Free Motion in Limine - District Court of Arizona - Arizona

EXHIBIT D

Case 2:04-cv-00400-PGR

Document 164-5

Filed 04/13/2007

Page 1 of 4

UNITED STATES DISTRICT COURT

Hypercom Corporation, Plaintiff, -vsVerve L.L.C., and Omron Corporation, Defendants.

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Cause No. CV04-0400 PHX PGR

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VIDEOTAPE DEPOSITION OF DOUGLAS J. REICH, HXPERCOM CORPORATION

SHARRON L. MCPARTLIN AZ CCR #50496 CA CSR #6740

Case 2:04-cv-00400-PGR

Document 164-5

Filed 04/13/2007

Page 2 of 4

Page 39

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My recollection was that they did not believe

that there was infringement by our terminals of the patents that at that time were alleged against Hypercom. Q. So they agreed with you that there was no

infringement of the patents?
A. Well, it wasn't obvious that there was

infringement.

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Q.

Okay.

Clarify that a little bit. What led

you to believe that they were making or taking that position? A.
Q.

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I don't recall specifically.
Was there a statement by Mr. Kerner or

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Mr. Nakano that regarding non-infringement?

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A.

Oh, I don't recall at the time. You know,

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they may have reserved their evaluation of it, but we clearly demonstrated why we believed they didn't infringe the patents that were at that time being asserted against us. I am not sure that there was much conversation about the actual infringement because we didn't really go into that much detail about the claims in the patents. I think there was some conversation about it, and we attempted to go through maybe one or more of the patents, but it became obvious that that was going to be a very lengthy process. And then we got down to more of
am

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Case 2:04-cv-00400-PGR

Document 164-5

Filed 04/13/2007

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Page 40
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a discussion about well, how can we resolve this matter between us and Verve. Q. Okay. Is that when Herb, or Mr. Kerner, or

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Mr. Nakano made some sort of demand of money or -A. Q. A. Yes. -- some amount to settle the lawsuit? Yes.

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Q.

And what was your reaction, or what was

Hypercom's reaction to Herb's -- I'm sorry, I keep saying Herb, to Mr. Kerner's statements? A. We certainly didn't believe that we infringed

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the patents that were being asserted against us, and we weren't inclined to pay anything for a license or other right to utilize patents that we weren't infringing.
Q. Okay. So you weren't there to offer any

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counteroffers of money to license the patents or to get rid of these lawsuits; correct?

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A.

We did not make any offers to pay licensing

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fees or royalties to Omron or Verve in that meeting. Q. Okay. So was the purpose of the meeting then

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really to try to convince Omron that Hypercom was not infringing these particular patents? A. I would say that was one of the purposes of

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the meeting. Q. Okay. What were the other purposes?
Document 164-5 Filed 04/13/2007 Page 4 of 4

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Case 2:04-cv-00400-PGR