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2Andrew P. Bridges, State BarNo. 12276.1IlRich.ard Nessary, State Bar No. 180682Je~erA. Golirivea~ State Bar No. 203056Tern Y. Che~ ~tate BarNo. 209854AlexanderD. MacGillivray, StateBar No. 2127704 I Wll.,SON SONSINI GOODRICH & ROSATIProfessional Co:rporation1 650 PageMill Road5 Palo Afto, CA 94304-1050

- ITelephne:650) 493-9300Facsimile: (650) 493-6811

3

67 Cindy A. Cohn, State Bar No. 1459978 Fred. von Lohnlan,n" State Bar No. 192657Robm D. Gross~tate Bar No. 2007019 1 ELECfRONICrKONTIERFOU ND ATION

454 Shotwell StreetI SanFrancisco CA 9411010 I Telephne:415)436-9333 123: Facsimile: 415)436-999311

12 'JosephR. Taylor, State Bar No. 129933Jeffrey K. Compto~ State Bar No. 14296913 1 MaxJ. ~precher\StateBarNo.169285LINER Y ANKELEVITZ SUNSlllNE & REGENSTREIF14 1 3130 Wilshire Boulevard.Suite200SantaMonic~ CA 90403I Telephone: (310) 881-2192Facsimile: (310) 453-5901516 Attom~s for Defendants17 I MusicCity.com, Inc. (now known asStream astNetworks~lnc.)andMusicCity Networks, InC.18 UNITED STATESDISTRICT COURT19 CENTRALDISTRICTOFCALIFOR~ WESTERNDMSION2021 CaseNo. 01-08541SVW (pJWx)ETRO-GOLDWYN-MA YERSTUDIOS NC., et aI.,223 Plaintiffs,24 vs.25 GROKSTER,Lill., et al.,

l.16 Defendants.

lvIEMORANDUM OF POINTS ANDAUTHORITIES OF DEFENDANTSSTREAMCAST NETWORKS, INC.(FOR1vlERL Y KNOWN ASMUSICCITY .COM INC.) ANDMUSICCITYNETWORKS INC. INSUPPORT OF MonON FOR PARTIALSU1\I1IvIAR Y JUDG:MENT.DECLARAnONS OF DARRELLSlvfirn.Wll..LIAMCLA Y SmRKYANDREW P. BRIDGES, G~GOR Y2728

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NEWBY M. TALLY GEORGE SEANL. MA %RS, JOHN PERRY BARLOW,BREWSTER KAm..E. RICHARDPRELINGEK STEVEW. GRIFFIN ANDRICHARD NESSARY IN SUPPORT OFMOTION2345 rNotice of Motion and MorioI!, andStatement of Uncontroverted Facts andConclusions of Law, filed concuuentlyherewith],. Date:Time:Ctml:

Feb.ruary 5,20021 30 p.m.6 (Spring'Street)Hon. StephenV. Wilson9.1.0

11213141516171819202112132425262728

Memoran urn m0082006/001/90045v1 (pJWx)

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1 I, Darrell Smith, herebydeclare:2 1. Myname s Darrell Smith. I reside n Scottsdale,Arizona.3456

2. I am the Chief TechnologyOfficer of MusicCity. I am the chiefsoftware developerat MusicCity for the softwareprogram called "Morpheus."3. Before working with MusicCity, I was Vice Presidentof Developmentat Motion Pixel, Inc. and Sirius Publishing, nc., where developedadvanced

7 video compression nd playbacksoftware or use n the telecommunications,890

123

personalcomputersand motion picture ndustries.4. The Morpheussoftwareprogram s a communications ool that allows

users o connect ogether o form a usernetwork. Using the Morpheussoftwareprogram,usersmay search or and shareany kind of computer ile (including text,images,audio, video, and software iles) with any other user of the network. Thenetwork itself creates ndexesof resources vailable o it, without relying upon a

14 central server o index the entire network. The Morpheussoftwareprogram also5 has he ability to sendand receive nstantmessages ithin the network, to organize6 media files on one's own computer,and o display or play the contentsof media

17 files on one's computer.181920

5. The network createdby usersof the Morpheus softwareprogram andthe programsof the other defendants)s "self-organizing," in that the userscommunicatewith eachother without assistancerom MusicCity. The network

21 itself sharesand updates nformation, and allocatesdifferent resources s needed.22 6. The usernetwork consistsof usersof the Morpheus,KaZaA, or23 Grokster softwareproducts.24 7. One particularly useful and nnovative featureof the network created25 by usersof the Morpheussoftwareprogram s the "dynamic," or variable, use of2627

"supernodes." A "node" is an end-pointof the Internet, ypically a user'scomputer. A "supernode" s a node hat has a heightened unction, accumulating

28 information from multiple other nodes. In the network created by users of the-2-' 1411-- - .~..DECLARATION OF DARRElJ. SMITH IN SUPPORT OF DEFENDANT'S ManON FOR PARTIAL SUMMARY JUDGMENTCASE NO.: 01.08541 SVW (PJWx)

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Morpheus softwareprogram,nodesbecomesupemodes nd may revert to beingmere nodesdependingupon network demands nd he nodes' ability to take onheavier network duties. The network self-selects upemodes; user's node may bea supemodeone day and not on the following day, dependingon resourceneeds5 and availability on the network.

8. Supemodes elp the network operateefficiently by aggregatinginformation from many nodesso hat eachnode,by searchingone supemode,

67

needs o connectwith fewer other nodes o find resources.9 9.

10 o. MusicCity doesnot operateany supemodes.When a user nstalls he Morpheussoftwareprogram, he program11 comeswith an initial list of supernodes,ust as a browser generally comespre-

loadedwith a list of popular web site addresses nd Internet serviceproviders.2When the person'scomputer irst connects o one of the supemodes,he supemode3

1415

updates he initial list that camewith the program.11. When a user irst operateshe Morpheussoftwareprogram, t interacts

16 briefly with MusicCity's server o establisha usemameand password. MusicCity7

1819

itself doesnot use he usemame r password or any purpose; nstead, heusemame dentifies the user uniquely to other memberswithin the user network. Ifthe software cannotaccesshe MusicCity server, he user may still accesshe user-

2021

creatednetwor~ but the user's usemamewill not be properly displayedand otheruserswill not know that this is the sameuser who has connectedbefore. Indeed,

22 this has happenedmany imes when MusicCity's servershave beenunavailable.23242S

12. After attempting o submit he user's usemame and even fMusicCity's server s unavailable), he Morpheussoftwareprogram connects o theuser-created etwork by connecting o anotheruser who is functioning at that time

26 as a supemode.To search he network, the Morpheussoftwareprogram sendssearch equests o a supemode;he supemode eports esults rom the nodesandsupemodeswith which it communicates.

2728

-3- 1417592DEa.ARAnON OF DARRELLSMl'ni IN SUPPORT F DEFENDANT'SMOTION FOR PARTIAL SUMMARY JUDGMENTCASENO.:OI~I SVW(PJWx)

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1 13 A user who wishes o locate a file on anotheruser's computerentersa23

search eml into a search equestpage. The softwareconnects he user o asupemode,which searches ther nodesconnected o it and, f necessary, ther

4 supemodes.The local supemodehen sends o the requestera list of other userson5 the network who have iles that are associatedwith the search erms.678

14. MusicCity hasno involvement n making search equests,maintainingfile indexes,processingsearch equests, ompiling search esults, sendingsearchresults o a user, controlling searches r displaysof results, or monitoring searches

9 or displays of results.10 15. Next, to obtain files, a user of the Morpheussoftwareprogram selects1114

files from the search esultsand connectsdirectly to the other users' computersanddownloads he files directly from the other users' computers. MusicCity's servers

13 are not involved in identifying locations hat host user iles, requesting hose iles45

.167

18

for transfer,communicatingwith the host users, ransferring iles from one user oanother,controlling or monitoring transfersof user iles, or controlling ormonitoring management r use of files. MusicCity's servershave no knowledgeofparticular files being transferredamongusers.

16. MusicCity's involvementwith use of the Morpheus softwareafter19 delivery of the software s very limited. The softwarecontains wo components20 that activate he user's Microsoft Internet Explorer "browser" softwarewhen the212223

software s running on a user's computer, egardless f any activity by the user.One componentcalls on MusicCity's servers o obtain changeable ackgroundgraphics orth~ "start" page of the Morpheususer nterface. The background

24252627

graphicsmake he softwareuser nterfaceattractive,give MusicCity the chance obroadcastmessageso Morpheussoftwareusers,and permit advertising. The othercomponentcalls on other serversof MusicCity or other companies,which sendadditional advertisementsnto a window at the bottom of the software's user

28 interface.-4- 1417592Ea.ARAnON OF DARRELL SMl'ffi IN SUPPORT F DEFENDANTSMOnON FORPARnAL SUMMARYffi ooMOO ~

CASENO.:Ol~1 SVW(PJWx)

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17. Both the "start" pagegraphicsand he advertisements re obtainedbythe user's Microsoft Internet Explorer programwhenever he Morpheus software

3 program s running and s connectedo the usernetwork, regardlessof the activityof the user.5

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18. Thus, even f one engagesn no searching,sharing,downloading,orplaying of media iles, the graphicsand advertisingwill be displayedon thesoftware nterface.

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1019. Once a userhas obtained he Morpheus softwareprogram, neither

MusicCity nor any of its computerserversparticipates n, or contributes n anyway to, the transferof media iles on the network createdby usersof the Morpheussoftwareprogram.

12 20. As noted above,once he user obtains he Morpheus softWare1314

program,MusicCity has no involvement n any of the steps or searchingand hetransfer of files. In addition, he Morpheussoftwareprogram doesnot

IS16

communicate o MusicCity or its serversany information aboutpossession,eceipt,transfer,searching,or indexing of the media iles by the user. Nor does t use

17 MusicCity or its servers o search or, index, transfer,download, manage,display18 or play any files of the Plaintiffs' media content.192021

21. To foster a sense f community amongusersof the Morpheussoftwareprogram,MusicCity operates t its web site a chat serviceand adiscussionboard, but the Morpheussoftwarehasno direct connection o those

2223

services. A user of the softwaremay click on a link displayed n the "Start" pagegraphical nterface n order to go to MusicCity's web-based hat or discussion

242526

services,but the accesso thoseservices s through a web interface hat existsregardless f whetherone arrives rom the Morpheus nterfaceor directly from theweb via its Internet addresswww.musiccity com. Morpheususernames nd

27 passwordsdo not gain accesso the chat and discussionservices; one must register28 a usemameand passwordseparately or those services.-5- 1417592)DECLARA nON OF DARREll. SMrm IN SUPPORT OF DEFENDANT'S MDnON FOR PARnAL SUMMAR Y-ruDGMENT

CASE NO.: 01-48541 SVW (pJWx)

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In sum, once a user has nstalled a copy of the Morpheus software22.2 program,MusicCity haSno effective nvolvementwith or control over what a user3 doeswith the program.Usersmust elect o nm the software, detenninewhat (if4 any) files they wish to store on their hard drive or to share,decide what bandwidth5 to allocate o the application,and ndicatewhether hey may be designated o serve67

as a transientsupemode.Usersdecidewhether o use he software o join andform a public, user-created etwork. Usersdecidewhether o search or, find,

8 send,or receive iles over the user-created etwork. The Morpheus product does9 not report any nformation about a user's conduct o MusicCity's servers. It sends

101

only usemame/passwordnformation when he user starts unning Morpheus.23. If MusicCity ceasedo operate, f its serversbecame noperative as

1213

has happened n occasionowing to technicalmalfunctions or maintenance) r ifall network connectionso MusicCity are severed, he searching, ndexing,

4 transferring,downloading,managing,di~lay andplay functions of the softwarewould continueunaffected.S

16 24. The only changeswould be that (I) the display of advertisements ndthe display of graphicson the softwareuser nterfacewould be interrupted,and (2)the user's usemamewould be displayedon the usernetwork without identifying

71819 the user as using he Morpheussoftwareprogram.20 25. MusicCity doesnot "operate" he Morpheususer network, and t does21 not operatea file-indexing service. Morpheussoftwareprogram userscan (and, n2223

fact, do) take advantage f the program's ull communication unctionality withoutMusicCity's continuing nvolvement. Even when MusicCity's servershavebeen

242S

down, Morpheususehasbeenongoing, with Morpheususersable to fmd anddownload Iles on their own.

262728

26. The Morpheusproduct s widely available rom third parties on itsuser-created etwork or the Internet at large. MusicCity cannot reliably stop aparticular personor computer rom obtaining a copy of the Morpheusproduct.

-6- 1417592DECLARAnON Of DARRELL SMmi IN SUPPORT OF DEFENDANT'S MOTION FOR PARTIAL SUMMARY JUDGMENT

CASE NO.: 01-08541 SVW (pJWx)

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27. A variety of relateddigital technologies, omeof which may be used23

in conjunction with Morpheus,may equally be accusedof being "essential ools"for copying files and other data egardless f the legal statusof those iles. Theyinclude: high-speed ommunications evicessuch as DSL and cable modems,a)

favoredby thosewho want to downloadvideo or sound iles;browsersoftware suchas Microsoft Internet Explorer or Americab)Online's NetscapeCommunicator), or viewing, editing and copyingfiles that are posted o the Web;serversoftware suchas Microsoft Internet Iilformation Serverand0 c)ApacheHn"P Server) or distributing content across he Internetmedia player software suchas Microsoft Media Player), for viewing2 d)

13e)4

and displaying media iles;e-mail and nstantmessaging oftware, avored by thosewho want tosendor receive iles privately;5

16 f) internet relay chat servers, ommonlyused or file-sharing activities;news roup software often bundled nto e-mail software), avored byg)thosewho want to chooseand downloadmusic and video files from

9h}")

20newsgroups;file transferprotocol software or obtaining files over the Internet;

21 scanners,ax modems,and printers, or those who want to copyand/or ransmit magesover the Internet and otherwise;and2

j)3 large-capacity toragedevicessuchas hard drives, CD-ROM burners,DVD burners,and Zip drives, and heir recording media, avored by4

2526

thosewho want to keep ibraries of video or sound iles.28. Attachedheretoas Exhibit A is a true and correct copy of a print-out

of the screendisplaysof the Morpheussoftwareprogram's "Start" interface.728

DECLARA 'noN Of DARRELL SMITH D-I SUPPORT Of DEFENDANT'S MOTION FOR PARTIAL SUMMARY JUDGMENTCASE NO.: 01.01541 SVW (pJWx)

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JAH-21-2882 87:35 PM DESERT DIRECT 602 494 2869 P.82

1234s

29. Attached hereto as Exhibit B is a true and correct copy of a print-outof the screendisplay of the Morpheussoftware program's J'Search" nterrace.

I declareunder penalty of perjury under the laws of the United StatesofAmerica that the foregoing is true and correct and that this:declaration s executedin Scottsdale, rizonaon ~"d~"1 ~I t 2002.

67 r..I89 DarrcllSmith

1011121314151617181920212223242..~26272H

-8- 1417-"2_1~ mN -op-DAU.EU. SMn1i ~ SUPPORT ' DEPBNDANT'S ManoN R)R t ;,anAL SUMMAR V JUOOMEHrCASIII>': OI~l SVW (PJWx)