~ "'-

2 Je~erA.
4
I

Andrew P. Bridges, State BarNo. 12276.1 IlRich.ard Nessary, State Bar No. 180682

3 AlexanderD. MacGillivray, StateBar No. 212770
650 PageMill Road 5 Palo Afto, CA 94304-1050
1

Golirivea~ State Bar No. 203056 Tern Y. Che~ ~tate BarNo. 209854

Wll.,SON SONSINI GOODRICH & ROSATI Professional Co:rporation

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8
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I Teleph<;>ne: (650) 493-9300

Facsimile: (650) 493-6811
Fred. von Lohnlan,n" State Bar No. 192657 Robm D. Gross~tate Bar No. 200701
ELECfRONICrKONTIERFOUNDATION

7 Cindy A. Cohn, StateBar No. 145997

10 Teleph<;>ne: 436-9333 123 (415) x Facsimile:(415)436-9993
I

I SanFrancisco CA 94110
:

454

Shotwell

Street

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12 Jeffrey K. Compto~ StateBar No. 142969 13 MaxJ. ~precher\StateBarNo.169285 LINER Y ANKELEVITZ SUNSlllNE & REGENSTREIF 14 3130 Wilshire Boulevard.Suite200 Santa Monic~ CA 90403 I Telephone:(310) 881-2192 15 Facsimile: (310) 453-5901
1

'JosephR. Taylor, StateBar No. 129933

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16 Attom~s for Defendants
I

17 MusicCity.com, Inc. (now known as

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19

MusicCity Networks, InC.

Stream CastNetworks~lnc.)and

UNITED STATESDISTRICT COURT 20

CENTRALDISTRICTOFCALIFOR~

WESTERN DMSION

21
22 STUDIOSINC., et aI., 23 Plaintiffs, 24
vs.

METRO-GOLDWYN-MA YER

CaseNo. 01-08541SVW (pJWx)
lvIEMORANDUM OF POINTS AND AUTHORITIES OF DEFENDANTS STREAMCAST NETWORKS, INC. (FOR1vlERL Y KNOWN AS MUSICCITY .COM INC.) AND MUSICCITYNETWORKS INC. IN SUPPORT OF MonON FOR PARTIAL

25 GROKSTER,Lill., et al.,
16

Defendants.

27 28

l.

DECLARAnONS OF DARRELL Slvfirn.Wll..LIAMCLA Y SmRKY ANDREW P. BRIDGES,G~GOR Y

SU1\I1IvIAR Y JUDG:MENT.

,...

'"'"'

NEWBY M. TALLY GEORGE SEAN

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3 4
5

L. MA %RS, JOHN PERRY BARLOW, BREWSTER KAm..E. RICHARD

PRELINGEK STEVEW. GRIFFIN AND
RICHARD NESSARY IN SUPPORT OF

MOTION

6
,. 8 9
.1.0

rNotice of Motion and MorioI!, and Statement of Uncontroverted Facts and Conclusions of Law, filed concuuently herewith] Date: Time: Ctml:

Feb.ruary 25,2002 1:30 p.m. 6 (Spring'Street) Hon. Stephen Wilson V.

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24 25 26 27

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Memoran urn m

0082006/001/90045v1

(pJWx)

1 I, Darrell Smith, herebydeclare:

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3

1.
2.

Mynameis Darrell Smith. I residein Scottsdale,Arizona.
I am the Chief TechnologyOfficer of MusicCity. I am the chief

4 softwaredeveloperat MusicCity for the softwareprogram called "Morpheus." 5
3. Before working with MusicCity, I was Vice Presidentof Development

6 at Motion Pixel, Inc. and Sirius Publishing,Inc., where I developedadvanced 7 video compression playbacksoftwarefor usein the telecommunications, and 8 personalcomputersandmotion picture industries.
9 4. The Morpheussoftwareprogramis a communicationstool that allows

0 usersto connecttogetherto form a usernetwork. Using the Morpheussoftware
program,usersmay searchfor and shareany kind of computerfile (including text, 12 images,audio, video, and softwarefiles) with any other user of the network. The

3 network itself createsindexesof resources availableto it, without relying upon a
14 central serverto index the entire network. The Morpheussoftwareprogramalso 5 hasthe ability to sendand receiveinstantmessages within the network, to organize

6 media files on one's own computer,andto display or play the contentsof media 17 files on one's computer. 18
20

5.

The network createdby usersof the Morpheussoftwareprogram(and

19 the programsof the other defendants) "self-organizing," in that the users is communicatewith eachother without assistance from MusicCity. The network 21 itself sharesand updatesinformation, and allocatesdifferent resources needed. as 22 24

6.

The usernetwork consistsof usersof the Morpheus,KaZaA, or One particularly useful and innovative featureof the network created

23 Grokster softwareproducts.

7.

25 by usersof the Morpheussoftwareprogramis the "dynamic," or variable,useof

26 "supernodes." A "node" is an end-pointof the Internet,typically a user's
27

computer. A "supernode"is a nodethat hasa heightenedfunction, accumulating

28 information from multiple other nodes. In the network created by users of the

---

-2-' CASE NO.: 01.08541 SVW (PJWx)

1411 .~..
FOR PARTIAL SUMMARY JUDGMENT

DECLARATION OF DARRElJ. SMITH IN SUPPORT OF DEFENDANT'S ManON

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and may revert to being 1 Morpheussoftwareprogram,nodesbecomesupemodes

2 mere nodesdependingupon network demands the nodes' ability to take on and
3 heaviernetwork duties. The network self-selects supemodes; user's nodemay be a 4 a supemodeone day and not on the following day, dependingon resourceneeds 5 and availability on the network.

6

8.

Supemodes help the network operateefficiently by aggregating

7 information from many nodesso that eachnode,by searchingone supemode,
8 needsto connectwith fewer othernodesto find resources.

9 10

9.

MusicCity doesnot operateany supemodes. When a user installsthe Morpheussoftwareprogram,the program

o.

just 11 comeswith an initial list of supernodes, as a browsergenerallycomespreand 12 loadedwith a list of popular web site addresses Internet serviceproviders. to the 13 When the person'scomputerfirst connects one of the supemodes, supemode 14 updatesthe initial list that camewith the program. 15 11. When a user first operates Morpheussoftwareprogram,it interacts the 16 briefly with MusicCity's serverto establisha usemameand password. MusicCity or 7 itself doesnot usethe usemame passwordfor any purpose;instead,the 18 usemameidentifies the useruniquely to other memberswithin the user network. If the the 19 the softwarecannotaccess MusicCity server,the usermay still access user20 creatednetwor~ but the user's usemame will not be properly displayedand other

21 userswill not know that this is the sameuserwho has connectedbefore. Indeed,
22

this has happened many times when MusicCity's servershave beenunavailable. 12. After attemptingto submit the user's usemame(and even if

23

24 MusicCity's serveris unavailable),the Morpheussoftwareprogramconnectsto the 2S user-created network by connectingto anotheruserwho is functioning at that time
26

as a supemode.To searchthe network, the Morpheussoftwareprogram sends supemodes with which it communicates.
-31417592 1 DEa.ARAnON OF DARRELLSMl'ni IN SUPPORT DEFENDANT'S OF MOTIONFORPARTIAL SUMMARY JUDGMENT CASENO.:OI~I SVW(PJWx)

27 searchrequests a supemode; supemode to the reportsresultsfrom the nodesand
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1 2

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A user who wishesto locatea file on anotheruser's computerentersa

searchteml into a searchrequestpage. The softwareconnectsthe user to a

3 supemode, which searches other nodesconnected it and, if necessary, to other

4 supemodes.The local supemode then sendsto the requestera list of other userson 5 the network who have files that areassociated with the searchterms.
6

14.

MusicCity hasno involvementin making searchrequests, maintaining

7 file indexes,processingsearchrequests, compiling searchresults,sendingsearch
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resultsto a user,controlling searches displaysof results,or monitoring searches or

9 or displays of results. 10 15. Next, to obtain files, a userof the Morpheussoftwareprogram selects
11 files from the searchresultsand connectsdirectly to the other users' computersand

14 downloadsthe files directly from the otherusers' computers. MusicCity's servers 13 are not involved in identifying locationsthat host user files, requestingthosefiles 4 for transfer,communicatingwith the hostusers,transferringfiles from one userto
5 another,controlling or monitoring transfersof user files, or controlling or .16 monitoring management useof files. MusicCity's servershave no knowledgeof or 7 particular files being transferredamongusers. 18 16. MusicCity's involvementwith useof the Morpheus softwareafter

19 delivery of the softwareis very limited. The softwarecontainstwo components
20 that activatethe user's Microsoft InternetExplorer "browser" softwarewhen the 21 softwareis running on a user's computer,regardless any activity by the user. of 22 One componentcalls on MusicCity's serversto obtain changeable background

23 graphicsforth~ "start" pageof the Morpheususerinterface. The background
24 graphicsmakethe softwareuserinterfaceattractive,give MusicCity the chanceto 25 broadcast messages Morpheussoftwareusers,and permit advertising. The other to

26 componentcalls on other serversof MusicCity or other companies,which send 27 additional advertisements a window at the bottom of the software'suser into 28 interface.
1417592 1 DEa.ARAnON OF DARRELLSMl'ffi IN SUPPORT DEFENDANTSMOnON FORPARnAL SUMMARYffi ooMOO OF -4~

CASENO.:Ol~1

SVW(PJWx)

-28-

1

17.

Both the "start" pagegraphicsandthe advertisements obtainedby are

2 the user's Microsoft InternetExplorer programwheneverthe Morpheussoftware
3 program is running and is connected the usernetwork, regardlessof the activity to 4 of the user. 5 18. Thus, even if one engages no searching,sharing,downloading,or in

6 playing of media files, the graphicsand advertisingwill be displayedon the 7 softwareinterface.
8 19. Oncea userhasobtainedthe Morpheussoftwareprogram,neither

9 MusicCity nor any of its computerserversparticipatesin, or contributesin any 10 way to, the transferof mediafiles on the network createdby usersof the Morpheus
softwareprogram.

12

20.

As notedabove,oncethe user obtainsthe MorpheussoftWare

13 program,MusicCity has no involvementin any of the stepsfor searchingand the 14 transfer of files. In addition,the Morpheussoftwareprogram doesnot IS communicateto MusicCity or its serversany information aboutpossession, receipt,

16 transfer,searching,or indexing of the media files by the user. Nor doesit use 17 MusicCity or its serversto searchfor, index, transfer,download,manage,display 18 or play any files of the Plaintiffs' media content.
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20

21.

To foster a sense community amongusersof the Morpheus of

softwareprogram,MusicCity operates its web site a chat serviceand a at

21 discussionboard,but the Morpheussoftwarehasno direct connectionto those 22 services. A userof the softwaremay click on a link displayedin the "Start" page 23 graphicalinterfacein order to go to MusicCity's web-based chat or discussion
24

services,but the access thoseservicesis through a web interfacethat exists to

25 regardless whetherone arrives from the Morpheusinterfaceor directly from the of

26 web via its Internet address www.musiccity.com. Morpheususernames and
27 passwords not gain access the chat and discussionservices; one must register do to
28

a usemameand passwordseparately thoseservices. for -5DECLARA nON OF DARREll. SMrm IN SUPPORT OF DEFENDANT'S MDnON CASE NO.: 01-48541 SVW (pJWx) FOR PARnAL

1417592)
SUMMAR Y-ruDGMENT

29-

1

22.

In sum,once a userhas installeda copy of the Morpheus software

2 program,MusicCity haSno effective involvementwith or control over what a user 3 doeswith the program.Usersmust electto nm the software,detenninewhat (if
4

any) files they wish to storeon their hard drive or to share,decidewhat bandwidth

5 to allocateto the application,and indicatewhetherthey may be designated serve to

6 as a transientsupemode.Usersdecidewhetherto usethe softwareto join and 7 form a public, user-created network. Usersdecidewhetherto searchfor, find, 8 send,or receivefiles over the user-created network. The Morpheusproduct does 9 not report any information abouta user's conductto MusicCity's servers. It sends
10 only usemame/password information whenthe user startsrunning Morpheus. 1 23. If MusicCity ceased operate,if its serversbecameinoperative(as to

12 has happened occasionowing to technicalmalfunctionsor maintenance) if on or 13 all network connections MusicCity are severed, searching,indexing, to the
4 IS

transferring,downloading,managing,di~lay andplay functions of the software would continueunaffected. 24. The only changes would be that (I) the display of advertisements and

16

7 the display of graphicson the softwareuserinterfacewould be interrupted,and (2) 18 the user's usemame would be displayedon the usernetwork without identifying 19 the user asusing the Morpheussoftwareprogram.
20 25. MusicCity doesnot "operate"the Morpheususernetwork, and it does 21 not operatea file-indexing service. Morpheussoftwareprogram userscan (and,in
22

fact, do) take advantage the program'sfull communicationfunctionality without of

23 MusicCity's continuing involvement. Even when MusicCity's servershavebeen 24 down, Morpheususehasbeenongoing,with Morpheususersable to fmd and 2S download fIles on their own.
26

26.

The Morpheusproduct is widely availablefrom third partieson its

27 user-created network or the Internetat large. MusicCity cannotreliably stop a 28 particular personor computerfrom obtaining a copy of the Morpheusproduct. -61417592 1
DECLARAnON Of DARRELL SMmi IN SUPPORT OF DEFENDANT'S MOTION FOR PARTIAL SUMMARY JUDGMENT CASE NO.: 01-08541 SVW (pJWx)

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1

27.

A variety of relateddigital technologies, someof which may be used

of 2 in conjunctionwith Morpheus,may equally be accused being "essentialtools" of 3 for copying files and other dataregardless the legal statusof those files. They 4 include:

5

a)
b)

high-speed communications devicessuch asDSL and cablemodems, favoredby thosewho want to downloadvideo or soundfiles; browsersoftware(suchasMicrosoft Internet Explorer or America Online's NetscapeCommunicator),for viewing, editing and copying files that are postedto the Web;

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c)
d)

serversoftware(suchasMicrosoft Internet Iilformation Serverand ApacheHn"P Server)for distributing contentacrossthe Internet mediaplayer software(suchasMicrosoft Media Player), for viewing and displaying mediafiles; e-mail and instantmessaging software,favored by thosewho want to sendor receivefiles privately;

e)

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16 f) g)

internetrelay chat servers,commonlyused for file-sharing activities; news group software(often bundledinto e-mail software),favoredby thosewho want to chooseand downloadmusic and video files from newsgroups; file transferprotocol softwarefor obtaining files over the Internet; scanners, modems,and printers,for thosewho want to copy fax and/ortransmit imagesover the Internet and otherwise;and large-capacity storagedevicessuchas hard drives, CD-ROM burners, DVD burners,and Zip drives, andtheir recording media, favored by thosewho want to keeplibraries of video or soundfiles.

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h}
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28.

AttachedheretoasExhibit A is a true and correct copy of a print-out

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

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

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JAH-21-2882

87:35

PM

DESERT DIRECT

602

494

2869

P.82

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Attached hereto as Exhibit B is a true and correct copy of a print-out

of the screendisplay of the Morpheussoftware program's J'Search"interrace. I declareunder penalty of perjury under the laws of the United Statesof America that the foregoing is true and correct and that this:declaration is executed

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Arizonaon ~"d~"1 s in Scottsdale, 6 7
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t

2002.

r..I

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DarrcllSmith

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2H
~ mN -op-DAU.EU. -8SMn1i ~ SUPPORT DEPBNDANT'S ManoN 0' CASIII«>': OI~l SVW (PJWx) 1417-"2_1 R)R t ;,anAL SUMMAR V JUOOMEHr

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