Case 5:19-cv-00036-RWS Document 53-6 Filed 08/02/19 Page 1 of 12 PageID #: 896
`Case 5:19-cv-00036—RWS Document 53-6 Filed 08/02/19 Page 1 of 12 PageID #: 896
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`EXHIBIT D
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`EXHIBIT D
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`Case 5:19-cv-00036—RWS Document 53-6 Filed 08/02/19 Page 1 of 12 PageID #: 896
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`EXHIBIT D
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`EXHIBIT D
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`Case 5:16-cv-00179-RWS Document 295 Filed 08/28/18 Page 1 of 93 PageID #: 19388Case 5:19-cv-00036-RWS Document 53-6 Filed 08/02/19 Page 2 of 12 PageID #: 897
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`1
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`IN THE UNITED STATES DISTRICT COURT
`FOR THE EASTERN DISTRICT OF TEXAS
`TEXARKANA DIVISION
`
`MAXELL, LTD. )
`
` DOCKET NO. 5:16cv179
`-vs- )
` Texarkana, Texas
` ) 1:00 p.m.
`ZTE USA, INC. June 20, 2018
`
` TRANSCRIPT OF TRIAL
` AFTERNOON SESSION
` BEFORE THE HONORABLE ROBERT W. SCHROEDER III,
` UNITED STATES DISTRICT JUDGE,
` AND A JURY
`
`A P P E A R A N C E S
`
`
`FOR THE PLAINTIFF:
`
`MR. JAMIE B. BEABER
`MAYER BROWN LLP
`1999 K Street, NW
`Washington, DC 20006
`
`MR. GEOFFREY P. CULBERTSON
`PATTON TIDWELL & CULBERTSON, LLP
`2800 Texas Blvd.
`Texarkana, TX 75503
`
`COURT REPORTER: MS. CHRISTINA L. BICKHAM, RMR, CRR
` FEDERAL OFFICIAL COURT REPORTER
` 300 Willow, Ste. 221
` Beaumont, TX 77701
`
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`Proceedings taken by Machine Stenotype; transcript was
`produced by a Computer.
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`Case 5:16-cv-00179-RWS Document 295 Filed 08/28/18 Page 2 of 93 PageID #: 19389Case 5:19-cv-00036-RWS Document 53-6 Filed 08/02/19 Page 3 of 12 PageID #: 898
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`2
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`FOR THE PLAINTIFF:
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`MR. ALAN GRIMALDI
`MR. KFIR B. LEVY
`MR. JAMES A. FUSSELL III
`MR. BRYAN C. NESE
`MR. WILLIAM J. BARROW
`MS. TIFFANY MILLER
`MR. BALDINE B. PAUL
`MR. SAQIB J. SIDDIQUI
`MR. CLARK S. BAKEWELL
`MAYER BROWN LLP
`1999 K. Street, NW
`Washington, DC 20006
`
`FOR THE DEFENDANT:
`
`MR. ERIC H. FINDLAY
`FINDLAY CRAFT PC
`102 N. College Ave., Ste. 900
`Tyler, Texas 75702
`
`MS. CALLIE A. BJURSTROM
`MR. HOWARD N. WISNIA
`MS. NICOLE S. CUNNINGHAM
`MR. SARA J. O'CONNELL
`PILLSBURY WINTHROP SHAW PITTMAN LLP
`501 W. Broadway, Ste. 1100
`San Diego, CA 92101-3575
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`Case 5:16-cv-00179-RWS Document 295 Filed 08/28/18 Page 10 of 93 PageID #: 19397Case 5:19-cv-00036-RWS Document 53-6 Filed 08/02/19 Page 4 of 12 PageID #: 899
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`10
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`Okay. Can you take a look at Page 111 again? This time
`Q.
`Lines 19 through 22.
`A.
`Yes.
`Q.
`And there it says: Does Maxell consider ZTE to be a
`competitor?
`And your answer, sir, was: I think we are able to
`regard ZTE as not -- ZTE as noncompetitor since our business
`fields are different.
`That was your testimony?
`
`A.
`Q.
`
`A.
`Q.
`A.
`Q.
`
`Yes.
`Mr. Nakamura, when did Maxell file this lawsuit?
`In 2016.
`Okay. I'll represent to you it was November 18, 2016.
`Does that sound about right?
`Yes.
`All right.
`MS. BJURSTROM: If we could pull up the slide from
`the Plaintiff's opening statement, Slide 25, please.
`Q.
`(By Ms. Bjurstrom) All right. Now, you were here
`yesterday for the opening statements, right, Mr. Nakamura?
`A.
`Yes.
`Q.
`All right. And so you heard Mr. Beaber say to the jury:
`And while you may think of Maxell as a Japanese company, it
`has a major presence right here in the United States.
`Remember that?
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`Case 5:16-cv-00179-RWS Document 295 Filed 08/28/18 Page 11 of 93 PageID #: 19398Case 5:19-cv-00036-RWS Document 53-6 Filed 08/02/19 Page 5 of 12 PageID #: 900
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`11
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`Yes.
`A.
`Okay. So Maxell Corporation of America in New Jersey,
`Q.
`No. 1 that's listed right here, that's not the Plaintiff in
`this case, right, sir?
`A.
`No.
`Q.
`Okay. And Maxell Corporation of America is not the
`owner of the patents asserted in this case, right?
`A.
`That's right.
`Q.
`Okay. And then if we take a look, Maxell America, Inc.,
`Georgia, okay, No. 2 there, that, again, is not a Plaintiff
`in this case, right?
`A.
`Right.
`Q.
`Okay. And they also don't have any interest in the
`patents that are being asserted in this case, right?
`A.
`Right.
`Q.
`Okay. Now let's take a look at the third one, Maxell
`Research & Development America, LLC, Texas.
`Do you see that?
`
`Yes.
`A.
`Okay. And Mr. Beaber called out this company as being
`Q.
`right here in East Texas, and I think Mr. Culbertson talked
`about that this morning, right?
`A.
`Yes.
`Q.
`Okay. And I think you've testified that they're in
`Marshall; is that right?
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`Case 5:16-cv-00179-RWS Document 295 Filed 08/28/18 Page 12 of 93 PageID #: 19399Case 5:19-cv-00036-RWS Document 53-6 Filed 08/02/19 Page 6 of 12 PageID #: 901
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`12
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`Yes.
`Okay. And is it a research and development company,
`
`A.
`Q.
`sir?
`Yes.
`A.
`What -- what actual -- well, let's talk about it. I
`Q.
`want to learn a little bit more about the company.
`So where specifically in Marshall is it located?
`Marshall is located in Texas.
`A.
`Right. But where in Marshall, Texas, is your Maxell
`Q.
`Research & Development America located?
`A.
`Are you questioning about the address?
`Q.
`Yes. Do you have the address?
`A.
`Yes. 510 North Washington Avenue.
`Q.
`All right. And do you own your own building?
`A.
`We rent a space.
`Q.
`Are there other tenants in that building as well?
`A.
`I think there are some other tenants, yeah.
`Q.
`Okay. Do you have an idea of how many that might be?
`A.
`One or two rooms were occupied.
`Q.
`One or two?
`A.
`(Witness nods.)
`Q.
`Okay. What actual research is Maxell Research &
`Development America doing there?
`A.
`Right now, as I explained in the morning, we are working
`joint development using batteries into flashing stop signs.
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`Case 5:16-cv-00179-RWS Document 295 Filed 08/28/18 Page 13 of 93 PageID #: 19400Case 5:19-cv-00036-RWS Document 53-6 Filed 08/02/19 Page 7 of 12 PageID #: 902
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`13
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`And we are also working on wireless charging unit
`for Robo Fish toys. And we are also working on magnetic tape
`data cartridge development.
`Q.
`So do you have any testing facilities on-site?
`A.
`Yes. We have testing and also manufacturing equipment
`there.
`Q.
`Okay. How many employees do you have there?
`A.
`Right now, none.
`Q.
`How many?
`A.
`Zero.
`Q.
`Zero.
`How do you do testing with zero employees?
`We travel from Japan.
`A.
`Okay. So do you have any equipment on-site?
`Q.
`Yes.
`A.
`Okay.
`Q.
`We brought from Japan.
`A.
`So -- so, if I understand your testimony right, Maxell
`Q.
`Research & Development America, LLC, does not employ any
`people in Marshall, Texas, right?
`A.
`Not yet.
`Q.
`What's this building?
`A.
`This is called Coke building.
`Q.
`That's the Coca-Cola building. What else can you tell
`me about this building?
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`Case 5:16-cv-00179-RWS Document 295 Filed 08/28/18 Page 14 of 93 PageID #: 19401Case 5:19-cv-00036-RWS Document 53-6 Filed 08/02/19 Page 8 of 12 PageID #: 903
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`14
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`This is a building in front of the 510 North Washington
`A.
`Avenue.
`Q.
`Okay.
`MS. BJURSTROM: So let's pull up the Application
`For Registration of Foreign Limited Liability Company.
`Q.
`(By Ms. Bjurstrom) Can you take a look at this document
`for me, sir?
`A.
`Yes.
`Q.
`Okay. And it says: The entity is a foreign limited
`liability company. And the name of that entity is Maxell
`Research & Development America, LLC, right?
`A.
`Yes.
`Q.
`So it's a foreign limited liability company.
`MS. BJURSTROM: Let's move down.
`(By Ms. Bjurstrom) And, of course, this is a document
`Q.
`from Texas Secretary of State.
`MS. BJURSTROM: But let's move down, down to the
`
`bottom.
`Q.
`(By Ms. Bjurstrom) And it says right here, sir: The
`principal office address of the limited liability company is
`511 Washington Avenue, Marshall, Texas. Not 510, 511.
`Do you see that?
`Yes.
`So that is what the Maxell --
`MS. BJURSTROM: Move it down for me.
`
`A.
`Q.
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`Case 5:16-cv-00179-RWS Document 295 Filed 08/28/18 Page 15 of 93 PageID #: 19402Case 5:19-cv-00036-RWS Document 53-6 Filed 08/02/19 Page 9 of 12 PageID #: 904
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`15
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`(By Ms. Bjurstrom) -- Research & Development Company
`Q.
`represented to the State of Texas, that, in fact, your
`facility is located at 511 Washington Avenue, right?
`A.
`We have two offices, two -- two spaces.
`Q.
`You have two spaces.
`So you have one at 511 Washington Avenue, right,
`
`sir?
`Yes.
`A.
`Right. Consistent with what you reported to the State
`Q.
`of Texas, right?
`A.
`Yes.
`Q.
`Okay. And, in fact, the photo that we saw, the
`Coca-Cola building photo that we saw, that's where your
`office is, right?
`A.
`Our office space is in -- currently our office space is
`in 510 building, and we have the equipment in the 511
`building.
`MS. BJURSTROM: And then pull up the Texas
`Franchise State -- Tax Public Information Report.
`Q.
`(By Ms. Bjurstrom) Again, this is Maxell Research &
`Development America, and it's a report to the Texas Franchise
`Tax Public Information Report.
`Do you agree with me, Mr. Nakamura, that it's
`really important, when you're dealing with government
`agencies, to be very accurate, right?
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`Case 5:16-cv-00179-RWS Document 295 Filed 08/28/18 Page 16 of 93 PageID #: 19403Case 5:19-cv-00036-RWS Document 53-6 Filed 08/02/19 Page 10 of 12 PageID #: 905
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`16
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`Yes.
`A.
`Okay. So let's go ahead and take a look again at the
`Q.
`principal office located here, 511 Washington Avenue,
`Marshall, Texas, right?
`A.
`Yes.
`Q.
`And I don't see any reference in any of the public
`filings to 510 Washington Avenue, Marshall, Texas, okay?
`MS. BJURSTROM: And let's move down a little
`
`further.
`Q.
`(By Ms. Bjurstrom) And we see some individuals here that
`are identified as the president and the vice-president and
`the director. All of them are out of New Jersey, it looks
`like; is that right?
`A.
`Yes.
`Q.
`Okay.
`MS. BJURSTROM: And then let's move down a little
`bit further.
`Q.
`(By Ms. Bjurstrom) And, again, the president of this
`company signed this information declaring under penalty of
`perjury, you know, that it's true and correct, to the best of
`their information; and this individual, the president of
`Maxell America, indicated that the company is located at
`511 Washington Avenue. Right?
`A.
`Yes.
`Q.
`Okay.
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`Case 5:16-cv-00179-RWS Document 295 Filed 08/28/18 Page 17 of 93 PageID #: 19404Case 5:19-cv-00036-RWS Document 53-6 Filed 08/02/19 Page 11 of 12 PageID #: 906
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`17
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`MS. BJURSTROM: If we can go back to the
`Application for Registration of a Foreign Limited Liability
`Company.
`
`And let's look on the second page.
`(By Ms. Bjurstrom) Okay. It says in No. 11 there: The
`Q.
`name and address of each governing person is, and it says, if
`it's an organization, to put the organization's name, and
`that says Hitachi Maxell, Ltd. in Osaka, Japan. Is that your
`company, sir?
`A.
`Yes. This is Maxell.
`MS. BJURSTROM: Can we have the --
`(By Ms. Bjurstrom) Okay. So we've seen a lot of maps,
`Q.
`but we haven't seen one depicting where the Plaintiff in this
`case is from, which is Osaka, Japan, right?
`A.
`Osaka, Japan was one of our headquarter.
`Q.
`Okay. But your headquarters is in Japan, right?
`A.
`Yes. Japan, yes.
`Q.
`And the Plaintiff in this case is Maxell, Ltd. of Japan.
`A.
`Yes.
`Q.
`I want to talk actually about ZTE USA for a moment
`because ZTE USA, my client, is who is the Defendant in this
`case. That's who you sued.
`Do you understand that?
`Yes.
`MS. BJURSTROM: Okay. You can take that down.
`
`A.
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`Case 5:16-cv-00179-RWS Document 295 Filed 08/28/18 Page 93 of 93 PageID #: 19480Case 5:19-cv-00036-RWS Document 53-6 Filed 08/02/19 Page 12 of 12 PageID #: 907
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`93
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`Can you give us an overview of how the accused devices
`Q.
`process audio data in the manner described by the '491 and
`'695 patent?
`MR. FUSSELL: And, Your Honor, I believe we're
`going to get into some of the technical protective order
`issues.
`
`THE COURT: Okay. We'll need to seal the courtroom
`at this time.
`Mr. Fussell, would you let me know -- Mr. Fussell,
`let me know as quickly as we can unseal it, all right?
`(Courtroom sealed.)
`(This portion of the transcript is sealed and filed
`under separate cover as Sealed Portion No. 8.)
`(Courtroom unsealed.)
`(Recess.)
`
`CERTIFICATION
`I HEREBY CERTIFY that the foregoing is a true
`and correct transcript from the stenographic notes of the
`proceedings in the above-entitled matter to the best of our
`abilities.
`
`/s/ Christina L. Bickham
` June 20, 2018
`CHRISTINA L. BICKHAM
`Federal Official Court Reporter
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