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Case: 1:10-cv-08103 Document #: 429 Filed: 08/23/13 Page 1 of 20 PageID #:24812 1876

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IN THE UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF ILLINOIS EASTERN DIVISION GAMES WORKSHOP LIMITED, ) ) Plaintiff, ) ) vs. ) ) CHAPTERHOUSE STUDIOS, LLC, ) et al., ) ) Defendants. )

Docket No. 10 C 8103 Chicago, Illinois June 14, 2013 11:45 a.m.

VOLUME 10 TRANSCRIPT OF PROCEEDINGS BEFORE THE HONORABLE MATTHEW F. KENNELLY AND A JURY APPEARANCES: For the Plaintiff: FOLEY & LARDNER, LLP BY: MR. JASON J. KEENER 321 North Clark Street Suite 2800 Chicago, Illinois 60610 WINSTON & STRAWN, LLP BY: MR. IMRON T. ALY 35 West Wacker Drive Chicago, Illinois 60601 MARSHALL, GERSTEIN & BORUN BY: MS. JULIANNE M. HARTZELL 233 South Wacker Drive Willis Tower #6300 Chicago, Illinois 60606 Also Present: MS. GILLIAN STEVENSON

For the Defendant:

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LAURA M. BRENNAN - Official Court Reporter 219 South Dearborn Street - Room 2102 Chicago, Illinois 60604 (312) 435-5785

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(The following proceedings were had out of the presence and hearing of the jury:) THE COURT: Why don't you take a couple of minutes to look at it. (Brief interruption.) THE COURT: So can I get the note back? It's 10 C 8103, Games Workshop v. Chapterhouse Studios. Can I get the lawyers' names, please? MR. KEENER: Jason Keener from Foley & Lardner for plaintiff. MS. HARTZELL: Julianne Hartzell of Marshall, Gerstein & Borun on behalf of defendant Chapterhouse. MR. ALY: And Imron Aly from Winston & Strawn. THE COURT: Okay. So let me read the note into the record. It has three items on it. The first one says: "As far as a trademark, how exact should the match be? e.g. Is Death Watch, two words, the same as Deathwatch, one word?" The second item says: "Is item 45, page 12, on the verdict sheet spelled Termagant, T-e-r-m-a-g-a-n-t, or Termagaunt, Termagaunt?" The last item says: "There are other similar examples of the one-word versus two-word versions."

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Okay. So let me hear your thoughts. MR. KEENER: Your Honor, for plaintiff, I think the response should incorporate two elements. One element is an instruction that there is no requirement for trademark infringement that the marks be used identically. And the second is that for a finding of trademark infringement, there only needs to be a showing of likelihood of consumer confusion taken into account with all the other factors in the jury instructions. MS. HARTZELL: For the defendant, we would object to the first portion of the plaintiff's proposed instruction as a new instruction, and we would prefer to refer the jury to the likelihood of confusion factors, which include a factor regarding the similarity of the marks, and instruct them that they should consider those factors to determine if there is a likelihood of confusion. THE COURT: Give me just a second here so I can write something. I'm going to tell you why I'm doing this and then get your thoughts on the language. Give me a second. (Brief interruption.) THE COURT: So, first of all, I don't think it's appropriate to kind of single out a particular factor on likelihood of confusion. Obviously, they have to consider all of them, but in terms of what I tell them, I don't think it's

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appropriate to single one out. So I agree with the defendants on this. What I would propose to tell them is, as I've -I'm not ready to send it to print yet. (Brief interruption.) THE COURT: As I have instructed you, one of the elements that Games Workshop must prove on its trademark claims is that Chapterhouse used a particular symbol or term in a manner that is likely to cause confusion about the source, origin, sponsorship or approval of Chapterhouse's products (page 15.) The factors that you are to consider in determining likelihood of confusion are listed at pages 19 and 20 of the instructions. I can give you no further instructions beyond that. So that's what I propose to tell them. So given that I have rejected the proposal to give a more particularized or pointed response, does either side have a problem with that language? MR. KEENER: A slight issue. THE COURT: Go ahead. MR. KEENER: When you say "the term," I think the jury is going to be confused. Are they talking about a term used by Chapterhouse or a term used by Games Workshop? THE COURT: I mean, I literally lifted that right out of the elements instruction. Chapterhouse used a symbol or

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term in a manner that is likely to cause confusion. I mean, I could just kind of skip over that. I can just say, as I have instructed you, the factors that you're to consider in determining likelihood of confusion on the trademark claims are listed on pages 19 and 20. MS. HARTZELL: I think we prefer the inclusion of the first sentence that makes clear how the likelihood of confusion factors are related to the trademark infringement analysis. THE COURT: Yes. I've changed my mind on this. I think that actually makes it more confusing. It just puts too much in there. So I'm changing it to say: As I have instructed you, the factors that you are to consider in determining likelihood of confusion on the trademark claims are listed at pages 19 and 20 of the instructions. I can give you no further instructions beyond that. So what about this Termagant thing? So the way I have page 12, item 45 is called Termagants, T-e-r-m-a-g-a-n-t-s. And their question was about Termagaunt, so I'm wondering there they have seen something that has a "u" in it. MS. HARTZELL: Yes. The defendants' use that is accused uses a "u." MR. KEENER: Right. He misspells it on his website

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or spells it slightly differently. THE COURT: So how the heck do I answer that? MS. HARTZELL: I think that falls within the same instruction. THE COURT: Well, so the thing that is listed over here is listed under a heading that says "Games Workshop Trademark." MR. KEENER: Right. MS. HARTZELL: And that is what they have alleged is their trademark. MR. KEENER: So one potential response would be the item listed in the verdict form is Games Workshop's asserted trademark. MS. HARTZELL: Alleged trademark. MR. ALY: With the "u," is that right? MS. HARTZELL: Without. MR. KEENER: Without the "u." THE COURT: Hang on a second. I'm just writing something and then I will read it to you. (Brief interruption.) THE COURT: With regard to your other question, the term "Termagants" without the "u," as listed on page 12 of the verdict form, item 45, is the way in which Games Workshop uses the term. Would that be --

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MR. KEENER: That's correct. THE COURT: And just period, end of discussion. Is everybody okay with that? MS. HARTZELL: Yes, your Honor. THE COURT: All right. So just stick around for a second. I'm going to print out enough copies of the letter back to them and to have one for each of you, and I'm going to have my courtroom deputy make copies of the note as well for you. So just sit tight. Let me go sign that, and I will send you off, and then I will deal with this other case. (Recess taken.)

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IN THE UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF ILLINOIS EASTERN DIVISION GAMES WORKSHOP LIMITED, ) ) Plaintiff, ) ) vs. ) ) CHAPTERHOUSE STUDIOS, LLC, ) et al., ) ) Defendants. )

Docket No. 10 C 8103 Chicago, Illinois June 14, 2013 2:35 p.m.

VOLUME 10 TRANSCRIPT OF PROCEEDINGS BEFORE THE HONORABLE MATTHEW F. KENNELLY AND A JURY APPEARANCES: For the Plaintiff: FOLEY & LARDNER, LLP BY: MR. JASON J. KEENER 321 North Clark Street Suite 2800 Chicago, Illinois 60610 WINSTON & STRAWN, LLP BY: MR. IMRON T. ALY MR. BRYCE COOPER 35 West Wacker Drive Chicago, Illinois 60601 MARSHALL, GERSTEIN & BORUN BY: MS. JULIANNE M. HARTZELL MS. SARAH J. KALEMERIS 233 South Wacker Drive Willis Tower #6300 Chicago, Illinois 60606

For the Defendant:

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Also Present:

MS. GILLIAN STEVENSON

LAURA M. BRENNAN - Official Court Reporter 219 South Dearborn Street - Room 2102 Chicago, Illinois 60604 (312) 435-5785

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correct?

(The following proceedings were had in open court in the presence and hearing of the jury:) THE COURT: Okay. You can all have a seat. I understand the jury has reached a verdict, is that A JUROR: That's correct. THE COURT: Please hand it to the officer. (Brief interruption.) THE COURT: Okay. So, first of all, I want to tell the lawyers that I will make copies for both sides. You know, there is this tradition, and I don't know if it's the rule or not that the judge is supposed to -- that somebody is supposed to read the verdict into the record. This is going to take a while. So just be patient with me. It says: We, the jury, find as follows on the claims of plaintiff Games Workshop Limited against defendant Chapterhouse Studios, LLC. So I'm just going to go through these. I'm not going to name the products; I'm just going to go by the number that's in the left-hand column. Starting off with the copyright claims, if it's "yes" on copyright infringement, I will go on and say whether it's "yes" or "no" on fair use. If it's "no" on copyright infringement, you won't hear me say anything about fair use because that box isn't

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checked off. Item number 1, the verdict is no. Item number 2, it's no. Item number 3, the verdict is yes. And on the question of fair use, the answer is no. Items number 4, 5, 6 and 7, the verdict is no on copyright infringement. Items number 10, 11 and 12, it's yes on copyright infringement and no on fair use. Item number 13, it's no on copyright infringement. Item number 14, it's yes on copyright infringement and yes on fair use. 17, 18, 19 and 20, it's yes on copyright infringement and no on fair use. 21 and 22, it's no on copyright infringement. 23 and 24, it's yes on copyright infringement and no on fair use. 27, 31, 34, 35 and 36, it's no on copyright infringement. On 37, it's yes on copyright infringement and no on fair use. On 43 and 45, it's no on copyright infringement. On 46 and 47, it's yes on copyright infringement and no on fair use. I'm going to do some skipping around here and combine

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things. On 48, 50, 53 and 56, it's yes on copyright infringement and yes on fair use. And on 49, 51, 52, 54 and 55, it's yes on copyright infringement and no on fair use. And that is also true of 57 through 62 inclusive, yes on copyright infringement and no on fair use. 63, 64 and 65, it's no on copyright infringement. On 66 and 69, yes on copyright infringement and yes on fair use. 67, no on copyright infringement. 68, yes on copyright infringement, no on fair use. And that is also the verdict on 73, 74, 75, 76, 78, 79, 80 and 82, yes on copyright infringement and no on fair use. On 83, 87 and 90, it's no on copyright infringement. On the following five products, it's yes on copyright infringement and yes on fair use. That's 94, 97, 98, 99 and 100. On 95, 101 and 102, it was no on copyright infringement. On 103, it's yes on copyright and infringement and yes on fair use. On the next three, it's yes on copyright infringement and no on fair use: 104, 106 and 108. On 111, it's no on copyright infringement.

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On 112 and 113, it's yes on copyright infringement and no on fair use. On 114, 117 and 121, as well as 128, 129 and 130, it's no on copyright infringement. On 123, it's yes on copyright infringement, no on fair use. 131, yes on copyright infringement, yes on fair use. 132 and 133, yes on copyright infringement, no on fair use. 134, 135 and 136, no on copyright infringement. 137, 138 and 139, yes on copyright infringement, no on fair use. On 140, 141, skipping to 144, 145, 146 and 147, it's no on copyright infringement. On 142 and 143, as well as 149, 150, 153 and 154, it's yes on copyright infringement and no on fair use. On the following, it's yes on copyright infringement and yes on fair use. That's 148, 151, 152, 156 -- excuse me -- 155, 156 and 157. On 158, it's no on copyright infringement. 159 and 160, it's yes on copyright infringement and no on fair use. And on 163, it's yes on copyright infringement and yes on fair use. And the damages awarded on copyright infringement is

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$25,000. On the trademark claims, I'm going to do it the same way basically. So there's a 1 through 9, and on the first 1 through 9, numbers 1, 3, 4, 5, 6, 7 and 8 are yes on trademark infringement and yes on fair use. 2 and 9 are no on trademark infringement. Then there's 1 through whatever. On 1 and 2 -- or on number 1, yes on trademark infringement, no on fair use. On 2, yes on trademark infringement, yes on fair use. On the following ten products, it's no on trademark infringement. That would be 3, 6, 7, 8, 10, 11, 12, 14, 15 and 16. On the following four, it's yes on trademark infringement but yes on fair use. That would be 4, 5, 9 and 13. On the following two, it's yes on trademark infringement and no on fair use. That's 17 and 19. On 18 and 20, it's yes on trademark infringement and yes on fair use. On 21 and 22, it's no on trademark infringement. I'm closing in on the end here. On 23, it's yes on trademark infringement and yes on fair use. 24 is no on trademark infringement. Number 25, 27, 29 and 30, it's yes on trademark

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infringement and no on fair use. On 26 and 28, it's yes on trademark infringement and yes on fair use. On 31, 34 and 38, it's no on trademark infringement. On 32 and 33, 40 and 43, it's yes on trademark infringement and yes on fair use. On the following seven products, 35 -- excuse me -following seven trademarks, 35, 36, 37, 39, I guess it's -right -- 41, 42 and 44, it's yes on trademark infringement and no on fair use. If I didn't do 40 and 43, on both of those it was yes on trademark infringement and yes on fair use. 45 is no on trademark infringement. 46 and 51 are yes on trademark infringement and yes on fair use. 47, 48, 49 and 50, as well as 53 and 54, are yes on trademark infringement and no on fair use. 52 is no on trademark infringement. The following products are yes on trademark infringement and no on fair use. That would be 55, 57, 58, 59, 60, 61 and 62. And then on 56, it's no on trademark infringement. And now we're to the last category, which are the -and this is pages 14, 15 and 16. Okay. So it looks like there's seven on which there's a finding of no on trademark

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infringement. That would be 1, 3, 5, 8, 13, 14 and 17. There are three products on which there's a finding of yes on trademark infringement and yes on fair use. That's 2, 4 and 10. And then on the rest of them, there's a finding of yes on trademark infringement and no on fair use. That's 6, 7, 9, 11, 12, 15, 16, 18, 19, 20 and 21. I've reached the end. The verdict form is signed by all 12 jurors. It will be made a part of the record. We'll talk about the entry of judgment. We're not going to need to do it right away. It's complicated, obviously. So that completes your service in this case. I know it was difficult. If anybody has any doubt about that, it's shown by me just reading that verdict form. You had a lot of work to do. I very much appreciate all of the time and effort you put into this. It was two full weeks of your time. That's a lot of time. As I said at the beginning of the case, and I really mean it, the system doesn't work unless people are willing to step up to the plate and serve, and you did, and I appreciate it, as does -- and I speak on behalf of our whole Court and I'm sure on behalf of the parties as well. You're excused from further service. You're done with your two weeks. You don't have to worry about calling in anymore. I have to spend literally a couple minutes with the

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lawyers. I know it's getting close to 3:00 in the afternoon. If anybody needs to leave, just go. I'd like to come back and talk to you and answer any questions you might have and thank you personally and find out if there is anything we can do to improve the service other than fixing that darned door, which is going to be fixed for the fourth time over the weekend. But you're excused at this time, and I thank you for your service. THE MARSHAL: All rise. (Jury excused.) THE COURT: I know there's going to be some injunctive relief claims, and we need to figure out how to deal with that. So you guys are going to get a copy of this verdict form before you leave here now. I'm going to have you come in for a status next -Just a second. I've just got to check a date here before I do something stupid. Yes, I'm going to have you come in at 9:30 on Thursday. That's the 20th. You will decide whether it's the local person or the out-of-town person, Mr. Keener. It's fine with me. You will figure out how to do it. I want you to confer before that so that you can present to me either an agreed upon process or your competing or your respective views on how we deal with the injunctive relief claims, okay, in terms of, you know, is there more evidence that I'm going to have to hear of one kind or

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another, are you going to make written submissions, did you want to make oral arguments. You just sort of figure out how you want to do it, and then I'll look at that or I'll think about that and decide it, okay. All right, thanks a lot. Oh, the one other thing I'm going to say, though, here is this. And this is because you know the time under Rule -- the time under Rule 50 and 59 for filing posttrial motions technically speaking runs from the date of the judgment. It's going to be a while before a judgment is entered in here. So I'm directing that any motions relating to the jury verdict, any Rule 50 or Rule 59 motions relating to the jury verdict, are due 28 days from Monday, Monday being the 17th. So they would be due by the 15th of July. I don't know how long it's going to take to deal with the injunction, and I really -- you know, it was a long trial, and I don't want to be worrying about this six months from now after everybody has forgotten what was said. Okay, I will see you on Thursday. Thanks. (Which were all the proceedings had in the above-entitled cause on the days and dates aforesaid.)

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/s/ Laura M. Brennan

C E R T I F I C A T E I hereby certify that the foregoing is a true and correct transcript of the above-entitled matter.

June 14, 2013

Laura M. Brennan Official Court Reporter Northern District of Illinois

Date