00340-20020122 Mayers Decl

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I, SeanL. Mayers, hereby declare:

My nameis SeanL. Mayers. reside in Toronto, Canada.

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2

I am the co-founderandthe Chief ExecutiveOfficer of J!VE Media

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Technologies, Inc. ("J!VE Media"), a company incorporated in 2000 under the

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laws of the Provinceof Ontario,Canada,andhaving its registeredoffice in

6 Toronto, Ontario, Canada. ,.

3.

I hold a Mastersin BusinessAdministrationfrom Queen'sUniversity,

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Kingston,Ontario,Canada,andCertificationin CompetitiveMarketingStrategy

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from WhartonBusinessSchoolin Philadelphi~Pennsylvania.

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4.

Beforejoining J!VE Media, wasthe BusinessDevelopmentManager

for Hotline Communications Ltd, a company that focused on file-sharing software 12 applications.Beforethat, wasthe Marketing,Media and SalesDirector of 13 Ticketmasterin Canada. have over ten years of businessexperiencein the 14 internetentertainmentindustry,duringthe last four yearsof which I have IS

specializedin businessopportunities in the peer to peer and distributed computing

16 communitiesof the internet.

5. J!VE Media is the creatorof a suiteof digital video packaging,digital . 18 rights management, andmediadelivery services,which enablecontentprovidersto 17

19 distributetheir video contentvia file-sharingon open,decentralized peer-to-peer 20 networks and instant messagingcommunities. We specialize in three types of 21

services: first, safeguardingand customized digital packaging of clients' video

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content; second,distribution of enhancedvideo content using the file sharing

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softwareof our SyndicatedDistributionNetwork Partners;andthird, trackingof

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our clients' enhancedvideo content.

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6,

J!VE Media relieson the file sharingsoftwareof the membersof our

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SyndicatedDistribution Network to distribute content provided by our clients.

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I!VE Media's SyndicatedDistribution Network Partners include LimeWire,

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Grokster, MusicCity, and other peer to peer technology leaders By usingthe file DECLARATION

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OF SEAN [MAYERS

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IN SUPPORT OF DEF~DANT'S

MOTION FOR PARTIAL SUMMARY

1416528 -t

JUDGMENT

CASE NO.: 01..08541 SVW (PJWx)

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1 sharing software of its Syndicated Distribution Network Partnersto distribute 2

content,J!VE Media is ableto distributeour clients' contentto the 17million

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computersthat currentlyusepeerto peerfile-sharingnetworks.

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7.

I!VE Media's clientsarecontentproviderswho arewilling to have

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their J!VE Media protected content distributed by users of peer to peer file sharing

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software, including the millions of users of the Morpheus, KaZaA and Grokster

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applications.

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8.

Existing open,decentralizedpeerto peerfile-sharingnetworks,when

9 combinedwith the servicesofferedby J!VE Media, offer contentownersdistinct 10 businessadvantagesover alternate online distribution technologies. Streaming and 1

centralized downloads representthe two most common forms of online distribution

12 used by content owners today. Each has distinct drawbacks. 13

9.

Distribution via streamingusually involvesrepeatedaccessto content

14 by consumers, which in turn resultsin networkcongestion,degradedcontent 15 quality and high bandwidth costs for content providers.

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10.

Similarly, offering downloadsfrom controlledwebsitesentails

considerablebandwidth,datastorage,andmaintenancecosts,asthe burdenof

18 providing these resourcesfalls entirely on the content provider. 19

11.

By utilizing existing peer to peer file-sharing networks, in contrast,

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content owners are able to rely almost entirely on users to provide the most costly

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computing resourcesinvolved in digital distribution: data storageand bandwidth.

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I!VE Media's technology, meanwhile, provides the elementsof security and

23 control that content owners desire.

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12.

The flagshipproductof J!VE Media is theJ!VE PlayerPortable

25 Media File fomlat. This productallows J!VE Media to individually packagemusic

26 videos, television and movie segmentsprovided by content providers, with .2J commercial sponsorshipand advertising selectedby our clients.. 28

-3DECLARATION

SEANL. MAYERS IN SUPPORT OF DEFENDANT'S

l MOTION FOR PARTIAL SUMMARY J

CASE NO.:OI-O8S41 SVW(PJWx)

- 220-

.}

J!VE PlayerPortableMedia Files areuniquein severalrespects.

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2 First, they are designedto be downloaded by consumers,played and shared. The 3

files arecompressed to makethem attractiveto consumersandto facilitate sharing

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betweeninternetconsumersof peer-to-peernetworks,instant-messaging

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communitiesor via an emaillilik.

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14.

Second,digital rights managementin the files protect our clients'

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valuable video content. J!VE Media also tracks the distribution of our digitally

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wrapped content and reports on content distribution and promotional penetrationto

9 our clients. 10-

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Third, J!VE -Pla~r Portable Media files allow content.providers to

11 incorporate weblinks to e-commercesites and can embed commercials which

12 dynamicallychange,dependingon the contentbeingviewed by the consumer. 13

16.

Finally, sinceJ!VE Media distributesonly authorizedcontent,J!VE

14 PlayerPortableMedia Files provide consumerswith the experienceof watching IS

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very high-quality, fIrSt-generationvideo content. 7.

A variety of content owners have recognized and embracedthe

17 opportunities presentedby combining open, decentralizedpeer to peer file-sharing 18 networks with J!VE Media's technology. J!VE Media has concluded agreements:

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(a)

With the Priority Records division of the EM! Recorded Music

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Group to packageand distribute the promotional music video track

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"My Baby" by the well-known musical artist Lil' Romeo. J!VE

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Media seededthe Gnutella/ Lime Wire peer-to-peer network with the I

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enhancedvideo file. The file thenspontaneouslyspreadto the

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FastTrackusers'network (comprisedof usersof the Morpheus,

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KaZaA andGrokstersoftware).This promotionwas extremely

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successful. By November 2001, over 400,000 unique downloads

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had beenrecorded, of which 600/0took place on open, decentraliZed

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peer-to-peernetworks; -4-

141652S_1

IN SUPPORT OF DEFENDANT' CASENO.:OI-QSS41

MOTION FOR P

SVW(PJWx)

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(b) 2 3

With Koch International, the world's third largest independent music label;

(c)

With CHUMCity Interactive, the media arm of Canada'sCHUM

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Television, which owns the 24 hour music channelMuchMusic, to

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packageand distribute severalof its proprietary television programs

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including the Movie Television and Fashion Television channels;

,.

(d)

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With The ComedyNetwork, Canada's24 hour comedy cable channel,for television content; and

(e)

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With Icebox Animation, the creatorsof the popular animatedhits "Zombie College," "Mr. Wong" and" StarshipRegulars"to packageand distribute selectedworks.

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18.

J!VE Media is also currently exploring promotional and distribution

opportunities with contactsfrom severalmajor motion picture studios and large

14 United States' and Europeantelevision networks. 15

19.

J!VE Media's businessdependsupon peer to peer file sharing

16 networks, including the networks formed by the community of usersthat employ 7 the software producedby the defendantsin this case. 18

declareunder penalty of perjury under the laws of the United Statesof

19 America that the foregoing is true and correct and that this declaration is executed 20 in Toronto, Canadaon

~AtIl,4;~

11.{

,2002

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-5-1416528 DECLARA-noN OF SEAN i:: MA YERSIN SUPPORTOF DEFENDANTS MO-noNFOR PARTIAL SUMMARY JUDGMENT _.~

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