google this morning.
` So do you know why we're here this
`morning?
` A. I -- it's my deposition in regards to Google
`filing interparty reviews against Summit 6.
` Q. That's -- that's right. And you prepared a
`declaration in support of Summit 6 in that proceeding;
`is that correct?
` A. Correct.
` Q. And you understand that there are actually two
`
`512-474-4363 WRIGHT WATSON & ASSOCIATES (fax) 512-474-8802
`1250 S. Capital of Texas Highway, Building 3, Suite 400, Austin, Texas 78746
`
`Petitioner - Exhibit 1020
`Page 6 of 169
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`Page 7
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`proceedings going on, two different proceedings?
` A. Two different interparty reviews?
` Q. Uh-huh (positive).
` A. Yes.
` Q. And that each of those is for a different
`patent?
` A. Correct.
` Q. And do you also understand that you submitted
`the same declaration in both of those proceedings?
` A. I do.
` Q. And so your testimony today applies equally to
`both of those proceedings; is that correct?
` A. Correct.
` Q. And have you been deposed before?
` A. Yes.
` Q. How many times?
` A. Three.
` Q. Three.
` A. Well, three separate depositions. Multiple
`days.
` Q. Okay. And in relation -- in relation to what
`were you deposed?
` A. I was first deposed in my capacity as
`president of Household Bank in a wrongful discharge
`suit. And then I was -- second in regards to a lawsuit
`
`512-474-4363 WRIGHT WATSON & ASSOCIATES (fax) 512-474-8802
`1250 S. Capital of Texas Highway, Building 3, Suite 400, Austin, Texas 78746
`
`Petitioner - Exhibit 1020
`Page 7 of 169
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`Page 8
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`that Summit 6 had filed in 2012 I was deposed. And then
`I was deposed in a second lawsuit in 2015.
` Q. Okay. And the testimony in 2012 in relation
`to the Summit 6 lawsuit, who was the other party or who
`were the other parties in that suit?
` A. Research in Motion, Facebook, Samsung. I'm
`not sure if -- I'm not sure if Motor -- if Multiply,
`Inc. And Photobucket were party to the suit at that
`time.
` Q. And then in 2015 the suit by Summit 6, who
`were the other parties in that suit?
` A. Apple, Twitter, HTC, Motorola, LG Electronics.
` Q. And the suits in 2012 and 2015, were they
`related to patents?
` A. Correct.
` Q. Were they the same patents at issue, that are
`at issue in these interparty reviews?
` A. No. I don't believe the 515 patent had been
`issued yet in the first set.
` Q. Okay. Let me back up a step then.
` So in 2012, which patents were at issue in
`the 2012 suit?
` A. I believe '482 and potentially '557, the
`patents ending in those numbers.
` Q. And in the 2015 suit?
`
`512-474-4363 WRIGHT WATSON & ASSOCIATES (fax) 512-474-8802
`1250 S. Capital of Texas Highway, Building 3, Suite 400, Austin, Texas 78746
`
`Petitioner - Exhibit 1020
`Page 8 of 169
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`Page 9
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` A. I believe '482 and '515.
` Q. So you understand you're under oath?
` A. I do.
` Q. And that your testimony here is as if you were
`testifying in a court of law?
` A. I do.
` Q. Is there any reason why you can't give your
`best testimony today?
` A. No.
` Q. I'll ask you a series of questions. In fact,
`I've already asked you some questions, but I'll ask you
`a series of questions. If you don't understand those
`questions, I need you to let me know that you don't
`understand it. You'll need to reply verbally so that
`the court reporter can capture your responses.
` A. Certainly.
` Q. And if any question is not clear, if you'll
`let me know, then I'll restate the question. If you
`don't ask me to restate the question or to repeat the
`question, then I'll assume you understand. Is that
`fair?
` A. That is fair.
` Q. Okay. What did you do to prepare for your
`deposition today?
` A. I reviewed my declaration, and I reviewed all
`
`512-474-4363 WRIGHT WATSON & ASSOCIATES (fax) 512-474-8802
`1250 S. Capital of Texas Highway, Building 3, Suite 400, Austin, Texas 78746
`
`Petitioner - Exhibit 1020
`Page 9 of 169
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`
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`Page 10
`of the exhibits attached to my declaration, and I looked
`at a few other documents.
` Q. What were the other documents?
` A. There were two other amendments to the eBay
`verbal services agreement. The original agreement and
`Amendment No. 3 were in my exhibits, so I looked at
`Amendments 1 and 2. And then I looked at a -- I looked
`if I'd ever had a meeting with Google in any capacity.
`And I had a meeting with them in April of 2003. And I
`looked at that document.
` Q. Why did you look at the three additional
`documents?
` A. Well, I thought that there would be -- there
`potentially would be relevant information between the
`first agreement with eBay and the third. So I thought
`just for completion I should know what the amendments
`entailed. And then I just wanted to be familiar with
`any meetings I'd ever had with Google.
` Q. Did you know about those documents before you
`gave your testimony in December of 2015?
` A. My testimony in December of 2015?
` Q. Yes. Let me back up a step.
` So the declaration that you filed that was
`filed in this proceeding, it's your testimony that then
`that declaration -- do you recall when that declaration
`
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`512-474-4363 WRIGHT WATSON & ASSOCIATES (fax) 512-474-8802
`1250 S. Capital of Texas Highway, Building 3, Suite 400, Austin, Texas 78746
`
`Petitioner - Exhibit 1020
`Page 10 of 169
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`Page 11
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`was signed?
` A. I don't.
` Q. Okay.
` A. Was it December 2015?
` Q. Do you recall if it was late 2015?
` A. I believe it was.
` Q. Okay. So is there any reason why you looked
`at these three documents now rather than including them
`as part of that declaration at the end of 2015?
` A. Well, I don't know if they have any relevance
`for the declaration. I just -- when I read the
`exhibits, I just felt for completion I should know if
`there were any modifications to those agreements. So
`the other two amendments -- there was not -- there was
`not new information that I remember, but I thought for
`completion I should know them.
` And then the other one was just curiosity
`on my part that I -- I recalled meeting with Google at
`some point, and I thought I should know what date I met
`them -- met with them.
` Q. How long did you take preparing for your
`deposition?
` A. I reviewed everything multiple times, so
`probably two days. Maybe six to eight hours.
` Q. Six to eight hours total?
`
`512-474-4363 WRIGHT WATSON & ASSOCIATES (fax) 512-474-8802
`1250 S. Capital of Texas Highway, Building 3, Suite 400, Austin, Texas 78746
`
`Petitioner - Exhibit 1020
`Page 11 of 169
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`Page 12
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` A. Right, over those days, probably.
` Q. Okay. Did you meet with anyone?
` A. I met with my attorneys.
` Q. Did you meet with anyone other than your
`attorneys?
` A. I talked to Scott Lewis briefly.
` Q. And what did you talk to Scott Lewis about?
` A. We were just talking mostly about general
`logistics. We were traveling together.
` Q. Where were you traveling from?
` A. He was -- I was traveling from California. He
`was traveling from Utah. And we met here in Austin.
` Q. And did you discuss your deposition with
`anyone else?
` A. No.
` Q. Okay. And have you looked at the '482 patent,
`'515 patent recently?
` A. No.
` Q. When is the last time you looked at the '482
`and '515 patents?
` A. Probably when -- during the Markman hearing
`for our lawsuit, our last -- the lawsuit with Apple and
`Twitter.
` Q. Do you recall when that was?
` A. I don't. The Markman hearing? It would have
`
`512-474-4363 WRIGHT WATSON & ASSOCIATES (fax) 512-474-8802
`1250 S. Capital of Texas Highway, Building 3, Suite 400, Austin, Texas 78746
`
`Petitioner - Exhibit 1020
`Page 12 of 169
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`Page 13
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`been 2015 or probably late 2014.
` Q. So to the best of your recollection, the last
`time you looked at the patents was sometime either in
`2014 or 2015?
` A. Correct.
` Q. Are you aware that patents have claims?
` A. Yes, I am.
` Q. Can you tell me what a claim is?
` MR. AYERS: Objection, form.
` A. Sorry. From -- I could tell you from just a
`layman's understanding. I understand that a patent is
`written with a series of either steps or things that are
`claimed that the patent is invented and that those
`claims then compose in total the patent.
` Q. (By Mr. Alemanni) They -- what do you mean by
`"they compose in total the patent"?
` A. Well, there's the invention. Then the
`invention is composed of, as I understand it,
`independent claims which are the major statements
`relative to describing the invention and then dependent
`claims under those independent claims that describe in
`more detail what that invention is.
` MR. ALEMANNI: So these are premarked, the
`exhibits are. They're part of the proceedings, so you
`won't have to mark them separately. We'll just go with
`
`512-474-4363 WRIGHT WATSON & ASSOCIATES (fax) 512-474-8802
`1250 S. Capital of Texas Highway, Building 3, Suite 400, Austin, Texas 78746
`
`Petitioner - Exhibit 1020
`Page 13 of 169
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`Page 14
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`the markings.
` Q. (By Mr. Alemanni) So I'm going to introduce
`Exhibit 2000 -- no, I'm not.
` A. Dealing from the bottom of the deck?
` Q. I was going to move through the deck, but I
`don't think I have a copy of it.
` MR. AYERS: What do you need?
` MR. ALEMANNI: I need a copy of the dec,
`yeah. Sorry.
` MR. AYERS: We need a copy of the dec.
` MR. SHUMAKER: Okay.
` MR. ALEMANNI: We can go off the record
`for just a minute. Sorry.
` (Recess taken, 9:16 a.m. to 9:21 a.m.)
` Q. (By Mr. Alemanni) So we'll introduce --
`actually, this is Exhibit 2051. I may have it in my
`list. Take a look at that, please.
` (Exhibit No. 2051 introduced.)
` Q. (By Mr. Alemanni) Do you recognize the
`document?
` A. I do.
` Q. And what is this?
` A. This is my declaration.
` Q. And who prepared this declaration?
` A. Lee & Hayes.
`
`512-474-4363 WRIGHT WATSON & ASSOCIATES (fax) 512-474-8802
`1250 S. Capital of Texas Highway, Building 3, Suite 400, Austin, Texas 78746
`
`Petitioner - Exhibit 1020
`Page 14 of 169
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`Page 15
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` Q. And what was your role in preparing the
`declaration?
` A. I was interviewed. I reviewed it for
`accuracy. I provided materials that went into it.
` Q. Did you see it before you signed it?
` A. Yes.
` Q. Okay. Can you turn to the last page, Page 22
`of Exhibit 2051, and look at the headings on that page.
`And then if you'll turn back to any of the previous
`pages, are those pages the same at the top?
` A. No.
` Q. And what's different about Page 22 from the
`remainder of the declaration?
` A. Page 22 has the patent numbers on it and the
`IPR numbers on it.
` Q. Do you have any idea why that Page 22 is
`different than the remainder of the pages?
` A. I do not.
` Q. And if you'll turn back to Page 22, when did
`you sign this declaration?
` A. December 9th of 2015.
` Q. Thank you. We're going to refer to that
`exhibit throughout your deposition. That's not
`surprising.
` Paragraph 1 you state that you attended
`
`512-474-4363 WRIGHT WATSON & ASSOCIATES (fax) 512-474-8802
`1250 S. Capital of Texas Highway, Building 3, Suite 400, Austin, Texas 78746
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`Petitioner - Exhibit 1020
`Page 15 of 169
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`Page 16
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`the University of Washington and received a degree in
`1982.
` Did you attend any college or any
`education after 1982?
` A. Yes.
` Q. What sort of education did you attend?
` A. I have a -- I have a great deal of continuing
`education over the course of years, courses that I've
`taken in negotiation or business development or some
`other aspect of business. And then I have a master's
`degree.
` Q. And what is your master's degree in?
` A. It's in health education with a concentration
`in nutrition.
` Q. Have you taken any legal classes?
` A. I took business law classes in college.
` Q. So you took a business law class sometime
`prior to 1982; is that correct?
` A. Correct.
` Q. And your testimony in the declaration, is that
`testimony on behalf of Summit 6?
` A. Yes.
` Q. Are you testifying on behalf of yourself,
`personally, or on behalf of Summit 6?
` MR. AYERS: Objection, form.
`
`512-474-4363 WRIGHT WATSON & ASSOCIATES (fax) 512-474-8802
`1250 S. Capital of Texas Highway, Building 3, Suite 400, Austin, Texas 78746
`
`Petitioner - Exhibit 1020
`Page 16 of 169
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`Page 17
` A. I'm -- I'm not sure. In the other depositions
`I've done we've done things called 30(b)(6)s, and
`they're for the company's representative, and they have
`different obligations than individual. And I'm not sure
`in this capacity if -- how that differs.
` Q. (By Mr. Alemanni) Are you testifying on
`behalf of anyone other than Summit 6 or yourself?
` A. No.
` Q. In Paragraph 2 of your declaration, about
`halfway down it says, "In 1990 I became a regional
`president of Household Bank." Then it continues.
` What were your responsibilities as
`regional president of Household Bank?
` A. I had the profit and loss responsibility for
`divisional bank, customer service, market growth. I
`supervised the mortgage lending, the employees. I had
`an IT group. We had a series of branch offices.
` Q. And then in 1991 your testimony continues, "I
`was promoted to division general manager and maintained
`that position until 1994."
` Do you see that?
` A. I do.
` Q. Did your role change when you became the
`division general manager?
` A. Yes.
`
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`512-474-4363 WRIGHT WATSON & ASSOCIATES (fax) 512-474-8802
`1250 S. Capital of Texas Highway, Building 3, Suite 400, Austin, Texas 78746
`
`Petitioner - Exhibit 1020
`Page 17 of 169
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` Q. And what was your role as division general
`manager?
` A. Well, the division general manager was for the
`finance division of the company where my previous job
`was in the banking division of the company. And so
`they -- the consumer finance division was mostly
`lending, whereas the banking is deposits and lending;
`but I still had full P&L responsibility.
` Q. And in the sentence before you said that while
`you were regional president of Household Bank, quote,
`"In that capacity I was responsible for about 370
`employees and 800 million in assets."
` When you were promoted to division general
`manager how many employees were you responsible for?
` A. I don't recall. It's the biggest division
`within Household, so -- but I don't remember. There was
`probably -- I can't say without speculating.
` Q. Is it fair to say it was more than 370?
` A. It might have been similar, but it could have
`been.
` Q. And when you were division general manager of
`Household Bank were you responsible for more than
`800 million in assets?
` A. Well, assets in banks are footings, they're
`lending and deposits; whereas in just the division, in
`
`512-474-4363 WRIGHT WATSON & ASSOCIATES (fax) 512-474-8802
`1250 S. Capital of Texas Highway, Building 3, Suite 400, Austin, Texas 78746
`
`Petitioner - Exhibit 1020
`Page 18 of 169
`
`
`
`Page 19
`the Household side it would just be whatever the lending
`was. But I don't remember -- I don't recall the size.
` Q. Okay. Okay. And then Paragraph 3.
` A. Yes.
` Q. You left in 1994, and you performed volunteer
`consulting work for financial institutions.
` Do you recall who you performed volunteer
`consulting work for?
` A. I -- well -- no. I was -- I worked -- I did a
`project for Charles Schwab, but that was paid work. And
`then from contacts there I helped several small
`companies just write business plans and do some
`financial planning working in some technology
`incubators.
` Q. Okay. So during that period of time that
`you're referring to in Paragraph 3 you performed both
`volunteer consulting and paid consulting; is that
`correct?
` A. Yes.
` Q. And then moving on to Paragraph 4, you discuss
`Lisa Wood, and you say that, "She asked me to come on as
`a consultant for a large contract PictureWorks
`received."
` Do you see that sentence?
` A. I do.
`
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`512-474-4363 WRIGHT WATSON & ASSOCIATES (fax) 512-474-8802
`1250 S. Capital of Texas Highway, Building 3, Suite 400, Austin, Texas 78746
`
`Petitioner - Exhibit 1020
`Page 19 of 169
`
`
`
`Page 20
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` Q. Do you recall who that contract was for?
` A. I believe it was for localizing the
`PictureWorks software to ship with the Christmas
`shipment of Kodak's DC40 camera, digital camera.
` Q. And I'm sorry. You said to ship PictureWorks
`with the DC40 camera? Did I understand that correctly?
` A. Right. PictureWorks was the company at that
`time.
` Q. And when you say ship PictureWorks with the
`camera --
` A. No, PictureWorks software.
` Q. I'm sorry. So when you said "ship
`PictureWorks software with the camera," what does that
`mean?
` A. Well, at that point -- this was in early '95,
`I believe, they -- actually, would have probably been --
`I don't know if -- it might have been December of '94,
`but they were shipping software that would be bundled
`with digital capture devices. I don't recall the exact
`name of the product.
` It was shipped on a CD-ROM or with -- in
`the box. And it was mostly focused on being able to
`assist getting the images from the capture device into a
`computer.
` Q. And so the PictureWorks software that shipped
`
`512-474-4363 WRIGHT WATSON & ASSOCIATES (fax) 512-474-8802
`1250 S. Capital of Texas Highway, Building 3, Suite 400, Austin, Texas 78746
`
`Petitioner - Exhibit 1020
`Page 20 of 169
`
`
`
`Page 21
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`with the cameras that you described, was that the only
`product that PictureWorks had at that time?
` A. In '94?
` Q. Yes.
` A. They probably had -- they probably had two or
`three other desktop products.
` Q. Do you recall what those desktop products
`were?
` A. I don't.
` Q. Where was -- well, excuse me.
` Where did you work for PictureWorks?
` A. In Danville, California.
` Q. How did you meet Lisa Wood?
` A. I met her in Lamaze class. We were both
`pregnant.
` Q. The next-to-last sentence on Page -- what
`page -- well, it's Paragraph 4, the next-to-last
`sentence in that paragraph. "I later approved funding
`for the exploration of new projects as a finance
`manager."
` Do you see that sentence?
` A. I do.
` Q. When did you become a finance manager at
`PictureWorks?
` A. After I finished the project they asked -- I
`
`512-474-4363 WRIGHT WATSON & ASSOCIATES (fax) 512-474-8802
`1250 S. Capital of Texas Highway, Building 3, Suite 400, Austin, Texas 78746
`
`Petitioner - Exhibit 1020
`Page 21 of 169
`
`
`
`Page 22
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`was working on my first project. They asked me to come
`on full time, and I said no. And then continued to work
`with them as a project manager and then was hired
`August 17th, 1995.
` And then in that capacity I didn't really
`have a title, but I did all of the project management
`and oversaw quality assurance and setup. I did their
`accounting -- the pre-accounting, the finance work for
`them, their human resources, mostly their operations
`work.
` Q. And so when you use the term "finance manager"
`what does that entail? What roles does that entail?
` A. So I'm not sure we actually had official
`titles at that time. I was the ninth employee, and we
`just did what needed to be done. And I had the
`strongest business background. And then I eventually --
`but I looked at all of the project management and the
`financial project management, and then with PictureWorks
`I eventually became the vice president of operations and
`finance.
` Q. And when you became the vice president of
`operations and finance, did your role change?
` A. Not really. We had more people, so I had
`employees that were doing some of the things that I was
`doing before, so I had a larger supervisory role.
`
`512-474-4363 WRIGHT WATSON & ASSOCIATES (fax) 512-474-8802
`1250 S. Capital of Texas Highway, Building 3, Suite 400, Austin, Texas 78746
`
`Petitioner - Exhibit 1020
`Page 22 of 169
`
`
`
`Page 23
` Q. How many employees did you have at that point?
` A. At what point?
` Q. When you took on the title of vice president
`of operations and finance how many employees did
`PictureWorks have?
` A. I don't know exactly. I know that one of the
`first jobs I had was to dramatically grow the company.
`So I was the ninth employee, and I hired 45 people
`probably within a year.
` Q. So when did you become the vice president of
`operations and finance?
` A. I'm not sure. Probably late '95 or '96.
` Q. And I'm paraphrasing. When you said that you
`were charged with growing the firm and then you hired 45
`employees, is that beginning as of August 17th, 1995?
` A. Yes. That was one of my first tasks.
` Q. Okay. So between August 17th, 1995 and some
`point, you were tasked with hiring 45 employees; is that
`correct?
` A. Can you please restate that?
` Q. Between August 17th, 1995 and some point in
`the future after August 17th, 1995, is it your testimony
`that you were tasked with hiring an additional 45
`employees?
` A. Correct.
`
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`512-474-4363 WRIGHT WATSON & ASSOCIATES (fax) 512-474-8802
`1250 S. Capital of Texas Highway, Building 3, Suite 400, Austin, Texas 78746
`
`Petitioner - Exhibit 1020
`Page 23 of 169
`
`
`
`Page 24
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` Q. And what was the target date for completing
`that?
` A. It was just as soon as possible. They were
`mostly engineering.
` Q. And did you say you'd done that within a year?
` A. Uh-huh (positive), definitely.
` Q. So sometime by 1996 you had hired 45 people?
` A. Correct.
` Q. So at that point did PictureWorks have
`approximately 55 -- 54 employees?
` A. Approximately.
` Q. And then moving to Paragraph 5 further down on
`that page.
` A. Yes.
` Q. "In 2000" -- so do you -- when you say, "In
`2000," paragraph 5, do you recall -- are you referring
`to a particular point in time in 2000?
` A. April 1st.
` Q. So this is approximately four and a half years
`or so after you started?
` A. Yes.
` Q. Okay. The last part of that sentence says
`that you continued to work for iPIX as the executive
`vice president and general manager for its advertising
`business unit; is that correct?
`
`512-474-4363 WRIGHT WATSON & ASSOCIATES (fax) 512-474-8802
`1250 S. Capital of Texas Highway, Building 3, Suite 400, Austin, Texas 78746
`
`Petitioner - Exhibit 1020
`Page 24 of 169
`
`
`
`Page 25
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` A. Correct.
` Q. All right. Were there other business units --
`I'm sorry. Let me strike that.
` How many business units did iPIX have?
` A. I believe three.
` Q. What were the other two business units?
` A. The other two business units were the
`immersive imaging. So in Oakridge, Tennessee iPIX had a
`business that focused on making software that dealt with
`parabolic capturing and dewarping spherical images --
` THE REPORTER: I'm sorry. Excuse me?
` THE WITNESS: I'm sorry.
` A. IPIX's technology was very complex. They had
`software that allowed the efficient dewarping of images
`that were captured with spherical lenses. So you would
`put a lens, like, a lens on this side and a lens on this
`side, and you would have a 360-degree view. And then
`their software dealt with being able to view those
`dewarp spherical images.
` Q. (By Mr. Alemanni) Okay. And then you
`mentioned that there were three. What was the third
`one?
` A. The other, the third one was a photography
`network mostly worked in real estate that would go out
`and capture large volumes of, using the iPIX software,
`
`512-474-4363 WRIGHT WATSON & ASSOCIATES (fax) 512-474-8802
`1250 S. Capital of Texas Highway, Building 3, Suite 400, Austin, Texas 78746
`
`Petitioner - Exhibit 1020
`Page 25 of 169
`
`
`
`Page 26
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`video of hotels and homes. And then it would go to a
`processing center in Canada. And then they would then
`process that media. And then they would post it for
`either the homes or the hotels.
` Q. Was the photo network business unit working
`with particular customers?
` A. The photo network division?
` Q. Or
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