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`Case 1:20-cv-00393-LMB-WEF Document 1468-6 Filed 04/05/23 Page 2 of 9 PageID# 40805
`CONFIDENTIAL BUSINESS INFORMATION
`Transcript of Nicholas Ray Gilley, Corporate Designee & Individually 1 (1 to 4)
`Conducted on December 3, 2020
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` A P P E A R A N C E S
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`ON BEHALF OF THE PLAINTIFFS AND COUNTERCLAIM
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`DEFENDANTS:
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` J. THOMAS VITT, ESQUIRE
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` JONES DAY
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` 90 South Seventh Street
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` Suite 4950
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` Minneapolis, Minnesota 55402
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`ON BEHALF OF THE DEFENDANTS AND COUNTERCLAIM
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`PLAINTIFFS:
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` BRETT M. SANDFORD, ESQUIRE
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` LATHAM & WATKINS
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` 140 Scott Drive
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` Menlo Park, California 94025
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` 650.328.4600
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`ALSO PRESENT:
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` JOSHUA TUBBS, VIDEOCONFERENCE TECHNICIAN
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` ADAM NUDELMAN, VIDEOGRAPHER
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` IN THE UNITED STATES DISTRICT COURT
` FOR THE EASTERN DISTRICT OF VIRGINIA
` Alexandria Division
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`RAI STRATEGIC HOLDINGS, INC. : Case No.
`and R.J. REYNOLDS VAPOR : 1:20-cv-00393-LO-TCB
`COMPANY, :
` Plaintiffs and :
`Counterclaim Defendants, :
` v. :
`ALTRIA CLIENT SERVICES LLC; :
`PHILIP MORRIS USA INC.; and :
`PHILIP MORRIS PRODUCTS S.A., :
` Defendants and :
`Counterclaim Plaintiffs. :
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` CONFIDENTIAL BUSINESS INFORMATION
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` SUBJECT TO PROTECTIVE ORDER
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`
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`Videotaped Deposition of RAI STRATEGIC HOLDINGS, INC.
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` and R.J. REYNOLDS VAPOR COMPANY
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` By and through its Corporate Representative
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` NICHOLAS RAY GILLEY
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` And in his Individual Capacity
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` Conducted Virtually
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` Thursday, December 3, 2020
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` 7:07 a.m. PST
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`
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`Job No.: 337459
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`Pages: 1 - 283
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`Reported By: Rhonda Norberg, CSR No. 9265, CCRR No. 185
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` CONFIDENTIAL Videotaped Deposition of
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` I N D E X
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`WITNESS: NICHOLAS RAY GILLEY
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`EXAMINATION PAGE
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` BY MR. SANDFORD 9
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` BY MR. SANDFORD (CONTINUED) 89
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` EXHIBITS
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`EXHIBIT NO. DESCRIPTION PAGE
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`1 Plaintiffs’ Objections and 10
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` Responses to Defendants’ Notice of
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` Deposition Pursuant to Fed. R.
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` Civ. P. 30(b)(6)
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`2 Deposition Transcript of Nicholas 12
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` Gilley, September 23, 2020
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`3 Deposition Transcript of Nicholas 13
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` Gilley, July 10, 2018.
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`4 Deposition Transcript of Nicholas 13
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` Gilley, June 26, 2020
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`5 R.J. Reynolds Vapor Company's 20
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` Second Supplemental Objections and
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` Responses to Plaintiff's Second
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` Set of Interrogatories (Nos. 6-13)
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`6 Monthly Detailed Financial 45
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` Statement, R.J. Reynolds
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`NICHOLAS RAY GILLEY, conducted virtually.
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` Pursuant to notice, before Rhonda Norberg,
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` Certified Shorthand Reporter No. 9265, CCRR No. 185
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` in and for the State of California.
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`PLANET DEPOS
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`

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`Case 1:20-cv-00393-LMB-WEF Document 1468-6 Filed 04/05/23 Page 3 of 9 PageID# 40806
`CONFIDENTIAL BUSINESS INFORMATION
`Transcript of Nicholas Ray Gilley, Corporate Designee & Individually 32 (125 to 128)
`Conducted on December 3, 2020
`125
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`127
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` A Probably the last two or three years.
` Q So at least let's say -- let me ask a
`different question.
` Juul has been RJRV's biggest competitor in
`the U.S. e-vapor market for the years 2019 and 2020,
`correct?
` A That is correct.
` Q And Juul's currently the leader in terms of
`sales in the United States e-vapor market, right?
` A That is correct.
` Q And are you aware that Altria invested in
`Juul in December 2018?
` A Yes.
` Q Okay. And since it invested in Juul in
`December of 2018, RJRV has been competing directly
`with Altria in the United States e-vapor market,
`correct?
` MR. VITT: Objection to form, misstates the
`evidence.
` THE WITNESS: Can -- can you restate the
`time frame again, please?
` MR. SANDFORD: Sure.
` Q Since -- well, since Altria invested in
`Juul -- since -- let me -- since the time that
`Altria made its investment in Juul, Altria has
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`Blu e-vapor product during the 2013 to 2018 time
`frame?
` MR. VITT: Objection. It's -- objection to
`form. It's tough as to time. Right? The whole
`time, did it change? It's kind of an unfair
`question.
` MR. SANDFORD: You can answer if you can,
`Mr. Gilley.
` THE WITNESS: It -- it would -- it would be
`dependent on the time frame and the market
`conditions when you're talking about a five-year
`period.
` MR. SANDFORD: Let's look at 2018, then.
` Q In 2018, did RJRV consider NuMark to be a
`more significant competitor than Fontem and its Blu
`product?
` A Again, I don't think we considered it to be
`more significant competitors. We -- we considered
`them to be very similar in the way in which they
`operated and approached the market, although NuMark
`was certainly better resourced because of the Altria
`size and scale within the U.S. market.
` Q And because of those resources, at least in
`2018, NuMark had a competitive advantage vis-à-vis
`RJRV that Fontem did not have, correct?
`
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` MR. VITT: Objection to form.
` THE WITNESS: I would say that because of
`the scale with the Altria Group distribution
`company, NuMark most likely did have an advantage
`over the Fontem Blu product.
`BY MR. SANDFORD:
` Q In 2018?
` A In 2018, correct.
` Q You're familiar with a company named Juul,
`right?
` A Yes.
` Q And Juul released its first e-vapor product
`in the United States around 2015, roughly?
` A I think that's correct.
` Q Okay. Since the time that Juul released
`its first e-vapor product in the United States, RJRV
`and Juul have directly competed in the United States
`e-vapor market, right?
` A That is correct.
` Q And Juul currently is RJRV's biggest
`competitor in the U.S. e-vapor market, right?
` A Yes, that's correct.
` Q And for how long has Juul been RJRV's
`biggest competitor in the U.S. e-vapor market,
`approximately?
`
`competed directly with RJRV via Juul in the
`United States e-vapor market, correct?
` MR. VITT: Objection to form, misstates the
`facts.
` THE WITNESS: Based on my understanding of
`their arrangement, Altria has a minority investment
`in the Juul business, but the Juul company and
`entity remains intact and remains the competitor to
`the RJR Vapor Company.
`BY MR. SANDFORD:
`0
` Q Well, sales of RJRV's Vuse products cut
`11
`into Juul's market share -- correct? -- in the
`12
`e-vapor market?
`13
` A Potentially.
`14
` Q Why "potentially"?
`15
` A Well, it depends on how the industry
`16
`performs. It is possible that we both could grow
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`and then it would be subject to who is growing the
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`fastest, I guess, at that point.
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` "Cut in" is a relative term. I guess I'm
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`not following exactly what you mean by that.
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` Q Okay. Let's switch gears a little bit.
`22
` RJRV believes that the Vuse products are
`23
`directly competitive with iQOS in the United States,
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`correct?
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`Case 1:20-cv-00393-LMB-WEF Document 1468-6 Filed 04/05/23 Page 4 of 9 PageID# 40807
`CONFIDENTIAL BUSINESS INFORMATION
`Transcript of Nicholas Ray Gilley, Corporate Designee & Individually 33 (129 to 132)
`Conducted on December 3, 2020
`129
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`131
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` MR. VITT: Beyond the scope.
` THE WITNESS: Again, we're continuing to
`evaluate the market as well as the products, and we
`will make the determination based on market
`conditions at a future date.
`BY MR. SANDFORD:
` Q As of today, has RJRTC made a determination
`to launch another heat-not-burn product in the
`United States other than Eclipse?
` A I -- I do not know of one at this point in
`time.
` Q Okay. RJRTC's Eclipse product competes
`directly with iQOS in the United States, correct?
` A The RJR -- I'm sorry, the R.J. Reynolds
`Tobacco Company Eclipse product is a heat-not-burn
`product which is similar in nature to the iQOS
`product in the United States, and so it would be a
`competitive product.
` Q RJRTC's heat-not-burn Eclipse product
`competes directly with iQOS in the United States,
`right?
` MR. VITT: Asked and answered.
` THE WITNESS: Correct, it would be a
`competitive product.
` (Court reporter clarification.)
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` A That is correct.
` Q And the Vuse products have directly
`competed in the United States with iQOS since iQOS
`was released in October 2019, correct?
` A That is correct.
` Q And R.J. -- well, the Reynolds --
`Reynolds -- let me take a step back.
` Reynolds also sells heat-not-burn products,
`right?
` A R.J. Reynolds Tobacco Company has a
`heat-not-burn product in the market.
` Q Right.
` RJRV doesn't have any heat-not-burn
`products, correct?
` A Not to my knowledge, correct.
` Q Are all the heat-not-burn products that are
`sold under the Reynolds umbrella sold by RJRTC?
` A Yes, that's correct.
` Q And which heat-not-burn products are
`currently offered for sale in the United States by
`RJRTC?
` A R.J. Reynolds Tobacco Company currently has
`an Eclipse-branded heat-not-burn product available
`for sale in the United States.
` Q Is the Eclipse heat-not-burn product the
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`only heat-not-burn product that RJRTC is currently
`selling in the U.S.?
` A Based on my knowledge, that's correct.
` Q Does RJRTC intend to sell another
`heat-not-burn product in the foreseeable future?
` MR. VITT: It's beyond the scope.
` You can answer in your personal capacity.
` THE WITNESS: We're always evaluating
`opportunities for new product introductions to the
`extent that they may be appealing to consumers.
`BY MR. SANDFORD:
` Q I think that answers my question, but does
`RJRTC intend to sell another heat-not-burn product
`in addition to Eclipse in the United States in the
`next two years?
` MR. VITT: Beyond the scope.
` You can answer in your personal capacity.
` THE WITNESS: I do not know the time frame
`in which we would be prepared to launch an
`additional heat-not-burn product in the
`United States.
`BY MR. SANDFORD:
` Q As of today, do you know if RJRTC is
`intending to launch another heat-not-burn product in
`the United States?
`
` THE WITNESS: I said "Correct, it would be
`a competitive product."
`BY MR. SANDFORD:
` Q When was RJRTC's Eclipse heat-not-burn
`product introduced into the market?
` MR. VITT: I think that's beyond the scope.
` You can answer if you know.
` THE WITNESS: I don't know.
`BY MR. SANDFORD:
` Q Do you have a -- okay.
`0
` Can we mark Tab 30, please, Josh?
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` THE VIDEOCONFERENCE TECHNICIAN: Stand by.
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` (Exhibit No. 16 was marked for
`13
` identification by the court
`14
` reporter; attached hereto.)
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` THE VIDEOCONFERENCE TECHNICIAN: Exhibit 16
`16
`is onscreen and ready.
`17
`BY MR. SANDFORD:
`18
` Q Do you have Exhibit 16 in front of you,
`19
`Mr. Gilley?
`20
` A Yes.
`21
` Q Do you recognize Exhibit 16?
`22
` A Yes, I do.
`23
` Q What is it?
`24
` A It is the shipment to retail report for
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`Case 1:20-cv-00393-LMB-WEF Document 1468-6 Filed 04/05/23 Page 5 of 9 PageID# 40808
`CONFIDENTIAL BUSINESS INFORMATION
`Transcript of Nicholas Ray Gilley, Corporate Designee & Individually 41 (161 to 164)
`Conducted on December 3, 2020
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`it's hard for me to determine that and -- because
`the -- it appears in 2015 was when the Revo launch
`occurred, another relaunch.
`BY MR. SANDFORD:
` Q Well, we had agreed earlier that the
`segment on the right pertained to 2005 to 2016,
`right?
` MR. VITT: Beyond the scope.
` THE WITNESS: That's what the label says.
`It says 2016 at the end.
`0
`BY MR. SANDFORD:
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` Q And associated with the label of 2005 to
`12
`2016, it states RJRT has de-prioritized
`13
`heat-not-burn, right?
`14
` MR. VITT: Asked and answered, beyond the
`15
`scope, and lacks foundation.
`16
` THE WITNESS: That is what the slide says,
`17
`correct.
`18
`BY MR. SANDFORD:
`19
` Q If you look back at the title which we
`20
`discussed earlier, the title of the slide also says
`21
`that RJRT "does not have a next-generation
`22
`electronic heat-not-burn system in development."
`23
` Do you see that?
`24
` MR. VITT: Beyond the scope.
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`PLANET DEPOS
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` MR. VITT: Beyond the scope.
` THE WITNESS: Correct.
`BY MR. SANDFORD:
` Q And that time line from 1980 to 2016 is
`split in two segments.
` Do you see that?
` MR. VITT: Beyond the scope.
` THE WITNESS: I see two different colors on
`the time line, correct.
` MR. SANDFORD: Correct.
` Q One, the -- the segment on the left is from
`1980 until approximately 2005, and the segment on
`the right is from 2005 to 2016, correct?
` MR. VITT: Beyond the scope.
` THE WITNESS: That appears to be a
`reasonable assessment, correct.
`BY MR. SANDFORD:
` Q And for the segment on the left from 1980
`to 2005, the slide identifies RJRT emphasizing
`heat-not-burn, right?
` MR. VITT: Beyond the scope.
` THE WITNESS: The header says "RJT Emphasis
`on HNB."
`BY MR. SANDFORD:
` Q Up until 2005, correct?
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` MR. VITT: Beyond the scope, lacks
`foundation.
` THE WITNESS: Based on the slide, that
`appears to be correct.
`BY MR. SANDFORD:
` Q And then in the segment on the right, it
`identifies RJRT as having de-prioritized
`heat-not-burn from 2005 -- between 2005 and 2016,
`correct?
` MR. VITT: Beyond the scope.
` THE WITNESS: The title above the line
`chart says "RJRT De-prioritization of HNB."
`BY MR. SANDFORD:
` Q And so the slide indicates that RJRT had
`de-prioritized heat-not-burn between 2005 and 2016,
`right?
` A The title says "RJRT De-prioritization of
`HNB."
` Q I understand that's what the title says,
`sir. I'm asking the slide indicates that RJRT had
`de-prioritized heat-not-burn between 2005 and 2016,
`correct?
` MR. VITT: Objection; beyond the scope and
`lacks foundation.
` THE WITNESS: Without the proper context,
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` THE WITNESS: I -- I guess it would be a
`disadvantage relative to -- I don't -- I don't know
`exactly what you mean by "disadvantage."
`BY MR. SANDFORD:
` Q I mean leaking of e-liquid from the
`cartridge is something that is perceived negatively
`by consumers, correct?
` MR. VITT: Beyond the scope.
` THE WITNESS: Yes, consumers -- consumers
`would prefer the cartridges not leak.
` MR. SANDFORD: Can you please turn to the
`page ending in 896.
` THE WITNESS: You said 896?
` MR. SANDFORD: Yes.
` THE WITNESS: Okay.
` MR. SANDFORD: And according to this slide,
`RJR Tobacco had de-prioritized heat-not-burn in the
`years leading up to 2017.
` Q Do you see that?
` MR. VITT: Objection; beyond the scope.
` THE WITNESS: The title says "RJRT has
`de-prioritized HNB in recent years."
`BY MR. SANDFORD:
` Q And the figure below it is a time line
`running from 1980 to 2016, correct?
`
`

`

`Case 1:20-cv-00393-LMB-WEF Document 1468-6 Filed 04/05/23 Page 6 of 9 PageID# 40809
`CONFIDENTIAL BUSINESS INFORMATION
`Transcript of Nicholas Ray Gilley, Corporate Designee & Individually 42 (165 to 168)
`Conducted on December 3, 2020
`165
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`foundation.
` THE WITNESS: The bullet point says
`"Consumers appear receptive."
`BY MR. SANDFORD:
` Q And the reason identified by RAII for
`consumers appearing receptive to heat-not-burn is
`that heat-not-burn "offers unique advantages
`relative to vapor and may appeal to a large ATC
`segment dissatisfied with current cigarette
`alternatives," correct?
`0
` MR. VITT: It's beyond the scope and lacks
`11
`foundation.
`12
` THE WITNESS: That's correct.
`13
` MR. SANDFORD: If you look at the fourth --
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`we'll call it a bullet under -- on the slide ending
`15
`in 898, it says "RAII does not have a
`16
`next-generation heat-not-burn product."
`17
` Q Do you see that?
`18
` A Yes, I do.
`19
` Q And then the slide in the fourth bullet
`20
`continues, says "Because RAII does not have a
`21
`next-generation heat-not-burn product, it would take
`22
`significant time and investment to commercialize a
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`new product and catch up to competitors," correct?
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` MR. VITT: It's beyond the scope and lacks
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`foundation.
` THE WITNESS: There are three key issues
`for RAII to explore.
`BY MR. SANDFORD:
` Q And it's in the context of heat-not-burn,
`right, sir?
` MR. VITT: It's beyond the scope and lacks
`foundation.
`BY MR. SANDFORD:
` Q Do you need me to repeat my question?
` A Yes, can you please repeat the question?
` Q My question was just that you stated the
`title there, "Three Key Issues for RAII to Explore,"
`and my question was issues to explore in the context
`of heat-not-burn, correct?
` MR. VITT: Beyond the scope and lacks
`foundation.
` THE WITNESS: It appears that heat-not-burn
`is part of Number 1 and Number 2, and for Number 3,
`it appears to be a communication strategy for
`alternative nicotine products.
`BY MR. SANDFORD:
` Q And with respect to Issue 3, the first
`bullet point, RAII is asking "How can RAII get the
`same recognition for alternative nicotine products
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`as PMI?" right?
` MR. VITT: It's beyond the scope.
` THE WITNESS: Yes.
` MR. SANDFORD: Okay. Can you turn the
`page, please, to the page ending in Bates number
`898.
` THE WITNESS: Okay.
`BY MR. SANDFORD:
` Q What is shown on this slide?
` MR. VITT: It's beyond the scope and lacks
`foundation.
` THE WITNESS: It says that HNB appears to
`have potential and should be explored further.
`BY MR. SANDFORD:
` Q And then below -- and below the title of
`this slide, it identifies four reasons for exploring
`heat-not-burn further, right?
` MR. VITT: It's beyond the scope, lacks
`foundation.
` THE WITNESS: That appears to be correct.
`BY MR. SANDFORD:
` Q Okay. And the first reason identified
`is -- for exploring heat-not-burn further is that
`consumers appear receptive to heat-not-burn, right?
` MR. VITT: Beyond the scope and lacks
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` THE WITNESS: Yes.
` MR. SANDFORD: And the date of this
`presentation is January 2017.
` Q Is it true that as of January 2017, RJRT
`did not have a next-generation electronic
`heat-not-burn system in development?
` MR. VITT: It's beyond the scope.
` THE WITNESS: That would be my
`understanding based on the slide.
`BY MR. SANDFORD:
` Q Do you have any reason to dispute that the
`slide says RJRT did not have a next-generation
`electronic heat-not-burn system in development as of
`January 2017?
` MR. VITT: It's beyond the scope.
` THE WITNESS: I would not be aware of one
`personally.
` MR. SANDFORD: Will you please turn the
`page, to the page ending in 897.
` Q And on this slide, RJR -- or let me back up
`a second.
` On this slide ending in Bates number 897,
`RAII is exploring three key issues with respect to
`heat-not-burn, right?
` MR. VITT: Beyond the scope, lacks
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`

`

`Case 1:20-cv-00393-LMB-WEF Document 1468-6 Filed 04/05/23 Page 7 of 9 PageID# 40810
`CONFIDENTIAL BUSINESS INFORMATION
`Transcript of Nicholas Ray Gilley, Corporate Designee & Individually 43 (169 to 172)
`Conducted on December 3, 2020
`169
`
`171
`
` But in January of 2017 our product
`portfolio was not the same as it is today.
`BY MR. SANDFORD:
` Q Do you understand this slide to mean that
`RAII would be at a competitive disadvantage relative
`to its competitors in the heat-not-burn market given
`its underinvestment in heat-not-burn technology?
` THE WITNESS: I think Tom has lost
`communication.
` MR. VITT: Can you all hear me?
` MR. SANDFORD: Let's go off the record for
`a second.
` (Discussion held off the record.)
` THE VIDEOGRAPHER: Going off the record at
`12:23.
` (A recess was taken from 12:32 p.m.
` to 12:35 p.m.)
` THE VIDEOGRAPHER: Back on the record,
`12:35.
` MR. SANDFORD: Before we had a -- a
`technical issue, Mr. Gilley, we had a question
`pending, so I'm just going to reask it.
` We were discussing the summary sentence on
`the slide of Exhibit 18 ending in 898 that said
`should the heat-not-burn emerge in the U.S., RAII
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`foundation.
` THE WITNESS: Correct.
`BY MR. SANDFORD:
` Q And those competitors would include
`Philip Morris, correct?
` MR. VITT: It's beyond the scope.
` THE WITNESS: I assume Philip Morris would
`be a competitor, correct.
` MR. SANDFORD: And then at the bottom
`there's a summary sentence.
` Q Do you see that on the slide?
` MR. VITT: Beyond the scope.
` THE WITNESS: Yes.
`BY MR. SANDFORD:
` Q And the slide summarizes by saying "Should
`the heat-not-burn market emerge in the
`United States, RAII would be exposed given its
`underinvestment relative to competitors," correct?
` MR. VITT: Beyond the scope, foundation.
` THE WITNESS: Yes.
`BY MR. SANDFORD:
` Q And has the heat-not-burn market emerged
`since January 2017 in the United States?
` A Since January 2018?
` Q Well, the -- the date of this presentation
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`is January 2017, so that's what I was referencing.
`So I'll ask my question again.
` Has the heat-not-burn market emerged in the
`United States since January 2017, the date of this
`presentation?
` MR. VITT: Objection to form.
` THE WITNESS: Products in the heat-not-burn
`space have been introduced by competition since
`January of 2017 in the United States.
`BY MR. SANDFORD:
` Q And RAII has been exposed because of its
`underinvestment in heat-not-burn relative to its
`competitors in the United States, correct?
` MR. VITT: Objection to form, beyond the
`scope.
` THE WITNESS: I'm not exactly sure what is
`meant by the word or the term "exposed."
`BY MR. SANDFORD:
` Q What do you understand "exposed" to mean as
`it's used on this slide?
` MR. VITT: Lacks foundation, beyond the
`scope.
` THE WITNESS: I suppose it would be they
`would have a heat-not-burn product that would be new
`to the market.
`
`would be exposed given its underinvestment relative
`to competitors.
` Q And the question that was pending is, did
`you understand this statement to mean that RAII
`would be at a competitive disadvantage -- at a --
`the question that was pending was, do you understand
`this slide to mean that RAII would be at a
`competitive disadvantage relative to its competitors
`given its underinvestment in heat-not-burn
`technology?
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` MR. VITT: It's beyond the scope and lacks
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`foundation.
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` THE WITNESS: I believe my answer was,
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`2017, that may have been the interpretation at that
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`time.
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`BY MR. SANDFORD:
`17
` Q So based on the heat-not-burn product
`18
`portfolio that RJRTC had in January 2017, it was at
`19
`a competitive disadvantage relative to its
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`competitors in the heat-not-burn market, correct?
`21
` MR. VITT: Beyond the scope and lacks
`22
`foundation.
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` THE WITNESS: I would say more based on the
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`alternative nicotine product portfolio that RJRV had
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`Case 1:20-cv-00393-LMB-WEF Document 1468-6 Filed 04/05/23 Page 8 of 9 PageID# 40811
`CONFIDENTIAL BUSINESS INFORMATION
`Transcript of Nicholas Ray Gilley, Corporate Designee & Individually 68 (269 to 272)
`Conducted on December 3, 2020
`269
`
`271
`
`related to the iQOS system was reviewed both from a
`performance standpoint as well as from an IP
`standpoint. I'm not sure what the details of that
`were provided. I'd have to review the records with
`counsel.
`BY MR. SANDFORD:
` Q Was the information about the technology
`related to the iQOS system -- has that ever been
`provided to Reynolds' patent counsel?
` MR. VITT: Beyond the scope, lacks
`foundation.
` THE WITNESS: I would imagine it has been,
`yes.
`BY MR. SANDFORD:
` Q Now, the Vuse products we discussed
`earlier, the -- well, do you know specifically who
`it was provided to on Reynolds' patent counsel team?
` MR. VITT: It's beyond the scope.
` THE WITNESS: Most likely --
` MR. VITT: Lacks foundation.
` MR. SANDFORD: I'm sorry. I think -- go
`ahead. There was some overlap there, Mr. Gilley. I
`don't think your answer was recorded.
` THE WITNESS: Reynolds' patent counsel is
`Drew Lees.
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`level, but I don't -- I don't recall a detailed
`analysis.
`BY MR. SANDFORD:
` Q Do you know whether anyone at Reynolds has
`disassembled an iQOS system?
` MR. VITT: Beyond the scope.
` THE WITNESS: I do believe our R&D
`department has reviewed the iQOS system.
`BY MR. SANDFORD:
` Q Do you know -- for what purpose did the R&D
`department review the iQOS system?
` MR. VITT: It's beyond the scope and lacks
`foundation.
` THE WITNESS: To the extent of my
`knowledge, it would just be general comp intel to
`understand the product performance.
`BY MR. SANDFORD:
` Q And "comp intel," you're referring to
`competitive intelligence on the iQOS system?
` A That is correct.
` MR. VITT: Sorry.
`BY MR. SANDFORD:
` Q Are there any other purposes that you're
`aware of why the R&D department was tearing down an
`iQOS system?
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` MR. VITT: Beyond the scope.
` THE WITNESS: Again, I'm not a -- I'm not a
`scientist or an engineer within the R&D department.
`There could have been other reasons, but I wouldn't
`be aware from a business standpoint.
`BY MR. SANDFORD:
` Q Do you know if anyone at Reynolds provided
`an iQOS system to patent counsel?
` MR. VITT: Beyond the scope.
` THE WITNESS: I would imagine there would
`have been a technology review of the IP associated
`with it, but I do not know the details around that.
`BY MR. SANDFORD:
` Q What do you mean, "a technology review of
`the IP associated with it"?
` MR. VITT: Beyond the scope.
` THE WITNESS: Again, I don't want to
`speculate about what has and hasn't been provided to
`counsel.
`BY MR. SANDFORD:
` Q You don't know one way or the other whether
`Reynolds provided an iQOS system to its patent
`counsel?
` MR. VITT: Beyond the scope.
` THE WITNESS: I think the technology
`
`BY MR. SANDFORD:
` Q To your knowledge, did Mr. Lees receive
`information related to the iQOS system from
`Reynolds?
` MR. VITT: You can answer that yes or no.
` We're not going to get into any discussions
`or specific communications with Drew Lees about the
`iQOS system. And it's beyond the scope and it lacks
`foundation.
` Don't speculate either.
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` THE WITNESS: Yeah, I don't want to -- I
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`conversation with Drew.
`13
` MR. SANDFORD: And I wasn't asking about,
`14
`to be clear, any discussions or -- that you may or
`15
`may not have had with Mr. Lees, but --
`16
` Q Now, the -- the Vuse products we discussed
`17
`earlier, they're all currently still on the market,
`18
`right?
`19
` A Can you be specific?
`20
` Q Sure.
`21
` RJRV is still selling the Solo, Vibe, Ciro,
`22
`and Alto as of today -- right? -- in the
`23
`United States?
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` A Yes, we are.
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`Case 1:20-cv-00393-LMB-WEF Document 1468-6 Filed 04/05/23 Page 9 of 9 PageID# 40812
`CONFIDENTIAL BUSINESS INFORMATION
`Transcript of Nicholas Ray Gilley, Corporate Designee & Individually 69 (273 to 276)
`Conducted on December 3, 2020
`273
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`275
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`question again, Mr. Gilley.
` And that's fine, Tom.
` Q When was the last time you personally used
`the iQOS device?
` A The only time I've tried the iQOS device
`was in the Lenox Mall iQOS store in Atlanta, at
`which time I discussed the product with them, was
`engaged by them, told them I did not smoke, but they
`still let me try the device and I tried a
`consumable.
` Q Okay. Other than that -- that one
`consumable, you've never used the iQOS device on a
`regular basis?
` A That is correct.
` Q Now, you mentioned earlier that you had
`read the -- or skimmed the two patents that RJR is
`asserting in this case, right?
` A Correct, briefly.
` Q And you don't have any opinions on whether
`the iQOS device infringes those claims of those
`patents?
` MR. VITT: It's beyond the scope and lacks
`foundation.
` THE WITNESS: I would rely on an expert to
`make that determination.
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` Q Okay. Are you aware of any plans to stop
`selling those four products in the United States?
` MR. VITT: Beyond the scope.
` THE WITNESS: No, I'm not aware of any
`plans to stop selling those products in the
`United States.
` MR. SANDFORD: You mentioned earlier that
`there had been competitive testing done on the iQOS
`system at Reynolds.
` Q Do you know who specifically was involved
`in performing that competitive testing or analysis?
` MR. VITT: Objection to form, beyond the
`scope.
` THE WITNESS: I'd have to reach out to the
`research and development team to see who led the
`project.
`BY MR. SANDFORD:
` Q You don't know one way or the other sitting
`here today of any names?
` MR. VITT: Beyond the scope.
` THE WITNESS: I do not know the name.
`BY MR. SANDFORD:
` Q Now, do you smoke, Mr. Gilley?
` MR. VITT: Beyond the scope.
` THE WITNESS: Not anymore.
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`BY MR. SANDFORD:
` Q And you don't have any opinions one way or
`the other as to whether any of the -- of the claims
`of those patents are valid, right?
` MR. VITT: It's beyond the scope, lacks
`foundation.
` THE WITNESS: Yeah, I'd rely on an expert
`to make that determination.
`BY MR. SANDFORD:
` Q Are you familiar -- and do you understand
`0
`in this case that the defendants are also asserting
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`patents against the Vuse products?
`12
` MR. VITT: It's beyond the scope.
`13
` THE WITNESS: Yes.
`14
`BY MR. SANDFORD:
`15
` Q Have you read -- read any of those patents
`16
`that are being asserted against the Vuse products in
`1