I COPYRIGHT ROYALTY TRIBUNAL lXL UI I 1 I I In the Matter og ~ CABLE COPYRIGHT ROYALTY CRT 85-4-84CD DISTRIBUTION PHASE II (This volume contains page 646 through 733) 10 llll 20th Street, Northwest Room 458 Washington, D. C. 12 Friday, October 31, 1986 13 The bearing in tbe above-entitled matter was reconvened pursuant. to adjournment, at 9:30 a.m. BEFORE EDWARD.W. RAY Chairman 20 MARI 0 F . AGUERO Commissioner 21 J. C. ARGETSINGER Commissioner 23 ROBERT CASSLER General Counsel 24 HEAL R. GROSS COURT REPORTERS AND TRANSCRIBERS 1323 RHODE ISLAND AVENUE, IW.W. {202) 234-4433 WASHINGTON, D.C. 20005 {202) 232-6600 647 APPEARANCES: 2 On beha'lf of MPAA: DENNIS LANE, ESQ. Wilner R Scheiner Suite 300 1200 New Hampshire Avenue, Northwest Washington, D. C. 20036 6 On behalf of NAB: JOHN STEWART, ESQ. ALEXANDRA WILSON, ESQ. Crowell S Moring 1100 Connecticut Avenue, Northwest Washington, D. C. 20036 On behalf of Warner Communicate.ons: ROBERT GARRETT, ESQ. Arnold a Porter 1200 New Hampshire Avenue, Northwest Washington, D. C. 20036 13 On behalf of Multimedia Entertainment: ARNOLD P. LUTZKER, ESQ. 15 Dow, Lohnes a Albertson. 1255 23rd Street, Northwest. Washington, D. C. 20037 On bahalf of ASCAP: I, FRED KOENIGSBERG, ESQ. Senior Attorney, OGC One Lincoln Plaza New York, New York 10023 20 22 23 24 HEAL R. GROSS COURT REPORTERS AND TRANSCRI8ERS I323 RHODE ISLAND AVENUE, N.W. (202) 234-4433 WASHINGTON, D.C. 20005 (202) 232-6600 648 CONTENTS WITNESS DIRECT 'CROSS VOIR 'DI'RE TR'QBUNAL 3 , ALLEN R. COOPER 649,664 By Ms. Wj,lson 650 5 Mr. Garrett, 653 , By I I 6 . By Mr. Lutzker I '70,681 7 , By Comm. Argetsinger l 8 By Chairman Ray 675 I S l By Comm. Aguero 679 il 10 By Mr. Garrett 682 ; 0 11 ,'i By Mr. Lutzker 714 12 Ms. Wilson I By 727 I 13 14 'XHIBITS IDENTIFIED I 15 MPAA Ex. 4 Addition to Ex. 4 666 16 I 17 ;Multimedia 2-X CDC Station List 716 I lS INAB Ex. II-3-X 728 g0 I I 23 24 25 HEAL R. GROSS COURT REPORTERS AND TRANSCRIBERS 1323 RHODE ISLAND AVENUE, N.W. (202) 234-4433 WASHINGTON, D.C. 20005 (202) 232-6600 P R 0 C' E D I' G S ( 9 : 3 0 a ,m , ) 3 CHAIRMAN RAY : Good morning . 4 I Mr. Lane, before you present your witness, again, I for the record,, we want, to state that whexever there are I questions, cross and answers on issues that. have been 1 7 ! before us for the past six or seven years, and where the I 8 : Tribunal has already made determinations over and over 9 again, unless you have new evj.dence, either on direct, or 10 later on rebuttal, then the Tribunal, in its own discretion, I 11 ; will cut. short .the process. 12 Xt j.s a terrible waste of resources, both for j, 13 the CRT and for parties. Mr. Lane. MR. LANE: We would like to call Allen Cooper '.to the stand. I 17 CHAIRMAN RAY: Mr. Cooper. Would you please 18 raise your right hand? I I I 19 ',Whereupon, 00 ALLEN R. COOPER I 21 was called as a wj,tness and, having first. been duly swo'rn, 22 was examined and testj,fied as follows: 23 DIRECT EXAMINATION BY XR, LANE: 25 Q Would you state your name for the record., please? HEAL R. GROSS COURT REPORTERS AND TRANSCRIBERS I 1323 RHODE ISLAND AVENUE, N.W. (202) 234-4433 WASHINGTON, D.C. 20005 (202) 232-6600 ,I 650 A I am Allen R. Cooper. Q And by whom axe you employed, Mr. Coopex? 3 I A By the Motion Pictuxe Association of America.. Q And what. is youx position with the Motion Picture 5 Association? A I am Vice President, Technology Planning and 7 'valuation. I I 8 Q Xn light of the Chairman's statement, I think 9 : that, your qualifications are well known to the Tribunal, I 10 ',: based on past, and won'. thx'ough ,I proceedings, I go that. I 11 Did. you pxepare the testimony of Allen R. 'I 12;'Cooper that. has been presented in this proceeding? I. 13 A I dido 14 9 And the six exhibits that go .with that testimony? I 15 A Yes, X did, sir. MR. LANE: This is an appropriate time for voir I jl 17 dire, Mr. Chairman. CHAIRMAN RAY: Okay. X believe NAB. MS. WILSON: Thank you. VOXR DXRE EXAMINATION 21 BY NS. WILSON; 22 Q Good morning, Mx. Cooper, my name is Sandy Wilson, 23 and I am representing the National Association of Broad- castex's, 25 A Good morning. HEAL R. GROSS COURT REPORTERS AND TRANSCRIBERS 'I323 RHODE ISLAND AVENUE, N.W. (202) 234-4433 WASHINGTON, D.C. 20005 (202) 232-6600 Q I have just, a few questions- fox you on voir dire. First of all, just. to reiterate, turning to the 3 t testimony of Allen R. Cooper on behalf of 86 MPAA-repre- sented program suppliers, you wrote the statement, is that. right? A I dxd Q And you wrote it. prior to September 29th, l986, is that right? A I wrote it prior to September 29th, l986. 10 Q And since NAB's Phase II direct. case was not. ,I 11 . filed prior to Septembex 29th, 1986, you obviously did not t 12 'have, NAB's written direct case at the time you px'epaxed I 13: your'est 3.mony,. xs that x'j.ght? I A Obviously, yes. Q Thank you. MS. WILSON: Mr. Chairman, those are all the l questions I have on voix dire. I would like to make a motion to strike at this 'ime, if this is an appropriate time to do so. I CHAIRMAN RAY: Yes, it is. MS. WILSON: I move to strike all of the testi- mony that. follows the heading NAB-Represented Broadcasters, and, that. begins on page 8, CHAIRMAN RAY: Page 8? MS. WILSON: Y'es, that'.s right. HEAL R. GROSS COURT REPORTERS AND TRANSCRlBERS 1323 RHODE lSLAND AVENUE, N.W. WASHINGTON, D.C. 20005 (202) 232-6600 652 CHAIRMAN RAY: Now, repeat that, on page 8 MS, WILSON: You. see the heading NAB-Represented Broadcasters, I move to strike all .of the testimony that 4 follows that, so that, would be the rest of the I page 8, I rest of page 9 an d all of page l0 as well. And I have two reasons for moving to strike this 7 '! testimony. ! 8! CHAIRMAN RAY: If you would, do you have a 9 ,'motion to strike any other portion? 1n MS. WILSON: No, this is all. CHAIRMAN RAY: Well, then we would like to hear 12 yom'easons. 13 MS. WILSON: Okay, I have two. The first is 14 i that this is obviously rebuttal testimony, it is designed I 15 'o attack NAB's direct case and it was clearly speculative 16 . at the time it. was written. Mr. Cooper has just testified, ! 17 and in fact, the first sentence of this section says that 18 he did not have before him the specific facts and evidence 19 'that, NAB has presented in its Phase II 1984 direct case. I 2P So, this is obviously all anticipatory rebuttal, I 21 ~ and is improper to be offered at this time. i I n Xn addition, we believe that it. would be a waste 23 of the Tribunal's time to covex this material now.- :.Dgj."fag 24 the cross-examination of Dr. Maguixe the othex day, thexe 25 ! were several cross-examination exhibits introduced by MPAA HEAL R. GROSS COURT REPORTERS AND TRANSCRIBERS 1323 RHODE ISLAND AVENUE, N.W. {202) 234-4433 WASHINGTON, D.C. 20005 {202) 232-6600 ! 653 1 and I believe cross-examination Exhibits 9-X, 3!O.-X gpd 11-X, and. they are directed at issues specifically 3 I addressed by"Mr. Cooper in this testimony. For example, if you turn to page 9, there j.s 5 , a little chart here, and the cross-examination exhibits t 6 are obviously intended, to explore this area further during t 7 the rebuttal phase. 8 So, we think just for puxposes of moving the 9 ,'earing along it would be better if we consolidated this I I 10 .'estimony during rebuttal, since that seems to be the 1 11 :;appropriate time in the hearing to do so. I 1'2 I move to strike all of this. j, 13 CHAIRS BAY: All right, prior to hearing com- 14 !ments from Mr. Lane, let's go to the other parties and 1 15 'we will do it all at one time. I Warner? 17 MR. GARRETT: Are you asking for my comments on I 18 the TI)otion7 I I CHAIRMAN RAY: No, no, voir dire. We will have 20 ;comments from each party at. the close of voir dire. I 21 VOIR DIRE EXAMINATION BY MR. GARRETT: 23 Q Good morning, Allen. A, Good morning, Bob. Q Allen, let me ask you to tuxn to your HEAL R. GROSS COURT REPORTERS AND TRANSCRIBERS 1323 RHODE ISLAND AVENUE, N.W, (202) 234-4433 WASHINGTON, D.C. 20005 (202) 232-6600 654 supplemental testimony concerning the garner RecoX'ds 2 claim. A (Perusing documents) I have it, sir. Q You have it before you now, Allen? A j. do Q Allen, as X undexstand it youx testimony px'e- 7 I sents NPAA's poSition in opposition to Warner's claim, 8 ! is that coxxect? A That's correct.