EXHIBIT W
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`Patent Owner’s Response and Notice of Supplemental
`Evidence in Response to Petitioner’s Objections to Patent
`Owner’s Evidence Dated October 30, 2019
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`Sleep Number Corp. - EXHIBIT 2087 - IPR2019-00500 - Page 1
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`

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`September 28, 2017 - Volume V
`
`965
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`P R O C E E D I N G S
`
`I N O P E N C O U R T
`
`1
`
`2 3
`
`963
`
`T H E C O U R T : Y o u m a y a ll b e s e a te d . T h a n k y o u .
`
`M r . B a x te r , I w ill ju s t r e m in d y o u , I w o n 't
`
`r e - a d m in is te r t h e o a t h . Y o u r e m a in u n d e r o a t h f r o m w h e n I
`
`a d m in is te r e d th a t to y o u .
`
`S o w h e n e v e r y o u 'r e r e a d y , c o u n s e l, w e m a y
`
`c o n tin u e .
`
`M R . A N D R E W H A N S E N : T h a n k y o u , y o u r H o n o r . G o o d
`
`m o r n in g .
`
`T H E C O U R T : G o o d m o r n in g .
`
` D I R E C T E X A M I N A T I O N
`
`G o o d m o r n in g , M r . B a x te r .
`
`A.
`
`G o o d m o r n in g .
`
`M R . A N D R E W H A N S E N : D o r ia n , c o u ld y o u p u t
`
`P la in tif fs ' 1 3 5 u p ? A n d c o u ld y o u z o o m in o n th e s e c o n d a d ?
`
`M r . B a x te r , th is a d w a s p u lle d f r o m a s c r e e n g r a b a b o u t
`
`th r e e m o n t h s a f te r y o u r tim e a t P e r s o n a l C o m f o r t e n d e d . M y
`
`q u e s tio n is , is th a t s im ila r t o a d s y o u r a n w h ile a t
`
`P e r s o n a l C o m f o r t ?
`
`Y e s .
`
`4
`5
`6
`7
`8
`9
`10
`11
`12
`13
`14
`B Y M R . A N D R E W H A N S E N : ( c o n t i n u e d )
`15 Q.
`16
`17
`18
`19
`B Y M R . A N D R E W H A N S E N :
`20 Q.
`21
`22
`23
`24
`A.
`25 Q.
`
`A n d c a n y o u o p e n u p t o P la in t if f s ' 9 9 0 , t h a t's t h e la r g e
`
`964
`
`966
`
`1
`
`2
`3
`4
`5
`6
`7
`8
`9
`10
`
`11
`12
`13
`
`14
`15
`16
`17
`18
`19
`20
`21
`22
`
`23
`24
`25
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
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`17
`
`18
`
`19
`
`20
`21
`22
`23
`24
`25
`
`Select Comfort vs. John Baxter, et al.
`
` U N I T E D S T A T E S D I S T R I C T C O U R T
` D I S T R I C T O F M I N N E S O T A
`
`S e le c t C o m f o r t C o r p o r a tio n a n d
`S e le c t C o m f o r t S C C o r p o r a tio n ,
`
` P la in t if f s / C o u n te r - D e f e n d a n ts ,
`
`v s .
`
`F ile N o . 1 2 - C V - 2 8 9 9
` ( D W F / S E R )
`
`S t. P a u l, M in n e s o ta
`S e p te m b e r 2 8 , 2 0 1 7
`9 : 0 0 a .m .
`
`- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
`)
`)
`)
`)
`)
`)
`)
`)
`)
`J o h n B a x te r ; D ir e s , L L C d / b / a
`P e r s o n a l T o u c h B e d s a n d P e r s o n a l )
`C o m fo r t B e d s ; D ig i C r a f t A g e n c y ,
`)
`L L C ; D ir e c t C o m m e r c e , L L C d / b / a )
`P e r s o n a l T o u c h B e d s ; S c o tt
`)
`S te n z e l; a n d C r a ig M ille r ,
`)
`
`)
` D e f e n d a n t s / C o u n te r - C la im a n ts . )
`)
`- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
`
`B E F O R E T H E H O N O R A B L E D O N O V A N W . F R A N K a n d a J u r y
`U N I T E D S T A T E S D I S T R I C T C O U R T J U D G E
`
`( T R I A L - V O L U M E V )
`
` P r o c e e d in g s r e c o r d e d b y m e c h a n ic a l s t e n o g r a p h y ;
`t r a n s c r ip t p r o d u c e d b y c o m p u te r .
`
`A P P E A R A N C E S
`
`F o r t h e P la in tiffs :
`
`F o r D e fe n d a n ts D ir e s ,
`D ig i C r a f t A g e n c y ,
`D ir e c t C o m m e r c e , S c o t t
`S te n z e l, a n d C r a ig
`M ille r :
`
`F o r D e fe n d a n t J o h n
`B a x te r :
`
`C o u r t R e p o r te r s :
`
`F o x R o th s c h ild , L L P
`A N D R E W S . H A N S E N , E S Q .
`D E N N I S E . H A N S E N , E S Q .
`E L I Z A B E T H A . P A T T O N , E S Q .
`S u it e 2 0 0 0
`2 2 2 S o u th N in th S t r e e t
`M in n e a p o lis , M in n e s o ta 5 5 4 0 2
`
`M a d e l, P A
`C H R I S T O P H E R W . M A D E L , E S Q .
`J E N N I F E R M . R O B B I N S , E S Q .
`C A S S A N D R A B . M E R R I C K , E S Q .
`S u it e 7 0 0
`8 0 0 H e n n e p in A v e n u e
`M in n e a p o lis , M in n e s o ta 5 5 4 0 3
`
`B e r e n s & M ille r, P A
`B A R B A R A P . B E R E N S , E S Q .
`C A R R I E L . Z O C H E R T , E S Q .
`S u it e 3 7 2 0
`8 0 S o u th E ig h th S t r e e t
`M in n e a p o lis , M in n e s o ta 5 5 4 0 2
`
`C A R L A R . B E B A U L T , R M R , C R R , F C R R
`S u it e 1 4 6
`3 1 6 N o r th R o b e r t S t r e e t
`S t. P a u l, M in n e s o t a 5 5 1 0 1
`
`K R I S T I N E M O U S S E A U , R P R - C R R
`S u it e 1 0 0 5
`3 0 0 S o u th F o u r th S t r e e t
`M in n e a p o lis , M in n e s o ta 5 5 4 1 5
`
`E x h ib it . I t h in k it 's r ig h t h e r e ?
`
`M R . A N D R E W H A N S E N : Y o u r H o n o r , m a y I a p p r o a c h ?
`
`T H E C O U R T : Y o u m a y .
`
`O p e n u p to p a g e 4 1 0 o f 9 9 0 . A n d if y o u g o 2 2 lin e s
`
`d o w n , h o p e f u lly D o r ia n c a n g e t it h ig h lig h te d h e r e . D o y o u
`
`s e e th a t w h e r e s h e 's h ig h lig h tin g ?
`A.
`
`Y e s .
`
`M R . A N D R E W H A N S E N : A n d , D o r ia n , c a n y o u b r in g
`
`th a t u p ju s t a b o v e ?
`
`A n d , M r . B a x te r , o n 9 9 0 , if y o u lo o k a t t h is a d th a t 's
`
`a b o v e th a t w a s a c tu a lly o n th e I n te r n e t a n d th e n lo o k a t
`
`9 9 0 , d o e s 9 9 0 , t h e s p r e a d s h e e t, r e f le c t th e te x t t h a t w e s e e
`
`in th a t a d ?
`
`Y e s .
`
`A n d s o w h e r e it s a y s " S le e p 5 5 o f f N u m b e r B e d s " in th e
`
`s p r e a d s h e e t, th a t's th a t b lu e " S le e p 5 5 p e r c e n t o f f N u m b e r
`
`C o r r e c t.
`
`A n d th e n th e O n lin e E d itio n b e d s a le , w h ic h is t h e
`
`C o r r e c t.
`
`A lo n g w it h t h e d e s c r ip t io n lin e 2 w h ic h is th e " S a v e
`
`1
`2
`3
`4
`B Y M R . A N D R E W H A N S E N :
`5 Q.
`6
`7
`8
`9
`10
`11
`B Y M R . A N D R E W H A N S E N :
`12 Q.
`13
`14
`15
`16
`A.
`17 Q.
`18
`19
`B e d s " in th e a d t e x t, rig h t?
`20
`A.
`21 Q.
`22
`d e s c r ip tio n lin e 1 , th a t 's a t t h e b o t to m ?
`23
`A.
`24 Q.
`25
`
`$ 2 ,0 0 0 o n S e t P lu s $ 5 0 0 in U p g r a d e s " ?
`Kristine Mousseau, CRR- RPR (612) 664-5106
`
`Page 963 to Page 966
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`Sleep Number Corp. - EXHIBIT 2087 - IPR2019-00500 - Page 2
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`

`

`Select Comfort vs. John Baxter, et al.
`
`1087
`
`1 Q.
`Now a lot of those questions were about false
`2
`advertising, right?
`3 A.
`Yes.
`4 Q.
`How many times has the Federal Trade Commission
`5
`contacted you regarding false advertising?
`6 A.
`Zero.
`7 Q.
`How many times has the Federal Consumer Protection
`8
`Finance Bureau contacted you regarding false advertising?
`9 A.
`Zero.
`10 Q.
`Your business was located in Florida; is that right?
`11 A.
`Yes.
`12 Q.
`Orlando?
`13 A.
`Yes, at the time.
`14 Q.
`How many times has the Florida Attorney General
`15
`contacted you regarding false advertising?
`16 A.
`Never.
`17 Q.
`How about the Florida Department of Commerce?
`18 A.
`Never.
`19 Q.
`Let's keep going further down. Orlando is in Orange
`20
`County, Florida I believe, right?
`21 A.
`Yes.
`22 Q.
`How many times has the Orange County District Attorney
`23
`contacted you regarding false advertising?
`24 A.
`Zero.
`25 Q.
`Anybody at the county level ever contact you for false
`1088
`
`September 28, 2017 - Volume V
`1089
`
`1 Q.
`Whatever you call them, right?
`2 A.
`Yeah.
`3
`MR. MADEL: I have no further questions.
`4
`THE COURT: Additional, if you wish, counsel?
`5
` REDIRECT EXAMINATION
`6
`BY MR. ANDREW HANSEN:
`7 Q.
`Mr. Baxter, a moment ago you were talking about the
`8
`e-mail that said tricky marketing, right? Do you remember
`9
`that?
`10 A.
`Yes.
`11 Q.
`And you said that you were referring to the click to
`12
`call --
`13 A.
`Yes.
`14 Q.
`-- right?
`15
`And that it was -- nobody had a name for it,
`16
`right?
`17 A.
`Yes.
`18 Q.
`And didn't Google have a name for it? Google called it
`19
`click to call, right?
`20 A.
`I don't think so at that time, no.
`21 Q.
`Did they call it call extension?
`22 A.
`Maybe something like that.
`23 Q.
`But they didn't call it tricky marketing, did they, to
`24
`your knowledge?
`25 A.
`No.
`
`1090
`
`1
`advertising?
`2 A.
`No.
`3 Q.
`Let's go down to the City of Orlando. Has the City
`4
`Attorney ever contacted you regarding false advertising?
`5 A.
`No.
`6 Q.
`Has the dog catcher from Orlando contacted you regarding
`7
`false advertising?
`8 A.
`No.
`9
`MR. ANDREW HANSEN: Objection to the question.
`10
`THE COURT: I'll sustain that. It's irrelevant.
`11
`BY MR. MADEL:
`12 Q.
`How many consumers have brought a class action against
`13
`you for false advertising in your life?
`14 A.
`Zero.
`15 Q.
`How many consumers have alleged fraud against you?
`16 A.
`Zero.
`17 Q.
`How many consumers have sued you for false advertising?
`18 A.
`Zero.
`19 Q.
`Deceptive trade practices?
`20 A.
`No one.
`21 Q.
`How many people in your life have contended that you
`22
`engaged in false advertising against consumers?
`23 A.
`One.
`24 Q.
`Who is that?
`25 A.
`Select Comfort or Sleep Number.
`
`1
`MR. ANDREW HANSEN: No more questions.
`2
`THE COURT: Any additional examination?
`3
`MS. BERENS: No, your Honor. Thank you.
`4
`MR. MADEL: No, your Honor. Thank you.
`5
`THE COURT: Call your next witness.
`6
`MR. DENNIS HANSEN: Your Honor, our paralegal went
`7
`to grab our next witness David Karr. In the meantime,
`8
`permission to approach and hand your Honor a binder.
`9
`THE COURT: Yep.
`10
`MR. DENNIS HANSEN: Your Honor, Plaintiffs call
`11
`David Karr.
`12
`THE COURT: If you want to step forward, sir. And
`13
`then before you step in to the witness stand, if you would
`14
`raise your right hand, please.
`15
`Do you swear to tell the truth, the whole truth
`16
`and nothing but the truth, so help you God?
`17
`MR. KARR: I do.
`18
`THE COURT: And there's a couple steps up there
`19
`but you can step into the witness box and have a seat,
`20
`please. And then as I tell every witness, whether it's a
`21
`combination of moving the chair and the microphone, because
`22
`that's -- you have to sit quite close to it. Otherwise it
`23
`won't pick you up. If you would state your full name and
`24
`spell your last name.
`25
`THE WITNESS: My name is David Edward Karr,
`Page 1087 to Page 1090
`Kristine Mousseau, CRR- RPR (612) 664-5106
`
`Sleep Number Corp. - EXHIBIT 2087 - IPR2019-00500 - Page 3
`
`

`

`Select Comfort vs. John Baxter, et al.
`
`1091
`
`September 28, 2017 - Volume V
`1093
`
`K-a-r-r.
`
`1
`2
`THE COURT: You may inquire, counsel.
`3
`MR. DENNIS HANSEN: Thank you, your Honor.
`4
`Permission to approach and hand the witness a binder?
`5
`THE COURT: You may.
`6
`MR. DENNIS HANSEN: Thank you.
`7
` DIRECT EXAMINATION
`8
`BY MR. DENNIS HANSEN:
`9 Q.
`Good afternoon, Mr. Karr.
`10 A.
`Good afternoon.
`11 Q.
`Where do you live?
`12 A.
`I live in Greenville County in South Carolina.
`13 Q.
`Can you give the jury a brief summary of your
`14
`educational background?
`15 A.
`Yes. I earned a Bachelor of Science degree in
`16
`accounting from Bob Jones University in 1977.
`17 Q.
`Where is Bob Jones University?
`18 A.
`It's located in Greenville, South Carolina.
`19 Q.
`Have you lived in Greenville your entire life?
`20 A.
`Not my entire life but since I was six.
`21 Q.
`What do you do for a living, Mr. Karr?
`22 A.
`I'm the General Manager of Select Comfort SC
`23
`Corporation.
`24 Q.
`And what is Select Comfort SC Corporation?
`25 A.
`Select Comfort SC Corporation is a wholly-owned
`
`1092
`1
`subsidiary of Select Comfort and it runs the Comfortaire
`2
`business.
`3 Q.
`How long -- well, has the Comfortaire business always
`4
`been run by Select Comfort SC Corporation?
`5 A.
`No, Comfortaire started in 1981 and for most of its
`6
`existence was actually a competitor to Select Comfort. And
`7
`then in January, I think, of 2013, Select Comfort purchased
`8
`Comfortaire and Comfortaire Direct from their previous
`9
`owners which was Park Place Corporation.
`10 Q.
`How long have you worked for Comfortaire, Mr. Karr?
`11 A.
`I have been involved with Comfortaire in some capacity
`12
`since 1985.
`13 Q.
`Can you tell us about your roles with Comfortaire since
`14
`1985?
`15 A.
`Sure. I was introduced to Comfortaire when I joined
`16
`Park Place. My main responsibilities, of course, were to
`17
`Park Place. I came in on the finance side. Park Place had
`18
`a subsidiary called Comfortaire, and I handled the financial
`19
`side of Comfortaire. In 1987 I was made President of
`20
`Comfortaire. I still had my dual roles with Park Place and
`21
`at the acquisition, my titles with Park Place were Chief
`22
`Financial Officer, Chief Operating Officer for Park Place,
`23
`and then the President of Comfortaire.
`24 Q.
`With respect to your role as President of Comfortaire
`25
`from 1987 until 2013, right?
`
`1 A.
`Yes.
`2 Q.
`Can you describe your roles and responsibilities?
`3 A.
`Sure. Early on the company was very small and basically
`4
`did about everything. I was responsible for sales and
`5
`marketing, for operations, for supply chain, for legal, for
`6
`finance. And then, of course, the Internet came along and
`7
`then I was also responsible for our Internet relationships,
`8
`whether they be with third-party partners or whether we did
`9
`them in-house.
`10 Q.
`You mentioned that you are now the General Manager of
`11
`the Comfortaire business. What are your responsibilities in
`12
`that role?
`13 A.
`They are actually very similar. I am responsible for
`14
`sales and marketing, for operations, for supply chain. And
`15
`then I have cross-functional partners at Select Comfort who
`16
`handle human capital, finance, compliance, legal, and brand.
`17 Q.
`Let's talk a little bit more about what Comfortaire is.
`18
`What business is Comfortaire in?
`19 A.
`Comfortaire is in the adjustable air bed business.
`20 Q.
`Please just share with the jury a brief history of
`21
`Comfortaire.
`22 A.
`Sure. As I said, Comfortaire has been around since
`23
`1981. I wasn't acquainted with it until 1985. But
`24
`Comfortaire was the first company to introduce an air bed to
`25
`third-party retail and have continuously been a supplier of
`1094
`1
`air-supported sleep for third-party retail partners longer
`2
`than anybody else in this category.
`3
`Then, of course, we were acquired by Select
`4
`Comfort in 2013.
`5 Q.
`What products did Comfortaire sell before the
`6
`acquisition?
`7 A.
`Pre-acquisition -- well, from our inception we have
`8
`created and sold air beds. That's our business.
`9 Q.
`And where did Comfortaire sell those air beds?
`10 A.
`We sold air beds with third-party retail partners or
`11
`dealers. We have about 200 dealer relationships, about 400
`12
`storefronts in the U.S. And I'll just name a couple. One
`13
`of our larger is Raymour and Flanigan in northeast. That's
`14
`about 100 stores. And then some that might be familiar here
`15
`would be HOM Furniture here in Minneapolis and in the
`16
`Minnesota area.
`17 Q.
`How did the acquisition by Select Comfort of Comfortaire
`18
`come about?
`19 A.
`Really late in 2012 Select Comfort contacted -- well,
`20
`Park Place about an opportunity, and it was like the perfect
`21
`time and the price was right. And the acquisition occurred
`22
`in January of 2013.
`23 Q.
`Why did Park Place sell the Comfortaire business to
`24
`Select Comfort, if you know?
`25 A.
`Well, again, I think that the owners had been trying to
`Page 1091 to Page 1094
`Kristine Mousseau, CRR- RPR (612) 664-5106
`
`Sleep Number Corp. - EXHIBIT 2087 - IPR2019-00500 - Page 4
`
`

`

`September 28, 2017 - Volume V
`1197
`
`I N D E X
`
`PAGE
`
`PLAINTIFFS' WITNESSES
`JOHN BAXTER
` 965
` Direct Examination by Mr. Andrew Hansen
` 1076
` Examination by Ms. Berens
` 1085
` Cross-Examination by Mr. Madel
` Redirect Examination by Mr. Andrew Hansen 1089
`DAVID KARR
` Direct Examination by Mr. Dennis Hansen
` Cross-Examination by Mr. Madel
`
` 1092
` 1151
`
`EXHIBITSREC'D
` None
`
`Select Comfort vs. John Baxter, et al.
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6 7
`
`8 9
`
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`
`1195
`
`THE COURT: All right. So we will stand in
`recess, and I'll just let you indicate to the extent it's
`relevant, unrelated to the issues here, just the way the
`courtroom floor is designed where the jurors come in and
`where we usually get everything going, usually if they have
`complaints or at least everything that Brenda and Becky is
`saying, everybody seems to be in good spirits, so as
`opposed to saying, not that they would confide with us
`everything, and generally we have kind of a good sense if
`they feel --
`They haven't asked Brenda to ask me any questions
`yet, because I would have to forward those on to you, but
`so we have one juror that the young woman sitting in the
`first row there, she is here every morning working at 7:00
`a.m., a little after 7:00, so we have to, for a number of
`reasons, I got in Becky and I showed up about the same time
`about two minutes after 7:00, and she was waiting for us to
`let her in the jury room.
`So we'll stand in recess. You, of course, may
`step down, Mr. Karr, and we will see everybody at nine
`o'clock in the morning. We're in recess. Thank you.
`
`1196
`
` (Court adjourned at 5:25 P.M.)
`
`* * *
`
` We, Carla R. Bebault and Kristine Mousseau, certify that
`the foregoing is a correct transcript from the record of
`proceedings in the above-entitled matter.
`
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` Certified by: s/ Carla R. Bebault
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` Carla R. Bebault, RMR, CRR, FCRR
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` Certified by: s/ Kristine Mousseau, RPR-CRR
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` Kristine Mousseau, RPR-CRR
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`Kristine Mousseau, CRR- RPR (612) 664-5106
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`Page 1195 to Page 1197
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`Sleep Number Corp. - EXHIBIT 2087 - IPR2019-00500 - Page 5
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